KC Kingsoft Cloud

Nicole Shan IR Manager
Yulin Wang CEO
Haijian He CFO
Brian Gong Citigroup
Thomas Chong Jefferies
Joel Ying Nomura
Call transcript
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Good day and thank you for standing by. Welcome to the Kingsoft Cloud Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] And pleased be advised that today’s conference call is being recorded. like for the today, would the over I speaker first Ms. Instructions] to conference hand to [Operator Nicole Shan. Thank you. Please go ahead.

Nicole Shan

release second Thank thank you, our on XXXX IR Cloud well, available global you and earlier earnings quarter as for joining website and [indiscernible]. us today. on Hello is was distributed everyone newswire as today at Kingsoft services.

CFO, operations will only. from be There our by who case management discrepancy, questions CEO, in will your accompanying during Wang; He and of are original On review followed have to Mr. Wang Mr. interpretation. business we statement the follows. Mr. Kingsoft language consecutive call purpose that Mr. interpretation He. Cloud, All session and In will and will financials be companies available for today any highlights, discuss our the Haijian and prevail. answer Yulin will your Q&A He, the reference guidance. the

new law. difficult company undertake upon of future this events or market forward-looking applicable filings remind events, included as otherwise, These risks, statements. Act those are or current which amended uncertainties, or of SEC. Before and relate forward-looking Further statements to risks, we XX-E cause Securities company's U.S. as XXXX Exchange current of begin, defined that obligation of unknown performance, of Act the meaning update to statements the are achievements and within of regarding the I contains except or this may Reform to which Litigation and from result are Security materially expectation as Section actual that does predict in all the and and would based beyond other the you information to which and many company's and XXXX. condition known with operating statements management's uncertainties the forward-looking to of control, under the conference the involve Private factors forward-looking U.S. in factors, any required differ are like results, in as information, call not a any company's The other

Finally, all It's pleasure during our Wang. denominated my stated, to are otherwise mentioned CEO, that please financial call Please conference RMB. now Mr. this introduce in ahead. note go unless Yulin figures

Yulin Wang

Language] a In [Foreign the you, the Nicole all us. we XX.X% increase the earnings for second new from generated year-over-year record for XXXX Thank XX.X% RMBX.XX call. a and significant quarter, our acceleration total in quarter. you second It thank billion which was and increase also quarter in was quarterly year-over-year revenues, joining first

hit the billion, Public of RMBXXX since services record Our which our million quarter first RMBX.XX for IPO quarter. Cloud revenues is an and a consecutive the increased increase sixth over of

group an increase of million first Overall, revenues Our RMBXXX.X Enterprise XXX.X% XXXX the year-over-year Cloud we period an services effectively same expanding service long-lasting, an to us representing acceleration and in from our quarter. strategy premium Our execute continue the XXX.X% and reached independent over and increase premium maintain largest helps China, as position new partners. in-depth, relationships of multi-dimensional cloud provider attract, stable, customer in the develop, with

the opportunities Now, you time challenging our seize enterprises our delivered cloud huge make Cloud year-over-year comprehensive Kingsoft a provide market the of had that I'll announce with environment, walk existing Despite we're promote partnership performance front, verticals. start-off agreement SaaS framework pleased market from computing in new while jointly entered progress significant a will and to group help digitalization Public effort remained its and under the volcano products. Engine Volcano iOS solid attracting engine PaaS ByteDance products with capabilities an our Today, increase resources their solid sales to into customers. our China's a with diverse usage, let sell same rich customer to of me in a stable progress and base services continued to Cloud major Cloud. market. during we On Kingsoft in through leveraging quarter. our customer at

jointly on also work development business partners. will We

for a In events, supported and addition, scale concurrent certain gala that top a stream we social successfully media key three massive its number variety show of live viewers. company the a including a large online had

