The Profit Model and Financial Analysis of the Live Streaming Business of Kuaishou Company

Abstract

With the vigorous development of the live streaming industry and the intensifying competition among platforms, Kuaishou, as a leading live streaming platform, has its live streaming business serving as the second core profit pillar in online marketing service revenue. The enhanced regulatory constraints and increasing operational costs have drawn much attention to its profit model and financial issues. This paper focuses on the analysis of the profit and financial performance of Kuaishou’s live streaming business as the core research topic. It combines the methods of literature investigation, case analysis, and data analysis to explore the current development status of the online live streaming industry, the analysis of the live streaming profit model, and the financial analysis. This study focuses on the profit model and financial performance of Kuaishou’s live streaming business. It concludes that Kuaishou has constructed a “bribe + e-commerce” dual-drive model in its profit model, but the live streaming revenue has declined and the growth rate of e-commerce has slowed down. In terms of financial performance, Kuaishou’s operating cash flow, gross profit margin, etc. are relatively stable, but its debt-to-asset ratio is high and the short-term debt repayment pressure is large.