Cheetah Mobile (CMCM) Reports Q4 EPS of $0.09, Revenues Miss; Offers 1Q Revenue Guidance Below Consensus

March 23, 2021 7:04 AM EDT
Get Alerts CMCM Hot Sheet
Price: $2.06 -0.96%

EPS Growth %: +110.5%

Today's EPS Names:
CVU, BK, KSU, More
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Cheetah Mobile (NYSE: CMCM) reported Q4 EPS of $0.09, versus $0.00 reported last year. Revenue for the quarter came in at $41.6 million versus the consensus estimate of $75.75 million.

  • Diluted earnings per ADS was RMB0.49 (US$0.07) in the fourth quarter of 2020, compared to losses per ADS of RMB5.98 in the same period last year.
  • Non-GAAP diluted earnings per ADS was RMB0.60 (US$0.09) in fourth quarter of 2020, compared to losses per ADS of RMB1.78 in the same period last year.
  • Total revenues were RMB271.2 million (US$41.6 million) in the fourth quarter of 2020, representing a decrease of 55.7% year over year. The year-over-year decrease was primarily due to the suspension of the Company's collaborations with Google since February 2020. Such year-over-year decrease was also a result of the Company's disposal of certain gaming-related business and assets.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "For the full year of 2020, Cheetah Mobile earned RMB1,559 million in revenues, and RMB417 million in GAAP net income attributable to our shareholders, despite the unfavorable macro environment. In 2020, we chose to strategically exit from overseas markets and focus our resources on the domestic market and the AI-related business. As a result, our total cost and expenses decreased by 50% year over year in 2020. In particular, the operating profits for our internet business increased to RMB190 million in 2020, from an operating loss of RMB78 million in 2019. Besides, we further divested our previous investments in 2020 to improve our cash flow."

Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "Our balance sheet remained strong. As of December 31, 2020, we had approximately US$255 million in cash and cash equivalents, restricted cash, and short-term investments, as well as US$369 million in long-term investments. Our strong balance sheet provided us the flexibility to our continued investment in our home market and AI-related business."

GUIDANCE:

Cheetah Mobile sees Q1 2021 revenue of $25.3-33 million, versus the consensus of $58.91 million.

  • For the first quarter of 2021, the Company expects its total revenues to be between RMB165 million (US$25.3 million) and RMB215 million (US$33.0 million). This amount reflects the Company's current and preliminary expectations.

For earnings history and earnings-related data on Cheetah Mobile (CMCM) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Earnings, Guidance, Hot Guidance, Management Comments

Related Entities

Earnings