Q3 2023 Kingsoft Cloud Holdings Ltd Earnings Call
Okay.
Good day and thank you for stunted by welcome to the Kingstone clients third quarter 2023 earnings Conference call.
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Now I'd like to turn the conference so that your speaker today Wayne Wang Investor Relations manager of Kings Hill site. Please go ahead.
Thank you operator.
Hello, everyone and thank you for joining us today.
Can you talk about.
Third quarter earnings release.
On a year to date and it's available.
Yes.
As well as on global Newswire services.
On the call today from Kings of course, we have our vice chairman and CEO, Mr. Joe <unk>.
Yes.
Harry Mr. Joel will review our business strategy.
<unk> and company highlights followed by <unk>.
Mr <unk>, who will discuss our financials and guidance.
They will be available to answer your questions during the Q&A session that follows.
There will be consecutive interpretation.
All interpretations, California company.
And preferences.
In case of any discrepancy management's team.
Thank you.
Before we begin I would like to remind you that this conference call contains forward looking statements within the meaning of section 21 E.
Of the Securities Exchange Act.
And as we find it less probably securities litigation.
1995.
These forward looking statements are based upon management's current expectations.
Current market at all.
Operating conditions and relate to events that.
Involve known unknown risks uncertainties and other factors.
All of which are difficult to predict and many of which are beyond the company's control.
Which may cause the company's actual results.
Thomas what she's going to differ materially from those.
Statements further.
Further information regarding this and other risks uncertainties.
Included in the company's filings with the U S SEC.
The company does not undertake any obligation to update any forward looking statements as a result of new information future events.
Except as required.
A couple of them off.
Finally, please note that unless otherwise stated all financial factors mentioned during this conference call are denominated in RMB.
I'd now like to introduce our vice Chairman and CEO. Mr. Chow. Please go ahead.
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Hello, everyone and thank you all for joining Kingstone, perhaps the third quarter of 2023 earnings call.
During the quarter, we continued to uphold the principle of high quality and sustainable development success.
Success based on technology, and innovation and forge all reputation throughout the entire business process with customer Centricity.
We have enhanced our operations management and proactively embraced the new AI era.
This quarter our profitability further improved.
Revenues reached RMB, one 3 billion.
Adjusted gross margin increased for the fifth consecutive quarter to <unk>, 1%.
Adjusted gross profit reached RMB 196 million, increasing by 57, 5% compared with the same quarter last year.
Normalized adjusted EBITDA margin was negative two 7%, which represents a significant improvement of seven six percentage points from the same quarter last year and 0.6 percentage points from the previous quarter.
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In terms of public cloud services revenues were RMB 1.02 billion with a gross margin of four 7%.
Inefficiently higher than the negative one 6% compared with the same quarter last year.
We continued to focus on three priorities for public cloud services, namely the Xiaomi and can't stop the ecosystem AI business and CDN strategic adjustments.
First of all we continue to serve Xiaomi.
Ecosystem, well and coordinate enterprises within the ecosystem to systematically sort out their cloud planning and fulfill their cloud demand.
<unk> Xiaomi and King contributed 17% to a revenue an increase of two two percentage points quarter on quarter and three six percentage points year on year.
Montana, driven by Xiaomi business the capacity of its dedicated cluster has expanded significantly and xiaomi has become our largest customer.
Thanks helped office its revenue in September increased by nearly 50% compared to January driven by its AI business.
Secondly, we proactively developed our AI business currently.
Currently there is a strong demand for AI business with tens of customers, who have signed contracts with us we're in the process of business discussion.
AI related capital expenditure in this quarter exceeded RMB 400 million exceeding the total of the previous three quarters and have increased for two consecutive quarters.
Without continued investment and efficient execution, our AI business revenue surged by over 70% compared to last quarter with a healthy gross profit margin.
Thirdly, we continued to push forward, our strategic adjustments in CDN business.
This water CDN revenue decreased by nearly 20% compared to last quarter and the C D and revenue as a percent proportion of total revenue has decreased to about 30%.
The revenue share of our largest CDN customer has significantly decreased from 16, 2% in the previous quarter to talk to us and in this quarter.
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Moving on to Enterprise Cloud services total revenues were RMB 609 million, while rough margin has maintained at a healthy level of more than 24%.
In public safety.
Actually to focus on four areas.
