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Cheetah Mobile Announces Third Quarter 2019 Unaudited Consolidated Financial Results

BEIJING, Nov. 13, 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 third quarter ended September 30, 2019.

Management Commentaries

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "While our utility products and related services business continued facing some challenges, we remain confident in the fundamental strength of Cheetah Mobile and believe we are in the right direction of developing our AI-related business. In the third quarter of 2019, we completed the deconsolidation of LiveMe, which will result in a structural operating margin lift on the corporate level from the fourth quarter of 2019. Notably, our AI-related business also made substantial progress in terms of customer adoption and user engagement. Over the past years, Cheetah Mobile has built a proven track record in capitalizing on our private investment portfolio. Going forward, we will look into how to capture investment returns and use them for business development and shareholder return."

Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "In the third quarter of 2019, we continued to implement cost control measures for our utility products and related services, which helped generate RMB24 million in operating profit. More importantly, Cheetah Mobile continues to have a strong balance sheet. As of September 30, 2019, we had cash, cash equivalents, restricted cash, short-term investments of US$337 million, and long-term investments of US$348 million, which includes several prestigious private investments that we invested in their early rounds."

Third Quarter 2019 Consolidated Financial Results

REVENUES

Total revenues were RMB919.9 million (US$128.7million) in the third quarter of 2019, decreasing by 32.0% year over year.

Revenues from the mobile entertainment business increased by 6.9% year over year to RMB532.2 million (US$74.5million) in the third quarter of 2019.

Revenues from the mobile games business increased by 4.2% year over year to RMB297.2 million (US$41.6 million) in the third quarter of 2019. This increase was mainly attributable to the continued growth of Bricks n Balls.

Revenues from LiveMe increased by 10.6% year over year to RMB235.0 million (US$32.9 million) in the third quarter of 2019. The increase was primarily driven by higher average revenue per paying user.

Revenues from utility products and related services decreased by 57.8% year over year to RMB352.9 million (US$49.4 million) in the third quarter of 2019. This year-over-year decrease was primarily due to the slowdown of activity in overseas markets for the Company's mobile utility product business. Continuous headwinds in the domestic online advertising market in 2019 also contributed to this decrease.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 4.2% year over year to RMB365.7 million (US$51.2 million) in the third quarter of 2019. The year-over-year decrease was due to a significant reduction in costs associated with the Company's utility product business, partially offset by the increases in channel costs related to the Company's mobile games business and costs related to the Company's AI business. Non-GAAP cost of revenues decreased by 4.2% to RMB365.6 million (US$51.2 million) in the third quarter of 2019.

Gross profit decreased by 42.9% year over year to RMB554.2 million (US$77.5 million) in the third quarter of 2019. Non-GAAP gross profit decreased by 42.9% year over year to RMB554.3 million (US$77.5 million).

Gross margin was 60.2% in the third quarter of 2019, compared to 71.8% in the same period last year. Non-GAAP gross margin was 60.3% in the third quarter of 2019, compared to 71.8% in the third quarter of 2018.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 3.7% year over year to RMB811.2 million (US$113.5 million) in the third quarter of 2019. Total non-GAAP operating expenses decreased by 4.9% year over year to RMB775.8 million (US$108.5 million) in the third quarter of 2019.

Research and development (R&D) expenses increased by 28.6% year over year to RMB225.5 million (US$31.5 million) in the third quarter of 2019. This increase was primarily attributable to the rise in the R&D personnel in the Company's mobile games and AI-related businesses, partially offset by a reduction in the personnel in the Company's utility products and related services. Non-GAAP R&D expenses, which exclude share-based compensation expenses, increased by 27.0% year over year to RMB211.8 million (US$29.6 million) in the third quarter of 2019.

Selling and marketing expenses decreased by 30.4% year over year to RMB395.9 million (US$55.4 million) in the third quarter of 2019. This decrease was mainly due to reduced promotional activities for the Company's utility products and related services business, partially offset by the increased marketing expenses for the Company's mobile games business. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, decreased by 29.8% year over year to RMB396.5 million (US$55.5 million) in the third quarter of 2019.

General and administrative expenses increased by 74.6% year over year to RMB189.1 million (US$26.5 million) in the third quarter of 2019. This year-over-year increase was primarily due to the one-time asset impairment charges, increases in employee benefits, and other administrative expenses. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 77.6% year over year to RMB166.7 million (US$23.3 million) in the third quarter of 2019.

Operating loss was RMB257.1 million (US$36.0 million) in the third quarter of 2019, compared to an operating profit of RMB127.9 million in the same period last year. Non-GAAP operating loss was RMB221.5 million (US$31.0 million) in the third quarter of 2019, compared to an operating profit of RMB154.2 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 RMB24.3 million (US$3.4 million) in the third quarter of 2019, decreasing from RMB264.1 million in the third quarter of 2018, mainly due to the revenue decrease and a one-time increase in allowances for doubtful accounts as the Company periodically review its accounts receivable and other receivables.  

