Cheetah Mobile Announces Fourth Quarter and Full Year 2020 Unaudited Consolidated Financial Results

3月 23, 2021

BEIJING, March 23, 2021 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading internet company, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2020.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "For the full year of 2020, Cheetah Mobile earned RMB1,559 million in revenues, and RMB417 million in GAAP net income attributable to our shareholders, despite the unfavorable macro environment. In 2020, we chose to strategically exit from overseas markets and focus our resources on the domestic market and the AI-related business. As a result, our total cost and expenses decreased by 50% year over year in 2020. In particular, the operating profits for our internet business increased to RMB190 million in 2020, from an operating loss of RMB78 million in 2019. Besides, we further divested our previous investments in 2020 to improve our cash flow."

Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "Our balance sheet remained strong. As of December 31, 2020, we had approximately US$255 million in cash and cash equivalents, restricted cash, and short-term investments, as well as US$369 million in long-term investments. Our strong balance sheet provided us the flexibility to our continued investment in our home market and AI-related business."

Fourth Quarter 2020 Consolidated Financial Results

REVENUES

Total revenues were RMB271.2 million (US$41.6 million) in the fourth quarter of 2020, representing a decrease of 55.7% year over year. The year-over-year decrease was primarily due to the suspension of the Company's collaborations with Google since February 2020. Such year-over-year decrease was also a result of the Company's disposal of certain gaming-related business and assets.

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. Given the unfavorable environment in the overseas markets, the Company has chosen to shift its focus from international markets to the domestic market. In 2020, the Company disposed certain gaming-related business and assets in the overseas markets. As a result, the Company expects the revenue contribution from its mobile game business to decrease in the foreseeable future. Post such disposals, Cheetah Mobile's business primarily comprises of two segments. One is the Internet business, which includes its utility product on both the PC and mobile platforms in domestic market and a remaining and diminishing portion of its mobile game business. The other is AI and others. Therefore, the Company started reporting its revenues and operating profits by the below two business lines from this quarter. The Company has retrospectively revised segment information from the previous period to conform to the requisite presentation for the current period.

Revenues from the Company's internet business decreased by 56.0% year over year to RMB257.0 million (US$39.4 million) in the fourth quarter of 2020. Approximately 73.6% of the Company's revenues from its internet business were generated by the utility products and related services, and the remaing was coming from the mobile game business.

Revenues from the AI and others decreased by 49.7% year over year to RMB14.2 million (US$2.2 million) in the fourth quarter of 2020. This decrease was primarily attributable to a decline in sale of consumer-facing AI-related products.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 59.4% year over year to RMB74.0 million (US$11.3 million) in the fourth quarter of 2020. The decrease was primarily due to reduced costs associated with the Company's move to exit from overseas operation. Non-GAAP cost of revenues decreased by 59.5% year over year to RMB73.7 million (US$11.3 million) in the fourth quarter of 2020.

Gross profit decreased by 54.1% year over year to RMB197.2 million (US$30.2 million) in the fourth quarter of 2020. Non-GAAP gross profit decreased by 54.0% year over year to RMB197.5 million (US$30.3 million) in the fourth quarter of 2020.

Gross margin was 72.7% in the fourth quarter of 2020, compared to 70.2% in the fourth quarter of 2019. Non-GAAP gross margin was 72.8% in the fourth quarter of 2020, compared to 70.2% in the fourth quarter of 2019.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 77.6% year over year to RMB271.3 million (US$41.6 million) in the fourth quarter of 2020. Total non-GAAP operating expenses decreased by 59.7% year over year to RMB254.9 million (US$39.1 million) in the fourth quarter of 2020.

