China’s second-largest short video company Kuaishou Technology’s revenue beat estimates in the fourth quarter of last year, flying in the face of China’s economic downturn and intensifying competition with rival and TikTok-owner ByteDance, reports Caixin.
Kuaishou is joining its peers in embracing a new era of cautious expansion in the country’s giant internet sector. Its online advertising business is coping with Beijing’s broad scrutiny of industries like insurance and edtech, while livestreaming and e-commerce could suffer from shrinking consumer appetite during Covid-19 lockdowns.
Sales rose 35% to RMB 24.4 billion ($3.8 billion) for the three months ended December, beating the RMB 23.1 billion projected by analysts. The net loss narrowed to RMB 6.2 billion, compared with the estimated RMB 6.3 billion loss, helped by government grants and tax subsidies typically awarded to up-and-coming Chinese software businesses. The company also took a big hit from fair value changes in preferred shares in the year-earlier quarter.