Kuaishou Technology, ByteDance’s major rival and China’s second-largest short video platform, record a double-digit growth in quarterly revenue despite China’s increased scrutiny of online content this year.
The total revenue came in at CNY20.5 billion for the quarter ended September, representing year-over-year growth of 33.4 percent.
Net losses narrowed 76 percent year-over-year to CNY7.1 billion, beating analysts’ estimate of CNY8.6 billion in net losses.
Kuaishou, whose major backer include Tencent Holdings, saw its daily active users grew 18 percent year-over-year to 320.4 million.
Tapping into short video and live streaming has become a hot trend in China since last year as more enterprises in traditional sectors, including smartphones and home appliances, found ways to reach out to customers through online channel amid the lockdowns and quarantine measures imposed nationwide to contain the spread of the virus.
This hot trend allows both Bytedance and Kuaishou grew dramatically in the domestic market as well as overseas markets.
In June, Kuaishou hit a milestone of 1 billion monthly active users while announced plans to accelerate growth by expanding into South America and Southeast Asia.
The 1 billion MAUs of the Hong-Kong listed short app operator cover Kuaishou in China as well as those on its Kwai and Snack Video apps targeted at international markets.
Despite more market opportunities, China’s livestreaming sector has been dealing with a tighter regulatory landscape since last year as the country’s regulators vowed to clean up irregular activities and chaos in the sector.
In August, China’s Ministry of Commerce outlined proposals for an industry standard for live-streaming industry, in which the authority detailed the guidance about how live-streamers should dress or speak in front of the camera,
Under the draft rules, platforms need to manage live-streamers to dress properly, products such as sex toys, medicines, spy devices can no longer be sold in these live-streaming sessions.
China also wants to build a credit system for live-streamers, merchants, and agencies based on their e-commerce sales records. The credit information will be shared across platforms and regulators, live streamers who sell fake products will be banned by the platforms.