Shares of Kingsoft Cloud (NASDAQ:KC) fell as much as 14% today after the company reported third-quarter earnings. The results were mixed relative to analyst expectations, and guidance came in a little light. As of 12:10 p.m. EST, the stock was down 10%.
Revenue in the third quarter was 1.7 billion yuan ($254.6 million), which was shy of the $261.7 million in sales that Wall Street was looking for. That resulted in an adjusted net loss of 169.1 million yuan ($24.9 million), or 0.03 yuan ($0.00) per share. Analysts were modeling for $0.16 per share in red ink. The Chinese technology company, which provides cloud services to enterprise organizations, reported adjusted EBITDA of negative $3.9 million.
"While we experienced strong demand from many existing clients, we also saw the resumption of a number of enterprise cloud projects that had been delayed due to COVID-19," CEO Yulin Wang said in a statement. "In light of the ongoing digital transformation trends and the increasingly rapid roll out of enterprise cloud projects across the country, we will continue to invest in technology and expand our reach into select industries so that we can take advantage of the numerous growth opportunities around cloud computing that lie ahead."
Kingsoft's outlook for the fourth quarter left a little to be desired. Revenue is forecast in the range of 1.88 billion yuan to 1.95 billion yuan ($286.6 million to $297.2 million), compared to the consensus estimate of 1.98 billion yuan ($301.8 million).