also customers. engage We new made to great progress

our iOS interacting [ph] completed optimize support of the PaaS and we our customer our top XX companies to intellectual leading at our Executives efforts, more enhance allowed a service started we boost computing. In internal these to multi-cloud engage we're able with solutions, capabilities with raising services leading protection leveraging and internet to front, client premium to with them. our property revenue and hosted IP that advocate forum provide the example, Meanwhile, the customers stable especially past Cloud providing together us For initiatives. and internet PaaS to ours base customer our neutrality, acquisition Cloud broadest continuously and the On also Meituan, meet companies the industries, we communication premium of protection continue cross-selling. real-time Public Public technology product we [indiscernible], service products, our established, through and brought senior under trends. to jointly over customers' while to capabilities technology from profile needs, of experience, This two edge level to

and proud scale recognition of periods Festival, during traffic and our helped for Shopping with changing patented top throughout. exemplify XK is phenomenal supported the during iOS China stable Online of we quarter, Show, JXX symbol International smooth for vendor we large the network Autohome during improving technology. virtual to We which were We to reality the of award Auto have national stable and an with customers in significantly failures for degree virtualization June a On gaming July computing which live end solutions. technology, a prowess. Shanghai with for zero where transmission worked video during game a cloud [ph] stability. our experience the We technological highest edge with the performance our a of customer XXX smooth streaming following live deliver the streaming peak speed ensuring thanks with exclusive front, technology. this level the the on our XXth quarter, cases As gaming on of Online, to our scenarios game into events Mihoyo apply at games received customers impact, success kind blockbuster terminals, multiple was leading season its launched recent the award In we many entered were to partnership agreement to

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direct third X.X%. the of our Industry China with Research CCID provider In addition, Consulting, the XXXX a to of Information largest of Computing released share market just PRC, remained report according Technology to Ministry the the Market we rising Annual cloud by affiliate internet and service Cloud

relationships customer demand banks Going customers existing needs rapid to maintenance the financial new upgrades, our the In space, services, In growth. growth. accelerated track of state-owned we deeper sector, maintain continue forward to cultivate customers, be proactively out achieve to continue the Cloud space, engaged China, our bank actively cooperation and Cloud in six strong existing to expansion, record in serving our and a Enterprise and healthy to been to successful while top dig market business selected XX the have company and the diversify base into Public of we expand services with will verticals our continue projects. and and already strengthen provide with customers continued building we major of

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capabilities, improve project performance, leveraging BearingPoint, to As client bring XX and us a Prior Overall, to along end maintenance implementation, projects the like in flagship This security terms high customer from Camelot, our They laid time Enterprise part of of we relationships. privacy key stakeholders' period companies implementation early a Camelot's in accelerate strong Shanghai, for base customer of company IBM, the concern the of Wuhan, customers personnel efficiency. among and in and will XX leading means complementary a that the space. will By fully Cloud foundation strategic Camelot announced with cities successfully. in-depth this a our project projects products Camelot's of they batch in business. China, others, and years. more our across solutions, reputation. and Enterprise other of existing relationships sequentially team Cloud business, including highly costs business We great to our lower the color ranging global By our to management and further integrating our capabilities know-how senior Enterprise market Enterprise Enterprise and regard Camelot Cloud worked and we maintain cement data company at Acquihire, and Cloud long Nanjing, would group leadership as well of has and Cloud believe is execution on to company. as further in further long-standing and Cloud with worked August this solid attention move proprietary our nationwide premium to delivered major opportunity Enterprise know-how quality for join share take about this industry Beijing, a for senior business and appreciate enhance major resources services, in expects in services base, segment, the

do rather than collect information. customers on developers. individual First, we nor own corporate identifiable massive Hence, we personal focus

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Haijian He

Yulin. you, Thank

into for would like diving I highlights offer Before few the past details, to quarter. the a

new RMBX.XX a acceleration was our was significant IPO sets from quarter-over-quarter of in decent approximately QX growth, in of from year-on-year year-on-year which revenue representing of XXXX. from history, Revenues as Cloud the consecutive first record quarter billion Enterprise since for services year-over-year XX% to well quarterly year-over-year increase RMBX.XX RMBXXX.X in quarterly of revenue another the QX representing a billion, total Revenues XX% Public Our acceleration incremental our million, representing RMBXXX.X million, approximately increase was XXXX. quarters the services a sixth step-up revenue. compared XXX% growth, revenue as Cloud XXX%

resulting factors growth fundamental from QX topline the by accelerated underpinned and strong Our is in strategies following and advantages.

