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Cheetah Mobile Announces Second Quarter 2019 Unaudited Consolidated Financial Results

BEIJING, Aug. 20. 2019 /PRNewswire/ -- Cheetah Mobile Inc. (CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company with global market coverage, today announced its unaudited consolidated financial results for the second quarter ended June 30, 2019.

Management Commentaries

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "Our second quarter revenues exceeded the high end of our revenue guidance for the quarter. Notably, this revenue growth was driven by our mobile games and AI-related businesses. During the quarter, revenues from our mobile games business increased by 109% year over year while revenues from AI and other businesses increased by 236% year over year. These robust growth performances are a testament to our continuous product enhancement and innovation. By leveraging our massive user base and cash generated from our utility product business, we have increasingly streamlined our operations to bolster these two growing business segments. Looking ahead, we will continue to invest heavily in our AI-related business to build our growth engine over the long-term in a new technological era."  

Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "In the quarter, our utility products and related services continued to generate a solid profit of RMB121 million while losses from the mobile entertainment business continued to narrow. As of June 30, 2019, we had cash, cash equivalents, restricted cash, short-term investments of US$488 million, and long-term investments of US$287 million. Looking ahead, we are confident in our long-term growth prospects and believe that our strong cash generation capabilities in utilities products and related services and games, combined with our healthy cash balance, will enable us to continue expanding into the AI space through the integration of AI technology and innovative product design."

Second Quarter 2019 Operating Metric

The average number of global mobile monthly active users ("Mobile MAUs") was 376.5 million in the second quarter of 2019. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 74.2% of the total number of Mobile MAUs in the second quarter of 2019. 

Second Quarter 2019 Consolidated Financial Results

REVENUES
Total revenues were RMB970.1 million (US$141.3 million) in the second quarter of 2019, decreasing by 12.1% year over year.

Revenues from utility products and related services decreased by 44.0% year over year to RMB423.5 million (US$61.7 million) in the second quarter of 2019. This year-over-year decrease was primarily due to the slowdown of the Company's overseas mobile utility business, resulting from the negative publicity caused by a news article from 2018, and the softness of the domestic advertising industry in 2019.

Revenues from the mobile entertainment business increased by 49.6% year over year to RMB498.0 million (US$72.5million), driven by the growth of both the Company's mobile games business and LiveMe business.

  • Revenues from the mobile games business increased by 108.5% year over year to RMB289.2 million (US$42.1 million) in the quarter. This increase was mainly attributable to the strong performance of Bricks n Balls, which began to ramp up in the middle of July 2018, as well as several new casual games launched earlier in the year. In addition, the Company's flagship titles, including Piano Tiles 2, Rolling Sky, and Dancing Line, also exhibited strong performance throughout the quarter.
  • Revenues from LiveMe increased by 7.5% year over year to RMB208.8 million (US$30.4 million). The increase was primarily driven by higher average revenue per paying user. LiveMe introduced several new features in the quarter to enhance user interaction, competition, and engagement.

AI and other revenues grew by 236.2% year over year to RMB48.6 million (US$7.1 million), mainly driven by the sales of Cheetah Translator, the Company's AI-based interpretation device.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 6.9% year over year to RMB327.0 million (US$47.6 million) in the second quarter of 2019. The year-over-year decrease resulted from the reduced traffic acquisition costs associated with the Company's third-party advertising platform business, partially offset by increases in both content and channel costs in relation to the Company's mobile game business as well as costs associated with the Company's AI business. Non-GAAP cost of revenues decreased by 7.0% year over year to RMB326.8 million (US$47.6 million) in the second quarter of 2019.

Gross profit decreased by 14.5% year over year to RMB643.2 million (US$93.7 million) in the second quarter of 2019. Non-GAAP gross profit decreased by 14.5% year over year to RMB643.3 million (US$93.7 million). Gross margin was 66.3% in the second quarter of 2019, compared to 68.2% in the second quarter of 2018. Non-GAAP gross margin was 66.3% in the second quarter of 2019, compared to 68.2% in the second quarter of 2018.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses increased by 12.0% year over year to RMB698.9 million (US$101.8 million) in the second quarter of 2019. Total non-GAAP operating expenses increased by 9.1% year over year to RMB665.1 million (US$96.9 million) in the second quarter of 2019.

