Cheetah Mobile: Back On The Prowl
Wed, Mar. 16, 11:53 AM
- In addition to slightly missing Q4 revenue estimates (while beating on EPS), Cheetah Mobile (CMCM -2.2%) has guided for Q1 revenue of RMB1.08B-RMB1.1B (+61%-64% Y/Y and equal to $167M-$170M), below an RMB1.18B consensus.
- The Chinese app developer has also announced a $100M, 12-month, buyback. At current levels, it's good for repurchasing 4.7% of shares.
- Top-line performance/metrics: Mobile revenue rose 14.4% Q/Q and 261.8% Y/Y in Q4 to $124M (compares with 92.3% Y/Y total revenue growth), and made up 70.9% of total revenue. Non-Chinese revenue (including mobile) rose 14.6% Q/Q and 343.1% Y/Y, and made up 54.4% of total revenue.
Online ad revenue rose 131.2% Y/Y to $159.2M, while value-added service revenue fell 34.8% to $13.8M. Security/other revenue rose 106.3% to $1.8M. Mobile MAUs rose by 68M Q/Q to 635M. Cumulative mobile installations rose by 399M to 2.34B.
- Financials: Cost of revenue rose 110.7% Y/Y to $45.8M (outpacing revenue growth). R&D spend rose 73.5% Y/Y to $32.2M, sales/marketing rose 174.67% to $78.1M, and G&A 14.1% to $14.2M. Cheetah ended 2015 with $308M in cash and $22M in bank loans.
- Cheetah's Q4 results, earnings release
Wed, Mar. 16, 8:30 AM
Mon, Feb. 29, 11:37 AM
- In a report (.pdf) titled "Cheeting the Investment Community," Alecto Research accuses Cheetah Mobile (CMCM -4.4%) of "illegally collecting user data with a useless utility app that infiltrates users’ phones and downloads their location and browsing history."
- The firm also asserts lab tests found Cheetah's Clean Master, Battery Doctor, and Mobile Security apps delivered a tiny portion of the storage and battery life improvements they claimed to deliver, with major inconsistencies in test results.
- Alecto also highlights declining usage/engagement rates (as reflected by MAU engagement and app download activity),questions Chhetah's reported mobile revenue, argues Cheetah's data-collection practices could draw the attention of U.S. regulators, believes Google will follow Apple's lead in banning Cheetah apps, notes auditor Ernst & Young has identified material weaknesses in internal controls, and raises concerns about heavy marketing spend and major related transaction fees to top shareholder Kingsoft (OTCPK:KSFTF), which owns 47% of Cheetah's shares and 59% of its voting rights.
- Cheetah is less than $1.50 removed from a 52-week low of $13.33. The company hasn't yet posted its Q4 report.
Tue, Feb. 16, 11:10 AM
- Many beaten-up Chinese tech names are up strongly on a morning the Nasdaq is up 1%. The gains comes after the Shanghai and Shenzhen exchanges respectively rose 3.3% and 4.1% overnight; strong new loan data and PBOC cash-removal efforts helped.
- Alibaba (BABA +6.7%) is one today's standouts, and that naturally means Yahoo (YHOO +5.8%), which (for now) is still pursuing a reverse spinoff of its core business to better monetize its 384M-share Alibaba stake, is also posting big gains. Fellow Chinese e-commerce firms JD.com (JD +7.6%), Vipshop (VIPS +7.9%), LightInTheBox (LITB +6.7%), and Dangdang (DANG +8.3%) are also doing well.
- Other big gainers include Weibo (WB +9.5%), Momo (MOMO +16.8%), Leju (LEJU +9.4%), NetEase (NTES +6.7%), Changyou (CYOU +6.5%), Bitauto (BITA +8.9%), 58.com (WUBA +6.8%), Cheetah Mobile (CMCM +5.8%), NQ Mobile (NQ +5.4%), 500.com (WBAI +5.6%), Baozun (BZUN +6.7%), and Xunlei (XNET +6.8%).
