Cheetah Mobile Inc. (NYSE:CMCM) saw its shares take their lumps after it report quarterly earnings Friday.
The Beijing-based Cheetah revealed total revenues were RMB1,085.6 million ($161.8 million U.S.), reaching the high end of Company's previous guidance range of RMB1,060 million to RMB1,090 million.
Revenues from the mobile entertainment business increased by 41.7% year over year to RMB556.2 million ($82.9 million U.S.), accounting for 51.2% of total revenues in the first quarter of 2019.
Gross profit was RMB718.7 million ($107.1 million U.S.) in the first quarter of 2019. Gross margin remained stable year over year at 66.2%.
Operating profit from utility products and related services was RMB123.2 million ($18.4 million U.S.) in the first quarter of 2019. Operating loss for the mobile entertainment business further reduced to RMB44.1 million ($6.6 million U.S.) in the first quarter of 2019 from RMB75.0 million in the same period last year.
Net income attributable to Cheetah Mobile shareholders was RMB7.1 million ($1.1 million U.S.). Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB33.8 million ($5.0 million U.S.).
As of March 31, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,422.6 million ($510.0 million U.S.).
Said CEO Sheng Fu, "As to consumer-facing products, we launched a tailor-made version of CM Translator for Chinese primary school students in the first quarter of 2019 to help them learn English at home. CM Translator has been the top seller among its peers since its launch in July 2018."
Cheetah opened the week’s last session down 12 cents, or 3%, to $3.85.