Public services cloud stayed on assets cloud and education filed further improving the end to end model from cloud migration cloud to use the cloud management, forming a product matrix centered on big data lots of models as well as WPS collaborations.
Example, we have been the partner for the Beijing public services cloud for nine consecutive years, winning a strong reputation to deliver secure reliable and easy to use systems and services, resulting in 24 contract renewals this quarter and forming a virtuous cycle.
In digital health space, we continued to promote the five business models and make new breakthroughs.
As the only cloud service provider, we participated in the revision of a national level health care standard setting project, gaining a first mover advantage as demonstrated by our business model technical capabilities and our corporate achievements in the regional Health club space.
We have collaborated with Kings up office to develop an electronic medical record editor for the National Health Commission and successfully completed the task.
While continuously delivering the rating hospital projects. We have also successfully signed a contract for the inflammation construction projects off the People's Hospital, a few high in high Tech, making new progress in the hospital space.
In the financial services space, we continued to defend our business cooperation with large state owned banks and complete the delivery of the existing existing projects as scheduled while winning new projects.
We also actively participated in the selection stage of AI models, a large state owned banks.
Turning to catalogs during the corner catalog business is stable signing up five new customers, while maintaining robust relationships with existing major client.
This profitability has been rising again steadily.
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In terms of product and technology, we uphold our principle of building success based on technology and innovation by delivering best in class customer experience across all four of our product offering.
In computing space, we continue to upgrade our pro products, focusing on improving stability and domestic environment compatibility.
We have also identified eight major product and technology co construction products with key leading hub.
You accurately match customer demand planning and deepen collaborative development.
In storage space, we have released a new version of object storage significantly optimizing read performance and a small I O scenarios with an overall performance improvement of over 50% approaching the theoretical limit.
In big data space, our cloud native Big data platform has significantly improved its compatibility with how to effectively achieving smooth migration of her first half.
I mean enterprise cloud faith, we focus on the end to end positioning of cloud migration cloud views and cloud management continuously optimizing the user experience in terms of ease of use openness and efficiency building a unified presentation of operational data in a mask on top of it and once again upgrading.
One cloud multi CPU compatibility can provide more domestic environment support capabilities.
Our Galaxy stack platform has obtained leadership great designation, the highest level of certification international authoritative cloud benchmarking evaluation, how do you find that our dedicated cloud service capabilities are popping up in China.
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We embrace the new AI era in a comprehensive approach.
Some customers, we aim to fully align with AI cloud plenty from Xiaomi and can't stop the ecosystem.
In the meantime, leveraging our neutral position to proactively meet the motto training and inference demand from a large number of independent AI companies.
Our business model, while the general AI computing services business is taking off we preemptively explore one stop AI cloud transformation services aiming to become the AI enabler in select verticals.
Terms of R&D, we make efforts in three directions talent products and solutions.
Shang our AI R&D center to support the research from three major capability areas, including application algorithm and platform.
We also upgraded our core storage database network and other products with AI T. C. Facing features and continue to perfect. Our mass mutual trust designated zone solution.
In terms of supply chain facing the uncertainty of the international market, we actively explore a domestic supply chain alternative channels.
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Moving onto talent strategy, Firstly, it's about building our Beijing Wuhan do R&D Center is.
In less than a year since its founding last October through voluntary relocation and our key R&D stuff from Beijing, and Wuhan local recruitment all wound team has quickly grown to over 500 people accounting for approximately 50% of our total R&D personnel.
Secondly, we're promoting the implementation of the high potential talent program, which aims to identify and nurture the future backbone of our company.
Thirdly, despite the uncertainties in make our economy, we continued to increase campus recruitment efforts to forge a talent base and foundation for the company's long term development.
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In summary, the continuous and steady improvement in our profitability over the past seven eight quarters has strengthened our belief in the strategies and the directions, we have children.
With both opportunities and challenges ahead of US we will continue to uphold the strategy of high quality and sustainable development leverage on technology reputation and operational management to drive progress.
Our risk awareness optimized business structure embrace AI opportunity and continue to improve profitability, thereby creating value for our customers shareholders employees and the society.
I will now pass the call over to our CFO Henry to go over our financials for the third quarter up 2023. Thank you.
Uh huh.
So this is all and welcome everyone for joining our call.
Now I will walk you through the financial results for the third quarter 'twenty three.
