Shares of Kingsoft Cloud (NASDAQ:KC) have tanked today, down by 9% as of 12:45 p.m. EDT, after the company reported second-quarter earnings. Revenue was in line with expectations and Kingsoft lost less money than expected.
Revenue in the second quarter was 1.53 billion yuan ($217.2 million), which was right on target with Wall Street's expectations. The Chinese tech company, which provides cloud services, posted an adjusted net loss of 237.7 million yuan ($33.6 million), or 0.19 yuan ($0.03) per share. The consensus estimate had called for an adjusted net loss per share of 1 yuan.
"We will continue to invest in technology, such as edge computing, big data, transcoding and others," CEO Yulin Wang said in a statement. "We are confident that our cutting-edge technology and ability to effectively execute our strategy will ideally position us to capture the growth opportunities the cloud industry will create in the future."
"Despite the uncertain macroeconomic environment, we are pleased to see that we are consistently delivering faster revenue growth than the general public cloud industry in China and continued to improve our bottom-line performance," CFO Henry He added. "It demonstrates our ability to provide quality services to our customers even in challenging market conditions."
In terms of guidance, revenue in the third quarter is forecast in the range of 1.67 billion yuan to 1.74 billion yuan, which represents growth of 67% to 74%.