Since it debuted in public trading on May 8, shares in China's Kingsoft Cloud Holdings Ltd. (Nasdaq: KC) have done quite well.
In fact, KC stock hasn’t dropped below the IPO price of $17 per share. Today, it traded at $22.97 per American depositary share, inched up 11 cents after first quarterly earnings.
The cloud service provider said revenue in the three months through March reached $196.4 million, up 65% from the preceeding year. Net loss was $46.8 million, or 6 cents per share, also up 65% from the first trimester of 2019, according to the report.
The results were in-line with the company’s expectations, towards the high end of the anticipated range, Kingsoft Cloud’s chief financial officer, Henry He, said in the statement today. The fastest-growing segment was enterprise cloud services, which saw revenue growth of 118% year-over-year.
He said the proceeds from the initial public offering totaled $551.3 million.
In the second quarter, Kingsoft Cloud said it expects to generate revenues of 1.50 billion to 1.54 billion yuan, representing an increase of between 60% and 65% from a year ago.
KC sold 34.5 million ADSs in its IPO a month ago and closed 40% higher on debut day. Since then, the stock peaked at $26.89 and dipped as low as $17.01 per share. Its IPO was the largest in New York this year by a Chinese company.
Kingsoft said it intends to use the proceeds from its listing to boost its infrastructure, invest in technology and product development, as well as for expansion and working capital.
Commenting on the Covid-19 impact, Yulin Wang, the chief executive of Kingsoft Cloud, said, “We remain committed to upholding the highest standards of corporate social responsibility and in response to the outbreak of COVID-19, we have devoted resources towards helping society and businesses readjusting to the new normal. For example, we rapidly developed new cloud solutions to support companies in various verticals that have seen demand during the pandemic such as online healthcare, education, remote working and entertainment among others.”
KC is a spin-off of Hong Kong-listed software giant Kingsoft Corp. Ltd. (HKEX: 3888). In Hong Kong on Wednesday, the latter closed flat, at HK$26.10 per share.
Kingsoft is also backed by Chinese smartphone giant Xiaomi Corp. (HKEX: 1810), which participated in KC’s IPO.