Is 360s third quarter revenue barely growing?

category:Finance
 Is 360s third quarter revenue barely growing?


In April this year, 360 announced that it would transfer its shares of qianxin with a transaction price of 3.7 billion yuan, divest the 2B business of government enterprise security, and then formally announced its return to the government enterprise security market in August.

For this reason, 360 has put forward a different method from traditional network security companies. In an interview with time finance in August this year, Zhou Hongyi said that what 360 is doing is distributed network security. He compared 360s government and enterprise security business to the cybersecurity brain, while other cybersecurity companies do their hands and feet.

Our competitors are not friends and businessmen, not peers, but the network forces of other countries. We havent sold to the government, but weve been doing it to provide security.

Zhou Hongyi is very clever. He has played a lot of chess. Ding Daoshi, an Internet analyst, told time finance and economics, he regards 360 company as the central point of national network security, and other security enterprises should connect with it to provide security services.

In recent years, Zhou Hongyi, who connects the sky, the earth and the air, has been adept in the field of non black and white anti-virus, fighting with all the Internet tycoons with the attitude of cyber security fighter. However, in the face of his brother who has been fighting with him for 16 years, Zhou Hongyi gave up this rigid style, ecology and empowerment became the most frequently mentioned words, network war also changed from enterprise level to national level.

Lao Qis execution is very strong. It helped me a lot when I started my business. When asked how to evaluate Qi Xiangdong in a recent media interview, Zhou Hongyi seemed to be a bit frustrated. Today, he wants to dominate a market by himself. His strategy is no longer easy to speak whether I agree or not. After all, its Lao Qis company. I still respect his decision.

How will 360 win when government and enterprises serve the Jianghu?

Four months ago, 360 won the first landing order after returning to the government enterprise security market. On June 25, 3600 Security Technology Co., Ltd. announced that it had won the first phase of 360 network security Collaborative Innovation Industrial Park project in Hechuan District, Chongqing, with a bid amount of 239.5 million yuan.

Zhou Hongyi denied that he didnt have the gene to be safe in government and enterprise. He pointed out that 360 has been providing free anti-virus services for enterprises. For example, security guard launched the network management version and enterprise free version ten years ago, but it also admitted that there is a problem of making profits in the security of government and enterprises. It has been difficult for government and enterprises to make money. The profits of traditional network security companies that do security of government and enterprises in China are far less than the profits of a game.

Data shows that qianxin groups revenue in 2018 reached 2.394 billion yuan, a year-on-year increase of 64.20%, which is the largest 2B network security enterprise in China. However, even though the revenue of Qianxin from 2016 to 2018 has doubled continuously and achieved high-speed growth, it is still in a state of loss, with a net loss of RMB 157 million in 2018.

Since government and enterprise services do not make money, why does 360 have to march into the market? In fact, 360s 2C business is already facing the ceiling. The semi annual report of 2019 shows that in the first half of 2019, 360s Internet advertising and service revenue was 4.697 billion yuan, down 1.16% year-on-year; the Internet value-added service revenue was 482 million yuan, down 24.60% year-on-year.

In contrast, 360 proposed the integration of big data, AI, cloud computing, blockchain and other new technologies, through extensive data collection and intelligent analysis, to perceive the network security operation status and situation, and predict the possible attacks. Such a path is an ecological approach of extensive cooperation and open platform. Under the two modes, separation is the inevitable result.

On February 28, 2018, 360 was listed on A-share market, and two months later, it fell into the trend of senior executives resignation. Yao Jue, deputy general manager and chief financial officer, Liao Qinghong, deputy general manager of human resources, Yang Chao, deputy general manager, Zhang Fan, Secretary of the board of directors, qu bing, deputy general manager of market brands, Tan Xiaosheng, chief technical officer, and Shi Xiaohong, executive director and manager who officially quit in August this year, totally 7 senior executives left their jobs and managed them. There are few old faces before the IPO.

Now 360 is still under a lot of pressure. Many senior executives really cant do it. When they earn money, they feel like its over. In October, Zhou Hongyi responded to the media about the resignation of senior executives, but I still need to fight.

Source: time finance Author: Shi Chengchao editor: Wang Xiaowu NF