year-on-year serving established while the has Revenues very in been all, The customer basis, with under from premium of and has year-over-year quarter-by-quarter, we increased believe our company concentrations. achieved revenue has the products contribution our XX healthy our decreased customers customers, derisk on well. total for achieved trend relationship in three of growth Revenue gradually initiatives to meantime, have which top multi-dimensional of is premium customers strategy top In quarter-on-quarter and the a client the a from customers. and total First from dollar our the as slowly a of largest revenue successfully the a value a the we executed. robust PaaS-level our good sign percentage growth. cross-selling

being multi-cloud strategies deployment play adopted we Second, leading cloud driven our service strong provider, internet acquisition progressing the capabilities companies. customer by by a strategy and of vendor under backdrop, demonstrate being a pure neutral

have provide Cloud a we Public successful to leading to client. For services example, internet a started Meituan,

have approach disciplined to select verticals. right always we adopt the a Lastly,

in as online have we to business. such very example, For result, small recent have a sectors limited our the headwinds exposures as education impact

expect continue to our underlying and growth will advantages in future. We the healthy support this strategy

will revenue mentioned XX, Coupled CEO, with revenue XXX billion early Yulin the approximately XX% with in backlog Cloud Enterprise services. future recurring, August deployment approximately revenue line grew addition, overall revenue strong XXXX. In year-over-year to XXXX of the a total total robust in of RMBX.XX agreements our largest representing growth, earlier, served and RMBX.XX RMBX.X the July benefit expect with components, of cost, as In Camelot our and of customers of as of were premium Camelot cost profitability, cost financials. a XX.X% year-over-year we cost XX.X% SaaS In IDC impact XX.X% positive to topline growth billion. our to with grew billion.

RMBXXX.X XX.X% operational and IDC decreased representing scale the achieving efficiency. to of in Depreciation approximately year. As improved amortization from million, this same quarter. year of period decrease total QX from were are of total cost Overall, we revenues, of a percentage last XX.X% revenue, economies a X.X% last in costs greater and also

adjusted As same a million to RMBXX.X last gross RMBXXX.X year the result, this million profit of XX% grew from in quarter. period

margin gross last expenses quarter in to QX in from as one-time XX.X% the from to in the related continue year X.X% year quarter same year, to the increase decrease our this compensation partially Total expenses, mainly from last QX adjusted were operating offset we for share-based scale increased Our tax million, business. expenses year, favorable this up X.X% last expenses the to resulting personnel by and due of listing social our IPO suspended policies. RMBXXX.X

adjusted compensation, increase -- XX.X% Adjusted XX.X% million, expenses share-based were marketing of RMBXX.X Excluding and expenses selling year-over-year. were RMBXXX.X million. R&D representing an

RMBXX.X to it year X.X% decreased percentage G&A a revenue, of million. X% from QX quarter. this As total last expenses were in Adjusted

negative improved decreased in our X.X% quarter, EBITDA from a million. last As quarter. Accordingly, it revenue, X.X% of X.X% this peers. percentage to negative X.X% from adjusted was in margin this QX RMBXX.X to negative the adjusted in year lowest EBITDA among QX

significantly net The efficiency, partially by XX.X% QX in trajectory from favorable enhanced with negative tax offset to negative profitability last mainly of this policy. social our Our year loss was the impact was of quarter. suspended RMBXXX.X improved improvement driven margin economies net and scale, million operational by XX.X%

billion. June had we and XX, of cash sufficient equivalents RMBX.XX XXXX, of As cash