Under the strategy of a high quality and a sustainable development, we're pleased to deliver another quarter of steady profitability improvement.
Our adjusted gross profit continue to grow for the fifth consecutive quarter and achieved $196 3 million RMB.
Increased by 57, 5% year over year, representing adjusted gross margin of 12, 1%.
Which is a record high for the company.
Our normalized adjusted EBITDA narrowed from negative 200, there are 2.0 million RMB in the same period of last year, and a negative $59 9 million RMB in.
In the last quarter to negative $44 1 million RMB this quarter.
As a result normalized adjusted EBITDA margin further narrowed from negative 10, 3% in the same period last year and an active three 3% in the last quarter to negative two 7% this quarter.
Another solid step towards EBITDA breakeven.
Our total revenue were $1625 2 million RMB this quarter.
Revenue for our public cloud services.
$1016 6 million RMB, representing a decrease of nine 5% compared with 1000 113.0 million RMB in the last quarter.
This is primarily due to the strategic.
Getting out of our CDN business by approximately 20% on a quarter over quarter, and partially offset by lower C D and public clouds.
Revenue from Enterprise call services were $608 5 billion.
Representing a slight decrease of two 2% from 622.0.
Same period of last year, that's what continues to be stringent on our project selection.
We're continuing to enhance our cost control measures.
Total cost of revenue decreased by 22, 6% a year over year to 1429, 0.0 made out and B I.
Do you see cost decreased significantly by 31, 6% year over year from $1078 3 million RMB, two 737.7 million RMB this quarter.
Depreciation and amortization costs decreased by 21% from 250 to $3 7 million RMB in the same period of last year to 200 point Formula RMB.
Solutia development services costs decreased by 4% area from $443 1 million RMB two of $425 3 million RMB this quarter.
Fulfillment cost and other costs were $25 7 million RMB and a $39 9 million RMB this quarter respectively.
Adjusted gross profit this quarter increased by 57, 5% to $196 3 million RMB, representing adjusted gross margin of 12, 1% this quarter compared with six 3% in the same period of last year.
Another record high as well as our fifth consecutive quarter of steady margin improvement.
Each of our business lines achieved margin improvement on a year over year basis.
Gross profit of public call services were $48 1 million RMB.
Which was significantly improved from the gross loss of $22 1 million RMB in the same period of last year.
Gross margin off the public cloud services, while 4.7% compared with negative 131, 6% in the same period last year. The improvement was mainly due to our success in AI business.
Active scaling down of our CDN services and adjustment of our cost structure.
Gross profit of enterprise cloud services, while $147 3 million RMB compared with $143 8 million in the same period of last year.
Gross margin help enterprise style services was 24, 2% representing a slight increase from the already healthy margin level of 23, 1% in the same period last year as we continue to carry out a stranger and project selection.
In terms of expenses.
Excluding share based compensation and impairment of long life assets. Our total adjusted operating expenses were 500 zero $4 5 million RMB decreased by six 2% from 538.1 made at RMB last quarter of which of our adjusted R&D expenses were 188.
Seven 2 million out of the increased by two 7% from last quarter as we continue to focus our technology powerhouse and a welcome new graduate campus recruiting employees.
Adjusted selling and marketing expenses were $114 1 million RMB, representing a decrease of 11% from $128 3 million RMB last quarter.
Adjusted SG&A expenses also decreased by 10, 7% from $227 5 million RMB last quarter to 203 1 million RMB.
That's all for June 30, 'twenty or 'twenty, three our cash and cash equivalents in short term investments amounted to $2 6 billion, providing us with.
Sufficient liquidity for operations.
Capital expenditures for this quarter was $415 3 million RMB, absolutely invested in our infrastructure to build a sustainable AI business.
Our operating cash flow less again I recorded a nice inflow recorded $20 4 million RMB.
Got it from our market improvements that's why I stopped he has he tried our cash management.
Looking ahead, we will continue to pursue our high quality and a sustainable development strategy and unlock synergies within the Xiaomi and it came subgroup ecosystems, while staying.
Out to capture new opportunities in a new era of AI.
This concludes our prepared remarks, thank you for your attention right now.
Now happy to take your questions. Please.
Please ask your question and with both Mandarin English or impossible.
Operator, Please go ahead.
Thank you as a reminder to ask a question you will need to press star one and one on your telephone.
Your name to be in.
To withdraw your question Please press star one.
Okay.
