Chinese video-sharing app Kuaishou generated RMB 50 billion (around $7.2 billion) in revenue in 2019, with live-streaming revenue accounting for the largest share, Chinese media Jiemian reported on Monday.
Why it matters: Kuaishou is one of China’s most popular short-video apps and a major rival of Bytedance’s Douyin, the domestic version of TikTok.
- The app has more than 200 million daily active users (DAUs), dwarfed by Douyin’s 400 million users.
- It also holds an 8% share of the live-streaming e-commerce market in China following Alibaba’s Taobao Live with 79% and Douyin with 13%.
Details: Kuaishou’s revenue from livestreaming reached RMB 30 billion in 2019 and its earnings from gaming and e-commerce were several billions of RMB, Jiemian reported on Monday, citing people familiar with the matter.
- Revenue from online advertisements exceeded RMB 10 billion.
- The report quoted an analyst as saying that the company’s revenue from livestreaming has little room to grow in 2020, and overall revenue growth will be powered by its advertising and e-commerce businesses.
- Kuaishou did not respond to requests for comment on Monday.
- Tencent News, a subsidiary of Chinese internet giant Tencent, which holds a nearly 20% stake in Kuaishou, reported on Monday that the app generated RMB 13 billion in revenue from advertisements in 2019, which the company denied that same day.
Context: Kuaishou has stepped up efforts to monetize its services such as e-commerce and gaming in recent years.
- The company suspended in December an e-commerce referral feature for Taobao products. The feature previously allowed listings from the e-commerce marketplace to display in the short video app. The move was seen as indication that the firm is looking to expand its own e-commerce capabilities.
- It also launched in December 2018 a “mini game” feature which allows users to play video games within its app.
- Su Hua, the company’s co-founder and CEO, set a target of reaching 300 million DAUs in 2019 in an internal letter sent to employees in June.
– This article originally appeared on TechNode.