Kuaishou Technology's revenue beat estimates, holding its own against a slowing Chinese economy and competition from TikTok owner ByteDance Ltd.Revenue was 23.13 billion yuan ($3.2 billion) for the three months ended September, compared with the average analyst projection for 22.6 billion yuan.
Net loss came in at 2.7 billion yuan, versus the estimated loss of 3.7 billion yuan.China's largest short-video company after ByteDance is struggling with sluggish consumer spending and strict Covid restrictions, while competition intensifies from Tencent Holdings Ltd.'s WeChat and Bilibili Inc.
Chinese retail sales contracted 0.5% in October in their first decline since May, falling short of expectations for slight growth.Like its bigger internet foes, Kuaishou has initiated aggressive cost-cutting measures in recent quarters, scaling down marketing expenses, especially in overseas markets.
The Beijing-based outfit now targets making its domestic division break even on an adjusted net income basis this year.“The weak macro environment will likely continue to drag on the stock in the near term,” Daiwa Capital Markets analysts led by Carlton Lai wrote in a note before the results. “The key focus for Kuaishou remains domestic margin improvement and monetization progress in overseas markets, particularly Brazil.”Chinese tech stocks climbed this month after investors cheered signs of policy shifts in the Communist Party's stance on fronts ranging from its pandemic playbook to real estate prices and ties with the White House.Read more on tech.hindustantimes.com