Cloopen Group Holding Limited

Cloopen reported 3Q21 revenue of RMB276.1 million, up 44.3% year over year. CC business revenue was RMB130.4 million, up 125.4% year over year. Gross profit was RMB120.1 million, up 64.6% year over year, and gross margin was 43.5% versus 38.1% a year ago. Cost of revenues increased 31.8% to RMB156.0 million, operating expenses were RMB237.8 million, and net loss was RMB112.2 million versus RMB93.9 million in 3Q20. For 4Q21, the company guided to revenue of RMB328 million to RMB333 million, implying 26.8% to 28.7% year-over-year growth. Management also said CPaaS gross margin was 28%, CC gross margin was 56%, and UC&C gross margin was 41% in the quarter.

CEO Changxun Sun framed the quarter as validation of Cloopen’s strategy to focus on cloud communications, SaaS, and AI-driven products for marketing and service scenarios. He emphasized building separate offerings for large enterprises and SMEs, expanding from CPaaS into CC, UC&C, CRM, marketing cloud, and after-sales cloud. His tone was confident and strategic, repeatedly stressing that the company is becoming a broader SaaS platform that can support digital and intelligent transformation.

CFO Steven Li highlighted that results were driven by CC strength, improved revenue mix, and discipline in customer selection. He said the company reduced exposure to low-margin CPaaS messaging customers and smaller enterprises, which helped gross margin and explained why active customers and net retention were down modestly. He also pointed to the first Southeast Asia order from a major Thai bank, the market opportunity in China, and said Cloopen remains focused on scaling while improving ROI and margins.

Analysts focused on why CC growth accelerated, why 4Q guidance looked less incremental than prior years, gross margin by segment, customer retention, and Tencent cooperation. Management said CC strength came from large-enterprise and finance momentum, with UC&C revenue up over 400% year over year and finance contributing about 70% of UC&C revenue. On Tencent, management said it is a strategic investor and partner, not a competitor; the two sides can jointly sell products, bundle solutions, or Tencent can sell Cloopen’s offerings to customers. Management also said active customers were about 6,000 each for CPaaS and CC, over 100 for UC&C, and that the customer decline reflected the education sector impact and intentional pruning of very small customers.