Kingsoft Office Reports Revenue and Net Profit Growth in First Half of 2024, Driven by Strong Subscription Business and Accelerated WPSAI Commercialization

Kingsoft Office Reports Revenue and Net Profit Growth in First Half of 2024, Driven by Strong Subscription Business and Accelerated WPSAI CommercializationKingsoft Office released its 2024 semi-annual report on the evening of August 20, revealing robust growth in both revenue and net profit. During the reporting period, Kingsoft Office achieved operating revenue of 2

Kingsoft Office Reports Revenue and Net Profit Growth in First Half of 2024, Driven by Strong Subscription Business and Accelerated WPSAI Commercialization

Kingsoft Office released its 2024 semi-annual report on the evening of August 20, revealing robust growth in both revenue and net profit. During the reporting period, Kingsoft Office achieved operating revenue of 2.413 billion yuan, representing a year-on-year increase of 11.09%; net profit attributable to the parent company reached 7.21 billion yuan, up 20.38% year-on-year; net profit excluding non-recurring items reached 6.88 billion yuan, a 19.35% increase year-on-year, indicating continued improvement in profitability.

As the core growth engine of Kingsoft Office, the subscription business demonstrated outstanding performance in the first half of 2024. Revenue from this segment reached 1.973 billion yuan, accounting for approximately 82% of total revenue, marking a nearly 5% increase year-on-year. Domestic personal subscription revenue surged by 22.17% year-on-year to reach 1.53 billion yuan, while domestic institutional subscription and service revenue saw a 5.95% growth, reaching 4.43 billion yuan. Moreover, the company's total contract liabilities reached 2.685 billion yuan, laying a solid foundation for its long-term development.

With the accelerated commercialization of WPSAI, Kingsoft Office achieved remarkable progress in user experience and market expansion. During the reporting period, Kingsoft Office's cumulative annual paid personal users reached 38.15 million, while the number of monthly active devices for key products reached 602 million, both setting new historical highs. WPS365, a crucial product for the company, has fully integrated AI capabilities and its penetration rate among corporate clients in the public cloud market continues to strengthen, indicating initial success in its SaaS model transformation. As of the end of the reporting period, WPS365 has served over 18,000 leading government and enterprise clients across various industries, including finance, energy, telecommunications, transportation, real estate, publishing, biomedicine, high-end manufacturing, and education.

Concerning research and development investment, Kingsoft Office continues to ramp up its commitment. In the first half of 2024, R&D expenditure reached 8.08 billion yuan, accounting for approximately 33% of revenue, with a 12.61% year-on-year increase in R&D expenses. By closely following AI industry trends, Kingsoft Office continuously iterates and upgrades its AI and collaboration products, culminating in the release of WPSAI 2.0 in July. WPSAI 2.0 marks a paradigm shift in four key dimensions: AI writing assistant, AI reading assistant, AI data assistant, and AI design assistant.

Furthermore, Kingsoft Office actively collaborates with partners to jointly drive the construction and improvement of infrastructure. During the reporting period, Kingsoft Office partnered with Huawei to launch WPS for HarmonyOS, enabling seamless cross-platform operation, unified multi-platform accounts, cross-device invocation, and cross-screen collaboration. Dozens of WPSAI AI features have also been migrated to the HarmonyOS platform, providing users with a full-scenario, multi-device collaborative experience that is more efficient and convenient.

Strong Subscription Business Growth, Becoming the Core Driving Force

The increasing proportion of Kingsoft Office's subscription business revenue in total revenue demonstrates the company's successful transition of users from traditional perpetual licensing models to subscription models. The rapid growth of the personal subscription business highlights Kingsoft Office's strong appeal in the personal user market, while the steady growth of institutional subscription and service revenue reflects the company's increasing influence in the enterprise market.

The benefits of the subscription model lie in its ability to provide the company with a stable revenue stream and greater flexibility in introducing new features and services. As subscription revenue continues to grow, Kingsoft Office is poised to achieve stronger profitability and more robust business development.

Accelerated Commercialization of WPSAI Propels the Company into a New Stage of Development

The accelerated commercialization of WPSAI propels Kingsoft Office into a new stage of development. The launch of WPSAI 2.0 marks a significant breakthrough for Kingsoft Office in the AI realm, with its innovations across AI writing assistant, AI reading assistant, AI data assistant, and AI design assistant set to deliver a more intelligent and efficient office experience for users.

The accelerated commercialization of WPSAI is also reflected in the company's user growth and market expansion. During the reporting period, Kingsoft Office saw its cumulative annual paid personal users reach 38.15 million, while the number of monthly active devices for key products reached 602 million, both setting new historical highs. The penetration rate of WPS365 among corporate clients continues to strengthen, indicating the initial success of its SaaS model transformation, with over 18,000 leading government and enterprise clients served.

Enhanced R&D Investment to Continuously Enhance Product Competitiveness

Kingsoft Office's continued increase in R&D investment reflects the company's emphasis on technological innovation and its confidence in future development. This increase in R&D expenditure will help the company continuously enhance its product competitiveness, launching more innovative features and services to meet the evolving needs of users.

The launch of WPSAI 2.0 is a testament to the company's R&D investment, with its enhanced AI capabilities further strengthening the competitive edge of Kingsoft Office's products.

Active Expansion of Partnerships to Build an Open Ecosystem

Kingsoft Office actively collaborates with partners to jointly drive the construction and improvement of infrastructure, showcasing the company's philosophy of open collaboration. The partnership with Huawei, resulting in the launch of WPS for HarmonyOS, enables seamless cross-platform operation, unified multi-platform accounts, cross-device invocation, and cross-screen collaboration, providing users with a more convenient and efficient office experience.

Open collaboration will help Kingsoft Office build a more robust ecosystem, attracting more users and developers and accelerating the company's development.

Looking Ahead, Kingsoft Office is Poised to Maintain Steady Growth

With the continued growth of its subscription business, the accelerated commercialization of WPSAI, and continuous increases in R&D investment, Kingsoft Office is primed for continued steady growth. The company will continue to delve deeper into the office software market, constantly innovate to deliver a more intelligent and efficient office experience for users, actively expand partnerships to build an open ecosystem, and strive to become a leading office software provider globally.

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