HONG KONG - Kingsoft Corporation Limited (NASDAQ: KC) reported better-than-expected third quarter results on Tuesday, with revenue and earnings surpassing analyst estimates, sending shares up 3.92% in premarket trading Tuesday.
The Chinese software and internet services company posted revenue of RMB2.91 billion ($405 million) for the quarter ended September 30, up 42% YoY and 18% sequentially. This topped the consensus estimate of RMB1.88 billion. Kingsoft reported an adjusted loss per share of RMB0.22, significantly narrower than analysts' expectations for a RMB1.07 per share loss.
Online games and other services were the main growth driver, with revenue in that segment surging 78% YoY to RMB1.71 billion. The company cited strong performance from its JX3 Online game and the successful launch of JX3 Ultimate. Office software and services revenue grew 10% YoY to RMB1.21 billion.
"In the third quarter, fueled by the robust performance of our game products, the Group achieved significant growth in both total revenue and operating profit, both reaching a record high," said Tao ZOU, Chief Executive Officer of Kingsoft.
Looking ahead, Kingsoft expects "accelerated growth" in total revenues for the fourth quarter, driven by its public and enterprise cloud businesses. The company also anticipates further improvement in profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.