  • Research and development expenses decreased by 44.5% year over year to RMB85.2 million (US$13.1 million) in the fourth quarter of 2020. This decrease was primarily attributable to a reduction in the research and development personnel. Non-GAAP research and development expenses decreased by 42.0% year over year to RMB79.7 million (US$12.2 million) in the fourth quarter of 2020.
  • Selling and marketing expenses decreased by 73.9% year over year to RMB89.9 million (US$13.8 million) in the fourth quarter of 2020. This decrease was mainly due to the reduction in promotional activities. Non-GAAP selling and marketing expenses decreased by 73.9% year over year to RMB89.5 million (US$13.7 million) in the fourth quarter of 2020.
  • General and administrative expenses decreased by 50.1% year over year to RMB87.3 million (US$13.4 million) in the fourth quarter of 2020. This decrease was primarily due to reduced general and administrative personnel and reduced professional service fees. Non-GAAP general and administrative expenses decreased by 52.2% year over year to RMB76.8 million (US$11.8 million) in the fourth quarter of 2020.

Operating loss was RMB74.2 million (US$11.4 million) in the fourth quarter of 2020, reduced from RMB780.4 million in the same period last year. Non-GAAP operating loss was RMB57.4 million (US$8.8 million) in the fourth quarter of 2020, reduced from RMB203.5 million in the same period last year.

  • Operating profit for the internet business was RMB75.6 million in the fourth quarter of 2020, significantly increased from an operating loss of RMB91.7 million in the same period last year due to reduced  cost and expenses. 
  • Operating loss for AI and others business was RMB133.0 million in the fourth quarter of 2020, compared to an operating loss of RMB111.8 million in the same period last year.

Share-based compensation expenses were RMB16.8 million (US$2.6 million) in the fourth quarter of 2020, compared to RMB31.3 million in the same period last year.

OTHER INCOME, NET

Other income, net was RMB102.3 million (US$15.7 million) in the fourth quarter of 2020, which was primarily due to increases in fair value of certain long-term investments.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB68.4 million (US$10.5 million) in the fourth quarter of 2020, compared to a net loss attributable to Cheetah Mobile shareholders of RMB821.2 million in the same period last year.

Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB85.2 million (US$13.1 million) in the fourth quarter of 2020, compared to a non-GAAP net income attributable to Cheetah Mobile shareholders of RMB244.2 million in the same period last year.

NET INCOME PER ADS

Diluted earnings per ADS was RMB0.49 (US$0.07) in the fourth quarter of 2020, compared to losses per ADS of RMB5.98 in the same period last year. Non-GAAP diluted earnings per ADS was RMB0.60 (US$0.09) in fourth quarter of 2020, compared to losses per ADS of RMB1.78 in the same period last year.

BALANCE SHEET

As of December 31, 2020, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB1,661.3 million (US$254.6 million). 

SHARES ISSUED AND OUTSTANDING

As of December 31, 2020, the Company had a total of 1,403,070,144 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

Fiscal Year 2020 Results

REVENUES

Total revenues decreased by 56.6% to RMB1,558.6 million (US$238.9 million) in 2020.

Revenues from the Company's internet business decreased by 57.3% year over year to RMB1,471.9 million (US$225.6 million) in 2020. The year-over-over decrease was primarily due to the suspension of the Company's collaborations with Google since February 2020, and the deconsolidation of LiveMe.

In 2020, approximately 53.1% of the Company's revenues from the internet business were generated by its utility products and related services while the rest of its revenues were generated from the mobile game business.

Revenues from the AI and others decreased by 39.4% year over year to RMB86.7 million (US$13.3 million), mostly due to decline in sale of consumer-facing AI-related products.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 63.8% year over year to RMB449.0 million (US$68.8 million) in 2020. The year-over-year decrease was primarily due to a significant reduction in costs associated with the Company's overseas business and the deconsolidation of LiveMe. Non-GAAP cost of revenues decreased by 63.9% year over year to RMB448.0 million (US$68.7 million) in 2020.

Gross profit decreased by 52.7% year over year to RMB1,109.6 million (US$170.1 million) in 2020. Non-GAAP gross profit decreased by 52.7% year over year to RMB1,110.6 million (US$170.2 million) in 2020.

Gross Margin increased to 71.2% in 2020 from 65.4% in 2019. Non-GAAP gross margin increased to 71.3% in 2020 from 65.4% in 2019.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 52.5% year over year to RMB1,640.7 million (US$251.4 million) in 2020. Total non-GAAP operating expenses decreased by 43.9% year over year to RMB1,560.8 million (US$239.2 million).