  • Research and development (R&D) expenses increased by 36.2% year over year to RMB211.4 million (US$30.8 million) in the second quarter of 2019. This increase was primarily attributable to higher share-based compensation expenses and an increased R&D headcount in relation to the Company's mobile games and AI-related businesses. Non-GAAP R&D expenses, which exclude share-based compensation expenses, increased by 24.7% year over year to RMB197.8 million (US$28.8 million) in the second quarter of 2019.
  • Selling and marketing expenses increased by 3.2% year over year to RMB381.8 million (US$55.6 million) in the second quarter of 2019. This increase was mainly a result of the Company's increased promotional efforts for its new mobile games. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 3.8% year over year to RMB381.2 million (US$55.5 million) in the second quarter of 2019.
  • General and administrative expenses increased by 17.5% year over year to RMB117.6 million (US$17.1 million) in the second quarter of 2019. This year-over-year increase was primarily due to increases in professional service fees, and share-based compensation expenses. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 15.5% year over year to RMB98.0 million (US$14.3 million) in the second quarter of 2019.

Operating loss was RMB55.7 million (US$8.1 million) in the second quarter of 2019, compared to an operating profit of RMB127.9 million in the same period last year. Non-GAAP operating loss was RMB21.8 million (US$3.2 million) in the second quarter of 2019, compared to a Non-GAAP operating income of RMB142.6 million in the same period last year. 

The Company has reported its operating profit (loss) along the following segments since the second quarter of 2017:

  • Operating profit for utility products and related services was RMB121.1 million (US$17.6 million) in the second quarter of 2019, decreasing from RMB282.1 million in the second quarter of 2018, mainly due to the revenue decrease.  
  • Operating loss for the mobile entertainment business was RMB68.4 million (US$10.0 million) in the second quarter of 2019, compared to operating loss of RMB98.6 million in the same period last year. The reduced losses were mainly attributable to the increasing operational leverage and stricter cost and expense management for LiveMe, as well as the improved operating profits for the Company's flagship games, partially offset by initiatives to launch new titles.

Share-based compensation expenses were RMB34.0 million (US$4.9 million) in the second quarter of 2019, compared to RMB14.6 million in the same period last year, as the Company granted a certain number of restricted shares to employees.

OTHER INCOME, NET

Other income, net was RMB33.8 million (US$4.9 million) in the second quarter of 2019, which was primarily due to increases in fair value of certain long-term investments, including our investments in Codemao, a Chinese online education platform that teaches programming to children, and SuperAtom, an online finance platform focusing on the southeastern Asia markets, in the second quarter of 2019.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was RMB48.5 million (US$7.1 million) in the second quarter of 2019. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB82.5 million (US$12.0 million) in the second quarter of 2019.

NET INCOME PER ADS
Diluted earnings per ADS was RMB0.28 (US$0.04) in the second quarter of 2019. Non-GAAP diluted income per ADS was RMB0.52 (US$0.08) in the second quarter of 2019.

BALANCE SHEET
As of June 30, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,351.4 million (US$488.2 million). 

SHARES ISSUED AND OUTSTANDING
As of June 30, 2019, the Company had a total of 1,433,343,199 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

RECENT UPDATES

LiveMe to Amend its Share Incentive Plan
To better incentivize LiveMe's key employees amid increasingly fierce competition throughout the live streaming and short-form video market, both LiveMe's board of directors and Cheetah Mobile's board of directors have approved LiveMe to (i) amend its share incentive plan to increase the number of shares to be issued under the current plan and (ii) issue a certain number of new shares into a trust under the plan for the benefit of current and future recipients of LiveMe's share incentive awards. The amendment of the plan and the issuance of new shares will become effective on September 30, 2019.

As a result, Cheetah Mobile will no longer hold the majority voting power in LiveMe and will cease to consolidate LiveMe's financial results into the Company's consolidated financial statements starting the fourth quarter of 2019.

Share Repurchase Program
On September 13, 2018, the Company announced that its board of directors had approved a share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months. The Company funded repurchases made under this program from its available cash balance. As of August 19, 2019, the Company had repurchased approximately 4.5 million ADSs for approximately US$32 million under this program.