Okay.
We will take our first question. Your first question comes from the line of <unk> Zhang from CIC. Please go ahead. Your line is open.
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So my first question is regarding our AI strategy I'm talking from Quad has become the first choice for some of the industry, leading independent large language model providers when they select I spenders. So what is the growth trajectory for these type of clients in the recent quarters and how would the recent supply constraints and Pat.
Our AI strategy.
Secondly, could management share your most recent guidance on the timing of adjusted EBITDAR margin breakeven. Thank you.
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First part of the answer was provided by Mr. O'neill, Paul and so to answer your question the customers that we have signed and engaging in business with ATA meeting them and leading a leading player in the AD market.
Apart from DBA and they have relatively strong capital.
Yes.
And business scale.
Roughly their starting point off the business Corporation. It usually starts about 128% to 256.
Our units and likely to expand to 500 and top server units.
Our service and because they're because our final goal is to move to the last language models and their permits the rabbit are hugely amounting to hundreds of billions.
All the all the required resources of computing power.
Also at the level.
At the level that is about 500, a tough several units and above.
So for the.
All the uncertainties that you asked about the external environment.
People CN as well as you'll have noticed that as well that since October the export control from the United States has created quite a impact to the industry, including that industry in China and we are no exception. However, unfortunately.
We have four C will have actually a plethora of discounting and have made some preemptive actions.
So due to our <unk>.
Priyanka as a preemptive planning.
We have actually got only limited impact.
From that from that export control. However, how do we see this from the medium to long term I think it depends on a couple of factors.
Quoting the performance of media in China.
As far as the production capacity. So I think all in all I'm in a short time in the future for example, in one or two quarters the impact you're talking about the cloud should be limited I think it's a relatively under control in the locker time, we also actually relatively confidence because we have seen some of the positive.
Progress the Chinese achieving industry has made during the past year. So as I mentioned in the prepared remarks.
We are seeing both opportunities and challenges.
I had in the future because we have obtained a lot a number of independent AI customers were relatively comfortable with the with it with the with the potential impact.
Okay. Thank you.
I will take on the second question, so they're not actually the two different drivers are first of all some of you.
Remember.
We actually hit quite dramatically back then back off late part of 'twenty or 'twenty one given.
The slow down into that a consumer business as well as the impact on the press call sector.
Later part of the 20th when it was at that time, our gross margin was only one 2%.
As you all noticed that today that will increase about one 2% to 12% on the gross margin side. So that actually is a fundamental.
Gulf of our collective efforts around improving the efficiency of the resources we have.
Improving the client selection and credit quality, so putting that aside that would give us about 10 times up off the gross margin percentage. So.
Part of that as you probably also noticed that the spread between the gross margin and EBITDA margin.
I think the largest spread probably about the last year.
Around about 19% 20%.
But this quarter as you may see the spread has been also narrowed.
About 20% to only 14%.
Which means on expenses control side, we also reduced significantly in terms of how we spend our resort Vista research I was spent on the travels how it's been on the general management purposes, So putting everything together the two fundamental driver from the business as far as how we improve.
Operational efficiency has given us leading.
Leading to today's improvements on the EBITDA margin improvement.
And subject to a question, but I think given all the initiatives that our strategy. We already are putting to place those impact the reality will gradually be released.
Quarter by quarter, so its not going to be a one time off thing for this quarter, it's going to be carried out for the next few quarters steadily and our attention. We are hoping to improve both gross margin as well as narrowing the spread between the gross margin EBITDA margin. That's a good quarters, while as you may understand the management team will not be giving our guidance for the fall.
EBITDA margin of breakeven at this moment, but as you can see the trend has been steady for the past four quarters.
Hopefully keep that trajectory and the pacing of improving the margin hopefully we can report a breakeven not only on the EBITDA margin, but also all other items in the near future as well so sort of.
Just give us a bit of time and that we can we can probably deliver those results.
Two expectation thank you.
Thank you.
We will take our next question.
Your next.
Comes from the line of Tim T cell from Goldman Sachs. Please go ahead. Your line is open.
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Hello, Joe.
<unk> Hello, Joel John.
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Thank you management for taking my question I have two questions both regarding the public health sector.
First one is regarding the AI ban is can management share more color.
The bad news in terms of its revenue contribution.
That's why I asked the profitability level, either growth profit margin or EBITDA margin and as you mentioned in the third quarter.