Operating loss for the mobile entertainment business was RMB142.4 million (US$19.9 million) in the third quarter of 2019, compared to an operating loss of RMB74.1 million in the same period last year. The increased losses were mainly attributable to the increased amount of investment made into the Company's mobile games business as it continued to launch new titles.

Operating loss for AI and other business was RMB103.4 million (US$14.5 million) in the quarter, compared to an operating loss of RMB35.8 million in the same period last year, mainly due to the Company's increased investment in its AI-related business.

Share-based compensation expenses were RMB35.5 million (US$5.0 million) in the third quarter of 2019, compared to RMB 26.3 million in the same period last year.

OTHER INCOME, NET

Other income, net was RMB732.9 million (US$102.5 million) in the third quarter of 2019, primarily resulting from a one-time non-cash gain due to the deconsolidation of LiveMe.  

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB451.5 million (US$63.2 million) in the third quarter of 2019. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB487.1 million (US$68.1 million) in the third quarter of 2019.

NET INCOME PER ADS

Diluted earnings per ADS was RMB3.21 (US$0.45) in the third quarter of 2019. Non-GAAP diluted earnings per ADS was RMB3.47 (US$0.48) in the third quarter of 2019.

BALANCE SHEET

As of September 30, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB2,406.1 million (US$336.6 million). 

SHARES ISSUED AND OUTSTANDING

As of September 30, 2019, the Company had a total of 1,393,070,159 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

RECENT UPDATES

LiveMe's Amendment of its Share Incentive Plan

On September 30, 2019, LiveMe amended its share incentive plan to (i) 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. Consequently, Cheetah Mobile was no longer a majority shareholder of LiveMe and deconsolidated LiveMe's financial results from the Company's financial statements from September 30, 2019. Meanwhile, LiveMe's Chief Executive Officer, Ms. Yuki Yandan He, resigned from her position as the Senior Vice President of Cheetah Mobile, effective September 30, 2019.

Business Outlook

For the fourth quarter of 2019, the Company expects its total revenues to be between RMB610 million (US$85 million) and RMB650 million (US$91 million). This amount has reflected the fact that LiveMe's revenues will no longer be included in the Company's revenues. 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 Wednesday, November 13, 2019 at 8:00 a.m. Eastern Time or 9:00 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 November 20, 2019 by dialing the following numbers:

International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10136438

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 RMB7.1477 to US$1.00, the exchange rate in effect as of September 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


September 30, 2019


September 30, 2019


RMB


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

2,783,843


1,001,296


140,086

Restricted cash

6,133


2,720


381

Short-term investments

930,610


1,402,129


196,165

Accounts receivable

655,261


496,273


69,431

Prepayments and other current assets

1,064,714


1,015,290


142,044

Due from related parties

126,990


416,162


58,223

Total current assets

5,567,551


4,333,870


606,330







Non-current assets:






Property and equipment, net

63,919


80,074


11,203

Right-of-use assets, net*

-


197,562


27,640

Intangible assets, net 

48,421


55,336


7,742

Goodwill

617,837


549,303


76,850

Investment in equity investees

151,533


698,140


97,673

Other long term investments

1,697,510


1,792,524


250,783

Due from related parties

21,139


25,887


3,622

Deferred tax assets

88,896


82,752


11,577

Other non-current assets

35,830


33,815


4,731

Total non-current assets

2,725,085


3,515,393


491,821







Total assets

8,292,636


7,849,263


1,098,151







LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY












Current liabilities: 






Accounts payable

171,055


77,749


10,877

Accrued expenses and other current liabilities

1,514,642


1,307,412


182,914

Due to related parties

37,298


72,876


10,196

Income tax payable

112,770


84,324


11,797

Total current liabilities

1,835,765


1,542,361


215,784







Non-current liabilities: 






Deferred tax liabilities

110,291


148,188


20,732

Other non-current liabilities*

64,185


269,219


37,666

Total non-current liabilities

174,476


417,407


58,398







Total liabilities

2,010,241


1,959,768


274,182







Mezzanine equity:






Redeemable noncontrolling interests

687,847


-


-







Shareholders' equity:






Ordinary shares

230


224


31

Treasury stock

(221,932)


-


-

Additional paid-in capital

2,742,893


2,616,181


366,017

Retained earnings

2,705,970


2,766,463


387,042

Accumulated other comprehensive income

249,304


392,433


54,903

Total Cheetah Mobile shareholders' equity

5,476,465


5,775,301


807,993

Noncontrolling interests

118,083


114,194


15,976







Total equity

5,594,548


5,889,495


823,969







Total liabilities, mezzanine equity and equity

8,292,636


7,849,263


1,098,151













* 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


September 30, 2018


June 30, 2019


September 30, 2019


September 30, 2019


RMB


RMB


RMB


USD

Revenues

1,351,979


970,145


919,919


128,701

Utility products and related services 

835,606


423,524


352,932


49,377

Mobile entertainment

497,911


498,021


532,234


74,462

AI and others

18,462


48,600


34,753


4,862









Cost of revenues (a)