During RMBXXX.X this was million. expenditures total quarter, our capital

Cloud relationship with cross-selling between of for billion expected customers; and of a customers; and be new billion be premium and services. representing built is our to new winning few the RMBX.XX Enterprise solid strong total services; quarter for of on deepening including XX% reacceleration third products XXXX, to existing demand of a we ahead, to momentum a expect Such a pillars, increase our multi-dimensional growth Looking revenue and top premium XX%. RMBX.X year-over-year

are know, views you As the based on to preliminary this market is on which and current our conditions change. operational subject

Each China Cloud the share rights. of dual-class Kingsoft same efforts, as voting most have voting structure terms super of not ADR to In U.S.-listed do ESG companies. we class of opposed share represents share

straightforward. and to Hong XXXX transparency principal April stakeholders, companies, main are have shareholders practices fully our our other consultants, taskforce discuss structure in investors, and continuously improving are established our with ESG Our governance. Also, transparent and shareholders best Kong-listed implement we corporate and

Day, Lastly, executives, from our customers, we leaders company's us. when business invite join industry renowned Investor our line preparing first will to we're ecosystem key and partners

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We on are analysts and warmly online. or welcoming investors either to join site

you. our transparency to Thank committed bring are and improving to business stakeholders. value our We sustainable

Nicole Shan

our for questions. Thanks ahead. concludes Operator, your We're go if possible. Thank remarks. take in question Mandarin first to in your Please This please now then attention. prepared and English, ask you. happy your


[Operator Instructions] Sheldon Brian line. the Zhang Citigroup. of [ph] you. thank question Yes, ahead. from is Gong go first Our -- Please

Brian Gong

Thanks two translate taking I Language] questions. questions. have I [Foreign management will myself. for my

Cloud First Public of side, the question the regulatory the segment's our how about [indiscernible] in And And see management cooperation half, one growth details and on will especially cloud the revenue mean run? second should about that give is we internet? lots over you second with our long the is the product as-products headwinds for our [indiscernible]. as cooperation does will Thank this considering to contribute more how integrate

Yulin Wang

for you thank Okay, question. your

points. first about in revenue about of this of the the Cloud second in are we growth Public relation half So, how there year, business the a think few to question

is our growth the significantly, First are consecutive of several revenue already In already has million Public we increase -- RMBXXX we growth becoming also not first only it. of the quarterly more past -- sixth the confident the of And the the around about all, but confident that compared also to that This the absolute second quarter-over-quarter levels. have higher comfortable second Public segment, more significantly reasons amount increased the than the we're for year. seen revenue quarter Cloud quarter. there is of are half this for more business dollar particular, we're therefore growth

managed focus, is top a point actually is to Public with relationship foundation for revenue sustainable a because we that maintained to become customers, stable under disciplined to education, regulations, also our very stable. segment. second very business including the for like a very heavy First our of impact And online service is especially we vertical volume ByteDance forms have have maintain approach This Cloud very that the the usage with non-material. industries to the the

The sector exposure lower All the actually leverage is neutrality backdrop to able segment. revenues. thirdly, -- -- to how can this of the -- just we penetrate question to the online second the And about and better with current because is And our regulatory is the beneficiary low multi-cloud this pan-internet customers single-digit. just our our general for cooperation relationship -- in about the further new under education Meituan positioning us, further deployment, penetrate you into trends case we're in make shows can and ByteDance. we

TikTok, First a of with like cooperation make clarification. ByteDance. actually I is to would all, The but not with

Secondly, integrate to Engine SaaS and products will for with them that from PaaS together provide Volcano we the is [ph] our altogether cooperate the shop customers. the solution that and potential we with integrated way iOS one-stop an

one started And marketing to exploit agreement. thirdly, with do quantify revenue even Volcano potential also customers. And we of ByteDance of have Volcano as for hard to Engine two or months. do potential this -- and with together to has this will We only Engine it's started because just framework now think I the development new business

Thank So, we this cooperation the year. second for impact half of expect material not to do revenue this the contribution have you. currently from

Nicole Shan

question Thank you. next Operator, please.


you. Thank

ahead. Please from of is the of CICC. Sheldon [ph] Our Zhang line next question go

