Hudson Technologies Inc (HDSN) Q4 2024 Earnings Call Highlights: Navigating Market Challenges ...
Full Year Revenue: $237 million, slightly below the revised target of $240 million.
Full Year Gross Margin: Achieved target of 28%.
Cash Position: $70 million with no debt as of December 31, 2024.
Stock Repurchase: $8.1 million of common stock repurchased in 2024.
Fourth Quarter Revenue: $34.6 million, a 23% decrease compared to the 2023 quarter.
Fourth Quarter Gross Margin: 17%, down from 31% in the 2023 quarter.
Fourth Quarter Operating Loss: $3.2 million compared to operating income of $4.7 million in the 2023 quarter.
Fourth Quarter Net Loss: $2.6 million or $0.06 per share, compared to net income of $3.9 million or $0.09 per share in the 2023 quarter.
Full Year Net Income: $24.4 million or $0.54 per basic and $0.52 per diluted share, compared to $52.2 million or $1.15 per basic and $1.10 per diluted share in 2023.
Refrigerant Sales Volume: Increased slightly over 2023, but offset by declining market prices.
DLA Contract Revenue: $36 million in 2024, slightly ahead of expected normal purchasing levels.
SG&A Expenses: $33 million in 2024, up from $30.5 million in 2023, including costs from the acquisition of USA Refrigerants.
Net Interest Income: $500,000 in 2024, a shift from $8.4 million of net interest expense in 2023.
Reclaim Activity: Increased by 18% in 2024.
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Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Hudson Technologies Inc (NASDAQ:HDSN) achieved a full-year gross margin target of 28%, despite challenging market conditions.
The company strengthened its balance sheet, ending 2024 with $70 million in cash and no debt.
Hudson Technologies Inc (NASDAQ:HDSN) repurchased $8.1 million of common stock in 2024, demonstrating confidence in its financial position.
The company has a diverse customer base, allowing it to perform better than the market despite a decline in HFC pricing.
Hudson Technologies Inc (NASDAQ:HDSN) increased its overall reclaim activity by 18% in 2024, positioning itself well for future demand for reclaimed refrigerants.
Full-year revenue of $237 million was slightly below the revised target of $240 million.
HFC pricing in 2024 declined up to 45%, impacting the company's revenue and gross margins.
The company recorded a net loss of $2.6 million in the fourth quarter of 2024, compared to a net income of $3.9 million in the same quarter of 2023.
Fourth-quarter revenue decreased by 23% compared to the same period in 2023, primarily due to lower refrigerant market prices.
Operating income for 2024 was significantly lower at $29.3 million compared to $78.2 million in 2023, reflecting the decline in refrigerant prices and tough comparisons with the previous year.
Q: How much visibility does Hudson Technologies have into the channel, and can they see upstream destocking as it develops? A: Brian Coleman, CEO, explained that they expect inventory totals for 2024 to be lower than 2023 due to a 30% reduction in allowances. However, upstream inventory balances are still significant, and they are cautious about 2025. Prices may change as they approach the cooling season, with more clarity expected by April or May.
Q: With inventories at $96 million, is Hudson Technologies in good shape, or will they continue to purchase aggressively? A: Brian Coleman, CEO, stated that they manage inventory levels to sell within the next season, not carrying a full year's worth. Inventory dollars are coming down due to price rather than volume, and they aim to reload inventory at lower prices. They expect further room to lower inventory dollars based on price alone during the 2025 sales season.
Q: How does the distribution of virgin gas impact Hudson's revenue and business operations? A: Brian Coleman, CEO, noted that HFCs are still dominated by virgin supply, and this is true for Hudson as well. While they can access reclaimed HFCs, the percentage is still in single digits relative to overall HFC demand.
