Kuaishou executives interpret Q2 financial report: The grayscale test of the mall’s first-level entrance will gradually advance to the second half of the year

Kuaishou today released its financial report for the second quarter of 2023 as of June 30. The report shows that Kuaishou’s revenue in the second quarter reached 27.74 billion yuan, a year-on-year increase of 27.9%, and the estimated revenue is 27.29 billion yuan. The adjusted net profit was 2.69 billion yuan, and the estimated net profit was 1.43 billion yuan. Compared with the same period last year, the loss decreased by 1.312 billion yuan. Adjusted EBITDA was 4.32 billion yuan, compared with 408 million yuan in the same period last year. After the financial report was released, Kuaishou co-founder, executive director and CEO Cheng Yixiao, CFO Jin Bing and other senior executives attended the subsequent financial report conference call, interpret the key points of the financial report, and answer analysts’ questions

The following is the main content of the analyst Q&A session of this conference call:

Goldman Sachs Analyst Lincoln Kong: Congratulations to the company on a very strong second quarter. I have a question about e-commerce. We noticed that Kuaishou's e-commerce GMV (gross merchandise transaction volume) and revenue grew very rapidly in the second quarter. I would like to ask the management, how should we view the trend of e-commerce business in the second half of the year? Can you tell us about the current progress and preparations for pan-shelf e-commerce and shopping malls?

Cheng Yixiao: Everyone has always been concerned about the progress of Kuaishou Mall, but as we emphasized to all operators at this year’s “Kuaishou E-commerce Attraction Conference”, Kuaishou’s pan-shelf is an extension of the content field, and it is also an extension of the content field. An important field for Kuaishou e-commerce’s global business strategy. Although e-commerce is still in the testing and volume-starting stages, the GMV of pan-shelf products still achieved high double-digit year-on-year growth in the second quarter.

Specifically, search has always been one of the shelf areas that we attach great importance to. As the e-commerce mentality of Kuaishou users becomes more and more mature, the search function allows users to better meet their deterministic shopping needs.

In the first half of this year, we further optimized the e-commerce infrastructure and empowered the search business; in terms of entrance display, we optimized and guided e-commerce content, strengthened the demand for post-view search, and added more new content. Multiple entrances.

During the big promotion period in the second quarter, we increased the exposure concentration of e-commerce related words, strengthened search recall, and drove the proportion of e-commerce search users to overall search users to continue to increase. At the same time, it strengthens the identification of search intentions, optimizes the display form of materials, and improves the traffic efficiency of the entire link. Kuaishou’s search GMV maintained rapid growth in the second quarter, with a year-on-year increase of more than 90%.

In the second half of the year, we will continue to improve the accuracy of intent recognition and the relevance of displayed products. We hope that through more accurate matching and more refined operations, we can leverage more search demands and strengthen buyer forwarding.

In terms of stores, we have made overall efforts around the four aspects of content field, shelf field, and improving store mentality, and done a good job in receiving traffic in each field. Through the trust of the store, store decoration, and regular hangings Product construction and other optimization of user experience. During the quarter, stores continued to contribute incremental pan-shelf GMV.

In the third quarter, we will continue to optimize the related mechanisms of store infrastructure and traffic, link various e-commerce channels, and better accumulate user needs.

In the second quarter, the mall also made good progress. We have launched measures such as the construction and popularization of product cards and product points on the buyer's homepage. (These measures) have deepened the platform's understanding of products and laid the foundation for the subsequent construction of the mall business. On the supply side, Kuaishou continues to empower malls by operating store hanging items, optimizing product information, and improving explanation playback and other commodity infrastructure; in terms of the introduction of social resources, this year more and more merchants have used pan-shelves as cold storage The main business field in the start-up stage. To sum up, there is more potential to be tapped on the mall side.

In the second half of the year, we will gradually promote the grayscale test of the first-level entrance of the mall and continue to optimize it based on user feedback

. In the long term, we will combine the live broadcast content field, focus on the undertaking of strong shopping properties such as repeat purchases in shopping malls and other pan-shelf areas, and strengthen the operation of key goods, so that the shelves will become a new growth point for Kuaishou e-commerce's global operations. Advertising statement: The external jump links (including but not limited to hyperlinks, QR codes, passwords, etc.) contained in the article are used to convey more information and save selection time. The results are for reference only. All articles on the site contain this statement.

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