Cheetah Mobile Announces First Quarter 2019 Unaudited Consolidated Financial Results

6月 14, 2019

BEIJING, June 14, 2019 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company with global market coverage, today announced its unaudited consolidated financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights

  • Total revenues were RMB1,085.6 million (US$161.8 million), reaching the high end of Company's previous guidance range of RMB1,060 million to RMB1,090 million.
  • Revenues from the mobile entertainment business increased by 41.7% year over year to RMB556.2 million (US$82.9 million), accounting for 51.2% of total revenues in the first quarter of 2019.
  • Other revenues grew by 299.2% to RMB31.5 million (US$4.7 million), mainly driven by the sales of the artificial intelligence ("AI") based interpretation device, Cheetah Translator, in China.
  • Gross profit was RMB718.7 million (US$107.1 million) in the first quarter of 2019. Gross margin remained stable year over year at 66.2%.
  • Operating profit from utility products and related services was RMB123.2 million (US$18.4 million) in the first quarter of 2019. Operating loss for the mobile entertainment business further reduced to RMB44.1 million (US$6.6 million) in the first quarter of 2019 from RMB75.0 million in the same period last year.
  • Net income attributable to Cheetah Mobile shareholders was RMB7.1 million (US$1.1 million). Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB33.8 million (US$5.0 million).
  • As of March 31, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,422.6 million (US$510.0 million).

First Quarter 2019 Operating Metrics

  • The average number of global mobile monthly active users ("Mobile MAUs") was 434.8 million in the first quarter of 2019. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 70.3% of the total number of Mobile MAUs in the first quarter of 2019.

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "Our AI businesses made strong progress in the first quarter of 2019. We continued to enrich our AI product portfolio and build more use cases for our AI products. As to consumer-facing products, we launched a tailor-made version of CM Translator for Chinese primary school students in the first quarter of 2019 to help them learn English at home. CM Translator has been the top seller among its peers since its launch in July 2018. As to enterprise-focused products, we expanded Cheetah GreetBot's consumer locations to university libraries to help students easily find the books they need. Looking ahead, we are quite excited about additional AI opportunities. We will continue to leverage our AI technologies and rich experience in developing applications to grow our AI businesses. Backed with our strong cash position and cash generation capability, we believe that our AI business will enable us to drive our long-term growth."

Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "Driven by the robust revenue growth in our mobile entertainment business and AI-related business, our total revenues in the first quarter of 2019 reached the high end of our previous guidance. Notably, revenues from the mobile games business increased by 73% year over year to RMB302 million, already accounted for 28% of total revenue in the quarter. On the profit side, our utility products and related services continued to generate solid profit of RMB123 million in the quarter. Losses from the mobile entertainment business continued to narrow in the quarter thanks to the reduced loss from our LiveMe business. Looking ahead, we are confident that our long-term growth prospects remain healthy. We believe that our strong cash generation capabilities and our high cash balance will allow us to continue to expand into the AI space."

First Quarter 2019 Consolidated Financial Results

REVENUES
Total revenues were RMB1,085.6 million (US$161.8 million) in the first quarter of 2019.

Revenues from utility products and related services decreased by 33.1% year over year to RMB497.9 million (US$74.2 million) in the first quarter of 2019. The year-over-year decrease was primarily due to continuous disruptions to the Company's overseas mobile utility business as a result of the negative publicity caused by a news article published in 2018. 

Revenues from the mobile entertainment business increased by 41.7% year over year to RMB556.2 million (US$82.9 million), driven by the growth of both mobile games business and LiveMe business. Revenues from the mobile entertainment business contributed to 51.2% of the total revenue in the first quarter of 2019, up from 34.3% in the first quarter of 2018.

  • Revenues from the mobile games business increased by 72.5% year over year to RMB301.5 million (US$44.9 million) in the quarter. The increase was mainly attributable to the strong performance of Bricks n Balls, which started to ramp up from the middle of July 2018. The Company's flagship titles, including Piano Tiles 2, Rolling Sky, and Dancing Line, also exhibited very strong performance in the first quarter of 2019. In the first quarter of 2019, we also launched a number of casual games, which also contributed to the revenue growth, although their aggregate revenue contributions were still insignificant.
  • Revenues from LiveMe, increased by 17.0% year over year to RMB254.8 million (US$38.0 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.