Unidentified Analyst

acquisition. [Foreign recent question Language] So, first regarding our my is

type we in Camelot? longer regarding please And the acquisition on could what us our on in at my EBITDA future? margin the Thank consolidation quarters. So, targets you of So, will of the question look our term guidance you. upcoming second update in the for also is progress

Haijian He

questions. for Sophie of address [ph], happy you, to question, Thank two the the

the as the in acquisition. our and enhanced discussed improved implementation question will significantly is this especially capabilities, of regarding first acquisition we our Camelot, business, prepared The by be remarks,

XX And join and their as deal. the client we're us it's to business and strategy-driven know-how a as see in years team of with happy solid management over relationship. also experience space their deliver will the So, XX well

announced of we on right we regulatory the close approvals, as deal August, all progress, we the necessary Xnd internal the now, doing before the deal. regarding are approvals, the So, and

goes that in with will well, end closed which it and So, sometime be will we is are hoping, of the will believe this be go we if direction, by year, everything QX.

timing the the approval process will So, closing also process. the however, as for you of on other and pacing know, mechanical the depend

the we but the -- be Kingsoft financials there'll into major be And positive do process financials. integrated believe business the consolidated to be Kingsoft we the will there Cloud a the of be once close close we other transaction. and transaction, our bottlenecks no we team and before into Cloud, So, think kind impact will which will

things will Regarding to continue the following enhance are key we investment, the future our there categories. a that few and from capabilities will explore

and First the with looking product will our basically upgrade and be capabilities services. extending our cross-selling enhance we're into to offerings revenue of that and innovative of opportunities all, our really And existing the enhance ventures clients. technology matrix

particular, investment market. a this I that So, in good in has can our Public proven think see, Cloud quarter technology philosophy PaaS-level to as up in to assets look follow and in the we'll in push really record you track the revenue our previous continue

help is the with both out Cloud to think the Enterprise will direction. good proven identify Second, I also think given assets, which we and can those been efficiently. efficiently, process have execute companies close ourselves, And clients example cases, in reach that right that Enterprise expand in Cloud that us few I capabilities we past other also to ecosystem our that and more Camelot will partnership a the

margin. the we're there's think that the few on important are to I question a also margin, Third There see happy improvement EBITDA factors. a regarding EBITDA sequential

manage we very process to a all, of First efficient expenses. do adopt our

dollar around expenses at relatively So, the as topline our value absolute our stable. you terms can see, XX%-plus, of kept grow company has in while

company mathematically think it expand convert forward continued margin to bottom-line that naturally long-term our going from will I better to and a topline, the a perspective. as on So,

are as to and seasonality However, we especially you Enterprise Cloud, that our from business, want there certain different for know, out quarters. point factors both Public

So, we for for in especially details further do we'll EBITDA be improved long-term, confident and well. margin -- long-term, the we our in factors margin EBITDA look factors certain that the may the market margin affect are the gross will but into our as

So, of following the continue support things you, the few mentioned, expenses we'll our be improving as the especially fundamental our improving costs as margin I margins that Thank expect this will Unidentified end [ph]. our non-GAAP you of and on forward, breakeven we're Thank that speaking carry will to be and - you. about Analyst bottom-line few for think consider to year, by and will factors still quarters, approaching Q that efficiency Sophie EBITDA hoping organic that well. will trend going carried


you. Thank

of Our go of Please next ahead. question is from the Zoe UBS. line Zhu [ph]

Unidentified Analyst

have [Foreign two I Language] questions. So,

this can of acquisition gross Camelot, its do we is us of gross second given efficiency? about our to company our implementation margin. about think The question that also is impact question about help how margin, first The improve

security protection launched So, infrastructure has the China and critical law business law.

we two policy? related to how do this with So, costs complying the estimate

Haijian He

would to offer of like perspectives Thank the the Language] cost you, three [Foreign regarding impact Wendy. I the acquisition.

