 BEIJING, Aug. 18, 2020 GLOBE NEWSWIRE -- Kingsoft Cloud Holdings Limited Kingsoft Cloud or the Company NASDAQ: KC, a leading independent cloud service provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2020.Second quarter 2020 Financial Highlights Total revenues were RMB1,534.8 million US1217.2 million in the second quarter of 2020, representing an increase of 64.1 year-over-year. Gross profit was RMB80.7 million US11.4 million or 5.3 gross margin in the second quarter of 2020, compared with gross loss of RMB20.3 million or -2.2 gross margin in the second quarter of 2019. Non-GAAP gross profit2, was RMB83.8 million US11.9 million or 5.5 Non-GAAP gross margin in the second quarter of 2020, compared with Non-GAAP gross loss of RMB16.5 million or -1.8 Non-GAAP gross margin in the second quarter of 2019. Net loss was RMB420.1 million US59.5 million or -27.4 net loss margin in the second quarter of 2020, compared with net loss of RMB319.7 million or net loss margin of -34.2 in the second quarter of 2019. Non-GAAP EBITDA3, was RMB-35.9 million US-5.1 million or -2.3 Non-GAAP EBITDA margin in the second quarter of 2020, compared with RMB-117.6 million or -12.6 Non-GAAP EBITDA margin in the second quarter of 2019. Excluding the one-time IPO-related expenses, normalized Non-GAAP EBITDA4 was RMB-26.8 million US-3.8 million or -1.7 normalized Non-GAAP EBITDA margin.___ 1This announcement contains translations of certain Renminbi RMB amounts into U.S. dollars US at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US has been made at RMB7.0651 to US1.00, the noon buying rate in effect on June 30, 2020 as certified for customs purposes by the Federal Reserve Bank of New York. 2Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues. and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See Reconciliation of GAAP and Non-GAAP results set forth at the end of this press release. 3Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense and depreciation and amortization, and Non-GAAP net loss is defined as net loss excluding share-based compensation, foreign exchange loss, changes in fair value of financial instruments and other income expense, net. Non-GAAP EBITDA margin is defined as Non-GAAP EBITDA as a percentage of revenues. See Reconciliation of GAAP and Non-GAAP results set forth at the end of this press release. 4Normalized Non-GAAP EBITDA is defined as Non-GAAP net loss excluding listing expenses, interest income, interest expense, income tax expense and depreciation and amortization. Normalized Non-GAAP EBITDA margin is defined as normalized Non-GAAP EBITDA as a percentage of revenues. See Reconciliation of GAAP and Non-GAAP results set forth at the end of this press release. We delivered solid operational and financial results for the second quarter of 2020. Our total revenues increased by 64.1 year-over-year to RMB1,534.8 million, driven by solid growth in both public cloud and enterprise cloud services. commented Mr. Yulin Wang, Chief Executive Officer of Kingsoft Cloud. We will continue to invest in technology, such as edge computing, big data, transcoding and others. We are confident that our cutting-edge technology and ability to effectively execute our strategy will ideally position us to capture the growth opportunities the cloud industry will create in the future. Mr. Henry He, Chief Financial Officer of Kingsoft Cloud added that Despite the uncertain macroeconomic environment, we are pleased to see that we are consistently delivering faster revenue growth than the general public cloud industry in China and continued to improve our bottom-line performance, as we achieving greater economies of scale. It demonstrates our ability to provide quality services to our customers even in challenging market conditions.First, our previous guidance for the second quarter ranged from RMB1.50 billion to RMB1.54 billion. The total revenues during the quarter came in at the mid-to-top end of our guidance, at RMB1.535 billion, representing an increase of 64.1 year-over-year. Our enterprise services revenue was RMB246.1 million. Despite the impact of the second wave of the pandemic in June, enterprise cloud services achieved significant growth of 259.3 on a year-over-year and 35.5 on a quarter-over-quarter basis.Second, we generated a positive gross profit for the fourth consecutive quarter and our adjusted gross margin has now improved for eight quarters in a row. Specifically, the adjusted gross margin increased from -1.8 in the second quarter of 2019 to 5.5 in this quarter, an improvement of 7.3 percentage points.Third, excluding the one-time IPO-related expenses and other Non-GAAP adjustments, our normalized adjusted EBITDA