  • Research and development expenses decreased by 40.3% year over year to RMB470.4 million (US$72.1 million) in 2020. The year-over-year decrease was mainly due to the decrease in R&D personnel, and the deconsolidation of LiveMe. Non-GAAP research and development expenses decreased by 39.3% year over year to RMB441.3 million (US$67.6 million).
  • Selling and marketing expenses decreased by 51.0% year over year to RMB763.8 million (US$117.1 million) in 2020. The year-over-year decrease was primarily due to the reduction in promotional activities, and the deconsolidation of LiveMe. Non-GAAP selling and marketing expenses decreased by 50.8% year over year to RMB764.9 million (US$117.2 million).
  • General and administrative expenses decreased by 31.8% year over year to RMB400.8 million (US$61.4 million) in 2020, which was mainly due to reduced general and administrative personnel and reduced professional service fees. Non-GAAP general and administrative expenses decreased by 33.4% year over year to RMB348.9 million (US$53.5 million).

Operating loss was RMB531.1 million (US$81.4 million) in 2020, compared to RMB1,110.9 million in 2019. Non-GAAP operating loss was RMB450.1 million (US$69.0 million) in 2020, compared to RMB437.8 million in 2019.

  • Operating profit for the internet business was RMB189.7 million in 2020, compared to an operating loss of RMB78.2 million in 2019, primarily due to a decrease in cost and expenses and the deconsolidation of LiveMe.
  • Operating loss for AI and others business was RMB640.6 million in 2020, compared to RMB359.6 million in 2019, attributable to the Company's increased investment into its AI business.

Share-based compensation expenses decreased by 36.5% year over year to RMB81.0 million (US$12.4 million) in 2020, as more unvested awarded shares were forfeited in 2020.

OTHER INCOME, NET

Other income, net was RMB977.0 million (US$149.7 million) in 2020, which was primarily due to the disposal of equity ownership in Bytedance Ltd. as well as the disposal of certain business and assets during 2020.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB416.7 million (US$63.9 million) in 2020, as compared to net loss attributable to Cheetah Mobile shareholders of RMB314.0 million in 2019.

Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB497.7 million (US$76.3 million) in 2020, as compared to RMB359.1 million in 2019.

NET INCOME PER ADS

Diluted earnings per ADS was RMB3.01 (US$0.46) in 2020, as compared to loss per ADS of RMB2.51 in 2019. Non-GAAP diluted earnings per ADS was RMB3.59 (US$0.55) in 2020, as compared to non-GAAP diluted earnings per ADS of RMB2.40 in 2019.

Recent Development

Cheetah Mobile today announced that Mr. Pin Zhou has resigned as Director and Senior Vice President of the Company for personal reasons, effective March 31, 2021. Mr. Zhou's resignation did not result from any disagreement with the Company.

Business Outlook

For the first quarter of 2021, the Company expects its total revenues to be between RMB165 million (US$25.3 million) and RMB215 million (US$33.0 million). This amount reflects the Company's current and preliminary expectations.

Conference Call Information

The Company will hold a conference call on Tuesday, March 23, 2021, at 7:00 a.m. Eastern Time (or 7:00 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 March 30, 2021 by dialing the following numbers:

International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10152999

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

Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB6.5250 to US$1.00, the exchange rate in effect as of December 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 Internet company. It has attracted hundreds of millions of monthly active users through its PC and mobile products. The Company's advertising customers include direct advertisers and mobile advertising networks. Through the Company's advertising products, advertisers can promote their products and services to a wide range of mobile users. The Company also provides value-added services to its users through the sale of premium services. 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.
Tel: +86 10 6292 7779 ext. 1600
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


December 31, 2020


December 31, 2020


RMB


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

983,004


1,299,658


199,181

Restricted cash

2,638


797


122

Short-term investments

1,369,118


360,803


55,295

Accounts receivable

469,276


225,637


34,580

Prepayments and other current assets

936,109


850,977


130,418

Due from related parties

233,255


202,476


31,031

Total current assets

3,993,400


2,940,348


450,627







Non-current assets:






Property and equipment, net

103,397


101,984


15,630

Right-of-use assets, net

183,563


17,729


2,717

Intangible assets, net 

44,476


12,575


1,927

Investment in equity investees

194,473


216,126


33,123

Other long term investments

2,322,251


2,193,600


336,184

Due from related parties

25,533


23,881


3,660

Deferred tax assets

31,951


15,607


2,392

Other non-current assets

112,700


105,478


16,165

Total non-current assets

3,018,344


2,686,980


411,798







Total assets

7,011,744


5,627,328


862,425







LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities: 






Accounts payable

87,524


103,970


15,934

Accrued expenses and other current liabilities

1,504,728


1,399,915


214,547

Due to related parties

92,210


50,800


7,785

Income tax payable

60,657


27,505


4,215

Total current liabilities

1,745,119


1,582,190


242,481







Non-current liabilities: 






Deferred tax liabilities

82,847


60,502


9,272

Other non-current liabilities

189,231


184,632


28,296

Total non-current liabilities

272,078


245,134


37,568







Total liabilities

2,017,197


1,827,324


280,049







Shareholders' equity:






Ordinary shares

225


234


36

Additional paid-in capital

2,649,342


2,726,619


417,873

Retained earnings

1,944,938


868,800


133,149

Accumulated other comprehensive income

337,773


163,340


25,033

Total Cheetah Mobile shareholders' equity

4,932,278


3,758,993


576,091

Noncontrolling interests

62,269


41,011


6,285







Total equity

4,994,547


3,800,004


582,376







Total liabilities and equity

7,011,744


5,627,328


862,425







   









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


December 31, 2019


September 30, 2020


December 31, 2020


December 31, 2020


RMB


RMB


RMB


USD

Revenues

612,003


365,098


271,217


41,566

Internet business

583,698


343,802


256,976


39,384

AI and others

28,305


21,296


14,241


2,183









Cost of revenues (a)

(182,271)


(113,584)


(74,050)


(11,349)

Gross profit

429,732


251,514


197,167


30,217









Operating income and expenses: 








Research and development (a)

(153,530)


(117,627)


(85,161)


(13,051)

Selling and marketing (a) 

(343,993)


(165,547)


(89,944)


(13,785)

General and administrative (a) 

(174,899)


(91,021)


(87,312)


(13,381)

Impairment of goodwill 

(545,665)


-


-


-

Other operating income (expense)

7,910


(3,354)


(8,924)


(1,368)

Total operating income and expenses

(1,210,177)


(377,549)


(271,341)


(41,585)









Operating loss

(780,445)


(126,035)


(74,174)


(11,368)

Other income (expenses):








Interest income, net

18,849


7,228


2,077


318

Foreign exchange gain

5,478


32,690


22,203


3,403

(Loss) gain from equity method investments, net

(322)


3,115


(7,883)


(1,208)

Other (expense) income, net

(151,665)

-

378,297

-

102,286


15,676









(Loss) Income before taxes

(908,105)


295,295


44,509


6,821

Income tax benefit (expenses)

36,927


(31,794)


23,441


3,592

Net (loss) income

(871,178)


263,501


67,950


10,414

Less: net (loss) income attributable to noncontrolling interests 

(50,020)


4,333


(486)


(74)

Net (loss) income attributable to Cheetah Mobile shareholders

(821,158)


259,168


68,436


10,488









(Loss) Earnings per share








Basic 

(0.60)


0.18


0.05


0.01

Diluted 

(0.60)


0.18


0.05


0.01









(Loss) Earnings per ADS








Basic 

(5.98)


1.83


0.49


0.07

Diluted 

(5.98)


1.82


0.49


0.07









Weighted average number of shares outstanding








Basic 

1,374,016,957


1,416,988,202


1,419,268,065


1,419,268,065

Diluted 

1,374,016,957


1,421,872,320


1,421,488,309


1,421,488,309

Weighted average number of ADSs outstanding








Basic 

137,401,696


141,698,820


141,926,807


141,926,807

Diluted 

137,401,696


142,187,232


142,148,831


142,148,831









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








Foreign currency translation adjustments

(60,937)


