Kuaishou's AI-Powered Surge: Revenue Soars Amid Strategic Tech Advances

On March 25, Kuaishou Technology released its Q4 2024 and full-year financial results, revealing a notable financial performance. The company's revenue for 2024 reached RMB 126.9 billion, marking an 11.8% increase from the previous year's RMB 113.47 billion. Adjusted net profit surged by 72.5% to RMB 17.716 billion, while the gross profit margin improved to 54.6% from 50.6% the year before.

In the digital landscape, Kuaishou's online marketing revenue experienced a significant upswing, reaching RMB 72.419 billion, a 20% increase from RMB 60.3 billion the prior year. This segment now represents 57.1% of total revenue, reflecting a 4% increase in its contribution. Conversely, live-streaming revenue saw a dip of 5.1%, now accounting for 29.2% of the revenue, compared to 34.4% previously. Other service revenues rose by 23.4% to RMB 17.418 billion.

Central to this report is the focus on AI technology and its commercialization. In 2024, Kuaishou's R&D investment slightly decreased by 1.1%, totaling RMB 12.199 billion, yet R&D personnel formed 48.5% of the workforce. The company announced the release of its standalone app, Kuaishou's KuaLing AI, which has amassed over RMB 1 billion in revenue by February 2025.

During the earnings call, Kuaishou's founder and CEO, Cheng Yixiao, emphasized the strategic importance of AI in upgrading existing business lines. The aim is to harness AI for significant gains in R&D investment returns. Kuaishou is prioritizing the enhancement of its AI tools, notably the KuaLing AI platform, to elevate it to the top position in global video generation applications. This integration aims to drive growth in Kuaishou's online marketing and e-commerce segments.

One of the highlights of the conference was the practical impact of AI on operations. Cheng Yixiao cites that in Q4 2024, the AIGC marketing materials and virtual digital human live-streaming solutions on Kuaishou were consuming an average of over RMB 30 million daily. With internal estimates suggesting that AI models could potentially reduce the production cost of short video marketing materials by 60-70% or more, it's clear that Kuaishou is leveraging AI for efficiency gains.

Commercialization of AI technologies is progressing, with KuaLing AI not only serving individual subscribers but also providing API access to business clients. Collaborations with firms like Xiaomi and Amazon Web Services underscore Kuaishou's B2B outreach. Furthermore, the KuaLing AI 1.5 Pro model has secured a top position in global video AI model rankings.

In its broader AI strategy, Kuaishou has shifted its R&D focus to developing the KuaYi MoE model with billions of parameters. This aims to reduce both training and inference costs, further advancing AI applicability. As the tech landscape evolves, Kuaishou's efforts in AI development and commercialization hint at a transformative path for video production and consumption within and beyond its platform.