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Mon, Jan. 4, 12:58 PM
- With concerns about macro issues both inside and outside China's borders running high, the Shanghai and Shenzhen exchanges respectively fell 6.9% and 8.2% overnight before getting halted. Today in the U.S., the Nasdaq is down 2.6% and the S&P 2.1%.
- Naturally, U.S.-traded Chinese tech stocks are having a rough day. Big decliners include e-commerce firms Alibaba (BABA -6.2%), JD.com (JD -7.9%), Vipshop (VIPS -7.8%), and Baozun (BZUN -6.8%). Others include auto site owners Bitauto (BITA -7.2%) and Autohome (ATHM -8.5%), Sohu (SOHU -6.9%) and gaming subsidiary Changyou (CYOU -8.8%), mobile app developer Cheetah Mobile (CMCM -7%), online classifieds leader 58.com (WUBA -5.9%), and CDN owner ChinaCache (CCIH -6.4%).
- SouFun is down sharply after naming a new CFO. Qunar is seeing big losses after naming a new CEO, COO, and CFO.
- In other news, Alipay parent Ant Financial is looking to raise more funds ahead of a long-expected IPO. Bloomberg reports Alipay is seeking at least $1.5B; the Chinese online payments leader was valued at $45B in a June round. Alibaba is entitled to 37.5% of Alipay's pre-IPO profits, and a 37.5% stake at IPO time.
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Nov. 17, 2015, 9:16 AM
Nov. 17, 2015, 8:46 AM
- With shares down over 50% from a June high of $36.63 going into earnings, Cheetah Mobile (NYSE:CMCM) has risen to $18.40 premarket after beating Q3 EPS estimates, posting in-line revenue, and guiding for Q4 revenue of RMB1.11B-RMB1.16B (+88-97% Y/Y and equal to $175M-$183M) vs. an RMB1.16B consensus.
- The Chinese app developer has also announced Jeffrey Li, an investment and M&A exec at messaging/gaming giant Tencent, is joining the board. Director Zhijian Peng, previously appointed by shareholder TCH Copper, will be resigning.
- Financials: Boosting Q3 EPS: Non-GAAP operating expenses totaled RMB608.6M ($95.8M), up 91.8% Y/Y but reflecting a much slower growth rate than Q2's 138.2%, and also below revenue growth of 110.7%. Gross margin fell to 73.2% from 74.4% in Q2 and 77% in Q3 2014. Cheetah ended Q3 with $216.1M in cash, and $1.7M in bank loans.
- Revenue/metrics: Thanks to ad growth, mobile revenue rose 25.6% Q/Q and 522% Y/Y, and made up 69.7% of total revenue. Overseas revenue (driven by mobile) rose 24.7% Q/Q and 891.6% Y/Y, and made up 53.3% of total revenue. Mobile monthly active users rose by 73M Q/Q to 567M (74% overseas). Total mobile app installations rose 346M Q/Q to 1.94B.
- Q3 results, PR
Oct. 15, 2015, 11:57 AM
- After selling off yesterday due to inflation data that put markets on edge, U.S.-traded Chinese tech stocks are rallying today (CQQQ +3.3%) in the wake of a 2.3% overnight gain for the ever-volatile Shanghai composite (it made an 8-week high). Hopes that the government will step up efforts to reform state-owned enterprises are believed to be playing a role.
- Alibaba (BABA +3.1%) has reached its highest levels since August, and is up 10% from where it traded before Barron's issued a very bearish column in mid-September. FQ2 results arrive on Oct. 27.
- Also rallying: YY (YY +3.1%), Vipshop (VIPS +3.6%), Cheetah Mobile (CMCM +4.7%), Qunar (QUNR +3.4%), NQ Mobile (NQ +4.5%), 500.com (WBAI +6.1%), and Baozun (BZUN +5.5%).
- ETFs: QQQC, KWEB, EMQQ
Oct. 2, 2015, 12:13 PM
- Hammered over the last several months as macro concerns and plunging local markets took a toll, U.S.-traded Chinese tech stocks are up strongly (CQQQ +3.2%) today even as the Nasdaq and S&P post modest declines.