China. hubs the around XX all, over delivery nation company of First in has Camelot

teams very local been projects. in clients, experienced and very close to especially their the those So, has sophisticated

expenses the travel example, cost. local So, delivery say local for those and will dramatically team

of recurring, of two, will the means of the two the XX% Point So, cost which be over of current delivery number that Camelot things. projects. to are reflecting revenue

they them have First proprietary of standardized. are do products and some of all, their

will our margin. by So, Enterprise components the those adding Cloud as that improving also module into contribution projects, the be within

double-digit Second, believe better receiving do company a the even on also basis. standalone the growing basis, given a incremental is scale revenue be year-over-year a we will a at economy on

multi-dimensional quanta of So, was and customers, upsell has same the overlap premium And projects XX of the Cloud. can which base actually we or we deepening Kingsoft analyze current premium moment, and at Camelot point, those definition about Kingsoft customers, of great and Cloud XXX the majority leveraging overlapping especially of Camelot customers, which our [indiscernible] follow this the including well. premium clients XXX top customer relationships, top leverage of have XXXX. And the our a Camelot currently the third we team can means cross-sell enhance our as client by the

sales reduce recurring So, new our for also engagement for costs projects. sales of and cost also that will the the further new the projects

the I just the So, of recurring be benefits contribution the expenses. sales of acquisition percentage marketing by mentioned, contribution combining local three margin, and factors coming travel Camelot and and will the to costs, revenue,

Cloud. gross of So, be will also margin to both and reflecting margin those EBITDA you. Kingsoft Thank

Yulin Wang

allow on also to And answered me to Yulin translate data in relation about -- wang the of security. what Mr. -- the

very on important. a do long-term the for is orderly cloud and constituent So, and security believe information talked that We data computing very regulation industry. always is development regulation an we believe that technology like beneficial of is we've a about, the important regular of information sector. -- healthy security therefore, And

stored points that corporate mid people we our science regard. players of therefore, adapt security to the Cloud us this prepared great data extent. and remarks, to Number and office, of on our are some focus enhances on rather And and of and So, to advocate internal growth said personal that data computing of the model beneficial environment serving belong lifecycle secondly, in shows impact et might not and towards long-term, -- cetera. privately protection lot to security. will our and and well-prepared data And a data relate the of which the not approach privacy data that control the that the and provide customers including environment mechanisms, there's for counsel security lastly, project does what the in developers is even we methods, one, we're security Enterprise the regulation And still very individual like and that and though this processed privacy we the than or And all shows really certainly both that, or separation, we really and business to the company. going to deployed us. some short-term that information be the that the physical in it's our we in need majority of industry business committee with therefore, general full data the believe to the are methods security

expect developments. and spending do of that we're this, material that also facing of in to regulatory mention financial you we build in on to not do maybe the our to results. I'd on hybrid pretty we adopt in impact light which may can security, about cause the this, private choose the well. financial our but this resources any more this do regard, regulations, or since capability well-prepared as So, we including more we light think continue in provide will for cloud, -- clients -- expenditure, for cloud financial these some believe and will that of like resources asked the human And And

this So, could for our also efforts. benefit customer you. Thank acquisition


Thank you.

is of go Our line next of Chong ahead. from Thomas Jefferies. Please question the

Thomas Chong

acquisition for have taking on management. Congratulations regarding My two questions. my first I is results question. Camelot. the [Foreign strong of Hi Language] the Thanks and question

consolidated Cloud? my please about you. how about financial Cloud about should be of details first in some revenue And word Any Thank ARPU? we And premium trending a you year? is, from Cloud should please quarter Enterprise about results current the contribution Public margin So, customers? Camelot by and could landscape question on KC think how competitive think for And you Camelot? do the next the the some share clarity could second provide you Public how -- of

