Cheetah Mobile (NYSE: CMCM) reported Q4 EPS of ($0.86), $0.44 worse than the analyst estimate of ($0.42). Revenue for the quarter came in at $87.9 million versus the consensus estimate of $191.68 million.

NET INCOME/LOSS PER ADS

• Basic/diluted loss per ADS was RMB5.98 (US$0.86) in the fourth quarter of 2019, compared to diluted earnings per ADS of RMB5.09 of 2018. Non-GAAP basic/diluted loss per ADS was RMB1.78 (US$0.26) in the fourth quarter of 2019, compared to diluted earnings per ADS of RMB5.34 of 2018.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "We are currently facing some difficulties in our legacy mobile internet business. However, these challenges are not causing any damage to our company at the systemic level. Over the past years, we have built an unyielding and relentless team while amassing a strong balance sheet. Importantly, the recent outbreak of COVID-19 has increased customer demand for our robotics products and solutions, while robotics business will not generate significant revenues in the near term. Going forward, we are confident in our ability to rejuvenate growth in our business by capturing those opportunities emerging in the field of artificial intelligence."

Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "Despite facing difficulties in growing our revenues, we continued to implement strict cost and expense controls while simultaneously restructuring some of our business units. In the fourth quarter of 2019, total non-GAAP costs and expenses decreased by 36% year over year while the operating profit of our utility products and related services business grew to RMB29 million from RMB24 million in the third quarter of 2019. Looking into 2020, we will continue to implement prudent cost-saving measures. In addition, we believe that our strong balance sheet will enable us to weather through these difficulties."

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