On May 27, Kuaishou Technology ("Kuaishou" or the "Company"), a chinese content community and social platform, released its Q1 2025 financial report, with total revenue reaching CNY 32.6 billion, a year-on-year increase of 10.9%. Adjusted net profit was CNY 4.6 billion , with an adjusted net profit margin of 14%.
Source: Kuaishou Technology Q1 2025 Financial Report
On May 27, Kuaishou Technology ("Kuaishou" or the "Company"), a chinese content community and social platform, released its Q1 2025 financial report, with total revenue reaching CNY 32.6 billion, a year-on-year increase of 10.9%. Adjusted net profit was CNY 4.6 billion , with an adjusted net profit margin of 14%.
By region, the domestic division's operating profit increased from CNY 4 billion in the same period last year to CNY 4.3 billion , a growth of 7.5%. The overseas division's operating profit reached CNY 28 million , a significant improvement from a loss of CNY 268 million in the same period last year, marking its first positive operating profit in a single quarter. Overseas total revenue in Q1 was CNY 1.32 billion, a year-on-year increase of 32.7%.
The growth of Kuaishou's overseas business was mainly driven by improved customer acquisition efficiency and enhanced monetization capabilities. In customer acquisition, Kuaishou focused on targeted delivery to high-value audiences, with daily active users in Brazil, one of its core overseas markets, steadily increasing. Combined with long-term optimization efforts in algorithms and traffic, the average daily usage time of users in Brazil has consistently increased year on year.
In terms of monetization, Kuaishou’s core advantage lies in localizing content, which has helped advertisers build a new content marketing paradigm with a multi-product matrix, precisely reaching target user groups. Online marketing revenue continued to grow rapidly year on year. Additionally, Kuaishou's e-commerce business in Brazil achieved healthy year-on-year growth in order volume while strictly controlling ROI.
Kuaishou’s international strategy has shifted from large-scale expansion to differentiated, refined operations focusing on resource allocation. In 2016, Kuaishou launched its international short video platform Kwai in regions such as Russia and South Korea. In 2017, Kuaishou formed an international team and began independent operations. In October 2017, Kwai surpassed 10 million downloads in South Korea, ranking first in video editing app downloads for eight consecutive days. Kwai also performed well in Russia and Southeast Asia.
However, due to operational issues such as content management, Kwai faced significant user attrition. In 2019, Kuaishou launched Zynn and Snack Video in North America and Southeast Asia. The large-scale subsidy model of Zynn, which aimed to attract users, did not comply with local platform rules and was soon taken down. In October 2021, Kuaishou decided to reduce costs and improve efficiency, shifting its overseas business focus from expansion to contraction, concentrating resources for refined operations in Latin America and Southeast Asia. In 2022, Kuaishou's international division underwent a series of organizational adjustments and established the International Commercialization Department.
Cheng Yixiao, co-founder, chairman and CEO of Kuaishou emphasized the need for phased, regional, and differentiated approaches to find sustainable growth opportunities in overseas markets. Brazil and Indonesia were identified as priority commercialization areas for commercialization . Currently, Kuaishou is accelerating its expansion in the Middle East, North Africa, Brazil, and Southeast Asia.
For Kuaishou, expanding global business requires facing multiple challenges: initial advertising investment and user subsidies are indispensable, localized operations teams are crucial, and continuous, precise research on local user preferences is necessary. This not only tests the company's resource reserves but also requires long-term commitment. Observing Kuaishou’s internationalization process shows that its overseas strategy is still in the stage of model validation.
Kuaishou is a Chinese content community and social platform driven by artificial intelligence and technology, working closely with content creators and businesses to meet users' diverse needs, providing services including entertainment, online marketing, e-commerce, local services, and gaming.