Kuaishou beats estimates as Kling AI video generator’s revenue jumps 300%
AI unit has annual recurring revenue run rate of roughly US$500 million, Kuaishou says
Overall revenue grew 3.4 per cent, but Kling’s revenue surged more than 300 per cent to 650 million yuan in the period, the company said on Wednesday.
“AI technologies continued to provide the momentum for our content prosperity, business growth and organisational efficiency improvement,” Kuaishou said, adding that Kling had claimed the top position in the App Store across 42 markets, including Brazil and Germany.
Kuaishou co-founder and CEO Cheng Yixiao said in an earnings call on Wednesday that Kling’s fast growth was driven by both corporate and individual users, and that the AI tool had found wide use in marketing, film, television, short drama and games.
The company reported a profit of 3.4 billion yuan for the quarter, down 26 per cent from a year earlier but beating the estimate of 3 billion yuan.
Chief financial officer Jin Bing said the company expected capital expenditure to reach 26 billion yuan for the year, adding that it had “taken proactive measures to build advanced procurement and inventory buffers amid rising computer power prices”.