CMCM Earnings Prediction
The chart below shows how CMCM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMCM sees a -3.87% change in stock price 10 days leading up to the earnings, and a -6.50% change 10 days following the report. On the earnings day itself, the stock moves by -6.19%. This data can give you a slight idea of what to expect for the next quarter's release.
CMCM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
192.08M
--
2.49%
Gross Margin
67.87%
--
4.67%
Operating Margin
-37.49%
--
-9.38%
Net Margin
-21.78%
--
-66.14%
EPS
-0.03
--
-62.50%
No Data Available
CMCM Earnings Analysis
Cheetah Mobile Inc. American Depositary Shares, each representing fifty (50) Class A Ordinary Shares Corporation (CMCM.N) Earnings Conference Call
Positive
Accelerating Revenue Growth: In Q3 2024, total revenues increased by 16.6% year-over-year, marking the second consecutive quarter of accelerating revenue growth compared to 11.6% in Q1 and 12.3% in Q2.
Service Robots Driving Growth: Our real-based service robots continue to be a key driver of growth.
Resilient Internet Business Growth: Our legacy internet business remained resilient, achieving solid revenue growth and margin expansion.
Gross Profit and Margin Growth: Non-GAAP gross profit rose 14% year-over-year and 7% quarter-over-quarter to RMB 131 million, with non-GAAP gross margin expanding to 68% in Q3 from 65% in Q2 and 63% in Q1.
Strong Financial Position: We maintained a strong balance sheet with cash and cash equivalents of RMB 1,831 million or US$218 million, long-term investments of about RMB 886 million or US$126 million.
Negative
Operating Loss Reduction: In Q3 2024, our non-GAAP operating loss was RMB 61 million, reduced from RMB 63 million in Q2 and RMB 66 million in Q1.
R&D Expense Increase: Our non-GAAP R&D expenses increased 25% quarter-over-quarter in Q3, now about 60% of our revenues are invested in R&D.
Gross Profit and Margin Growth: We continue to focus on managing costs and expenses, but our non-GAAP gross profit rose 14% year-over-year and 7% quarter-over-quarter to RMB 131 million with non-GAAP gross margin expanding to 68% in Q3 from 65% in Q2 and 63% in Q1.
Revenue Increase, Profitability Challenges: Despite a 16.6% year-over-year increase in total revenues in Q3, we are still facing challenges in achieving profitability, as our operating losses persist.
Team Consolidation Challenges: We have consolidated the teams of Cheetah and Beijing Orion Star, streamlining staffing and services with overlapping functions, which may lead to further operational inefficiencies.
CMCM FAQs
How does CMCM typically perform around its earnings report dates?
Is Cheetah Mobile Inc. (CMCM) Q3 2024 Earnings Call Summary positive or negative?
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CMCM Earning Call Sentiment
Cheetah Mobile Inc. (CMCM) Q3 2024 Earnings Call Transcript
CMCM.N
1%Positive
The earnings call summary shows strong revenue growth and improved margins, but the Q&A reveals concerns about R&D investments and unclear profitability timelines. Positive cash flow and balance sheet strength are offset by risks in AI investments and market adoption. The lack of clear guidance on future profitability and share buybacks or dividends tempers optimism, resulting in a neutral outlook.