- Web/mobile stocks posting big gains include giants Alibaba (BABA +5.3%) and Baidu (BIDU +4.5%), with the former naturally taking Yahoo (YHOO +4%) higher with it. Yahoo rose earlier this week after stating it's still pushing ahead with a spinoff of its 384M-share Alibaba stake.
- Other gainers include Vipshop (VIPS +6.6%), SouFun (SFUN +6.2%), Qihoo (QIHU +6.7%), Youku (YOKU +5.8%), Jumei (JMEI +8%), Bitauto (BITA +5.3%), Weibo (WB +5.9%), Jumei (JMEI +8%), and Cheetah Mobile (CMCM +6.6%). Online travel leaders Ctrip and Qunar are also up big, possibly aided by new efforts from Beijing to boost Macau tourism.
- Solar winners include Yingli (YGE +4.1%), ReneSola (SOL +5.6%), and Daqo (DQ +9.4%).
- ETFs: KWEB, QQQC, EMQQ
Sep. 16, 2015, 2:06 PM
- The beaten-down Shanghai and Shenzhen exchanges respectively rose 4.9% and 6.5% overnight thanks to late-session surges - many suspect fresh government intervention was responsible. U.S. traded Chinese Web/mobile names have risen sharply (CQQQ +4.4%) on a day the Nasdaq is up just 0.3%.
- Big gainers include search giant Baidu (BIDU +5.4%), rival Qihoo (QIHU +6.5%), auto sites Bitauto (BITA +6.4%) and Autohome (ATHM +5.3%), travel sites Ctrip (CTRP +7.4%) and Qunar (QUNR +6.5%), online real estate plays SouFun (SFUN +6.1%) and Leju (LEJU +4.5%), and online retailers JD.com (JD +4.8%) and Vipshop (VIPS +6.3%). Priceline announced yesterday afternoon it had hiked its Ctrip stake to 11.6%.
- Other winners include ChinaCache (CCIH +8.1%), Cheetah Mobile (CMCM +6.2%), Sina (SINA +6.7%), Weibo (WB +4.3%), Youku (YOKU +5.7%), and YY (YY +4.1%).
- ETFs: KWEB, QQQC, EMQQ
Aug. 25, 2015, 9:19 AM| Aug. 25, 2015, 9:19 AM | 7 Comments
Aug. 18, 2015, 9:23 AM
Jul. 27, 2015, 9:29 AM
- After bouncing in recent weeks with the help of massive government support, Chinese markets nosedived once again overnight amid a backdrop of weak manufacturing data. Shanghai fell 8.5%, Shenzhen fell 7%, and the ChiNext Index fell 7.4%.
- Not surprisingly, many U.S.-traded Chinese tech names are off sharply in premarket trading. YY -4.2%. Qihoo (NYSE:QIHU) -5.5%. JD.com (NASDAQ:JD) -5.4%. SOHU -6%. iDreamSky (NASDAQ:DSKY) -9.6%. SouFun (NYSE:SFUN) -8%. SINA -5.5%. Weibo (NASDAQ:WB) -7.8%. Vipshop (NYSE:VIPS) -4.8%. Youku (NYSE:YOKU) -6.2%. Qunar (NASDAQ:QUNR) -6.2%. Dangdang (NYSE:DANG) -5.4%. 58.com (NYSE:WUBA) -4.7%. 500.com (NYSE:WBAI) -7.2%. Jumei (NYSE:JMEI) -5.7%. NQ Mobile (NYSE:NQ) -6%. Bitauto (NYSE:BITA) -6.3%. Autohome (NYSE:ATHM) -4.8%. Cheetah Mobile (NYSE:CMCM) -10.1%.
- Sohu and Changyou reported this morning. Baidu reports after the close.
- ETFs: CQQQ, QQQC, KWEB, EMQQ
Jul. 27, 2015, 9:14 AM
Jul. 9, 2015, 9:18 AM
Jul. 8, 2015, 9:12 AM
Cheetah Mobile, Inc. engages in the provision of internet and mobile security software. It develops a platform that offers critical applications for users and global content distribution channels for business partners, which are powered by the proprietary cloud-based data analytics engines. The... More
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