Q: Has there been any impact on the DLA contract from administrative changes, and what is the outlook for the contract renewal? A: Brian Coleman, CEO, mentioned that there are no administrative activities negatively impacting the DLA contract outlook for 2025. The successor contract bid proposals were submitted later than expected, with results likely in the latter part of 2025. They anticipate revenue from the contract to be in the low to mid-30s for 2025.
Q: How might tariffs and trade wars impact Hudson Technologies, particularly regarding refrigerant allocations for 2025? A: Brian Coleman, CEO, explained that large tariffs already exist on Chinese-produced HFC refrigerants. The impact may be more direct on steel tariffs, affecting cylinder costs. They expect to pass these price increases through the channel, as other suppliers are likely to do the same.
Q: How will the transition to new OEM equipment with hybrid refrigerants impact inventory levels and destocking pace in 2025? A: Brian Coleman, CEO, stated that the transition to lower GWP systems is causing market disruption, but the industry should catch up with availability soon. There will be a sell-through of legacy equipment, and supply issues should resolve in the coming months.
Q: What is the outlook for reclaiming new refrigerants, and how does it compare to virgin HFCs? A: Brian Coleman, CEO, noted that while they can technically reclaim replacement refrigerants, it will take time before significant volumes are available. Concerns exist around patent rights for multi-component products. In the near term, they expect large volumes of HFCs to be reclaimed.
Q: How is the demand and pricing for older refrigerants like R-22 evolving? A: Brian Coleman, CEO, indicated that R-22 volumes are declining slowly, as seen in EPA reclaim data. R-22 remains stable in supply and demand, unaffected by the upstream stockpile issues impacting HFCs.
Q: Are there any updates on overseas licensing opportunities for portable distillation equipment? A: Brian Coleman, CEO, mentioned that they have a few existing relationships for licensing equipment and are exploring more opportunities, especially in developing nations. However, there are no recent developments in this area.
Q: Could there be changes to the HFC production cap under the new Congress? A: Brian Coleman, CEO, stated that any changes to allowances would require legislation. Currently, there is no advocacy for changes to the AIM Act, and it is not a priority for Congress. The refrigerant management rule, including reclaim mandates, is not under congressional review.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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Our adjusted gross profit was RMB327.7 million, increased by 9.6% year-over-year and decreased by 23.4% quarter-over-quarter. Adjusted gross margin was 16.6% in this quarter, compared with 16.8% in the first quarter 2024 and 19.2% in the fourth quarter last year. Our adjusted operating loss was RMB55.8 million, narrowed by 56% from RMB127.0 million in the same period last year. Our adjusted EBITDA profit achieved RMB318.5 million, representing an adjusted EBITDA margin of 16.2%" First Quarter 2025 Financial Results Total Revenues reached RMB1,970.0 million (US$271.5[1] million), increased by 10.9% year-over-year from RMB1,775.7 million in the same quarter of 2024 and decreased by 11.7% quarter-over-quarter from RMB2,232.1million in the fourth quarter of 2024. The year-over-year increase was mainly due to the expanded revenue from Xiaomi and Kingsoft Ecosystem and AI related customers and our further penetration into enterprise cloud customers. 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Gross profit was RMB318.3 million (US$43.9 million), representing an increase of 8.5% from RMB293.3 million in the same quarter of 2024, demonstrating our improvements in revenue quality and structure. Gross margin was 16.2%, remaining stable compared with 16.5% in the same period in 2024. Non-GAAP gross profit[2] was RMB327.7 million (US$45.2 million), compared with RMB299.1 million in the same period in 2024. Non-GAAP gross margin[2] was 16.6%, compared with 16.8% in the same period in 2024. The improvement of our gross profit was mainly due to the decrease of procurement costs. The sequential decrease of gross margin was mainly due to the growing investment into AI and the delay of high-margin profile