Cheetah Mobile Announces First Quarter 2020 Unaudited Consolidated Financial Results

6月 10, 2020

BEIJING, June 10, 2020 /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, 2020.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "In the first quarter of 2020, we continued to streamline our operations in the mobile Internet business and implement strict cost and expense controls to reduce our losses from the previous quarter. Total cost and expenses decreased by 38.4% year over year and 20.2% sequentially in the quarter. Gross margin grew to 72.0% in the quarter from 66.2% in the same period last year and from 70.2% in the previous quarter. Non-GAAP operating loss was RMB141 million in the quarter, decreasing from RMB203 million in the previous quarter. Notably, non-GAAP operating profit for our mobile Internet business, namely our utility products and related services and our mobile games businesses, increased to RMB7.8 million in the quarter from a non-GAAP operating loss of RMB91.7 million in the previous quarter. In addition, we continued to execute our AI strategy to rejuvenate our long-term growth. The recent outbreak of COVID-19 has led to increased number of use cases for our robotics products and solutions in hospitals and public transit while increasing customer awareness for the service at the same time. However, we do not expect our robotics business to generate significant revenues in the near term."

Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "In addition to our improved operating results, we continued to review our investment portfolio and selectively liquidate some of our investments. Recently, we disposed of our remaining equity ownership in Bytedance Ltd., which will result in a gain on investment of approximately US$66 million in the second quarter of 2020. We also continued to return cash to our shareholders. Recently, our Board approved a special cash dividend of US$1.44 per ADS. The aggregate amount of the cash dividends was approximately US$200 million. Importantly, Cheetah Mobile's cash position remains strong, even after paying out this special cash dividend."

First Quarter 2020 Consolidated Financial Results

REVENUES

Total revenues were RMB528.1 million (US$74.6 million) in the first quarter of 2020, representing a decrease of 51.4% year over year. Excluding the impact resulting from the deconsolidation of LiveMe's revenues, total revenues decreased by 36.4% year over year in the first quarter of 2020.

Revenues from utility products and related services decreased by 57.7% year over year to RMB210.8 million (US$29.8 million) in the first quarter of 2020. The year-over-over decrease was primarily due to (i) a decline in the Company's mobile utility product business in overseas markets, (ii) a decline in the Company's mobile utility product business in the domestic market, and (iii) a decline in PC-related revenues. In the first quarter of 2020, approximately 71.0% of the Company's revenues from its utility products and related services business were generated from advertising while the remaining portion of revenues were generated from other sources, such as anti-virus software sales and office software sales.

Revenues from the Company's mobile utility product business in overseas markets decreased by 62.6% year over year to RMB54.3 million in first quarter of 2020. This decrease was mainly due to the suspension of the Company's advertising collaborations with Google since February 2020. On February 21, 2020, the Company announced that the Company's Google Play Store, Google AdMob, and Google AdManager accounts had been disabled, which adversely affected its ability to attract new users and generate revenue from Google. Revenues from the Company's mobile utility product business in the domestic market decreased by 75.4% year over year to RMB62.1 million in the first quarter of 2020 as a result of the headwinds in the domestic online advertising market. Our advertising customers that were negatively impacted by the outbreak of COVID-19 reduced their budgets on online advertising and marketing, which materially adversely impacted our revenue from online marketing services. PC-related revenues decreased by 5.8% year over year to RMB94.5 million in the first quarter of 2020 as internet traffic in China continued to migrate from PCs to mobile devices.

Revenues from the mobile games business decreased by 5.3% year over year to RMB285.5 million (US$40.3 million) in the first quarter of 2020. This decrease was primarily attributable to the suspension of the Company's advertising collaborations with Google since February 2020. In the first quarter of 2020, approximately 69.9% of the Company's revenues from its mobile games business were generated from advertising while the remaining portion of revenues were generated from in-game purchases.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 59.7% year over year to RMB147.7 million (US$20.9 million) in the first quarter of 2020. The decrease was primarily due to the deconsolidation of LiveMe. Non-GAAP cost of revenues decreased by 59.7% year over year to RMB147.6 million (US$20.9 million) in the first quarter of 2020.

