With the vigorous development of the short play market, the quick start of the content community naturally stands at the flow outlet.
Source: pixabay On May 22, Fasthand (01024. HK) released its financial report for the first quarter of 2024.
The financial report shows that its total revenue increased by 16.6% year on year to 29.4 billion yuan, and its adjusted net profit increased by 10347.6% year on year to 4.39 billion yuan, an increase of more than 100 times, hitting a record high in a single quarter, far exceeding the consensus market expectation of 3.198 billion yuan, and the adjusted net profit in the same period of 2023 was 42 million yuan. Operating profit was 3.99 billion yuan, and adjusted EBITDA recorded 5.98 billion yuan, up 199.5% year on year.
The financial report shows that the adjusted net profit has soared a hundredfold. In addition to higher revenue growth and effective cost management, it is also affected by such factors as share based compensation expenses and net changes in the fair value of investments.
After releasing the results of the first quarter, Fasthand officially announced the launch of a new round of stock repurchase plan. It is planned to buy back shares with a total amount of no more than HK $16 billion in the next three years after the 2024 general meeting.
Thanks to the upward performance, the stock price of fast hand rose on May 23. As of the morning press release, Fasthand rose 4% to HK $60.6 per share.
From the perspective of business revenue classification, online marketing services, live broadcast and other services (including e-commerce) accounted for 56.6%, 29.2% and 14.2% of the revenue respectively.
Among them, online marketing service revenue was 16.7 billion yuan, up 27.4% year on year. It is worth noting that the growth rate of this business has exceeded that of Baidu in the same period, which again proves that Internet advertising is gradually inclined to the short video platform.
With the vigorous development of the short play market, the quick start of the content community naturally stands at the flow outlet.
"In the whole media information industry, we realized the self built link closed-loop operation of the short play industry at the end of last year, which also brought about the monthly increase in the marketing weight of paid short plays. This year, we are expected to replicate the relevant strategies to the small games, novels and other industries." At the conference call held on the evening of May 22, Cheng Yixiao, founder and CEO of Fasthand Technology, said.
According to the 2023 Quick Play Short Play Data Value Report, Quick Play has launched 90+commercial short plays and 35+brand cooperation. In 2023, the investment revenue of Q3 short plays will increase 10 times month on month, covering e-commerce, Internet, food and beverage, cosmetics and skin care and other industries. The role of short plays in marketing will gradually become prominent.
In terms of core users, in the first quarter, fast hand DAUs were 394 million, up 5.2% year on year, and monthly active users increased 6.6% year on year to 697 million.
E-commerce is also a key business to drive the growth of fast hand performance.
In the first quarter, GMV of fast e-commerce increased by 28.2% year-on-year to 288.1 billion yuan. Driven by the growth of e-commerce business, other service revenue increased by 47.6% to 4.2 billion yuan from 2.8 billion yuan in the same period of 2023, far exceeding the market expectation of 3.9 billion yuan.
In the past year, the short video content platform represented by Fasthand is trying to make up for its shortcomings, and the pan shelf model has become a new engine driving consumption growth. In 2023, the total GMV of fast e-commerce broke through the trillion mark for the first time, reaching 1.18 trillion yuan, becoming the fifth e-commerce platform to enter the trillion scale after Taobao, Jingdong, Pinduoduo and Diaoyin.
In the fourth quarter of 2023, the fast hand will gradually open the traffic entrance of the pan shelf scenario, and the mall tab page will be fully opened in December of that year. The demand of the consumption scenario of "people looking for goods" has begun to bring new growth to fast e-commerce. According to the data of the first quarter of 2024, Pan shelf GMV accounts for about 25% of the total, the average daily dynamic sellers' year-on-year growth rate exceeds 50%, and the average daily buyers' year-on-year growth rate exceeds 60%.
In order to further open up the sales volume of the pan shelf scenario, in April this year, the express e-commerce officially launched the "express optimization" project, inviting all categories of businesses to settle in. According to the official statement, "Fast Retailing Optimization" is an official agency operation service provided by the platform for merchants, which can help the fast transaction of goods on the fast e-commerce platform.
In the aspect of live broadcast e-commerce, we quickly support small and medium-sized anchors, and have repeatedly said that there is no upper limit for the support of small and medium-sized anchors. Public data shows that in the first quarter of this year, the GMV scale of fast hand mid waist talents increased by 40% year on year.
Just before the 618 promotion this year, the anchor Simba's personal account and his apprentice's account were quickly blocked because of his emotional loss in the live broadcast room. Then, the public apology of Xinxuan Group ended the storm, which also means that the tension and balance between the platform and the head anchor have not completely disappeared, and the fast hand has to face the uncontrollable factors brought by the head anchor from time to time.
With regard to the investment in large models, the fast hand side said that it was promoting the research and development training of self-developed large language models. In this quarter, the peak daily consumption of AIGC marketing materials exceeded 10 million yuan.
"On the basis of the optimization of data and model architecture in the pre training stage, we made technical breakthroughs in RLHF through feedback reinforcement learning, so that the comprehensive performance of the 175 billion large-scale language model after the update iteration is close to the GPT4.0 level." Cheng Yixiao revealed at the performance meeting.