(381,692)


(326,982)


(365,748)


(51,170)

Gross profit

970,287


643,163


554,171


77,531









Operating income and expenses: 








Research and development (a)

(175,303)


(211,369)


(225,492)


(31,547)

Selling and marketing (a) 

(568,445)


(381,818)


(395,875)


(55,385)

General and administrative (a) 

(108,270)


(117,644)


(189,085)


(26,454)

Impairment of goodwill and intangible assets

-


-


(2,380)


(333)

Other operating income

9,595


11,957


1,602


224

Total operating income and  expenses

(842,423)


(698,874)


(811,230)


(113,495)









Operating profit (loss)

127,864


(55,711)


(257,059)


(35,964)

Other income (expense):








Interest income, net

24,120


31,988


27,556


3,855

Foreign exchange gain (loss) , net

10,532


1,280


(1,336)


(187)

Gain from equity method investments, net

2,479


10,566


3,396


475

Other income, net

1,242


33,766


732,852


102,530









Income before taxes

166,237


21,889


505,409


70,709

Income tax (expenses) benefits

(26,957)


24,422


(56,819)


(7,949)

Net income

139,280


46,311


448,590


62,760

Less: net loss attributable to noncontrolling interests 

(27,757)


(2,220)


(2,946)


(412)

Net income attributable to Cheetah Mobile shareholders

167,037


48,531


451,536


63,172









Earnings per share








Basic 

0.11


0.03


0.32


0.05

Diluted 

0.11


0.03


0.32


0.04









Earnings per ADS








Basic 

1.12


0.28


3.22


0.45

Diluted 

1.09


0.28


3.21


0.45









Weighted average number of shares outstanding








Basic 

1,408,570,797


1,367,557,150


1,368,904,228


1,368,904,228

Diluted 

1,440,581,762


1,388,236,454


1,376,116,022


1,376,116,022

Weighted average number of ADSs outstanding








Basic 

140,857,080


136,755,715


136,890,423


136,890,423

Diluted 

144,058,176


138,823,645


137,611,602


137,611,602









Other comprehensive income, net of tax of nil








Foreign currency translation adjustments

149,722


93,367


127,208


17,797

Unrealized (loss) gain on available-for-sale securities, net

-


3,872


(698)


(98)

Other comprehensive income

149,722


97,239


126,510


17,699

Total comprehensive income

289,002


143,550


575,100


80,459

Less: Total comprehensive loss attributable to
noncontrolling interests

(17,293)


(1,698)


(2,048)


(287)

Total comprehensive income attributable to Cheetah
Mobile shareholders

306,295


145,248


577,148


80,746


 

 

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


September 30, 2018


June 30, 2019


September 30, 2019


September 30, 2019

(a) Share-based compensation expenses

RMB


RMB


RMB


USD

Cost of revenues

46


143


114


16

Research and development

8,563


13,578


13,686


1,915

Selling and marketing

3,317


593


(660)


(92)

General and administrative

14,380


19,640


22,379


3,131

Total

26,306


33,954


35,519


4,970

 

 

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 September 30, 2019


GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net


Non-GAAP


Result


Revenues


Compensation


Revenues


Result


Revenues


Result ($)

Revenues

919,919








919,919




128,701

Cost of revenues

(365,748)


39.8%


114


0.0%


(365,634)


39.7%


(51,154)

Gross profit

554,171


60.2%


114


0.0%


554,285


60.3%


77,547















Research and development 

(225,492)


24.5%


13,686


1.5%


(211,806)


23.0%


(29,632)

Selling and marketing 

(395,875)


43.0%


(660)


0.1%


(396,535)


43.1%


(55,477)

General and administrative 

(189,085)


20.6%


22,379


2.4%


(166,706)


18.1%


(23,323)

Impairment of goodwill and intangible assets

(2,380)


0.3%


-


0.0%


(2,380)


0.3%


(333)

Other operating income

1,602


0.2%


-


0.0%


1,602


0.2%


224

Total operating income and expenses

(811,230)


88.2%


35,405


3.8%


(775,825)


84.3%


(108,541)















Operating loss

(257,059)


27.9%


35,519


3.9%


(221,540)


24.1%


(30,994)

Net income attributable to Cheetah Mobile shareholders

451,536


49.1%


35,519


3.9%


487,055


52.9%


68,142















Diluted earnings per ordinary share (RMB)

0.32




0.03




0.35





Diluted earnings per ADS (RMB)

