Editor’s note: This article is from the micro-channel public number “qubits” (ID: QbitAI), Author: Guo Yipu, 36 krypton release authorized.There is such a company, in the era of the mobile Internet, to make money from App advertising, all kinds of games, various tools and applications have become popular.But in the AI era, the dilemma of traffic dividends and giant monopolies has caused its original business to plummet, and it has to adjust its course to move toward AI.However, before we can fully evacuate the old road from App traffic and completely move to the new road, the old road collapses.It was caught by surprise.And the dilemma is just like that.Probably the speed of cognitive upgrade, can’t keep up with the speed of the landslide.Well, the company mentioned above is Cheetah.It is the cheetah of Cheetah Browser and Cheetah Cleanup Master, as well as the cheetah of Leopard Robot and Leopard AI Translator.Amazing earnings, scary stock prices, so why, just look at the just released Cheetah’s full-year 2019 earnings report.For the full year of 2019, Cheetah’s total revenue was 3.587 billion yuan, 28.0% less than last year.Income was cut by nearly 30%, and profits were even worse.Under Non-GAAP, Cheetah’s net profit last year was 359 million yuan, down 71.3% year-on-year.If you split it into 4 quarters and 3 cheetah businesses, you will find that the decline in revenue is not year-on-year, but quarterly: △ chart via 36 氪 is too difficult.The results of the first three quarters are not good, especially in Q4.Note that this is not a seasonal decline. Q4 revenue as a whole has fallen by more than half, with a drop of 55.7%.△ Figure via SolarTang, and specifically to Cheetah’s three businesses-tool business, entertainment business and AI business, the increase and decrease are even more obvious.The tool business, corresponding to the business display page of Cheetah ’s official website, is these apps: the keen reader master may have discovered that these “tools” are actually supplements to the operating system. They were very popular a few years ago, but now withWith the gradual improvement of the operating system and the gradual upgrading of mobile phone hardware, these third-party tools are not just needed now, and the sense of existence is getting lower and lower.The entertainment business refers to these games: These games are casual mini-games, which mainly make money by in-app purchases and advertising. They are not like the heavy games that sell skins or use gold to pump SSR, as long as an RPG /MOBA / Eating chicken games is on fire, you can eat for N years with one IP, earn 100 million for one skin, and support one team for one local hero.As we know in the gaming industry, most of the money was made by a surnamed Ma and a surnamed Ding.The point is that in the current game market, on the one hand, various games are emerging endlessly, but the money has been earned. The market is a pure 28 rule, or the 2/98 rule is not an exaggeration.The market is saturated, and there are restrictions on the version number. If you can’t make an explosion, you can basically make little money.As a result, the lack of growth made us see Cheetah’s stock price all the way down, and fell 3.32% in a day when US stocks recovered.Moreover, this month, Cheetah’s decline has fallen faster than the continuous blowout of the US stock market.It was cleaned by Facebook and Google, but what really made Cheetah’s neck is two big advertising marketing giants: Facebook and Google.Not domestic giants, but foreign giants.Don’t forget, Cheetah is a company that keeps shouting “Going to sea”.Whether it is a tool business or an entertainment business, the main source of revenue is advertising.85.4% of Cheetah’s 2019 revenue comes from advertising, and the rest is value-added services and software sales.However, making advertisements depends on where the advertisers come from.Many of the ads in the Cheetah group of apps come from ad network platforms. Credit Suisse estimated in early 2016 that advertising revenue from Facebook accounted for 25% to 30% of Cheetah’s advertising revenue, and that advertising revenue from Google also exceeded 20%.Even as a company that goes abroad, more than 50% of the users of Cheetah are on Google’s platform.Now, simply calculate the addition and multiplication, you will know that half of the life of the cheetah is in the hands of Google and Facebook, just like the golden driver family in “The Parasite”, the eggs are placed in President ParkIn the basket, once the two are unhappy, the lifeline of the cheetah is not safe.But the scary thing is that the two are really unhappy.Everyone knows how much the ads in the app affect the user experience, but the money is in the hands, the cheetah earns incense, and may not care much about the user experience.But the giants are different.Small companies can be indifferent, but large companies must have a role. If they don’t, then the group of people in American politics will force them to have a role.Otherwise Zuckerberg won’t go to Congress every day.As a result, in December last year, the cooperation between Facebook and Cheetah was suspended. In February of this year, Google also kicked out Cheetah ’s cooperation list, and even removed 45 Cheetah apps.Subsequent communication has not progressed yet. Even Fu Sheng once found a third-party company to give Google a message. If Cheetah’s App is re-launched, they are willing to abandon all advertising SDKs.This is really desperate.The way to the sea, halfway through, was blocked in this way.After the financial report came out, Fu Sheng said that next, Cheetah will continue to strictly control the cost of overseas business, streamline overseas business operations to help improve operating losses, and also return to the domestic mobile Internet market.Casual games brought home.After all, the domestic Internet environment is not so mature, and broilers are still domestic. Can traditional art be lost?Life-saving straw: AI In fact, when we talked about the three major business segments, we missed one: the AI business.Cheetah’s AI business has a variety of service robots, including shopping guide robots, vending robots, coffee robots, and intelligent customer service. Of course, there are also the hottest temperature measurement robots.The to C side has AI translation sticks, AI speakers, AI tutoring robots, etc.These products also often appear at various technology, artificial intelligence, and robot exhibitions.In the 2019 annual report, the fastest growing is the AI business. Although the revenue is only 143 million, accounting for only about 4% of the overall, but it has increased by 72% over last year.If you make money by selling robots, this piece of cake is bigger, fresher, and has a longer shelf life.It can be expected that if this growth rate of more than 70% can be maintained and this life-saving straw is seized, the cheetah can also recover after a few years.Only now, AI’s life-saving straw is too fragile.Reference link: https://mp.weixin.qq.com/s/_CvplNOd45GWRqD176Y4rQhttps://xueqiu.com/3012165545/145067616https://www.36kr.com/p/5304650https://www.cmcm.com/AuthorDepartment of NetEase News · NetEase number “each has its own attitude” signing author.
The cooperation was terminated by Facebook, and was withdrawn by Google. The share price was cut, and Cheetah had only a life-saving straw.
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