Benzinga | Nov 24, 2021 05:28AM EST

Cheetah Mobile Clocks 46% Revenue Decline In Q3, Issues Cautious Outlook

Cheetah Mobile Inc (NYSE:CMCM) reported a third-quarter FY21 revenue decline of 46.3% year-on-year to $30.4 million.

* Revenues from internet business decreased by 50.8% Y/Y to $24.9 million.

* Revenues from the AI and others were $5.5 million, representing an 8.8% Y/Y decline.

* Margin: The non-GAAP gross margin contracted 680 bps to 62.2%.

* Non-GAAP loss per ADS was $(0.05).

* Cheetah held $287.6 million in cash and equivalents.

* "In this quarter, we successfully consolidated the gains of transforming our internet business from a single advertising model to a diversified model of advertising plus subscription. The numbers of our membership kept a double-digit growth," said Sheng Fu, Cheetah Mobile's Chairman, and CEO.

* Outlook: Cheetah sees Q4 revenue of $20.2 million - $27.9 million.

* Price Action: CMCM shares traded higher by 1.26% at $1.59 in the premarket session on the last check Wednesday.