(106,081)


(119,253)


(18,276)

Unrealized gain on available-for-sale securities, net

4,241


-


-


-

Other comprehensive loss

(56,696)


(106,081)


(119,253)


(18,276)

Total comprehensive (loss) income 

(927,874)


157,420


(51,303)


(7,863)

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

(52,056)


3,563


(1,268)


(194)

Total comprehensive (loss) income attributable to Cheetah Mobile shareholders

(875,818)


153,857


(50,034)


(7,668)









 








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, 2020


December 31, 2020


December 31, 2020

(a) Share-based compensation expenses


RMB


RMB


USD

Cost of revenues


366


352


54

Research and development


5,099


5,429


832

Selling and marketing


(1,120)


470


72

General and administrative


2,782


10,501


1,609

Total


7,127


16,752


2,567


 

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 December 31, 2020


GAAP


Share-based 


Non-GAAP


Non-GAAP


Result


Compensation


Result


Result


RMB


RMB


RMB


USD

Revenues

271,217


-


271,217


41,566

Cost of revenues

(74,050)


352


(73,698)


(11,295)

Gross profit

197,167


352


197,519


30,271









Research and development 

(85,161)


5,429


(79,732)


(12,219)

Selling and marketing 

(89,944)


470


(89,474)


(13,713)

General and administrative 

(87,312)


10,501


(76,811)


(11,772)

Other operating expense

(8,924)


-


(8,924)


(1,368)

Total operating income and expenses

(271,341)


16,400


(254,941)


(39,072)









Operating loss

(74,174)


16,752


(57,422)


(8,801)

Net income attributable to Cheetah Mobile shareholders

68,436


16,752


85,188


13,056









Diluted earnings per ordinary share (RMB)

0.05


0.01


0.06



Diluted earnings per ADS (RMB)

0.49


0.12


0.60



Diluted earnings per ADS (USD)

0.07


0.02


0.09




























For The Three Months Ended September 30, 2020




GAAP


Share-based 


Non-GAAP




Result


Compensation


Result




RMB


RMB


RMB



Revenues

365,098


-


365,098



Cost of revenues

(113,584)


366


(113,218)



Gross profit

251,514


366


251,880











Research and development 

(117,627)


5,099


(112,528)



Selling and marketing 

(165,547)


(1,120)


(166,667)



General and administrative 

(91,021)


2,782


(88,239)



Other operating expense

(3,354)


-


(3,354)



Total operating income and expenses

(377,549)


6,761


(370,788)











Operating loss

(126,035)


7,127


(118,908)



Net income attributable to Cheetah Mobile shareholders

259,168


7,127


266,295











Diluted earnings per ordinary share (RMB)

0.18


0.01


0.19



Diluted earnings per ADS (RMB)

1.82


0.05


1.87




























For The Three Months Ended December 31, 2019


GAAP


Share-based 


Impairment


Non-GAAP


Result


Compensation


of Goodwill


Result


RMB


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)


31,208


545,665


(633,304)









Operating loss

(780,445)


31,316


545,665


(203,464)

Net loss attributable to Cheetah Mobile shareholders

(821,158)


31,316


545,665


(244,177)









Diluted loss per ordinary share (RMB)

(0.60)


0.02


0.40


(0.18)

Diluted loss per ADS (RMB)

(5.98)


0.23


3.97


(1.78)









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 December 31, 2020




Internet Business


AI and others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


USD

Revenue

256,976


14,241


-


271,217


41,566

Operating profit (loss)

75,559


(132,981)


(16,752)


(74,174)


(11,368)

Operating margin

29.4%


(933.8)%


-


(27.3)%


(27.3)%













For The Three Months Ended September 30, 2020




Internet Business


AI and others 


Unallocated*


Consolidated




RMB


RMB


RMB


RMB



Revenue

343,802


21,296


-


365,098



Operating profit (loss)

71,451


(190,358)


