In 2020, it is bold to transform the three or sixty of the government and enterprise network security business. In the end, the most profitable business is the “advertising” business.
On the night of April 21, 360 released its 2020 annual report and 2021 first quarter report. Except for the expected sharp decline in performance in 2020, what people did not expect was that in the first quarter of 2021, three six Zero performance is actually a double-lucks
If the decline in performance in 2020 is caused by the epidemic, it is a bit confusing that its performance in the first quarter of 2021 is still declining when the performance base for the first quarter of 2020 is already low enough. On the day after the results were announced, 360’s stock price also gapped and opened lower, eventually closing down 5.65%, and the stock price hit a new low since its successful backdoor listing. As one of the Internet giants in the past, the 360 in the mobile Internet era is clearly unaccustomed. In terms of operations, since 2016, 360 has repeatedly missed the vent, and finally defeated in the mobile Internet era; in the capital market, its stock price has continued to fall in the past three and a half years, and now its stock price is only at its peak. About 20% of the total, participating investors suffered heavy losses; in terms of word of mouth, 360 has also become the spokesperson of the bundled installation of “Family Bucket” from the eulogized Internet changer in the past. What happened to the former cybersecurity leader? The performance dropped again and again, the stock price has plummeted 79% in three and a half years “I thought that the performance of the first quarter of 2020 was already the worst, but I did not expect the performance of the first quarter of 2021 to be worse!” This is a message from an investor in the stock bar after the announcement of the 360 results yesterday. On April 21, 360 announced its 2020 annual report and quarterly report for the first quarter of 2021.In addition to the unsuspecting performance decline in 2020, what people did not expect is that with the performance of the first quarter of 2020 already such a low base, the performance of three or six zero in the first quarter of 2021 will actually be stolen. Regarding the reasons for the decline in the first quarter of 2021, as it was not stated in the first quarter report, we dare not guess. However, judging from the data in recent quarters, its performance is not very good. Since the best single-quarter performance was achieved in the second quarter of 2019, in the next seven quarters, the net profit growth rate in five quarters of 360 and 60 was negative, and the trend of performance decline was quite obvious. Under the influence of the performance, the share price of 360 has also been “declining steadily” and has continued to decline since the beginning of 2018.Today, its stock price is only 13.18 yuan, which has fallen by 79.12% from the high point on February 28, 2018, and its market value has evaporated by 380 billion yuan. Transformation attempts continue, but advertising is still inseparable Recently, there has been news on the Internet that the 360 may try the auto business. According to a report from the AI Finance and Economics Agency, on the opening day of the 2021 Shanghai International Auto Show, the founder of 360 Company, Hongt Zhou, appeared at the Nezha Auto booth and plans to cooperate with Nezha Auto to build cars; however, the 360 will soon make a move. In response, he said that he had no comment on the news of the car. According to previous media reports, 360 has been planning to build a car for some time, and will put the car building on the agenda in early 2020. Currently, the project team has about 10 people. An insider of Nezha Automobile revealed that the two sides have been in contact for two months. Zhou Hongt once took his team to the Nezha Automobile Factory to investigate and experience Nezha automobile products. Of course, these are all market rumors. As for whether 360 will end up building cars in the future, we don’t know. However, many Internet companies such as Huawei, Xiaomi, Baidu and others have participated in this car war. In fact, it is not surprising that the next car is built. In fact, this is not the first time Three Six Zero has tried to develop a new business. From cooperating with Coolpad and LeTV to develop mobile phone business in 2016, then transforming to make games in 2018, and then transforming to bet on government-enterprise network security business in 2020, although there are no good results in the end, it is not difficult to see that in fact, in recent years Over the past few years, 360 has been trying to transform. However, as of December 2020, although there have been many attempts and bets on the security of the transformation of government and enterprises in 2020, the most profitable business of 360 is still in “advertising.” According to the analysis of the main business composition, for the whole year of 2020, 360’s advertising revenue will be 7.512 billion, accounting for 64.68% of the total revenue, and the profit ratio will reach 72.69%; followed by smart hardware and the Internet. Value-added services, revenues were 2.142 billion and 1.134 billion, accounting for 18.44% and 9.77% of revenue, and 5.43% and 13.44% of profit. And its government-enterprise network security business that it wants to transform bets has revenue of only 808 million, accounting for only 6.96% of 2020 revenue. Poor reputation, it’s a bit difficult for 360 to break the game In addition to declining performance, plummeting stock prices, and frequent failures in transformation, there is also the issue of its reputation. At this year’s 3.15 party, CCTV exposed 360 Search’s illegal placement of false medical advertisements. In the screenshots exposed by CCTV, a 360 search platform was used to search for Chengdu Second People’s Hospital for short “City Second Hospital”. The results were all advertisements for other hospitals including Chengdu Zongnan Hospital. In fact, this is not the first time that 360 has had a word-of-mouth problem. In recent years, with the development of Internet technology, the network environment has become more and more secure, and the 360, which has network security business as its core, has undoubtedly been hit hard. As security protection software is used less and less frequently, 360’s presence is getting lower and lower, but once the 360’s software is installed, it will continue to pop up advertisements, which arouses users’ disgust; , Many netizens even jokingly called him “the spokesperson of the whole family bucket”: once the 360 software is installed, a lot of software will be bound to it, and it is easy to install and difficult to uninstall. As an Internet company, users are undoubtedly the most precious resource. And 360’s rogue advertisements and bundled downloads have undoubtedly left a bad impression on users. Under such a background, it may be difficult for 360 to break through the current predicament.
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