Earnings Alert: Cheetah (CMCM), Qutoutiao’s (QTT) revenues decline in Q2

Highlights

  • The total revenue of Cheetah Mobile Inc. (NYSE: CMCM) fell by 46.3% YoY to RMB211.7 million in Q2 of fiscal 2021.
  • The net revenues of Qutoutiao Inc. (NASDAQ: QTT) declined by 16.6% YoY to RMB1.20 billion in Q2 of fiscal 2021.
  • The stock value of QTT fell 26.8% YTD.

Stock of Cheetah Mobile Inc. (NYSE: CMCM) was up 1 percent, while Qutoutiao Inc. (NASDAQ: QTT) stock was down 7 percent after reporting their second-quarter earnings on Tuesday.

The CMCM stock was priced at US$2.07 at 9:21 am ET, up 1.47 percent from its previous close. On the other hand, the QTT stock traded at US$1.32 at 9:23 am ET, down 7.04 percent.

Here we explore the earnings of both the companies.

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Cheetah Mobile Inc. (NYSE: CMCM)

The Beijing-based Cheetah Mobile is a mobile internet company that develops software for computers and mobile applications.

The company’s total revenue was RMB211.7 million in Q2 FY 2021, down 46.3 percent YoY. The gross profit fell by 42.6 percent YoY.

The total operating expenses decreased by 52.5 percent YoY to RMB220.0 million. Its operating loss came in at RMB58.8 million, compared to a loss of RMB182.9 million in Q2 of fiscal 2020.

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The net income attributable to the company's shareholders was RMB0.9 million in Q2 of fiscal 2021, compared to a net income of RMB193.7 million in the year-ago quarter. The firm now expects its total revenue for Q3 to be between RMB180 million and RMB230 million.

Cheetah Mobile has a market cap of US$280.61 million, a P/E Ratio of 3.23, and a forward P/E one year of 7.56. Its EPS is US$0.62. Its stock value surged 12.09 percent YTD.

The highest and lowest stock prices of the company for the last 52 weeks were US$5.00 and US$1.78, respectively. Its share volume was 77,680 on September 3.

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Qutoutiao Inc. (NASDAQ: QTT)


Qutoutiao is based in Shanghai and develops mobile applications. The company operates as a content aggregator and provides customized content like short videos, articles, etc.

The net revenue of the company decreased by 16.6 percent YoY to RMB1.20 billion in Q2 of fiscal 2021, compared to RMB1.44 billion in the year-ago quarter. Its loss from operations was RMB223.9 million, compared to RMB189.4 million in the same quarter of the previous year.

The non-operating income of the company came in at RMB14.1 million, compared to a loss of RMB32.4 million in Q2 of fiscal 2020. It reported a net loss of RMB209.5 million, compared to a net loss of RMB222.1 million in the previous year's quarter.

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The Shanghai-based firm now expects its net revenues to be between RMB1.05 billion and RMB1.10 billion in Q3 of fiscal 2021.

The market cap of the company is US$398.17 million. Its EPS is US$-0.38. The QTT stock plummeted 26.8 percent YTD. The highest and lowest stock prices of the firm for the last 52 weeks were US$5.64 and US$1.15, respectively. Its share volume on September 3 was 266,530.

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Bottomline


The software industry has been growing with the increased digitalization of various work processes. However, amid this digital expansion, data privacy and other internet security-related concerns also have been growing. Applications deemed a threat to data security were banned in many countries, including China.

For instance, Chinese tech firms have been grappling with a raft of regulations introduced by the government of late. As a result, investors might have adopted a cautious approach to some stocks considering the country-specific rules.

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