It's been around 1 billion K passing the AI ban is just wondering if Mike has any guidance into your capex into fourth quarter and next year.
Including the AI business.
Second question is regarding the CDN business as we understand it that yourself the.
The oral competitive environment in China.
Segment is quite dynamic.
Wondering.
For the CDN or are we going to see more address methane.
Next few quarters and after adjustment what is management view.
Midterm normalized gross profit margin level.
Of the public health business. Thank you.
Secretary of Mercer hiring here are probably take all the first crusher on that our trust in myself briefly.
So that I can comment as well.
So regarding the AI business contribution the first point is on the Capex. So last quarter was bad in my script I mentioned, it's about 415 million RMB 400 level.
On the third quarter, but go back to your first point regarding the contribution at a revenue margin of a few things to share first of all.
As you know following very fundamental and the basic economic principle right. It's really driven by two things one there's a supply demand about us secondly, it's about the technology, we offer and the products we offer right. So as we all know that today.
Really it's about the.
The buyers are.
So all of a setup market right. So if you do have a railroad bust the infrastructure and resources and it can provide a very robust service that product sort of highest class definitely willing to pay.
For the client is also giving them a cutting edge advantage when they try to compete at a training that model to a certain level, where they've got competing.
Yeah.
Work class stage, so that actually convert to a very good logic for us to have a better margin compared with other kind of resources driven services. Historically, so we also observed the second phenomena.
Also willing to pay for that out at a part of the services.
Only by charging them, a fundamental resource usage basis.
So by giving them the best practice and I give them a value added service that product, we can share sort of value with our clients and that embedded into a part of the pricing.
So those are the two fundamental reasons that we believe the higher module from the AI business will carry out for the future as well as a second point point and a third point is really about contribution right. So the reason we didn't give a percentage for this quarter as you know every day counts for this quarter. So given we have a strong client demands and.
And we also provided enough sufficient resources for client.
And each quarter, we do see a very good growth trajectory at this moment.
You look at because the third quarter. It means from first of July two of the 30 September I right. Now we're already end of November. So today's situation is very different with the first of July and we do believe if we look at a tail impact of the third quarter the growth trajectory and the incremental revenue either on a weekly basis is very sick.
<unk> contribution to total revenue, but if you come by as a total quarter for the third quarter alone I think this number will be really a misleading to a certain way that that's definitely does not account for the full credit for I'll say a business for us. So that's my second point, a third point regarding the capex direction out of guidance.
As we have probably talk last quarter as well we do believe this part of the Capex is a very good growth driver for us. So the more we spend the more incremental revenue will come for sure in the mall and a better gross margin will come to follow as well. So you'll see we spent about 40 million in this quarter for Capex.
We're seeing the trade it for next quarter and maybe the early part of next year.
<unk> continued to increase and mathematically you will have a direct linkage for those spending come back to a new revenue for next year.
You can do the math, but I'm not going to give you the answer but you can see that trend is very visible as well. So I think these are the straight path that's on there.
I'll give you a color given the importance of this pushout of traveling and myself as well.
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Thank you everyone.
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Oh, sorry.
Hello.
So just with the island.
Okay. So let me quickly translate for in relation to a second question about the CDN strategic adjustments. We have actually started the adjustment in October 30th October 31st with you and we have an internal deadline of June 32024.
And I can say this we are continuing to do some adjustment according to the market conditions.
We forget in the CDN revenue on a quarterly basis around 500, RMB 500 million R&D and it might continue to scale down to somewhere between 300 to 400 million RMB per quarter.
And thereby reaching a relatively stable status till after June 30th like Nokia and others in relation to a question about the.
Profit margins for the public cloud.
Some of it is business.
It's up two components, one is CDN and one is the so called Pan Internet sector, but he didn't factor I've mentioned and as to the third quarter next year, we expect that the strategic adjustments to have completed and by then we would hope the margin of this business line to renew.
Bert to the relatively healthy level that was as of the fourth quarter of 2022 now for the Pam Internet space.
<unk> seen the margin I'm, including both the GP margin and as well as the operating profit margin.
Definitely yeah, the gradually improving I've mentioned one of the uncertainties is the GPU supply and obviously in the AI space. That's the demand are significantly significantly outpaces that off demand at the I'll pass yourself off supply and if that can be either if that supply chain issue can be resolved.