Gross profit decreased by 47.1% year over year to RMB380.4 million (US$53.7 million) in the first quarter of 2020. Non-GAAP gross profit decreased by 47.1% year over year to RMB380.4 million (US$53.7 million) in the first quarter of 2020.

Gross margin was 72.0% in the first quarter of 2020, compared to 66.2% in the same period last year. Non-GAAP gross margin was 72.0% in the first quarter of 2020, compared to 66.2% in the same period last year.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 28.2% year over year to RMB528.4 million (US$74.6 million) in the first quarter of 2020. Total non-GAAP operating expenses decreased by 26.5% year over year to RMB521.6 million (US$73.7 million) in the first quarter of 2020.

  • Research and development expenses decreased by 27.6% year over year to RMB142.6 million (US$20.1 million) in the first quarter of 2020. This decrease was primarily attributable to a reduction in the personnel for the Company's utility products and related services business in overseas markets as well as the deconsolidation of LiveMe. Non-GAAP research and development expenses decreased by 24.7% year over year to RMB135.9 million (US$19.2 million) in the first quarter of 2020.
  • Selling and marketing expenses decreased by 30.7% year over year to RMB302.8 million (US$42.8 million) in the first quarter of 2020. This decrease was mainly due to the reduction in promotional activities for the Company's utility products and related services business in the domestic market as well as the deconsolidation of LiveMe. Non-GAAP selling and marketing expenses decreased by 29.9% year over year to RMB304.0 million (US$42.9 million) in the first quarter of 2020.
  • General and administrative expenses decreased by 16.3% year over year to RMB88.6 million (US$12.5 million) in the first quarter of 2020. This decrease was primarily due to decreased professional fees and share based compensation. Non-GAAP general and administrative expenses decreased by 11.5% year over year to RMB87.3 million (US$12.3 million) in the first quarter of 2020.

Operating loss was RMB148.0 million (US$20.9 million) in the first quarter of 2020, compared to an operating loss of RMB17.7 million in the same period last year. Non-GAAP operating loss was RMB141.1 million (US$19.9 million) in the first quarter of 2020, compared to an operating profit of RMB9.0 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 RMB44.2 million (US$6.2 million) in the first quarter of 2020, compared to RMB123.2 million in the same period last year, which was mainly due to the decrease in revenues.
  • Operating loss for the mobile entertainment business was RMB36.4 million (US$5.1 million) in the first quarter of 2020, compared to RMB44.1 million in the same period last year, which was mainly attributable to the deconsolidation of LiveMe.
  • Operating loss for AI and other business was RMB148.9 million (US$21.0 million) in the first quarter of 2020, compared to RMB70.1 million in the same period last year, mainly due to the increased investments in the Company's AI-related business.

Share-based compensation expenses were RMB6.9 million (US$1.0 million) in the first quarter of 2020, compared to RMB26.7 million in the same period last year.

OTHER INCOME, NET

Other income, net was RMB42.9 million (US$6.1 million) in the first quarter of 2020, which was primarily due to increases in fair value of certain long-term investments.

NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net loss attributable to Cheetah Mobile shareholders was RMB104.6 million (US$14.8 million) in the first quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB7.1 million in the same period last year.

Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB97.7 million (US$13.8 million) in the first quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB33.8 million in the same period last year.

NET INCOME/LOSS PER ADS

Diluted loss per ADS was RMB0.76 (US$0.11) in the first quarter of 2020, compared to RMB0.02 in the same period last year. Non-GAAP diluted loss per ADS was RMB0.71 (US$0.10) in first quarter of 2020, compared to diluted earnings per ADS of RMB0.17 in the same period last year.

BALANCE SHEET

As of March 31, 2020, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB2,345.1 million (US$331.2 million). 

SHARES ISSUED AND OUTSTANDING

As of March 31, 2020, 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.

Business Outlook

For the second quarter of 2020, the Company expects its total revenues to be between RMB340 million (US$48 million) and RMB390 million (US$55 million). This amount reflects the fact that LiveMe's revenues will no longer be included in the Company's revenues. This forecast reflects Cheetah Mobile's current and preliminary expectation, which assumes the COVID-19 situation would not have any significant unexpected disruption to our operations in the remainder of the second quarter.