enterprise cloud projects in first quarter. Total operating expenses were RMB552.5 million (US$76.1 million), decreased by 2.6% from RMB567.4 million in the same quarter last year and increased by 17.7% from RMB469.5 million last quarter. Among which: Selling and marketing expenses were RMB144.3 million (US$19.9 million), increased by 23.6% from RMB116.8 million in the same period in 2024 and increased by 24.7% from RMB115.8 million last quarter. The increase was due to the increase of one-time-off bonus of share based compensation. General and administrative expenses were RMB182.0million (US$25.1million), decreased by 16.8% from RMB218.7 million in the same period in 2024 and slightly increased by 1.4% from RMB179.5 million last quarter. The year-over-year decrease was mainly due to the decrease of credit loss expense, which was partially offset by the increase of share based compensation. Research and development expenses were RMB226.2 million (US$31.2 million), decreased by 2.5% from RMB232.0 million in the same period in 2024 and increased by 29.9% from RMB174.2 million last quarter. The increase was mainly due to our continuous investment into research and development personnel to enhance our technology competitiveness and increase of share based compensation. Operating loss was RMB234.2 million (US$32.3 million), compared with operating loss of RMB274.2 million in the same quarter of 2024 and RMB43.5 million last quarter. The year-over-year improvement was mainly due to the increase of gross profit and our strict expenses control, while the sequential increase was mainly due to the impact of gross profit and increase of shared based compensation. Non-GAAP operating loss[3] was RMB55.8 million (US$7.7 million), compared with operating loss of RMB127.0 million in the same quarter last year and operating profit of RMB24.4 million last quarter. Net loss was RMB316.1 million (US$43.6 million), compared with net loss of RMB363.6 million in the same quarter of 2024 and RMB200.6 million last quarter. Non-GAAP net loss[4] was RMB190.6 million (US$26.3 million), compared with RMB217.3 million in the same quarter of 2024 and RMB70.3 million last quarter. The year-over-year improvement was mainly due to the revenue quality increase, revenue mix adjustment, strict costs control and expenses control. The quarter-over-quarter decrease was mainly due to the seasonality impact. Non-GAAP EBITDA[5] was RMB318.5 million (US$43.9 million), compared with RMB33.2 million in the same quarter of 2024 and RMB359.7 million last quarter. Non-GAAP EBITDA margin was 16.2%, compared with 1.9% in the same quarter of 2024 and 16.1% in the previous quarter. The increase was mainly due to the expansion of AI businesses with higher margin. Basic and diluted net loss per share was RMB0.08 (US$0.01), compared with RMB0.10 in the same quarter of 2024 and RMB0.05 last quarter. Cash and cash equivalents were RMB2,322.7 million (US$320.1 million) as of March 31, 2025, compared with RMB2,648.8 million as of December 31, 2024. The decrease was mainly due to the investment into operation and the investment into the procurement of computing power equipment. Outstanding ordinary shares were 3,703,014,637 as of March 31, 2025, equivalent to about 246,867,642 ADSs. [1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. [2] Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [3] Non-GAAP operating (loss) profit is defined as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [4] Non-GAAP net loss is defined as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as adjusted net loss as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [5] Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax (benefit) expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. Conference Call Information Kingsoft Cloud's management will host an earnings conference call on Wednesday, May 28, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day). Participants can register for the conference call by navigating to Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN. To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating (loss) profit, Non-GAAP operating (loss) profit margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. We define Non-GAAP operating (loss) profit as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax (benefit) expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors ' assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the " safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud's strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud 's business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud's ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China's political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About Kingsoft Cloud Holdings Limited Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals. For more information, please visit: For investor and media inquiries, please contact: Kingsoft Cloud Holdings Limited Nicole ShanTel: +86 (10) 6292-7777 Ext. 6300Email: ksc-ir@ KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands)Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB US$ ASSETSCurrent assets:Cash and cash equivalents 2,648,764 2,322,674 320,073 Restricted cash 81,337 63,670 8,774 Accounts receivable, net 1,468,663 1,807,011 249,013 Short-term investments 90,422 60,245 8,302 Prepayments and other assets 2,233,074 2,254,813 310,722 Amounts due from related parties 318,526 629,876 86,799 Total current assets 6,840,786 7,138,289 983,683 Non-current assets:Property and equipment, net 4,630,052 6,514,205 897,681 Intangible assets, net 694,880 660,926 91,078 Goodwill 4,605,724 4,605,724 634,686 Prepayments and other assets 449,983 444,555 61,261 Equity investments 234,182 232,790 32,079 Operating lease right-of-use assets 137,047 124,585 17,168 Total non-current assets 10,751,868 12,582,785 1,733,953 Total assets 17,592,654 19,721,074 2,717,636 LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable 1,877,004 2,040,574 281,199 Accrued expenses and other current liabilities 3,341,990 3,616,908 498,423 Short-term borrowings 2,225,765 2,550,970 351,533 Income tax payable 69,219 75,532 10,409 Amounts due to related parties 1,584,199 1,471,400 202,764 Current operating lease liabilities 61,258 42,459 5,851 Total current liabilities 9,159,435 9,797,843 1,350,179 Non-current liabilities:Long-term borrowings 1,660,584 1,997,371 275,245 Amounts due to related parties 309,612 494,982 68,210 Deferred tax liabilities 101,677 89,725 12,364 Other liabilities 790,271 1,932,576 266,316 Non-current operating lease liabilities 65,755 63,932 8,810 Total non-current liabilities 2,927,899 4,578,586 630,945 Total liabilities 12,087,334 14,376,429 1,981,124 Shareholders' equity:Ordinary shares 25,689 25,689 3,540 Treasury stock (105,478) (88,114) (12,142) Additional paid-in capital 18,940,885 19,071,212 2,628,083 Statutory reserves funds 32,001 32,001 4,410 Accumulated deficit (14,291,957) (14,605,883) (2,012,744) Accumulated other comprehensive income 566,900 574,660 79,190 Total Kingsoft Cloud Holdings Limited shareholders' equity 5,168,040 5,009,565 690,337 Non-controlling interests 337,280 335,080 46,175 Total equity 5,505,320 5,344,645 736,512 Total liabilities, non-controlling interests and shareholders' equity 17,592,654 19,721,074 2,717,636 KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Revenues: Public cloud services 1,187,370 1,409,804 1,353,479 186,514 Enterprise cloud services 588,162 822,338 616,498 84,956 Others 152 - - - Total revenues 1,775,684 2,232,142 1,969,977 271,470 Cost of revenues (1,482,431) (1,806,170) (1,651,671) (227,606) Gross profit 293,253 425,972 318,306 43,864 Operating expenses: Selling and marketing expenses (116,752) (115,792) (144,338) (19,890) General and administrative expenses (218,695) (179,536) (181,999) (25,080) Research and development expenses (231,963) (174,155) (226,170) (31,167) Total operating expenses (567,410) (469,483) (552,507) (76,137) Operating loss (274,157) (43,511) (234,201) (32,273) Interest income 8,370 4,176 4,946 682 Interest expense (51,066) (61,821) (82,897) (11,424) Foreign exchange (loss) gain (42,737) (105,572) 9,051 1,247 Other (loss) gain, net (8,207) (2,956) 3,244 447 Other (expense) income, net (11,190) 5,336 (7,012) (966) Loss before income taxes (378,987) (204,348) (306,869) (42,287) Income tax benefit (expense) 15,371 3,706 (9,241) (1,273) Net loss (363,616) (200,642) (316,110) (43,560) Less: net loss attributable to non-controlling interests (4,206) (3,683) (2,184) (301) Net loss attributable to Kingsoft Cloud Holdings Limited (359,410) (196,959) (313,926) (43,259)Net loss per share: Basic and diluted (0.10) (0.05) (0.08) (0.01) Shares used in the net loss per share computation: Basic and diluted 3,614,662,846 3,710,632,202 