Yesterday, Kuaishou announced its 2021 financial report, and last year's net loss reached 18.85 billion yuan, equivalent to a loss of 100 million yuan in two days.
In the first year of listing, Kuaishou did not have the trend of turning losses into profits, and the losses doubled.
Last year's loss was 18.8 billion, equivalent to a loss of 100 million in two days
According to the financial report, Kuaishou's revenue reached 81.08 billion yuan last year. Revenue in 2019 and 2020 was 39.12 billion yuan and 58.78 billion yuan respectively, and its growth rate was very fast.
In terms of business, online marketing services have become the first major business of Kuaishou. The business's revenue reached 42.66 billion yuan last year, an increase of 95.2% from 21.8 billion yuan in 2020. Its share also increased from 37.2% to 52.6%. The revenue of live broadcasting business was 31 billion yuan, a decrease of 2.2 billion yuan from last year.
The earnings report shows that the reason why online marketing services are growing so fast is mainly due to the increase in user traffic and the increase in the number of advertisers. As for the live broadcast business, it is due to the slowdown of the epidemic and the public has basically returned to normal life.
But no matter how much money is earned, Kuaishou is still losing money, even more than in the past.
From 2019 to 2021, its net profit was -1 billion yuan, -7.86 billion yuan and -18.85 billion yuan. A loss of nearly 20 billion yuan a year, this amount of loss, in the Internet giants, can be said to be second only to the US group.
So where is the money spent?
According to the financial report, Kuaishou's sales and marketing expenditure last year was 44.17 billion yuan, accounting for half of the revenue. In 2019 and 2020, it was 9.87 billion yuan and 26.61 billion yuan respectively, accounting for 25% and 45% of the revenue in the same period.
It can be seen that in the era of traffic entering the stock, the competition around traffic acquisition is more intense, and the expenditure of Kuaishou has expanded significantly in terms of promotion and advertising costs.
In terms of operational performance, its average daily active users reached 308 million last year, the average monthly active users were 544 million, and the average online marketing service revenue per daily active user was 138.4 yuan.
Specifically, the number of daily active users in each quarter of 2021 was 295 million, 293 million, 320 million and 323 million, respectively, and the growth in the fourth quarter was almost stagnant.
Stock prices continue to fall, and regulation will become stricter in the future
Faced with last year's huge losses, Kuaishou seems optimistic. At last night's results conference call, its chief financial officer Jin Bing said, "We are very confident that we will achieve a positive net profit after the quarterly domestic business adjustment this year." ”
However, the secondary market may not feel the same way.
Today, Kuaishou's share price continued to decline, and as of the close, the stock price closed at HK$73.6 per share, down 6.24%. At its peak, its market capitalization had evaporated by HK$1,461.8 billion.
The decline in stock prices is not only due to the performance of the financial report, but also to the impact of the general environment.
According to sources, China's regulators are drafting new regulations, planning to set a daily cap of 10,000 yuan per day for the fan tip revenue of network anchors, and consider implementing stricter content censorship on online live broadcasts. People familiar with the matter said that regulators are worried that the desire of young people to become internet celebrities is contrary to values.
At the same time, in response to the chaos of live broadcasting, the relevant departments have formulated and implemented a series of rectification measures, and the "tipping" must be real-name system, and underage users cannot be "tipping" and other standardized management.
If these regulations are really implemented, they may be a fatal blow to Kuaishou.
As we all know, Kuaishou once went out of the circle because of labels such as "earthy taste" and "grounded gas", so that many people had a "dirty and messy" image of it. Even in 2018, it was also named by CCTV News for its underage mother and underage second-child mother anchor.
Three years later, with the increase of the user base, inferior content is still a hurdle that Kuaishou has not completely crossed.
For example, in February, the anchor "Prairie Junniao" was under administrative detention when he was broadcasting live, and his language content was vulgar and suspected of disseminating obscene information.
The tightening of supervision of live broadcasting platforms is a major trend. In this case, it will be a very big challenge for Kuaishou to rely solely on the advertising business to support profitability in the future.
The founder started 33 businesses, and Kuaishou went public and retired as CEO
In fact, Kuaishou's stock price performance has not been very good.
On February 5 last year, Kuaishou landed on the Hong Kong Stock Exchange, reached an all-time high of HK$417.8 per share 14 days later, and then went all the way down. It wasn't until August last year that its share price began to hover at HK$70 per share.
But just two months later, Kuaishou announced an important news. Founder Su Hua no longer serves as CEO, but is succeeded by co-founder Cheng Yixiao. You know, it is not a good thing that the founders of Internet companies have taken a back seat. This pair of Fast Hands is no exception.
Speaking of Su Hua, his life resume is very exciting, and he has been engaged in 33 times just starting a business.
Su Hua was born in 1982 in a small mountain village in Hunan. At the age of 12, when other children were secretly playing games with a learning machine, Su Hua used it to type the first line of code in his life. His interest in programming has influenced his life ever since.
At the age of 18, Su Hua was admitted to Tsinghua Software College with more than 100 points in a line. In addition, I will continue to study for master's and doctoral degrees at the university.
But in the end, he found that the 50,000 yuan he earned by writing code part-time could not even buy a suite in Beijing. In 2005, it was still possible to make a down payment outside the fifth ring road in Beijing, and in 2010, it was only enough to buy a toilet in Yanjiao. Therefore, he resolutely chose to quit school and work.
After working at Google for two and a half years, in order to make more money, he chose to leave his job to start a business.
The first time, he chose to do video advertising on the website, but since there were no investors to buy shares, he quickly failed. In the year after that, he tried 32 projects without success.
In desperation, he entered Baidu as a system architect for Fengchao, and eventually earned a good income.
But the idea of entrepreneurship always haunted his mind, and he returned to the track of entrepreneurship, and succeeded, and also achieved financial freedom. This time, he experimented with search engine-related industries, and was eventually acquired by Ali and integrated with UC Browser.
The product GIF Kuaishou developed by Cheng Yixiao at that time is a drawing tool software that has 900,000 users.
After that, the two met, started a cooperation, and in 2013 transformed Kuaishou into a short video social platform. In the period of rapid popularization of smart phones, short video kuaishou has also grown particularly fast. In 2015, the total number of users of Kuaishou exceeded 100 million.
In 2021, after kuaishou was listed, Suhua also ranked 33rd in the "2021 New Fortune 500 Rich List" with a wealth of 110.29 billion yuan. The idea of buying a house in Beijing can now be realized several times.
Today, Su Hua has retreated to the second line, and Cheng Yixiao has taken over as CEO. Without Su hua's passion for entrepreneurship, the story of Kuaishou will continue to be told. In the face of a loss of 100 million yuan in two days, and the standardized management of live broadcasting in the future, Cheng Yixiao may have a long way to go to help Kuaishou turn a loss into a profit.
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Author 丨FFH
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