Kuaishou Reports 8.7% Revenue Growth, AI Initiative Drives Success

Kuaishou, a prominent short video platform, has released its fourth-quarter and full-year financial report for 2024, highlighting substantial growth and advancements in its AI-driven initiatives. The company reported a revenue of 35.4 billion yuan for the fourth quarter, reflecting an 8.7% year-over-year increase, and a net profit of 4 billion yuan, up from 3.6 billion yuan in the previous year. On an adjusted basis, the net profit stood at 6.9 billion yuan, compared to 6.1 billion yuan in the prior year.

For the full year, Kuaishou's revenue reached 126.9 billion yuan, marking an 11.8% increase from the previous year. The net profit for the year was 15.3 billion yuan, a significant rise from 6.4 billion yuan in 2023. Adjusted net profit for the year was 17.7 billion yuan, up from 10.3 billion yuan in 2023.

Following the release of the financial report, Kuaishou's top executives, including co-founder and CEO Cheng Yixiao and CFO Jin Bing, participated in a conference call to discuss the key highlights and address analyst questions. One of the standout topics was the company's AI initiative, Ke Ling AI, which has garnered significant attention for its "image-to-video" capabilities.

Cheng Yixiao highlighted that Ke Ling AI, an internally developed project since early 2023, has undergone over 20 iterations since its initial launch in June 2023. The latest version, Ke Ling 1.6, released in December 2023, showed marked improvements in semantic adherence, visual aesthetics, and dynamic quality. The model's "image-to-video" feature, in particular, demonstrated a nearly 200% improvement over its predecessor, Ke Ling 1.5.

Kuaishou's strategic focus on multimodal large models, combined with its robust organizational coordination, substantial computational resources, advanced algorithms, and extensive data accumulation, has positioned Ke Ling AI at the forefront of global AI technology. The company's commitment to continuous innovation and investment in AI research and development is expected to maintain this leadership position.

Looking ahead, Kuaishou plans to further enhance its AI capabilities by refining its large language models and multimodal models, ensuring they remain at the cutting edge of technological advancements. The company aims to leverage Ke Ling AI to not only upgrade existing business operations but also to create new opportunities in AI-generated video content, solidifying its position as a leading platform for short video production and consumption.

In terms of commercialization, Ke Ling AI has already shown promising results. Since its commercial launch in the fourth quarter of 2023, the AI application has seen rapid growth in monthly revenue, surpassing 100 million yuan by February 2025. The application has also established partnerships with numerous domestic and international enterprises, including Xiaomi, Blue Focus, AWS China, and Freepik, demonstrating its versatility and effectiveness as a video creation tool.

Kuaishou's long-term AI strategy is centered on integrating AI capabilities into its existing content and commercial ecosystems. By enhancing content understanding and recommendation algorithms, the company aims to increase user engagement and activity on its platform. Additionally, Kuaishou plans to offer AI-driven services to advertisers and e-commerce merchants, including video marketing material generation, digital avatar live streaming, AI virtual try-on, and smart product narration, thereby boosting operational efficiency and revenue.

The company's vision extends to the potential creation of new business models through AI-generated content (AIGC), which could significantly lower the barriers to content creation and drive an explosion in the quantity and quality of AI-generated content. This strategic approach is expected to open new avenues for sustainable growth and innovation for Kuaishou.