IT company Cheetah Mobile's Q3 revenue up 49.6% on AI unit strength

Reuters
Nov 26
IT company Cheetah Mobile's Q3 revenue up 49.6% on AI unit strength

Overview

  • Cheetah Mobile Q3 revenue rose 49.6% yr/yr, driven by AI and others segment growth

  • Company achieved first quarterly operating profit in six years

  • Net loss for Q3 narrowed from last year

Outlook

  • Company focuses on growth through investment in AI robots and AI tools

  • Cheetah Mobile sees AI segment as key growth engine

  • Company did not provide specific financial guidance for future quarters

Result Drivers

  • AI SEGMENT GROWTH - AI and others segment revenue increased 150.8% yr/yr, now contributing half of total revenue

  • AI ROBOT DEMAND - Strong demand for voice-enabled wheel robots and robotic arms supported AI segment performance

  • AI TOOLS DEVELOPMENT - Co is developing AI-native tools for PC and mobile, enhancing products with AI features

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

RMB 287.40 mln

Q3 Net Income

-RMB 11 mln

Q3 Gross Margin

74.60%

Q3 Adjusted Gross Margin

74.60%

Q3 Adjusted Gross Profit

RMB 214.40 mln

Q3 Gross Profit

RMB 214.40 mln

Analyst Coverage

  • The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn1pWkgWa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10