Other revenues grew by 299.2% year over year to RMB31.5 million (US$4.7 million), mainly driven by the sales of the AI-based interpretation device, Cheetah Translator, in China. Revenues from others represented 2.9% of total revenues in the first quarter of 2019, up from 0.7% in the first quarter of 2018.

COST OF REVENUES AND GROSS PROFIT 

Cost of revenues decreased by 6.2% year over year to RMB366.9 million (US$54.7 million) in the first 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 an increase in content and channel costs in relation to the Company's mobile game business, as well as increased costs associated with the AI business. Non-GAAP cost of revenues decreased by 6.3% year over year to RMB366.8 million (US$54.7 million) in the first quarter of 2019.

Gross profit decreased by 4.7% year over year to RMB718.7 million (US$107.1 million) in the first quarter of 2019. Non-GAAP gross profit decreased by 4.6% year over year to RMB718.9 million (US$107.1 million). Gross margin and non-GAAP gross margin remained stable at 66.2% year over year.

OPERATING INCOME AND EXPENSES 

Total operating expenses increased by 19.2% year over year to RMB736.4 million (US$109.7 million) in the first quarter of 2019. Total non-GAAP operating expenses increased by 16.7% year over year to RMB709.9 million (US$105.8 million) in the first quarter of 2019. 

  • Research and development (R&D) expense increased by 33.7% year over year to RMB196.9 million (US$29.3 million) in the first quarter of 2019. The increase primarily resulted from higher share-based compensation expenses and 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 17.6% year over year to RMB180.4 million (US$26.9 million) in the first quarter of 2019.
  • Selling and marketing expenses increased by 11.6% year over year to RMB436.6 million (US$65.1 million) in the first quarter of 2019. The increase was mainly due to increased promotion efforts for the Company's mobile games and AI-related business. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 10.9% year over year to RMB433.8 million (US$64.6 million) in the first quarter of 2019.
  • General and administrative expenses increased by 16.8% year over year to RMB105.8 million (US$15.8 million) in the first quarter of 2019. The year-over-year increase was primarily due to higher professional service fees and increased employee benefits for general and administrative staff. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 30.3% year over year to RMB98.7 million (US$14.7 million) in the first quarter of 2019.

Operating loss was RMB17.7 million (US$2.6 million) in the first quarter of 2019 compared to an operating profit of RMB136.4 million in the same period last year. Non-GAAP operating profit was RMB9.0 million (US$1.3 million) in the first quarter of 2019 compared to RMB145.3 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 RMB123.2 million (US$18.4 million) in the first quarter of 2019, decreasing from RMB 264.7 million in the first quarter of 2018, mainly due to the revenue decrease in the overseas market.
  • Operating loss for the mobile entertainment business was RMB44.1 million (US$6.6 million) in the first quarter of 2019 compared to operating loss of RMB75.0 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 was RMB26.7 million (US$4.0 million) in the first quarter of 2019 compared to RMB8.9 million in the same period last year, as the Company granted a certain number of restricted shares to key employees.  

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was RMB7.1 million (US$1.1 million) in the first quarter of 2019. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB33.8 million (US$5.0 million) in the first quarter of 2019.

NET INCOME PER ADS
Diluted loss per ADS was RMB0.02 (US$0.00) in the first quarter of 2019. Non-GAAP diluted income per ADS was RMB0.17 (US$0.03) in the first quarter of 2019. 

ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) decreased by 85.0% year over year to RMB25.3 million (US$3.8 million) in the first quarter of 2019. 

BALANCE SHEET
As of March 31, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,422.6 million (US$510.0 million). 

SHARES ISSUED AND OUTSTANDING
As of March 31, 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.

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. Cheetah funded repurchases made under this program from its available cash balance. As of June 14, 2019, the Company had repurchased approximately 4.5 million ADSs for approximately US$32 million under this program.

