Tencent Holdings reported first-quarter revenue below estimates and is focusing on artificial intelligence for future growth. CEO Pony Ma acknowledged past struggles but signaled a turnaround, stating the company is regaining its footing.

Facing scrutiny and persistent questions over its track record in artificial intelligence, Tencent Holdings’ co-founder and CEO Pony Ma Huateng offered this candid assessment to shareholders on Wednesday: “A year ago we thought we were on the boat, then we found it was leaking.” Speaking at the firm’s annual general meeting at the Four Seasons Hotel in Hong Kong, Ma signalled the beginnings of a turnaround, saying that the company had finally found its footing but was “not yet seated”, according...