The following is a summary of the Kingsoft Cloud Holdings Limited (KC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Kingsoft Cloud's reported Q1 revenues of RMB1.78 billion, marking a 3.1% quarterly increase.

• Adjusted gross profit for the quarter was RMB300 million, a 54% yearly rise.

• Adjusted gross margin rose by 1.6 percentage points quarter over quarter, reaching 16.8%.

• The adjusted EBITDA for the period was RMB33.19 million, which is a substantial improvement over the previous year.

Business Progress:

• For the first time since its establishment, the company turned adjusted EBITDA positive.

• Public cloud services contributed RMB1.19 billion to the revenue this quarter, up 12.9% over the previous quarter.

• Revenue from AI went up 93% quarter-over-quarter, reaching RMB160 million and accounting for 13.5% of public cloud revenues.

• The company focused on the public cloud and healthcare sectors and formed the fully-owned subsidiary Kingsoft AI.

• Mild growth is expected in future quarters due to diversified AI business demand, and a significant increase in AI-related investments, including capital and R&D expenses is planned for 2024.

• The company plans to expand its client base to include legal, auditing, internet, financial services, and other public sector clients as AI application utilization increases.

More details: Kingsoft Cloud IR

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