Business Outlook
For the second quarter of 2019, the Company expects its total revenues to be between RMB920 million (US$137 million) and RMB950 million (US$142 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 Friday, June 14, 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 June 21, 2019 by dialing the following numbers:

International: 

+1-412-317-0088

United States Toll Free: 

+1-877-344-7529

 

Access Code: 

10131962

 

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 RMB 6.7112 to US$1.00, the exchange rate in effect as of March 31, 2018, 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

 

31-Mar-19

 

31-Mar-19

 

RMB

 

RMB

 

USD

ASSETS

         

Current assets:

         

Cash and cash equivalents

2,783,843

 

2,048,801

 

305,281

Restricted cash

6,133

 

2,613

 

389

Short-term investments

930,610

 

1,371,144

 

204,307

Accounts receivable

655,261

 

569,495

 

84,857

Prepayments and other current assets

1,064,714

 

1,140,449

 

169,932

Due from related parties

126,990

 

198,363

 

29,557

Total current assets

5,567,551

 

5,330,865

 

794,323

           

Non-current assets:

         

Property and equipment, net

63,919

 

60,185

 

8,968

Right-of-use assets, net*

-

 

216,155

 

32,208

Intangible assets, net 

48,421

 

44,646

 

6,652

Goodwill

617,837

 

610,170

 

90,918

Investment in equity investees

151,533

 

160,703

 

23,945

Other long term investments

1,697,510

 

1,697,382

 

252,918

Due from related parties

21,139

 

19,473

 

2,902

Deferred tax assets

88,896

 

95,586

 

14,243

Other non-current assets

35,830

 

35,432

 

5,279

Total non-current assets

2,725,085

 

2,939,732

 

438,033

           

Total assets

8,292,636

 

8,270,597

 

1,232,356

           

LIABILITIES, MEZZANINE EQUITY AND

SHAREHOLDERS' EQUITY

         
           

Current liabilities: 

         

Accounts payable

171,055

 

159,567

 

23,776

Accrued expenses and other current liabilities

1,514,642

 

1,320,065

 

196,696

Due to related parties

37,298

 

37,341

 

5,564

Income tax payable

112,770

 

121,580

 

18,116

Total current liabilities

1,835,765

 

1,638,553

 

244,152

           

Non-current liabilities: 

         

Deferred tax liabilities

110,291

 

112,601

 

16,778

Other non-current liabilities*

64,185

 

285,078

 

42,477

Total non-current liabilities

174,476

 

397,679

 

59,255

           

Total liabilities

2,010,241

 

2,036,232

 

303,407

           

Mezzanine equity:

         

Redeemable noncontrolling interests

687,847

 

697,996

 

104,005

           

Shareholders' equity:

         

Ordinary shares

230

 

231

 

34

Treasury stock

(221,932)

 

(221,932)

 

(33,069)

Additional paid-in capital

2,742,893

 

2,770,790

 

412,861

Retained earnings

2,705,970

 

2,703,251

 

402,797

Accumulated other comprehensive income

249,304

 

170,104

 

25,346

Total Cheetah Mobile shareholders' equity

5,476,465

 

5,422,444

 

807,969

Noncontrolling interests

118,083

 

113,925

 

16,975

           

Total equity

5,594,548

 

5,536,369

 

824,944

           

Total liabilities, mezzanine equity and equity

8,292,636

 

8,270,597

 

1,232,356

           
           

* 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

 

 March 31, 2018

 

 December 31, 2018

 

March 31, 2019

 

March 31, 2019

 

RMB

 

RMB

 

RMB

 

USD

Revenues

1,145,097

 

1,381,173

 

1,085,628

 

161,764

Utility products and related services 

744,763

 

783,021

 

497,933

 

74,195

Mobile entertainment

392,452

 

555,597

 

556,230

 

82,881

Others

7,882

 

42,555

 

31,465

 

4,688

               

Cost of revenues (a)

(391,182)

 

(416,399)

 

(366,931)

 

(54,674)

Gross profit

753,915

 

964,774

 

718,697

 

107,090

               