Particularly obviously the improvement off of our business as well as margin in the AI and thereby depend internet space will be match faster, but even with that uncertainty we're already seeing a relatively a good progress in terms of margin improvement and business scale expansion. Thank you.
Okay.
Thank you that's very helpful.
Yes.
Thank you.
We will take our final question.
Please standby.
Your final question comes from the line of Catherine that you from Citi. Please go ahead. Your line is open.
Oh My God.
<unk> Keybanc Katrina.
Alright that Banco Kieran.
Okay.
A woman.
You bet.
John John Scheurer with Chartwell, when they ship it should clean sheet anchor Jonathan.
Or is that too soon.
Good evening, Thanks management for taking my question.
You're asking on behalf of Brian Gong from Citi.
The old pool of revenue outlook in two.
2024.
We can expect positive revenue growth.
Thank you.
Did I catch it right.
Katrina.
So.
Well after we are.
Realistic.
Dual listing in Hong Kong, we actually did a publish our kind of management guidance, but have to shed some color as well as we are moving towards the year end of 2023.
First of all as you know even today right now how about 25%.
20% to 25% buyback, but if a quarter.
The revenue is coming from the CDM business, Oh I see.
Total mentioned as well.
Kind of in the face of.
Some adjustment.
Client mix for all the products, we offer and that's why I was with control of the cost would procure that bandwidth as well so but if you look at that business. The first priority as we tried to change the mix and the structure of the kind of products right. So we've tried to remain relatively stable, but we just the combination of the cloud.
And the products within that business so.
So that's actually what we're trying to do in next two or three quarters right. So that's kind of first factor probably can consider but we're not going to see dramatic changes or swings.
From that business, but Chad change at a better structure of that so that's the first part the second part is as I mentioned.
The new money and capital expenditure spending until they are right.
The infrastructure with beautiful client and the math, we're caught up modest a services solution set of services with you that there are other times as well as.
The value add part of the projects, we do for our clients. So those are actually come out will be one of the probably the one priority for next year to grow the revenue and if you do a quick math I put this way is every 302 dollar spend that this year youre going to see probably $1.
A relatively around at one dollar of the incremental revenue of policy for the next year. So that's the kind of mathematical connection given a capex converts to.
Products and products to cover its true incremental revenue. So that's the second part so we can do a bit of kind of analysis on that.
Third part is really about our about a stable enterprise business as you can see that.
Our sub coming out it's been relatively stable revenue for next year I think given the macro environment has been improving so you are going to also to see that revenue contribution will come up we're going to see a relatively.
For us as well and our health care public sector and financial services Enterprise Cloud. We also see silicone growth given we already have some flagship products in place for this year and if we can replicate that from city to city of beef from client to client base going forward for next year.
So we're hoping we can remain around 30.
A sense in terms of the GPO contribution on a project level by replicate that two more projects for next year. So if you combine those three things.
Stable CDN, but better mix, the spending cutbacks color to incremental revenue for the public cloud.
<unk> growth for coming out as well as the stable revenue and profit, but a growing revenue for enterprise cloud for financial services. So on so forth putting them together.
We have kind of a confident to see without any kind of big changes on the picking environment. Our topline revenue for next year, you may see a kind of back to the Y O Y growth end up Q on Q growth as well.
Tim mentioned in the previous question as well, we are hoping to getting to a certain point that not only the EBITDA will be breakeven.
The next near future, but also we're going to see the op side is going to putting out back.
Back pocket to have an intention to bring a better profitability for the shareholders as well.
The last point I want to mention this.
We also will keep a very close eye on the competitive landscape means our peers and our competitors are trying to do a better quality of the work compared with other peers, but also we're happy to see where May you know next quarter or two where they are catching up on the gross margin side.
The next few quarters, but also in the Y O Y on the growth side with a major catch it all even better than the competitiveness as well because we did a few things.
Since last year, when Ceos, who would have come to the office and we actually have a few things in place and those efforts are I think two or three quarters earlier than our major competitors, you would probably see the recovery work doing appropriate sooner.
As well thank you.
Yeah.
Thank you that's very helpful.
Thank you I would now like to turn the conference back for closing remarks.
Thank you operator, thank you once again for joining US today. It is if you have any further questions. Please feel free to contact us looking forward to speaking with you again next quarter.
Nice day.
This concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
Yeah.
Yeah.
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