Cheetah Mobile (CMCM) is up 17% premarket after beating first quarter estimates.
Cheetah Mobile is a Chinese company that that aims to provide leading apps for mobile users worldwide and connect users with personalized content on the mobile platform. The company's products help make users' mobile internet experience smarter, speedier, and safer. The number of global mobile monthly active users (MAUs) was 603.2 million in March 2017. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 78.8% of the total number of Mobile MAUs in March 2017.
Total first quarter revenues increased by 6.8% year over year to RMB1,190.7 million (US$173.0 million). Revenues generated from mobile business increased by 22.0% year over year while revenues generated from the overseas markets increased by 33.9% year over year. Both of these segments were driven by the rapid growth of the Company's Live.me business in the overseas markets.
Live.me is a live video streaming and video sharing platform operated via the internet. This is a big growth market for watching e-sports (people playing video games). Live.me gets redirected to Amazon's Twitch here in the US.
Non-GAAP net income increased by 13% year over year to RMB115.6 million (US$16.8 million).
Second quarter revenue guidance was in-line with analyst estimates.
The stock been range-bound in the low-double digits for the last year. A move above resistance near the $12 area would be a notable breakout.
The company has a ~$1.7 billion valuation and the stock trades at ~30x adjusted earnings estimates and ~2x sales.
Roughly 25% of the float of the American Depository shares are sold short.