Operating income and expenses: 

             

Research and development (a)

(147,278)

 

(191,135)

 

(196,938)

 

(29,345)

Selling and marketing (a) 

(391,355)

 

(580,330)

 

(436,629)

 

(65,060)

General and administrative (a) 

(90,600)

 

(131,849)

 

(105,829)

 

(15,769)

Impairment of goodwill and intangible assets

-

 

(7,180)

 

-

 

-

Other operating income

11,679

 

20,771

 

3,002

 

447

Total operating income and  expenses

(617,554)

 

(889,723)

 

(736,394)

 

(109,727)

               

Operating profit (loss)

136,361

 

75,051

 

(17,697)

 

(2,637)

Other income (expense):

             

Interest income, net

16,652

 

27,519

 

31,617

 

4,711

Foreign exchange (loss) gain, net

(12,829)

 

6,096

 

(5,373)

 

(801)

Impairment of investment impairment

(58,000)

 

(98,885)

 

-

 

-

(Loss) Gain from equity method investments, net

(2,739)

 

2,694

 

6,141

 

915

Other income, net

500

 

789,325

 

432

 

64

               

Income before taxes

79,945

 

801,800

 

15,120

 

2,252

Income tax expenses

(5,042)

 

(57,008)

 

(12,434)

 

(1,853)

Net income

74,903

 

744,792

 

2,686

 

399

Less: net income (loss) attributable to noncontrolling interests 

4,906

 

11,457

 

(4,428)

 

(660)

Net income attributable to Cheetah Mobile shareholders

69,997

 

733,335

 

7,114

 

1,059

               

Earnings (Losses) per share

             

Basic 

0.04

 

0.52

 

0.00

 

0.00

Diluted 

0.04

 

0.51

 

0.00

 

0.00

               

Earnings (Losses) per ADS

             

Basic 

0.43

 

5.19

 

(0.02)

 

0.00

Diluted 

0.42

 

5.09

 

(0.02)

 

0.00

               

Weighted average number of shares outstanding

             

Basic 

1,403,597,719

 

1,393,015,891

 

1,365,622,524

 

1,365,622,524

Diluted 

1,452,802,118

 

1,420,765,216

 

1,392,184,524

 

1,392,184,524

Weighted average number of ADSs outstanding

             

Basic 

140,359,772

 

139,301,589

 

136,562,252

 

136,562,252

Diluted 

145,280,212

 

142,076,522

 

139,218,452

 

139,218,452

               

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

             

Foreign currency translation adjustments

(134,774)

 

(23,031)

 

(82,541)

 

(12,299)

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

-

 

(1,203)

 

3,498

 

521

Other comprehensive loss

(134,774)

 

(24,234)

 

(79,043)

 

(11,778)

Total comprehensive (loss) income

(59,871)

 

720,558

 

(76,357)

 

(11,379)

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

3,321

 

12,574

 

(4,271)

 

(636)

Total comprehensive (loss) income attributable to Cheetah Mobile shareholders

(63,192)

 

707,984

 

(72,086)

 

(10,743)

               
               

 

 

 

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

 

 March 31, 2018

 

 December 31, 2018

 

March 31, 2019

 

March 31, 2019

(a) Share-based compensation expenses

RMB

 

RMB

 

RMB

 

USD

Cost of revenues

(90)

 

160

 

159

 

24

Research and development

(6,143)

 

15,169

 

16,512

 

2,460

Selling and marketing

302

 

2,665

 

2,827

 

421

General and administrative

14,850

 

17,266

 

7,153

 

1,066

Total

8,919

 

35,260

 

26,651

 

3,971

 

 

 

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 March 31, 2019

   
 

GAAP

 

% of Net

 

Share-based 

 

% of Net

 

Non-GAAP

 

% of Net

 

Non-GAAP

 

Result

 

Revenues

 

Compensation

 

Revenues

 

Result

 

Revenues

 

Result ($)

Revenues

1,085,628

             

1,085,628

     

161,764

Cost of revenues

(366,931)

 

33.8%

 

159

 

0.0%

 

(366,772)

 

33.8%

 

