Chinese cloud computing services provider Kingsoft Cloud has reported strong revenue growth but widening losses in the first quarter of 2020.
For the three months through March, Kingsoft Cloud’s total revenue grew by 64.5% to 1.39 billion yuan ($196.4 million), nearly 87% of which came from sales of its public cloud services, according to its latest earnings report released Wednesday. Sales of its enterprise cloud services generated 181.6 million yuan in revenue, accounting for about 13% of the total.
The results come after the Covid-19 pandemic has increased demand for cloud computing services, which have powered remote collaboration apps, online education platforms and digital health-tracking systems that have been widely used amid nationwide efforts to minimize coronavirus-induced losses.
Despite the virus-linked gains, Kingsoft Cloud saw its net losses widen to 331.6 million yuan from 201.4 million yuan in the same period for 2019, the earnings report showed.
The company also gave an outlook for its second-quarter, predicting that its total revenue will likely reach between 1.5 billion yuan and 1.54 billion yuan, representing a year-on-year increase of 60% to 65%.
Last month, Kingsoft Cloud raised $510 million in its U.S. initial public offering (IPO), which the company said will be used mainly to upgrade and expand its infrastructure and increase investment in technology and product development.
Contact reporter Ding Yi (email@example.com)