3.21




0.26




3.47





Diluted earnings per ADS (USD)

0.45




0.03




0.48
















































For The Three Months Ended June 30, 2019




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

970,145








970,145





Cost of revenues

(326,982)


33.7%


143


0.0%


(326,839)


33.7%



Gross profit

643,163


66.3%


143


0.0%


643,306


66.3%

















Research and development 

(211,369)


21.8%


13,578


1.4%


(197,791)


20.4%



Selling and marketing 

(381,818)


39.4%


593


0.1%


(381,225)


39.3%



General and administrative 

(117,644)


12.1%


19,640


2.0%


(98,004)


10.1%



Other operating income

11,957


1.2%


-


0.0%


11,957


1.2%



Total operating income and expenses

(698,874)


72.0%


33,811


3.5%


(665,063)


68.6%

















Operating loss

(55,711)


5.7%


33,954


3.5%


(21,757)


2.2%



Net income attributable to Cheetah Mobile shareholders

48,531


5.0%


33,954


3.5%


82,485


8.5%

















Diluted earnings per ordinary share (RMB)

0.03




0.02




0.05





Diluted earnings per ADS (RMB)

0.28




0.24




0.52
















































For The Three Months Ended September 30, 2018




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,351,979








1,351,979





Cost of revenues

(381,692)


28.2%


46


0.0%


(381,646)


28.2%



Gross profit

970,287


71.8%


46


0.0%


970,333


71.8%

















Research and development 

(175,303)


13.0%


8,563


0.6%


(166,740)


12.3%



Selling and marketing 

(568,445)


42.0%


3,317


0.2%


(565,128)


41.8%



General and administrative 

(108,270)


8.0%


14,380


1.1%


(93,890)


6.9%



Other operating income

9,595


0.7%


-


0.0%


9,595


0.7%



Total operating income and expenses

(842,423)


62.3%


26,260


1.9%


(816,163)


60.4%

















Operating profit 

127,864


9.5%


26,306


1.9%


154,170


11.4%



Net income attributable to Cheetah Mobile shareholders

167,037


12.4%


26,306


1.9%


193,343


14.3%

















Diluted earnings per ordinary share (RMB)

0.11




0.02




0.13





Diluted earnings per ADS (RMB)

1.09




0.18




1.27

































 

 

CHEETAH MOBILE INC.

Information about Segment 

(Unaudited, in'000, except for percentage)



For The Three Months Ended September 30, 2019



Utility Products
and
Related Services


Mobile
Entertainment


AI and others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB

USD

Revenue

352,932


532,234


34,753


-


919,919

128,701

Operating profit (loss)

24,248


(142,423)


(103,365)


(35,519)


(257,059)

(35,964)

Operating margin

6.9%


(26.8)%


(297.4)%




(27.9)%

(27.9)%




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


Revenue

423,524


498,021


48,600


-


970,145


Operating profit (loss)

121,079


(68,398)


(74,438)


(33,954)


(55,711)


Operating margin

28.6%


(13.7)%


(153.2)%




(5.7)%





For The Three Months Ended September 30, 2018



Utility Products
and
Related Services


Mobile
Entertainment


AI and others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

835,606


497,911


18,462


-


1,351,979


Operating profit (loss)

264,139


(74,121)


(35,848)


(26,306)


127,864


Operating margin

31.6%


(14.9)%


(194.2)%




9.5%



* 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


September 30, 2018

June 30, 2019

September 30, 2019

September 30, 2019


RMB

RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

167,037

48,531

451,536

63,172

Add:





Income tax expenses (benefits)

26,957

(24,422)

56,819

7,949

Interest income, net

(24,120)

(31,988)

(27,556)

(3,855)

Depreciation and amortization

17,826

16,809

16,193

2,265

Net loss attributable to noncontrolling interests 

(27,757)

(2,220)

(2,946)

(412)

Other non-operating income, net

(14,253)

(45,612)

(734,912)

(102,818)

Share-based compensation 

26,306

33,954

35,519

4,970

Adjusted EBITDA

171,996

(4,948)

(205,347)

(28,729)

 

 

CHEETAH MOBILE INC.

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

(Unaudited, in '000)


For The Three Months Ended


September 30, 2018

June 30, 2019

September 30, 2019

September 30, 2019


RMB

RMB

RMB

USD

PC

143,322

142,346

123,789

17,319

Mobile

1,208,657

827,799

796,130

111,382

Total

1,351,979

970,145

919,919

128,701

 

 

CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, in '000)


For The Three Months Ended


September 30, 2018

June 30, 2019

September 30, 2019

September 30, 2019


RMB

RMB

RMB

USD

Domestic

536,435

382,396

299,339

41,879

Overseas

815,544

587,749

620,580

86,822

Total

1,351,979

970,145

919,919

128,701

 

Cision

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