(54,650)

Gross profit

718,697

 

66.2%

 

159

 

0.0%

 

718,856

 

66.2%

 

107,114

                           

Research and development 

(196,938)

 

18.1%

 

16,512

 

1.5%

 

(180,426)

 

16.6%

 

(26,885)

Selling and marketing 

(436,629)

 

40.2%

 

2,827

 

0.3%

 

(433,802)

 

40.0%

 

(64,639)

General and administrative 

(105,829)

 

9.7%

 

7,153

 

0.7%

 

(98,676)

 

9.1%

 

(14,703)

Other operating income

3,002

 

0.3%

 

-

 

0.0%

 

3,002

 

0.3%

 

447

Total operating income and expenses

(736,394)

 

67.8%

 

26,492

 

2.4%

 

(709,902)

 

65.4%

 

(105,780)

                           

Operating(loss) profit 

(17,697)

 

1.6%

 

26,651

 

2.5%

 

8,954

 

0.8%

 

1,334

Net income attributable to Cheetah Mobile shareholders

7,114

 

0.7%

 

26,651

 

2.5%

 

33,765

 

3.1%

 

5,031

                           

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

       

Diluted (losses) earnings per ADS (USD)

0.00

     

0.03

     

0.03

       
                           
                           
                           
 

For The Three Months Ended December 31, 2018

   
 

GAAP

 

% of Net

 

Share-based 

 

% of Net

 

Non-GAAP

 

% of Net

   
 

Result

 

Revenues

 

Compensation

 

Revenues

 

Result

 

Revenues

   

Revenues

1,381,173

             

1,381,173

       

Cost of revenues

(416,399)

 

30.1%

 

160

 

0.0%

 

(416,239)

 

30.1%

   

Gross profit

964,774

 

69.9%

 

160

 

0.0%

 

964,934

 

69.9%

   
                           

Research and development 

(191,135)

 

13.8%

 

15,169

 

1.1%

 

(175,966)

 

12.7%

   

Selling and marketing 

(580,330)

 

42.0%

 

2,665

 

0.2%

 

(577,665)

 

41.8%

   

General and administrative 

(131,849)

 

9.5%

 

17,266

 

1.3%

 

(114,583)

 

8.3%

   

Impairment of goodwill and intangible assets

(7,180)

 

0.5%

 

-

 

0.0%

 

(7,180)

 

0.5%

   

Other operating income

20,771

 

1.5%

 

-

 

0.0%

 

20,771

 

1.5%

   

Total operating income and expenses

(889,723)

 

64.4%

 

35,100

 

2.5%

 

(854,623)

 

61.9%

   
                           

Operating profit 

75,051

 

5.4%

 

35,260

 

2.6%

 

110,311

 

8.0%

   

Net income attributable to Cheetah Mobile shareholders

733,335

 

53.1%

 

35,260

 

2.6%

 

768,595

 

55.6%

   
                           

Diluted earnings per ordinary share (RMB)

0.51

     

0.02

     

0.53

       

Diluted earnings per ADS (RMB)

5.09

     

0.25

     

5.34

       
                           
                           
                           
 

For The Three Months Ended March 31, 2018

   
 

GAAP

 

% of Net

 

Share-based 

 

% of Net

 

Non-GAAP

 

% of Net

   
 

Result

 

Revenues

 

Compensation

 

Revenues

 

Result

 

Revenues

   

Revenues

1,145,097

             

1,145,097

       

Cost of revenues

(391,182)

 

34.2%

 

(90)

 

0.0%

 

(391,272)

 

34.2%

   

Gross profit

753,915

 

65.8%

 

(90)

 

0.0%

 

753,825

 

65.8%

   
                           

Research and development 

(147,278)

 

12.9%

 

(6,143)

 

0.5%

 

(153,421)

 

13.4%

   

Selling and marketing 

(391,355)

 

34.2%

 

302

 

0.0%

 

(391,053)

 

34.2%

   

General and administrative 

(90,600)

 

7.9%

 

14,850

 

1.3%

 

(75,750)

 

6.6%

   

