Kingsoft Cloud Holdings (Kingsoft Cloud Holdings) Gross Margin % : 14.70% (As of Dec. 2023)

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What is Kingsoft Cloud Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kingsoft Cloud Holdings's Gross Profit for the three months ended in Dec. 2023 was $35.5 Mil. Kingsoft Cloud Holdings's Revenue for the three months ended in Dec. 2023 was $241.2 Mil. Therefore, Kingsoft Cloud Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 14.70%.

The historical rank and industry rank for Kingsoft Cloud Holdings's Gross Margin % or its related term are showing as below:

KC' s Gross Margin % Range Over the Past 10 Years
Min: -9.56 Med: 3.88 Max: 12.06
Current: 12.05

During the past 7 years, the highest Gross Margin % of Kingsoft Cloud Holdings was 12.06%. The lowest was -9.56%. And the median was 3.88%.

KC's Gross Margin % is ranked worse than
90.84% of 2631 companies
in the Software industry
Industry Median: 41.74 vs KC: 12.05

Kingsoft Cloud Holdings had a gross margin of 14.70% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kingsoft Cloud Holdings was 0.00% per year.

Kingsoft Cloud Holdings Gross Margin % Historical Data

The historical data trend for Kingsoft Cloud Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Kingsoft Cloud Holdings Gross Margin % Chart

Kingsoft Cloud Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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0.19

5.43

3.88

5.25

12.06

Kingsoft Cloud Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															7.60	10.42	11.26	12.07	14.70

Competitive Comparison of Kingsoft Cloud Holdings's Gross Margin %

For the Software - Application subindustry, Kingsoft Cloud Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Kingsoft Cloud Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Kingsoft Cloud Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kingsoft Cloud Holdings's Gross Margin % falls into.

Kingsoft Cloud Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kingsoft Cloud Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	119.1	/	987.012
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(987.012 - 867.944)	/	987.012
	=	12.06 %

Kingsoft Cloud Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	35.5	/	241.233
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(241.233 - 205.78)	/	241.233
	=	14.70 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Kingsoft Cloud Holdings (NAS:KC) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Kingsoft Cloud Holdings had a gross margin of 14.70% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Kingsoft Cloud Holdings Gross Margin % Related Terms

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Kingsoft Cloud Holdings (Kingsoft Cloud Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Kingsoft Cloud Holdings Ltd (NAS:KC) » Definitions » Gross Margin %

Comparable Companies

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03896:Hong Kong KS7:Germany K2CG34:Brazil

Address

No. 33 Xierqi Middle Road, Building D, Xiaomi Science and Technology Park, Haidian District, Beijing, CHN, 100085

Website

https://www.ksyun.com

Kingsoft Cloud Holdings Ltd is an independent cloud service provider in China. The company has built a cloud platform consisting of cloud infrastructure, cloud products and industry-specific solutions across public cloud, enterprise cloud, and IoT cloud services. Its products and services are categorized in compute, networking, storage and delivery, database, data analysis, security, video services, and developer services. Geographically, the firm operates in China.