(7,127)


(126,035)



Operating margin

20.8%


(893.9)%


-


(34.5)%
























For The Three Months Ended December 31, 2019




Internet Business


AI and others 


Unallocated*


Consolidated




RMB


RMB


RMB


RMB



Revenue

583,698


28,305


-


612,003



Operating loss

(91,714)


(111,750)


(576,981)


(780,445)



Operating margin

(15.7)%


(394.8)%


-


(127.5)%













* 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


December 31, 2019


September 30, 2020


December 31, 2020


December 31, 2020


RMB


RMB


RMB


USD

Net (loss) income attributable to Cheetah Mobile shareholders

(821,158)


259,168


68,436


10,488

Add:








Income tax (benefits) expenses

(36,927)


31,794


(23,441)


(3,592)

Interest income, net

(18,849)


(7,228)


(2,077)


(318)

Depreciation and amortization

16,108


17,297


14,172


2,172

Net (loss) income attributable to noncontrolling interests 

(50,020)


4,333


(486)


(74)

Other expense (income), net

146,509


(414,102)


(116,606)


(17,871)

Share-based compensation 

31,316


7,127


16,752


2,567

Impairment of goodwill

545,665


-


-



Adjusted EBITDA

(187,356)


(101,611)


(43,250)


(6,628)









 

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 Years Ended


December 31, 2019


December 31, 2020


December 31, 2020


RMB


RMB


USD

Revenues

3,587,695


1,558,613


238,868

Internet business

3,444,573


1,471,867


225,574

AI and others

143,122


86,746


13,294







Cost of revenues (a)

(1,241,932)


(449,031)


(68,817)

Gross profit

2,345,763


1,109,582


170,051







Operating income and expenses: 






Research and development (a)  

(787,329)


(470,412)


(72,094)

Selling and marketing (a) 

(1,558,315)


(763,806)


(117,058)

General and administrative (a) 

(587,457)


(400,794)


(61,424)

Impairment of goodwill

(545,665)


-


-

Other operating income (expense)

22,091


(5,684)


(871)

Total operating income and expenses

(3,456,675)


(1,640,696)


(251,447)







Operating loss

(1,110,912)


(531,115)


(81,396)

Other income (expenses):






Interest income, net

110,010


35,655


5,464

Foreign exchange gain

49


39,393


6,037

Gain (loss) from equity method investments, net

19,781


(12,683)


(1,944)

Other income, net

615,385


977,000


149,732







(Loss) Income before taxes

(365,687)


508,250


77,893

Income tax expenses

(7,904)


(97,090)


(14,880)

Net (loss) income

(373,591)


411,160


63,013

Less: net loss attributable to noncontrolling interests 

(59,614)


(5,575)


(854)

Net (loss) income attributable to Cheetah Mobile shareholders

(313,977)


416,735


63,867







(Loss) Earnings per share






Basic 

(0.25)


0.31


0.05

Diluted 

(0.25)


0.30


0.05







(Loss) Earnings per ADS






Basic 

(2.51)


3.05


0.47

Diluted 

(2.51)


3.01


0.46







Weighted average number of shares outstanding






Basic 

1,369,041,418


1,399,445,964


1,399,445,964

Diluted 

1,369,041,418


1,418,004,484


1,418,004,484

Weighted average number of ADSs outstanding






Basic 

136,904,142


139,944,596


139,944,596

Diluted 

136,904,142


141,800,448


141,800,448







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






Foreign currency translation adjustments

77,097


(167,476)


(25,667)

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

10,913


(7,250)


(1,111)

Other comprehensive income (loss)

88,010


(174,726)


(26,778)

Total comprehensive (loss) income

(285,581)


236,435


36,235

Less: Total comprehensive loss attributable to noncontrolling interests

(60,073)


(5,867)


(899)

Total comprehensive (loss) income attributable to Cheetah Mobile shareholders

(225,508)


242,302


37,134













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 Years Ended


December 31, 2019


December 31, 2020


December 31, 2020


RMB


RMB


USD

(a) Share-based compensation expenses






Cost of revenues

524


1,044


160

Research and development

59,771


29,091


4,458

Selling and marketing

3,818


(1,087)