Conference Call Information

The Company will hold a conference call on Wednesday, June 10 2020, at 8:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its 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

Mainland China Toll Free:

4001-201-203

Hong Kong Toll Free:

800-905-945

Conference ID:

Cheetah Mobile

The replay will be accessible June 17, 2020, by dialing the following numbers:

International:

+1-412-317-0088

United States Toll Free:

+1-877-344-7529

Access Code:

10144811

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 RMB7.0808 to US$1.00, the exchange rate in effect as of March 31, 2020, 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, casual games such as Piano Tiles 2, and Bricks n Balls. 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

This release contains the following non-GAAP financial measures:

  • Non-GAAP cost of revenues excludes share-based compensation expenses
  • Non-GAAP gross profit excludes share-based compensation expenses
  • Non-GAAP gross margin excludes share-based compensation expense
  • Total non-GAAP operating expenses exclude share-based compensation expenses and impairment of goodwill
  • Non-GAAP research and development expenses exclude share-based compensation expenses
  • Non-GAAP selling and marketing expenses exclude share-based compensation expenses
  • Non-GAAP general and administrative expenses exclude share-based compensation expenses
  • Non-GAAP operating profit/loss excludes share-based compensation expenses and impairment of goodwill
  • Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses and impairment of goodwill
  • Non-GAAP diluted income/loss per ADS excludes share-based compensation expenses and impairment of goodwill

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".

Investor Relations Contact

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

ICR Inc.
Xinran Rao
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, 2019


March 31, 2020


March 31, 2020


RMB


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

983,004


876,845


123,834

Restricted cash

2,638


2,673


377

Short-term investments

1,369,118


1,465,580


206,979

Accounts receivable

469,276


387,026


54,659

Prepayments and other current assets

936,109


908,212


128,264

Due from related parties

233,255


232,205


32,794

Total current assets

3,993,400


3,872,541


546,907







Non-current assets:






Property and equipment, net

103,397


94,972


13,413

Right-of-use assets, net

183,563


169,586


23,950

Intangible assets, net 

44,476


47,113


6,654

Investment in equity investees

194,473


192,782


27,226

Other long term investments

2,322,251


2,363,828


333,836

Due from related parties

25,533


18,749


2,648

Deferred tax assets

31,951


41,148


5,811

Other non-current assets

112,700


116,505


16,454

Total non-current assets

3,018,344


3,044,683


429,992







Total assets

7,011,744


6,917,224


976,899







LIABILITIES AND SHAREHOLDERS'
EQUITY












Current liabilities: 






Bank loans

-


70,851


10,006

Accounts payable

87,524


75,732


11,485

Accrued expenses and other current liabilities

1,446,225


1,458,512


205,191

Due to related parties

92,210


64,919


9,168

Income tax payable

60,657


54,400


7,683

Total current liabilities

1,686,616


1,724,414


243,533







Non-current liabilities: 






Deferred tax liabilities

82,847


93,699


13,233

Other non-current liabilities

247,734


182,586


25,787

Total non-current liabilities

330,581


276,285


39,020







Total liabilities

2,017,197


2,000,699


282,553







Shareholders' equity:






Ordinary shares

225


226


32

Additional paid-in capital

2,649,342


2,656,081


375,110

Retained earnings

1,944,938


1,811,086


255,774

Accumulated other comprehensive income

337,773


389,437


54,999

Total Cheetah Mobile shareholders' equity

4,932,278


4,856,830


685,915

Noncontrolling interests

62,269


59,695


8,431







Total equity

4,994,547


4,916,525


694,346







Total liabilities and equity

7,011,744


6,917,224


976,899

 

 

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, 2019


December 31, 2019


March 31, 2020


March 31, 2020


RMB


RMB


RMB


USD

Revenues

1,085,628


612,003


528,088


74,580

Utility products and related services 

497,933


298,640


210,838


29,776

Mobile entertainment

556,230


285,058


285,492


40,319

AI and others

31,465


28,305


31,758


4,485









Cost of revenues (a)

(366,931)


(182,271)


(147,736)


(20,864)

Gross profit

718,697


429,732


380,352


53,716









Operating income and expenses: 








Research and development (a)

(196,938)


(153,530)


(142,588)


(20,137)

Selling and marketing (a) 

(436,629)


(343,993)


(302,753)


(42,757)

General and administrative (a) 

