Cheetah Mobile Inc (ADR) (NYSE:CMCM) reported its latest quarterly earnings results Monday, beating analysts’ expectations on the revenue and earnings front.
The Beijing-based mobile Internet company posted revenues of RMB1,387.8 million (US$213.3 million), which marked an 8.9% increase year-over-year, as well as a 16.2% gain quarter-to-quarter. The figure topped the company’s previous outlook of RMB1,250 million to RMB 1,310 million.
Cheetah Mobile’s impressive quarter can be attributed to a record-high mobile revenue during its fourth quarter, which surged 17.8% year-over-year. The company’s revenue also topped expectations as analysts were calling for sales of $201.52 million.
The company’s operating profit for utility products and related services surged 3% year-over-year to RMB327.0 million (US$50.3 million) in its fourth quarter, while its operating margin for utility products and related services expanded to 33.8% from 31.5% in the same period last year.
Cheetah Mobile’s net income was RMB1,047.1 million (US$160.9 million), topping the year-ago mark of RMB58.8 million. Diluted income came in at RMB7.27, or $1.12 per share in the period, ahead of the year-ago earnings of RMB0.41 per share, while also beating analysts’ consensus estimate of 19 cents per share.
“We are delighted to report a strong set of results for the fourth quarter of 2017. Our utility products and related service continued to expand its profitability and generate cash flow,” said Cheetah Mobilel CEO Sheng Fu. “Revenues from our Live.me and mobile game business continued to grow, thanks to our efforts in product innovation, creative operations, and content enrichment.
CMCM stock surged about 8.1% Monday, edging up an extra 0.1% after the bell.