Glory Star New Media Group Holdings Limited

For full-year 2020, revenue increased 88.2% year over year to $123.8 million. Net income attributable to Glory Star increased 11.2% year over year to $29.3 million. CHEERS App/Internet business revenue rose 195.3% to $83.6 million, while Media business revenue rose 7.2% to $40.2 million. Advertising revenue increased 116.3% to $104.7 million, CHEERS e-Mall market service revenue increased 126.4% to $1.5 million, and customized content production revenue increased 12.1% to $10.2 million. Cost of revenue increased 20.6% to $38.5 million. Management did not provide formal next-quarter or full-year quantitative guidance, but said it expects to keep refining user experience, expanding product use cases, and deepening collaborations to support growth in 2021.

CEO Bing Zhang framed the year as a turnaround supported by China’s economic recovery and the company’s business resilience. He emphasized a strategy centered on richer content, broader product use cases, stronger partnerships, and more proprietary technology to increase user stickiness. His tone was confident and expansion-oriented, with repeated references to growth momentum and ongoing investment in R&D and new products.

CFO Perry Lu highlighted that the company produced strong top-line and bottom-line growth despite macro challenges, aided by China’s recovery, a diversified business mix, leading R&D capabilities, and increased financial capability from a recent equity offering. He walked through the revenue mix, noting CHEERS App revenue of $83.6 million and Media revenue of $40.2 million, plus advertising revenue of $104.7 million and total cost of revenue of $38.5 million. He did not discuss cash balances or capital allocation in detail beyond mentioning the equity offering and confidence in continued development.

The sole analyst question asked whether the company’s future focus would tilt more toward e-commerce or Internet media. Management answered that Glory Star sees itself as an entertainment and lifestyle-content platform, not a single-line business, and said it will keep expanding high-quality content, open the platform to more user-generated and professionally generated content in 2021, and strengthen CHEERS e-Mall through cooperation with Taobao and JD.com. They also pointed to lower-tier city expansion, SaaS partnerships, and new products such as Cheer Chat and Cheer Pay.