3,728,092,123 3,728,092,123 Other comprehensive income, net of tax of nil: Foreign currency translation adjustments 20,704 103,658 7,744 1,067 Comprehensive loss (342,912) (96,984) (308,366) (42,493) Less: Comprehensive loss attributable to non-controlling interests (4,247) (3,667) (2,200) (303) Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (338,665) (93,317) (306,166) (42,190) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Gross profit 293,253 425,972 318,306 43,864 Adjustments: – Share-based compensation expenses (allocated in cost of revenues) 5,814 1,726 9,365 1,291 Adjusted gross profit (Non-GAAP Financial Measure) 299,067 427,698 327,671 45,155 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Gross margin 16.5 % 19.1 % 16.2 % Adjusted gross margin (Non-GAAP Financial Measure) 16.8 % 19.2 % 16.6 % KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Net Loss (363,616) (200,642) (316,110) (43,560) Adjustments: – Share-based compensation expenses 103,595 24,774 134,611 18,550 – Foreign exchange loss (gain) 42,737 105,572 (9,051) (1,247) Adjusted net loss (Non-GAAP Financial Measure) (217,284) (70,296) (190,550) (26,257) Adjustments: – Interest income (8,370) (4,176) (4,946) (682) – Interest expense 51,066 61,821 82,897 11,424 – Income tax (benefit) expense (15,371) (3,706) 9,241 1,273 – Depreciation and amortization 223,146 376,100 421,901 58,140 Adjusted EBITDA (Non-GAAP Financial Measure) 33,187 359,743 318,543 43,898 – Gain on disposal of property and equipment (23,821) (10,137) (2,110) (291) Excluding gain on disposal of property and equipment, normalized Adjusted EBITDA 9,366 349,606 316,433 43,607 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Operating loss (274,157) (43,511) (234,201) (32,273) Adjustments: – Share-based compensation expenses 103,595 24,774 134,611 18,550 – Amortization of intangible assets 43,517 43,104 43,781 6,033 Adjusted operating (loss) profit (Non-GAAP Financial Measure) (127,045) 24,367 (55,809) (7,690) – Gain on disposal of property and equipment (23,821) (10,137) (2,110) (291) Excluding gain on disposal of property and equipment, normalized Adjusted operating (loss) profit (150,866) 14,230 (57,919) (7,981) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Net loss margin -20.5 % -9.0 % -16.0 % Adjusted net loss margin (Non-GAAP Financial Measure) -12.2 % -3.1 % -9.7 % Adjusted EBITDA margin (Non-GAAP Financial Measure) 1.9 % 16.1 % 16.2 % Normalized Adjusted EBITDA margin 0.5 % 15.7 % 16.1 % Adjusted operating (loss) profit margin (Non-GAAP Financial Measure) -7.2 % 1.1 % -2.8 % Normalized Adjusted operating (loss) profit margin -8.5 % 0.6 % -2.9 % KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in thousands)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Net cash (used in) generated from operating activities (321,336) 570,222 (418,390) (57,656) Net cash used in investing activities (1,169,017) (1,337,978) (490,393) (67,578) Net cash generated from financing activities 1,112,096 1,802,762 549,998 75,792 Effect of exchange rate changes on cash, cash equivalents and restricted cash (20,464) (15,294) 15,028 2,071 Net (decrease) increase in cash, cash equivalents and restricted cash (398,721) 1,019,712 (343,757) (47,371) Cash, cash equivalents and restricted cash at beginning of period 2,489,481 1,710,389 2,730,101 376,218 Cash, cash equivalents and restricted cash at end of period 2,090,760 2,730,101 2,386,344 328,847 View original content: SOURCE Kingsoft Cloud Holdings Limited Sign in to access your portfolio
Yahoo
18 minutes ago
- Yahoo
Defense stocks trade higher after Israel airstrikes in Iran raise Middle East tensions
Defense stocks climbed early Friday after Israel launched a series of airstrikes on Iran, raising tensions in the Middle East and heightening fears of a broader regional conflict. Lockheed Martin (LMT) stock gained as much as 3% early Friday, while shares of Northrop Grumman (NOC) and RTX (RTX) rose closer to 2%. The three companies supply weapons to Israel through their contracts with the US government. US stocks were lower at the open, with the S&P 500 and Nasdaq off about 0.7% while the Dow fell 1.1%. Overnight futures fell nearly 2% in immediate reaction to Israel's airstrikes, which were first reported near 8:00 p.m. ET on Thursday. Oil prices were the biggest mover on Friday, rising as much as 8%. Defense stocks have been on the rise over the past year, with Friday's