Cloopen Group Holding Limited

Third-quarter revenue was RMB276.1 million, up 44.3% year over year. Gross profit was RMB120.1 million, up 64.6% year over year, and gross margin was 43.5% versus 38.1% in the prior-year quarter. CC business revenue was RMB130.4 million, up 125.4% year over year. Operating expenses were RMB237.8 million, up 51.5% year over year, and net loss was RMB112.2 million versus RMB93.9 million a year earlier. For Q4 2021, Cloopen guided revenue to RMB328 million to RMB333 million, representing 26.8% to 28.7% year-over-year growth.

CEO Changxun Sun said the company is executing on a strategy centered on cloud-based CC and SaaS products for marketing and service use cases. He emphasized differentiation between large enterprise and SME offerings, the expansion from CPaaS into higher-value SaaS, and new product work in marketing cloud and after-sales cloud. His tone was confident and expansionary, highlighting stronger product breadth, more large enterprise customers, and increased R&D investment in AI, big data, and audio/video infrastructure.

CFO Steven Li highlighted the quarter’s revenue of RMB276.1 million and gross margin of 43.5%, which he said benefited from an optimized revenue structure. He pointed to cost of revenues of RMB156 million, operating expenses of RMB237.8 million, and net loss of RMB112.2 million, noting that net loss margin narrowed by around 10% year over year. He also cited R&D spending of RMB75.5 million, sales and marketing expenses of RMB82.6 million, and G&A of RMB79.6 million. On capital allocation, he said the company is intentionally shifting resources toward higher-margin CC and UC&C and away from lower-margin CPaaS, and noted the first Southeast Asia order from a large Thai bank.

Analysts focused on the pace of CC growth, the softer Q4 sequential revenue outlook, gross margin by segment, customer retention, and the Tencent relationship. Management said CC’s growth reflects stronger positioning in finance and large enterprise accounts, and that UC&C revenue rose over 400% year over year, with finance accounting for almost 70% of UC&C revenue. On Q4, they said the lower sequential increase is mainly because CPaaS revenue may be flat or slightly down as the company reallocates resources. They also said Tencent is a strategic investor and partner, not a competitor, with over RMB10 million of contract value either signed or in process across several industries.