(167)

General and administrative

63,327


51,934


7,959

Total

127,440


80,982


12,410














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 Year Ended December 31, 2020




GAAP


Share-based 


Non-GAAP


Non-GAAP




Result


Compensation


Result


Result




RMB


RMB


RMB


USD



Revenues

1,558,613


-


1,558,613


238,868



Cost of revenues

(449,031)


1,044


(447,987)


(68,657)



Gross profit

1,109,582


1,044


1,110,626


170,211













Research and development 

(470,412)


29,091


(441,321)


(67,635)



Selling and marketing 

(763,806)


(1,087)


(764,893)


(117,225)



General and administrative 

(400,794)


51,934


(348,860)


(53,465)



Other operating expense

(5,684)


-


(5,684)


(871)



Total operating income and expenses

(1,640,696)


79,938


(1,560,758)


(239,196)













Operating loss

(531,115)


80,982


(450,133)


(68,986)



Net income attributable to Cheetah Mobile shareholders

416,735


80,982


497,717


76,279













Diluted earnings per ordinary share (RMB)

0.30


0.06


0.36





Diluted earnings per ADS (RMB)

3.01


0.57


3.59





Diluted earnings per ADS (USD)

0.46


0.09


0.55


























For The Year Ended December 31, 2019




GAAP


Share-based 


Impairment


Non-GAAP




Result


Compensation


of Goodwill


Result




RMB


RMB


RMB


RMB



Revenues

3,587,695


-


-


3,587,695



Cost of revenues

(1,241,932)


524


-


(1,241,408)



Gross profit

2,345,763


524


-


2,346,287













Research and development 

(787,329)


59,771


-


(727,558)



Selling and marketing 

(1,558,315)


3,818


-


(1,554,497)



General and administrative 

(587,457)


63,327


-


(524,130)



Impairment of goodwill

(545,665)


-


545,665


-



Other operating income 

22,091


-


-


22,091



Total operating income and expenses

(3,456,675)


126,916


545,665


(2,784,094)













Operating loss

(1,110,912)


127,440


545,665


(437,807)



Net (loss) income attributable to Cheetah Mobile shareholders

(313,977)


127,440


545,665


359,128













Diluted (loss) earnings per ordinary share (RMB)

(0.25)


0.09


0.40


0.24



Diluted (loss) earnings per ADS (RMB)

(2.51)


0.93


3.99


2.41













 

CHEETAH MOBILE INC.

Information about Segment 

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













For The Year Ended December 31, 2020



Internet Business


AI and others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


USD


Revenue

1,471,867


86,746


-


1,558,613


238,868


Operating profit (loss)

190,428


(640,562)


(80,982)


(531,115)


(81,396)


Operating margin

12.9%


(738.4)%




(34.1)%


(34.1)%
















For The Year Ended December 31, 2019





Internet Business


AI and others 


Unallocated*


Consolidated





RMB


RMB


RMB


RMB




Revenue

3,444,573


143,122


-


3,587,695




Operating loss

(78,180)


(359,627)


(673,105)


(1,110,912)




Operating margin

(2.3)%


(251.3)%




(31.0)%


























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












 

CHEETAH MOBILE INC.

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

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










For The Years Ended



December 31, 2019


December 31, 2020


December 31, 2020



RMB


RMB


USD

Net (loss) income attributable to Cheetah Mobile shareholders


(313,977)


416,735


63,867

Add:







        Income tax expense


7,904


97,090


14,880

        Interest income, net


(110,010)


(35,655)


(5,464)

        Depreciation and amortization


65,461


68,545


10,505

        Net loss attributable to noncontrolling interests 


(59,614)


(5,575)


(854)

        Other income, net


(635,215)


(1,003,710)


(153,825)

        Share-based compensation 


127,440


80,982


12,410

        Impairment of goodwill


545,665


-


-

Adjusted EBITDA


(372,346)


(381,588)


(58,481)








SOURCE Cheetah Mobile Inc