Business Outlook

For the third quarter of 2019, the Company expects its total revenues to be between RMB940 million (US$137 million) and RMB980 million (US$143 million). This estimate represents management's preliminary view as of the date of this release, which is subject to change.

Conference Call Information

The Company will hold a conference call on Tuesday, August 20, 2019 at 8:00 a.m. Eastern Time or 8:00 p.m. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

International: +1-412-902-4272
United States Toll Free: +1-888-346-8982
China Toll Free: 4001-201-203
Hong Kong Toll Free: 800-905-945
Conference ID: Cheetah Mobile

The replay will be accessible through August 27, 2019 by dialing the following numbers:

International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10134187

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cmcm.com.

Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB6.8650 to US$1.00, the exchange rate in effect as of June 30, 2019, as set forth in the H.10 statistical release of the Federal Reserve Board.  Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America ("U.S. GAAP").

About Cheetah Mobile Inc.

Cheetah Mobile is a leading mobile Internet company with global market coverage. It has attracted hundreds of millions of monthly active users through its mobile utility products such as Clean Master and Cheetah Keyboard, casual games such as Piano Tiles 2, Bricks n Balls, and live streaming product LiveMe. The Company provides its advertising customers, which include direct advertisers and mobile advertising networks through which advertisers place their advertisements, with direct access to highly targeted mobile users and global promotional channels. The Company also provides value-added services to its mobile application users through the sale of in-app virtual items on selected mobile products and games. Cheetah Mobile is committed to leveraging its cutting-edge artificial intelligence technologies to power its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014. 

Safe Harbor Statement

This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile's growth strategies; Cheetah Mobile's ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile's ability to monetize its platform; Cheetah Mobile's future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile's revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile's filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Use of Non-GAAP Financial Measures

To supplement Cheetah Mobile's consolidated financial information presented in accordance with U.S. GAAP, Cheetah Mobile uses the following non-GAAP financial measures:

  • Non-GAAP cost of revenues reflects cost of revenues excluding the portion of share-based compensation expenses allocated to cost of revenues.
  • Non-GAAP gross profit reflects gross profit excluding the portion of share-based compensation expenses allocated to gross profit.
  • Non-GAAP operating income and expenses reflect operating income and expenses excluding the portion of share-based compensation expenses allocated to operating expenses.
  • Non-GAAP operating profit reflects operating profit excluding share-based compensation expenses.
  • Non-GAAP net income attributable to Cheetah Mobile shareholders is net income attributable to Cheetah Mobile shareholders excluding share-based compensation expenses.
  • Non-GAAP diluted earnings per ADS is non-GAAP net income attributable to Cheetah Mobile shareholders excluding net income attributable to redeemable non-controlling interests, divided by weighted average number of diluted ADSs.
  • Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses.
  • Free cash flow is net cash generated by operating activities less capital expenditure.

The Company believes that separate analysis and exclusion of share-based compensation expenses and the use of Adjusted EBITDA add clarity to the constituent parts of its performance from the cash perspective. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP Results" and "Cheetah Mobile Inc. Reconciliation of Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)" at the end of this release.

Investor Relations Contact

Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: helenjingzhu@cmcm.com

ICR Inc.
Jack Wang
Tel: +1 (646) 417-5395
Email: IR@cmcm.com

 

 

CHEETAH MOBILE INC.






Condensed Consolidated Balance Sheets






(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$")








As of


 December 31, 2018


June 30, 2019


June 30, 2019


RMB


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

2,783,843


1,928,068


280,855

Restricted cash

6,133


2,657


387

Short-term investments

930,610


1,420,652


206,941

Accounts receivable

655,261


537,329


78,271

Prepayments and other current assets

1,064,714


1,198,326


174,556

Due from related parties

126,990


250,607


36,505

Total current assets

5,567,551


5,337,639


777,515







Non-current assets:






Property and equipment, net

63,919


66,575


9,698

Right-of-use assets, net*

-


210,267


30,629

Intangible assets, net 

48,421


64,687


9,423

Goodwill

617,837


629,583


91,709

Investment in equity investees

151,533


165,690


24,135

Other long term investments

1,697,510


1,803,940


262,773

Due from related parties

21,139


16,878


2,459

Deferred tax assets

88,896


129,085


18,803

Other non-current assets

35,830


36,177


5,269

Total non-current assets

2,725,085


3,122,882


454,898







Total assets

8,292,636


8,460,521


1,232,413







LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS'
EQUITY












Current liabilities: 






Accounts payable

171,055


163,490


23,815

Accrued expenses and other current liabilities

1,514,642


1,355,760


197,489

Due to related parties

37,298


37,516


5,465

Income tax payable

112,770


100,745


14,675

Total current liabilities

1,835,765


1,657,511


241,444







Non-current liabilities: 






Deferred tax liabilities

110,291


116,920


17,031

Other non-current liabilities*

64,185


279,579


40,724

Total non-current liabilities

174,476


396,499


57,755







Total liabilities

2,010,241


2,054,010


299,199







Mezzanine equity:






Redeemable noncontrolling interests

687,847


708,534


103,210







Shareholders' equity:






Ordinary shares

230


231


34

Treasury stock

(221,932)


(221,932)


(32,328)

Additional paid-in capital

2,742,893


2,801,117


408,029

Retained earnings

2,705,970


2,740,847


399,249

Accumulated other comprehensive income

249,304


266,821


38,867

Total Cheetah Mobile shareholders' equity

5,476,465


5,587,084


813,851

Noncontrolling interests

118,083


110,893


16,153







Total equity

5,594,548


5,697,977


830,004







Total liabilities, mezzanine equity and equity

8,292,636


8,460,521


1,232,413













* On January 1, 2019, the company adopted ASC 842, the new lease standard, using the modified retrospective basis and did not restate comparative
periods.

 

 

CHEETAH MOBILE INC.








Condensed Consolidated Statements of Comprehensive Income (Loss)








(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for number of shares and per share(or ADS) data)










For The Three Months Ended


June 30, 2018


March 31, 2019


June 30, 2019


June 30, 2019


RMB


RMB


RMB


USD

Revenues

1,103,456


1,085,628


970,145


141,318

Utility products and related services 

756,093


497,933


423,524


61,694

Mobile entertainment

332,907


556,230


498,021


72,545

AI and others

14,456


31,465


48,600


7,079









Cost of revenues (a)

(351,360)


(366,931)


(326,982)


(47,630)

Gross profit

752,096


718,697


643,163


93,688









Operating income and expenses: 








Research and development (a)

(155,202)


(196,938)


(211,369)


(30,789)

Selling and marketing (a) 

(369,914)


(436,629)


(381,818)


(55,618)

General and administrative (a) 

(100,107)


(105,829)


(117,644)


(17,137)

Impairment of goodwill and intangible assets

(5,587)


-


-


-

Other operating income

6,660


3,002


11,957


1,742

Total operating income and  expenses

(624,150)


(736,394)


(698,874)


(101,802)









Operating profit (loss)

127,946


(17,697)


(55,711)


(8,114)

Other income (expense):








Interest income, net

19,425


31,617


31,988


4,660

Foreign exchange gain (loss) , net

10,022


(5,373)


1,280


186

(Loss) Gain from equity method investments, net

(2,818)


6,141


10,566


1,539

Other income, net

67,166


432


33,766


4,919









Income before taxes

221,741


15,120


21,889


3,190

Income tax expenses (benefits)

(27,993)


(12,434)


24,422


3,557

Net income

193,748


2,686


46,311


6,747

Less: net loss attributable to noncontrolling interests 

(2,792)


(4,428)


(2,220)


(323)

Net income attributable to Cheetah Mobile shareholders

196,540


7,114


48,531


7,070









Earnings (Losses) per share








Basic 

0.13


0.00


0.03


0.00

Diluted 

0.13


0.00


0.03


0.00









Earnings (Losses) per ADS








Basic 

1.33


(0.02)


0.28


0.04

Diluted 

1.29


(0.02)


