Breaking up with Facebook, Cheetah Mobile’s revenue halved, and performance turned to expectations

Breaking up with Facebook, Cheetah Mobile’s revenue halved, and performance turned to expectations
Cheetah Mobile entered the darkest moment, and its total revenue was halved in the fourth quarter of 2019.In addition, nearly 22% of the total revenue business has been shut down since February 2020, and the expected revenue range for this quarter is 4.RMB 900 million to 5.40,000 yuan, a year-on-year decline of 50% to 55%.Before the Japanese and US stock markets on March 24, Cheetah Mobile released the audited fourth quarter and long-term performance report of 2019, and at the same time, it replaced the account of Google, which further changed the performance.The company’s pre-market transactions may plunge more than 5%.At the end of the previous trading day, the company’s market value was only 20.7.7 billion yuan.As of the fourth quarter of December 31, 2019, Cheetah Mobile’s total revenue was 6.12 billion yuan, down 55 each year.7%, excluding the impact of the replacement of overseas live streaming business LiveMe in the third quarter of 2019, total revenue continued to decline by 46.9%.At present, Cheetah Mobile’s revenue is mainly divided into two categories: tools and mobile phones. The financial report shows that the average revenue of the two sectors has declined.Since December 2018, the suspension of advertising cooperation with Facebook and the decline in the number of monthly active users of the product have caused 80% of the revenue from the advertising business to decline in revenue from the tool category products and related service business segments.9%; due to the lack of new popular game supplements and the saturation of the existing casual game market, the mobile game business segment should have a revenue decline of 12%.6%.The company’s chairman and CEO Fu Sheng said that its traditional mobile Internet business is facing some difficulties, and the outbreak of the new crown virus epidemic, so customers’ demand for Cheetah Mobile’s robot products and solutions has increased.However, these businesses will not bring “significant income” to Cheetah Mobile in the short term, and the financial report does not disclose relevant data.At the end of January, the newly appointed chief financial officer Ren Jintao said that the company is implementing strict cost and expenditure control measures, and there are also some business departments.Former CFO Jiang Zhenyu plans to resign for personal reasons, and Ren Jintao has served as the chief financial officer of Renren (NYSE: RENN) and Touch Technology.The financial report shows that the removal of LiveMe affected Cheetah Mobile’s research and development expenses and sales and marketing expenses this quarter, and it also declined due to the reduction in promotional activities of tool products and services.Moreover, Cheetah Mobile conducted a qualitative and quantitative evaluation of each reporting unit, and included 5 in the fourth quarter.Goodwill impairment expense of 45.7 billion yuan.Therefore, the company’s fourth quarter net pass was 8.RMB 21.2 billion, compared with a net profit of 7 in the same period in 2018.RMB 33.3 billion; under non-US GAAP, net profit is 2.44.2 billion yuan.The fourth quarter’s results also had an impact on expectations, and Cheetah Mobile’s total revenue in 2019 was 35.RMB 87.7 billion, a decrease of 28 from 2018.0%; net defect is 3.14 billion yuan, and net profit in 2018 was 11.RMB 66.9 billion, under US GAAP, the purity is sufficient to be 3.RMB 59.1 billion.Obviously, the company distributed a certain amount of supplementary stock to core employees in 2019, so stock spending increased by 49.7% to 1.RMB 27.4 billion.For the first quarter of 2020, Cheetah Mobile expects total revenue to be 4.RMB 900 million to 5.Between 400 million yuan.Fu Sheng recently said in an interview with the media that he knew the tool would be ebb, but the more important reason was the ban caused by Google.On February 20, 2020, Google canceled its accounts in the Google App Store, Google AdMob and Google AdManager.Before resuming cooperation, Cheetah Mobile’s revenue will be affected because of 21 of its total revenue.9% comes from Google, including the mobile advertising business, and the virtual goods income that users buy and consume through Google channels.This is exactly the case. More than 50% of Cheetah ‘s mobile user base is on the Google platform, and on Apple devices, Cheetah ‘s income also depends on Google.Fu Sheng said in the interview that he once found a senior executive of a third-party international company to talk to Google, as long as the product is on the shelf, all products give up the advertising SDK.Prior to this, Cheetah Mobile ‘s claim was that it was communicating with Google, appealing Google ‘s resolution, stating any misunderstandings, and taking any necessary corrective measures to recover the recovered account, but the entire process may be time-consuming and cannot beGuarantee success.Sauna, night net editor Liang Chen Zhao Zexiao dealt with Chun Zeng