Other operating income

11,679

 

1.0%

 

-

 

0.0%

 

11,679

 

1.0%

   

Total operating income and expenses

(617,554)

 

53.9%

 

9,009

 

0.8%

 

(608,545)

 

53.1%

   
                           

Operating profit 

136,361

 

11.9%

 

8,919

 

0.8%

 

145,280

 

12.7%

   

Net income attributable to Cheetah Mobile shareholders

69,997

 

6.1%

 

8,919

 

0.8%

 

78,916

 

6.9%

   
                           

Diluted earnings per ordinary share (RMB)

0.04

     

0.01

     

0.05

       

Diluted earnings per ADS (RMB)

0.42

     

0.06

     

0.48

       
                           

 

 

 

CHEETAH MOBILE INC.

                   

Information about Segment 

                   

(Unaudited, in'000, except for percentage)

                     
 

For The Three Months Ended March 31, 2019

 
 

Utility Products
and
Related Services

 

Mobile Entertainment

 

Others 

 

Unallocated*

 

Consolidated

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

USD

Revenue

497,933

 

556,230

 

31,465

 

-

 

1,085,628

161,764

Operating profit (loss)

123,175

 

(44,148)

 

(70,073)

 

(26,651)

 

(17,697)

(2,637)

Operating margin

24.7%

 

(7.9)%

 

(222.7)%

     

(1.6)%

(1.6)%

 
                     
 

For The Three Months Ended December 31, 2018

 
 

Utility Products
and
Related Services

 

Mobile Entertainment

 

Others 

 

Unallocated*

 

Consolidated

 
 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

Revenue

783,021

 

555,597

 

42,555

 

-

 

1,381,173

 

Operating profit (loss)

224,033

 

(64,780)

 

(48,942)

 

(35,260)

 

75,051

 

Operating margin

28.6%

 

(11.7)%

 

(115.0)%

     

5.4%

 
                     
                     
 

For The Three Months Ended March 31, 2018

 
 

Utility Products
and
Related Services

 

Mobile Entertainment

 

Others 

 

Unallocated*

 

Consolidated

 
 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

Revenue

744,763

 

392,452

 

7,882

 

-

 

1,145,097

 

Operating profit (loss)

264,706

 

(75,046)

 

(44,380)

 

(8,919)

 

136,361

 

Operating margin

35.5%

 

(19.1)%

 

(563.1)%

     

11.9%

 
                     

* 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

 

 March 31, 2018

 December 31, 2018

March 31, 2019

March 31, 2019

 

RMB

RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

69,997

733,335

7,114

1,059

Add:

       

Income tax expenses

5,042

57,008

12,434

1,853

Interest income, net

(16,652)

(27,519)

(31,617)

(4,711)

Depreciation and amortization

23,472

17,237

16,351

2,436

Net income (loss) attributable to noncontrolling interests 

4,906

11,457

(4,428)

(660)

Other non-operating expense (income), net

73,068

(699,230)

(1,200)

(178)

Share-based compensation 

8,919

35,260

26,651

3,971

Adjusted EBITDA

168,752

127,548

25,305

3,770

 

 

 

CHEETAH MOBILE INC.

     

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

 

(Unaudited, in '000)

       
         

For The Three Months Ended

 

 March 31, 2018

 December 31, 2018

March 31, 2019

March 31, 2019

 

RMB

RMB

RMB

USD

PC

127,094

171,837

120,278

17,922

Mobile

1,018,003

1,209,336

965,350

143,842

Total

1,145,097

1,381,173

1,085,628

161,764

 

 

 

CHEETAH MOBILE INC.

     

Revenues Generated from Domestic and Overseas Markets

   

(Unaudited, in '000)

       
         

For The Three Months Ended

 

 March 31, 2018

 December 31, 2018

March 31, 2019

March 31, 2019

 

RMB

RMB

RMB

USD

Domestic

447,620

533,221

424,323

63,226

Overseas

697,477

847,952

661,305

98,538

Total

1,145,097

1,381,173

1,085,628

161,764

 

 

 

SOURCE Cheetah Mobile Inc