margin increased as well, up from -12.6 in the second quarter of 2019 to -1.7 in this quarter, representing an improvement of 10.9 percentage points. Adjusted EBITDA margin has now steadily improved for eight consecutive quarters.Second quarter 2020 Financial ResultsTotal Revenues reached RMB1,534.8 million US217.2 million, an increase of 64.1 from RMB935.1 million in the same period of 2019. The increases were primarily due to the growth in both public cloud services and enterprise cloud services for our premium customers. Revenues from public cloud services were RMB1,287.1 million US182.2 million, representing an increase of 48.6 from RMB866.3 million in the same period of 2019. Revenues from enterprise cloud services were RMB246.1 million US34.8 million, representing an increase of 259.3 from RMB68.5 million in the same period of 2019. Other revenues were RMB1.6 million US0.2 million.Cost of revenues was RMB1,454.0 million US205.8 million, representing an increase of 52.2 from RMB955.4 million in the same period of 2019, primarily attributable to increase in IDC costs and depreciation and amortization costs, as we continue to grow our business. IDC costs increased by 31.6 to RMB978.4 million US138.5 million from RMB743.5 million in the same period of 2019. The increase in IDC costs was in line with the Companys expanding business and was partially offset by improved efficiency and utilization of bandwidth. However, IDC costs as a percentage of total revenues decreased from 79.5 during the same period of last year to 63.8 in the second quarter of 2020. Depreciation and amortization costs increased by 59.1 to RMB217.5 million US30.8 million from RMB136.7 million in the same period of 2019, primarily due to new servers and other fixed assets purchased. As a percentage of total revenues, depreciation and amortization costs decreased from 14.6 during the same period of 2019 to 14.2 in the second quarter of 2020.Gross profit was RMB80.7 million US11.4 million, compared to gross loss of RMB20.3 million in the same period in 2019. Gross margin was 5.3, representing an increase of 7.5 percentage points from -2.2 in the same period in 2019.Non-GAAP gross profit was RMB83.8 million US11.9 million, compared to Non-GAAP gross loss of RMB16.5 million in the same period in 2019. Non-GAAP gross margin was 5.5, representing an increase of 7.3 percentage points from -1.8 in the same period in 2019. The increase was primarily due to our continued leverage on economies of scale.Selling and marketing expenses were RMB109.8 million US15.5 million, representing an increase of 39.0 from RMB79.0 million in the same period in 2019, mainly due to the increase in share-based compensation expenses, as well as the salaries and welfare of selling and marketing personnel.General and administrative expenses were RMB170.4 million US24.1 million, an increase of 180.3 from RMB60.8 million in the same period in 2019, mainly due to the increase in share-based compensation expenses from 11.3 million in the second quarter of 2019 to 97.3 million US13.8 million in the second quarter of 2020, as we recognized one-time share-based compensation upon our IPO in May 2020.Research and development expenses were RMB230.8 million US32.7 million, an increase of 60.8 from RMB143.5 million in the same period in 2019, primarily due to the increase in share-based compensation expenses, as well as the salaries and welfare of research and development personnel.Operating loss was RMB430.3 million US60.9 million, compared with RMB303.5 million in the same quarter of 2019.Net loss was RMB420.1 million US59.5 million, compared with RMB319.7 million in the same quarter of 2019.Non-GAAP net loss was RMB237.7 million US33.6 million, compared with RMB235.8 million in the same quarter of 2019.Non-GAAP EBITDA was RMB-35.9 million US-5.1 million, compared with RMB-117.6 million in the same quarter of 2019. Non-GAAP EBITDA margin was -2.3, compared to -12.6 in the same quarter of 2019. The steady increase of Non-GAAP EBITDA margin was due to the revenue growth and operating leverage. Excluding the one-time IPO-related expenses, normalized Non-GAAP EBITDA was RMB-26.8 million US-3.8 million or -1.7 normalized Non-GAAP EBITDA margin.Basic and diluted net loss per share was RMB-0.19 US-0.03, compared with RMB-0.36 in the same quarter of 2019.Cash and cash equivalents and short-term investments were RMB5,763.8 million US815.8 million as of June 30, 2020, compared to RMB2,198.4 million as of March 31, 2020. The increase was primarily driven by the net proceeds received from IPO in May 2020.Outstanding ordinary shares were 3,146,466,493 as of June 30, 2020, equivalent to about 209,764,433 ADSs. 