0.28


0.04









Weighted average number of shares outstanding








Basic 

1,407,191,965


1,365,622,524


1,367,557,150


1,367,557,150

Diluted 

1,452,195,012


1,392,184,524


1,388,236,454


1,388,236,454

Weighted average number of ADSs outstanding








Basic 

140,719,197


136,562,252


136,755,715


136,755,715

Diluted 

145,219,501


139,218,452


138,823,645


138,823,645









Other comprehensive income (loss), net of tax of nil








Foreign currency translation adjustments

188,530


(82,541)


93,367


13,600

Unrealized gain on available-for-sale securities, net

-


3,498


3,872


564

Other comprehensive income (loss)

188,530


(79,043)


97,239


14,164

Total comprehensive income (loss)

382,278


(76,357)


143,550


20,911

Less: Total comprehensive income (loss) attributable to
noncontrolling interests

1,358


(4,271)


(1,698)


(247)

Total comprehensive income (loss) attributable to Cheetah Mobile
shareholders

380,920


(72,086)


145,248


21,158









 

 

CHEETAH MOBILE INC.








Condensed Consolidated Statements of Comprehensive Income (Loss)







(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for number of shares and per share(or ADS) data)










For The Three Months Ended


June 30, 2018


March 31, 2019


June 30, 2019


June 30, 2019

(a) Share-based compensation expenses

RMB


RMB


RMB


USD

Cost of revenues

90


159


143


21

Research and development

(3,365)


16,512


13,578


1,978

Selling and marketing

2,683


2,827


593


86

General and administrative

15,225


7,153


19,640


2,861

Total

14,633


26,651


33,954


4,946









 

 

CHEETAH MOBILE INC.














Reconciliation of GAAP and Non-GAAP Results














(Unaudited, in'000, except for per share data and percentage)
















For The Three Months Ended June 30, 2019




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net


Non-GAAP


Result


Revenues


Compensation


Revenues


Result


Revenues


Result ($)

Revenues

970,145








970,145




141,318

Cost of revenues

(326,982)


33.7%


143


0.0%


(326,839)


33.7%


(47,609)

Gross profit

643,163


66.3%


143


0.0%


643,306


66.3%


93,709















Research and development 

(211,369)


21.8%


13,578


1.4%


(197,791)


20.4%


(28,811)

Selling and marketing 

(381,818)


39.4%


593


0.1%


(381,225)


39.3%


(55,532)

General and administrative 

(117,644)


12.1%


19,640


2.0%


(98,004)


10.1%


(14,276)

Other operating income

11,957


1.2%


-


0.0%


11,957


1.2%


1,742

Total operating income and expenses

(698,874)


72.0%


33,811


3.5%


(665,063)


68.6%


(96,877)















Operating loss

(55,711)


5.7%


33,954


3.5%


(21,757)


2.2%


(3,168)

Net income attributable to Cheetah Mobile shareholders

48,531


5.0%


33,954


3.5%


82,485


8.5%


12,015















Diluted earnings per ordinary share (RMB)

0.03




0.02




0.05





Diluted earnings per ADS (RMB)

0.28




0.24




0.52





Diluted earnings per ADS (USD)

0.04




0.04




0.08
















































For The Three Months Ended March 31, 2019




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,085,628








1,085,628





Cost of revenues

(366,931)


33.8%


159


0.0%


(366,772)


33.8%



Gross profit

718,697


66.2%


159


0.0%


718,856


66.2%

















Research and development 

(196,938)


18.1%


16,512


1.5%


(180,426)


16.6%



Selling and marketing 

(436,629)


40.2%


2,827


0.3%


(433,802)


40.0%



General and administrative 

(105,829)


9.7%


7,153


0.7%


(98,676)


9.1%



Other operating income

3,002


0.3%


-


0.0%


3,002


0.3%



Total operating income and expenses

(736,394)


67.8%


26,492


2.4%


(709,902)


65.4%

















Operating (loss) profit 

(17,697)


1.6%


26,651


2.5%


8,954


0.8%



Net income attributable to Cheetah Mobile shareholders

7,114


0.7%


26,651


2.5%


33,765


3.1%

















Diluted (losses) earnings per ordinary share (RMB)

(0.00)




0.02




0.02





Diluted (losses) earnings per ADS (RMB)

(0.02)