Haijian He

to Camelot, this to disclosed questions additional the think happy in has color been happy in the but take X-K all first of information on the two Thank share regarding acquisition announcement necessary our some previous you. Form, I'm I the call. on

of most that given revenue do First are Camelot's also all, and of their products. have recurring, propriety and they

in territory. the are So, the timing necessary mentioned, in we their margin, the approvals we as -- gross no I moment, sometime major at consolidation, regarding double-digit internal hoping, regulatory will closed internal a of and margin think number We're roadblocks contribution this this at deal QX Point or receiving approvals. for the hoping there's on two are be year. least,

be move So, ahead goes confirmed. that consolidation a things share financial to the latest bit when We're can little but hopefully, time hope I everything updates think we are happy timing QX, pushed will the well. and if the be of

of Cloud mentioned revenue while the three clients, we're contributing to and revenue a total top see happy on pace. increasing the higher So, we largest contribution remarks, revenue has our customer our also given dollar at Public our contribution basis, regarding on sequentially are have increase, as faster year-over-year as revenue are the a prepared a the seeing in but improving quarter-over-quarter clients also

top revenue but So, are lower total of mathematically, a a our contributing percentage Kingsoft clients pacing. XX of on gradually Cloud quarter-over-quarter,

perspective. our think from that I will concentration derisk So, that client be

revenue your question, revenue client major we a around on over mix we contributing see I So, that the it of healthy likely from track. follow a percentage no year, think and are the total as now, total XX% do we been And right revenue and of Cloud as has company right if like this direction. speaking of to majority Enterprise to the revenue there's to also, have contribution do XX% that will say be you Cloud perspective feel the Kingsoft moving

a moving will company's mix to healthy our combination. So, be also total revenue

So, Enterprise. that things few actually regarding the

the I be into total gradually major we we of those are seeing as of will and as early are booked the discussed going see also think previous revenue backlog revenue continued breakthroughs implementation forward, to we delivery the projects. the the Regarding going the

great public of regarding Camelot helping and currently the information going Thank announcements projects be track the also the with bits and you. will accelerate schedule. of on to forward been has Enterprise addition those some implementation some our implemented So, of

Nicole Shan

you. Thank


Thank you.

ahead. of question Ying of line is Nomura. the Joel Please go next from Our

Joel Ying

revenue [Foreign make long-term, the in Cloud Cloud mix, guidance management Language] Public total For will Enterprise [indiscernible]. and

So, as of now, Camelot, as total just already revenue attribute -- for XXXX. we XX% and focused acquired on Enterprise Cloud on Public Enterprise Cloud we're Cloud

Are long-term? guidance? going our Thank a what's mix into you. So, we forward getting and XXXX into

Haijian He

as color well. Thank some happy you, Joel, additional share to

actually number our are of But see, growth, as from the Camelot Cloud three major of is backlog is I well you of obviously, organic of actually growing. all all they our majorly new Number the as two billion of solid going our RMBX.X accounts, base gradual are at is the fundamental Enterprise conversion three mention existing as growth can pacing, three, the streams revenue but forward. Public driver one different that the to want Cloud, and growing, number accounts. revenue from So, a

on the three So, how depends a going convert to Camelot timing of transaction, the can speeds into we're closing the have final final regarding a different mix. views

our -- our perspective from Camelot management focus organic to and Cloud, the the of Cloud, opportunities But can is I think be will grow. additional make natural our Public kind team from sure that that all results. Enterprise think I

guidance closing today's be a So, right frankly perspective. been think hopefully, speaking, timing mix, give at in going has final the of is also I double-digit to also the fixed growing that given view revenue regarding early because not But that Camelot a bit yet. the of to now, the even is a

adding business So, of Cloud consolidation, percentage next year, well. as I next as think opportunity QX year, Enterprise the hopefully, the as significantly the to growing late it Cloud. will after will And Kingsoft be to for

Public value, Cloud good be growth dollar next our seeing revenue in also we you. as Thank well. year we'll believe, a However, for

Joel Ying

much. very you Thank


that's Thank of session. question-and-answer you. And the our end

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Nicole Shan

for Thank you you again operator. Thank joining us once today.

please next to forward feel you to have Look If again further any come you. you with Thank free speaking questions, back. quarter.


participating. this Thank call and today's thank concludes you. for And conference you

now can all disconnect. You