gains bringing RTX stock's gain to north of 35% over the past year, while Northrop Grumman is up 19.5%. Lockheed Martin has risen a more modest 3.9% over that time frame. Palantir (PLTR), a defense contractor that has benefited both from the bid in defense names and its role in the AI boom, traded flat Friday morning. Its stock has soared more than 480% over the last year and is the best performer in the S&P 500 year-to-date. RTX has outperformed Wall Street's expectations since the fourth quarter of 2022. Lockheed Martin and Northrop Grumman have beat analysts' projections in seven and six of those nine quarters, respectively. The Trump administration has promised a $1 trillion budget for US defense but its fiscal 2026 budget looks set to fall short of that goal. On Thursday night, Israel launched what it called a "preemptive strike" against Iran targeting its nuclear facilities. The attacks continued into Friday, killing 78 people in Tehran including Iran's top military leadership. Iran's foreign minister described the attacks as a 'declaration of war' and its supreme leader Ayatollah Ali Khamenei said Israel 'should expect severe punishment.' US President Trump urged Iran to 'make a deal' in a post on Truth Social Friday. 'There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end,' he wrote. 'Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire. No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE.' Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22 minutes ago
- Yahoo
Consumer Internet Stocks Q1 Results: Benchmarking Airbnb (NASDAQ:ABNB)
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at consumer internet stocks, starting with Airbnb (NASDAQ:ABNB). The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible. The 49 consumer internet stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.9% while next quarter's revenue guidance was in line. Luckily, consumer internet stocks have performed well with share prices up 16.8% on average since the latest earnings results. Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world's largest online marketplace for lodging, primarily homestays. Airbnb reported revenues of $2.27 billion, up 6.1% year on year. This print exceeded analysts' expectations by 0.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts' EBITDA estimates but number of nights and experiences booked in line with analysts' estimates. The stock is up 12.8% since reporting and currently trades at $140.01. Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free. Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars. Carvana reported revenues of $4.23 billion, up 38.3% year on year, outperforming analysts' expectations by 6.2%. The business had an exceptional quarter with an impressive beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 30.6% since reporting. It currently trades at $337.92. Is now the time to buy Carvana? Access our full analysis of the earnings results here, it's free. Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods. The RealReal reported revenues of $160 million, up 11.3% year on year, in line with analysts' expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts' expectations. As expected, the stock is down 21.8% since the results and currently trades at $5.71. Read our full analysis of The RealReal's results here. Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world's leading online travel agencies. Expedia reported revenues of $2.99 billion, up 3.4% year on year. This result missed analysts' expectations by 0.8%. Overall, it was a slower quarter as it also logged a slight miss of analysts' number of room nights booked estimates. The company reported 107.7 million nights booked, up 6.4% year on year. The stock is up 4.4% since reporting and currently trades at $176.69. Read our full, actionable report on Expedia here, it's free. Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs. Meta reported revenues of $42.31 billion, up 16.1% year on year. This print beat analysts' expectations by 2.3%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts' EBITDA estimates but revenue guidance for next quarter slightly missing analysts' expectations. The company reported 3.43 billion daily active users, up 5.9% year on year. The stock is up 27.7% since reporting and currently trades at $698.80. Read our full, actionable report on Meta here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