(105,829)


(174,899)


(88,621)


(12,516)

Impairment of goodwill 

-


(545,665)


-


-

Other operating income

3,002


7,910


5,596


790

Total operating income and expenses

(736,394)


(1,210,177)


(528,366)


(74,620)









Operating loss

(17,697)


(780,445)


(148,014)


(20,904)

Other income (expenses):








Interest income, net

31,617


18,849


17,854


2,521

Foreign exchange (loss) gain, net

(5,373)


5,478


(12,091)


(1,708)

Gain (loss) from equity method investments, net

6,141


(322)


(2,463)


(348)

Other income (loss), net

432


(151,665)


42,868


6,054









Income (loss) before taxes

15,120


(908,105)


(101,846)


(14,385)

Income tax (expenses) benefits

(12,434)


36,927


(6,539)


(923)

Net income (loss)

2,686


(871,178)


(108,385)


(15,308)

Less: net loss attributable to noncontrolling interests 

(4,428)


(50,020)


(3,796)


(536)

Net income (loss) attributable to Cheetah Mobile shareholders

7,114


(821,158)


(104,589)


(14,772)









(Losses) Earnings per share








Basic 

0.00


(0.60)


(0.08)


(0.01)

Diluted 

0.00


(0.60)


(0.08)


(0.01)









(Losses) Earnings per ADS








Basic 

(0.02)


(5.98)


(0.76)


(0.11)

Diluted 

(0.02)


(5.98)


(0.76)


(0.11)









Weighted average number of shares outstanding








Basic 

1,365,622,524


1,374,016,957


1,378,171,071


1,378,171,071

Diluted 

1,392,184,524


1,374,016,957


1,378,171,071


1,378,171,071

Weighted average number of ADSs outstanding








Basic 

136,562,252


137,401,696


137,817,107


137,817,107

Diluted 

139,218,452


137,401,696


137,817,107


137,817,107









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








Foreign currency translation adjustments

(82,541)


(60,937)


59,974


8,470

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

3,498


4,241


(7,250)


(1,024)

Other comprehensive (loss) income

(79,043)


(56,696)


52,724


7,446

Total comprehensive loss

(76,357)


(927,874)


(55,661)


(7,862)

Less: Total comprehensive loss attributable to noncontrolling interests

(4,271)


(52,056)


(2,735)


(386)

Total comprehensive loss attributable to Cheetah Mobile shareholders

(72,086)


(875,818)


(52,925)


(7,476)

 

 

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, 2019


December 31, 2019


March 31, 2020


March 31, 2020

(a) Share-based compensation expenses

RMB


RMB


RMB


USD

Cost of revenues

159


108


96


14

Research and development

16,512


15,995


6,737


951

Selling and marketing

2,827


1,058


(1,222)


(173)

General and administrative

7,153


14,155


1,292


182

Total

26,651


31,316


6,903


974

 

 

CHEETAH MOBILE INC.








Reconciliation of GAAP and Non-GAAP Results








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


















For The Three Months Ended March 31, 2020


GAAP


Share-based 


Non-GAAP


Non-GAAP


Result


Compensation


Result


Result


RMB


RMB


RMB


USD

Revenues

528,088


-


528,088


74,580

Cost of revenues

(147,736)


96


(147,640)


(20,850)

Gross profit

380,352


96


380,448


53,730









Research and development 

(142,588)


6,737


(135,851)


(19,186)

Selling and marketing 

(302,753)


(1,222)


(303,975)


(42,930)

General and administrative 

(88,621)


1,292


(87,329)


(12,334)

Other operating income

5,596


-


5,596


790

Total operating income and expenses

(528,366)


6,807


(521,559)


(73,660)









Operating loss

(148,014)


6,903


(141,111)


(19,930)

Net loss attributable to Cheetah Mobile shareholders

(104,589)


6,903


(97,686)


(13,796)









Diluted losses per ordinary share (RMB)

(0.08)


0.01


(0.07)



Diluted losses per ADS (RMB)

(0.76)


0.05


(0.71)



Diluted losses per ADS (USD)

(0.11)


0.01


(0.10)




























For The Three Months Ended December 31, 2019


GAAP


Share-based 


Non-GAAP




Result


Compensation


Result




RMB


RMB


RMB



Revenues

612,003


-


612,003



Cost of revenues

(182,271)