0.19




0.17
















































For The Three Months Ended June 30, 2018




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,103,456








1,103,456





Cost of revenues

(351,360)


31.8%


90


0.0%


(351,270)


31.8%



Gross profit

752,096


68.2%


90


0.0%


752,186


68.2%

















Research and development 

(155,202)


14.1%


(3,365)


0.3%


(158,567)


14.4%



Selling and marketing 

(369,914)


33.5%


2,683


0.2%


(367,231)


33.3%



General and administrative 

(100,107)


9.1%


15,225


1.4%


(84,882)


7.7%



Impairment of goodwill and intangible assets

(5,587)


0.5%


-


0.0%


(5,587)


0.5%



Other operating income

6,660


0.6%


-


0.0%


6,660


0.6%



Total operating income and expenses

(624,150)


56.6%


14,543


1.3%


(609,607)


55.2%

















Operating profit 

127,946


11.6%


14,633


1.3%


142,579


12.9%



Net income attributable to Cheetah Mobile shareholders

196,540


17.8%


14,633


1.3%


211,173


19.1%

















Diluted earnings per ordinary share (RMB)

0.13




0.01




0.14





Diluted earnings per ADS (RMB)

1.29




0.10




1.39





 

 

CHEETAH MOBILE INC.











Information about Segment 











(Unaudited, in'000, except for percentage)













For The Three Months Ended June 30, 2019



Utility Products
and
Related Services


Mobile
Entertainment


AI and others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB

USD

Revenue

423,524


498,021


48,600


-


970,145

141,318

Operating profit (loss)

121,079


(68,398)


(74,438)


(33,954)


(55,711)

(8,114)

Operating margin

28.6%


(13.7)%


(153.2)%




(5.7)%

(5.7)%














For The Three Months Ended March 31, 2019



Utility Products
and
Related Services


Mobile
Entertainment


AI and others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

497,933


556,230


31,465


-


1,085,628


Operating profit (loss)

123,175


(44,148)


(70,073)


(26,651)


(17,697)


Operating margin

24.7%


(7.9)%


(222.7)%




(1.6)%

























For The Three Months Ended June 30, 2018



Utility Products
and
Related Services


Mobile
Entertainment


AI and others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

756,093


332,907


14,456


-


1,103,456


Operating profit (loss)

282,090


(98,568)


(40,943)


(14,633)


127,946


Operating margin

37.3%


(29.6)%


(283.2)%




11.6%













* Unallocated expenses refer to SBC expenses that are not allocated to individual segments.






 

 

CHEETAH MOBILE INC.





Reconciliation from Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)



(Unaudited, in '000)









For The Three Months Ended


June 30, 2018

March 31, 2019

June 30, 2019

June 30, 2019


RMB

RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

196,540

7,114

48,531

7,070

Add:





Income tax expenses (benefits)

27,993

12,434

(24,422)

(3,557)

Interest income, net

(19,425)

(31,617)

(31,988)

(4,660)

Depreciation and amortization

21,573

16,351

16,809

2,449

Net loss attributable to noncontrolling interests 

(2,792)

(4,428)

(2,220)

(323)

Other non-operating income , net

(74,370)

(1,200)

(45,612)

(6,644)

Share-based compensation 

14,633

26,651

33,954

4,946

Adjusted EBITDA

164,152

25,305

(4,948)

(719)


 

 

CHEETAH MOBILE INC.





Revenues Generated from PC-based and Mobile-based Applications and Services


(Unaudited, in '000)










For The Three Months Ended


June 30, 2018

March 31, 2019

June 30, 2019

June 30, 2019


RMB

RMB

RMB

USD

PC

137,763

120,278

142,346

20,735

Mobile

965,693

965,350

827,799

120,583

Total

1,103,456

1,085,628

970,145

141,318

 

 

CHEETAH MOBILE INC.





Revenues Generated from Domestic and Overseas Markets



(Unaudited, in '000)










For The Three Months Ended


June 30, 2018

March 31, 2019

June 30, 2019

June 30, 2019


RMB

RMB

RMB

USD

Domestic

453,837

424,323

382,396

55,702

Overseas

649,619

661,305

587,749

85,616

Total

1,103,456

1,085,628

970,145

141,318


 

 

Cision

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