108


(182,163)



Gross profit

429,732


108


429,840











Research and development 

(153,530)


15,995


(137,535)



Selling and marketing 

(343,993)


1,058


(342,935)



General and administrative 

(174,899)


14,155


(160,744)



Impairment of goodwill

(545,665)


545,665


-



Other operating income

7,910


-


7,910



Total operating income and expenses

(1,210,177)


576,873


(633,304)











Operating loss

(780,445)


576,981


(203,464)



Net loss attributable to Cheetah Mobile shareholders

(821,158)


576,981


(244,177)











Diluted losses per ordinary share (RMB)

(0.60)


0.42


(0.18)



Diluted losses per ADS (RMB)

(5.98)


4.20


(1.78)




























For The Three Months Ended March 31, 2019



GAAP


Share-based 


Non-GAAP




Result


Compensation


Result




RMB


RMB


RMB



Revenues

1,085,628


-


1,085,628



Cost of revenues

(366,931)


159


(366,772)



Gross profit

718,697


159


718,856











Research and development 

(196,938)


16,512


(180,426)



Selling and marketing 

(436,629)


2,827


(433,802)



General and administrative 

(105,829)


7,153


(98,676)



Other operating income

3,002


-


3,002



Total operating income and expenses

(736,394)


26,492


(709,902)











Operating (loss) profit

(17,697)


26,651


8,954



Net income attributable to Cheetah Mobile shareholders

7,114


26,651


33,765











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



 

 

CHEETAH MOBILE INC.












Information about Segment 












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














For The Three Months Ended March 31, 2020




Utility Products
and
Related Services


Mobile Entertainment


AI and others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB


USD

Revenue

210,838


285,492


31,758


-


528,088


74,580

Operating profit (loss)

44,169


(36,359)


(148,921)


(6,903)


(148,014)


(20,904)

Operating margin

20.9%


(12.7)%


(468.9)%


-


(28.0)%


(28.0)%















For The Three Months Ended December 31, 2019




Utility Products
and
Related Services


Mobile Entertainment


AI and others 


Unallocated*


Consolidated




RMB


RMB


RMB


RMB


RMB



Revenue

298,640


285,058


28,305


-


612,003



Operating profit (loss)

28,596


(120,310)


(111,750)


(576,981)


(780,445)



Operating margin

9.6%


(42.2)%


(394.8)%


-


(127.5)%




























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)%















* Unallocated expenses refer to SBC expenses and goodwill impairment 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, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
















For The Three Months Ended


March 31, 2019


December 31, 2019


March 31, 2020


March 31, 2020


RMB


RMB


RMB


USD

Net income (loss) attributable to Cheetah Mobile shareholders

7,114


(821,158)


(104,589)


(14,772)

Add:








Income tax expenses (benefits)

12,434


(36,927)


6,539


923

Interest income, net

(31,617)


(18,849)


(17,854)


(2,521)

Depreciation and amortization

16,351


16,108


18,548


2,619

Net loss attributable to noncontrolling interests 

(4,428)


(50,020)


(3,796)


(536)

Other (income) loss, net

(1,200)


146,509


(28,314)


(3,998)

Share-based compensation 

26,651


31,316


6,903


974

      Impairment of goodwill

-


545,665


-


-

Adjusted EBITDA

25,305


(187,356)


(122,563)


(17,311)

 

 

CHEETAH MOBILE INC.








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



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












For The Three Months Ended


March 31, 2019


31-Dec-19


March 31, 2020


March 31, 2020


RMB


RMB


RMB


USD

PC

120,278


123,842


117,502


16,594

Mobile

965,350


488,161


410,586


57,986

Total

1,085,628


612,003


528,088


74,580

 

 

CHEETAH MOBILE INC.








Revenues Generated from Domestic and Overseas Markets





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












For The Three Months Ended


March 31, 2019


December 31, 2019


March 31, 2020


March 31, 2020


RMB


RMB


RMB


USD

Domestic

424,323


282,049


234,335


33,094

Overseas

661,305


329,954


293,753


41,486

Total

1,085,628


612,003


528,088


74,580

 

 

SOURCE Cheetah Mobile Inc