BEIJING, Aug. 19, 2014 /PRNewswire/ -- Cheetah Mobile Inc.
(NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile
internet company that provides mission critical applications to
help make the internet and mobile experience speedier, simpler, and
safer for users worldwide, today announced its unaudited financial
results for the second quarter ended June
30, 2014.
Second Quarter 2014 Financial Highlights
- Total revenues increased by 139.3% year-over-year and
20.5% quarter-over-quarter to RMB380.3 million (US$61.3 million).
- Mobile revenues increased by 1,103.0% year-over-year and
42.0% quarter-over-quarter to RMB76.2
million (US$12.3
million).
- Net income increased by 876.8% to RMB13.4 million (US$2.2
million) in the second quarter of 2014 from RMB1.4 million in the prior year period.
- Non-GAAP net income (which excludes share-based
compensation expenses from net income) increased by 301.9%
year-over-year and 99.6% quarter-over-quarter to RMB65.4 million (US$10.5
million).
Key Operating Metrics
- Total mobile user installations globally increased by 32.0%
quarter-over-quarter to 662.2 million as of June 30, 2014.
- Mobile monthly active users ("Mobile MAUs") increased by 255.2%
year-over-year and 27.8% quarter-over-quarter to 284.3 million as
of June 2014.
- Mobile MAUs from overseas markets were 67.0% of total mobile
MAUs in June 2014, compared with
63.0% in the prior period.
- Monthly active users of Duba.com Personal Start Page increased
by 70.2% year-over year and 24.6% quarter-over-quarter to 67.6
million in June 2014.
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "We are pleased to report strong
performance across all of our key business lines in the second
quarter. We are also excited to report another quarter of rapid
user growth, laying a strong foundation for our future growth. In
June 2014, our mobile MAUs grew at an
impressive rate of over 255% year-over-year to reach 284.3 million
users worldwide, with approximately 67% of those users coming from
overseas markets. Additionally, our mobile applications continue to
gain popularity worldwide. According to App
Annie, five of our mobile applications were ranked among the
top 40 most downloaded non-game apps on Google Play worldwide in
July 2014. Our Clean Master
application continues to be ranked #1 in the Tools category on
Google Play. On the development front, we remain focused on
creating differentiated mobile applications to drive user growth
and engagement. During the quarter, we launched an extremely light
and fast mobile browser, CM Browser, which became one of the top 40
most downloaded non-game apps on Google Play in July. Going
forward, we will continue to pursue strategic opportunities to
expand our mobile business, and to maintain our leading global
market position."
Mr. Andy Yeung, Cheetah Mobile's
Chief Financial Officer, commented, "Our quarterly revenues
continued on a strong trajectory, hitting a record of RMB380 million. In addition to robust mobile user
growth, we also made significant progress on the mobile
monetization front this quarter, with mobile revenues growing
1,103% year-over-year and 42% quarter-over-quarter to RMB76 million. Mobile revenues has become a
material revenue contributor and now accounts for 20% of our total
revenues in the second quarter, a dramatic increase from only 4% a
year ago. Looking forward, we remain committed to strengthening our
mobile monetization effort as it becomes an increasingly important
driver of our overall top line growth, as well as continuing to
make investments that will lead to increased user growth and expand
our product portfolio and service offerings."
Second Quarter 2014 Financial Results
REVENUES
Total revenues for the second quarter of 2014 increased by
139.3% to RMB380.3 million
(US$61.3 million) from RMB158.9 million in the prior year period. This
increase was primarily due to the increase in revenues from online
marketing services and IVAS. Revenues generated from our mobile
business increased to RMB76.2 million
(US$12.3 million) from RMB6.3 million in the prior year period. This
increase was primarily due to the increased acceptance of the
Company's mobile marketing services and the growth of its mobile
gaming services.
- Revenues from online marketing services increased by 112.1% to
RMB283.4 million (US$45.7 million) in the second quarter of 2014
from RMB133.6 million in the prior
year period. This increase was due to growth in marketing revenues
from key online marketing customers driven by significant growth in
our user traffic on the Company's online marketing platforms, as
well as a significant ramp-up of our mobile advertising
business.
- Revenues from internet value added services ("IVAS")
significantly increased by 571.3% to RMB84.6
million (US$13.6 million)
in the second quarter of 2014 from RMB12.6
million in the prior year period. This increase was
primarily driven by the increase in the number of PC and mobile
games the Company published and the increase in the number of
monthly paying users, as well as the Company's expansion into
online lottery services.
- Revenues from internet security services and others decreased
by 3.0% to RMB12.4 million
(US$2.0 million) in the second
quarter of 2014 from RMB12.8 million
in the prior year. This decrease was primarily due to the Company
ceasing to promote subscriptions services to paying users in a
strategic reorientation which started in 2011, resulting in a
decrease in the number of paying customers.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 177.7% to RMB81.8 million (US$13.2
million) in the second quarter of 2014 from RMB29.4 million in the prior year period. The
increase in cost of revenues was mainly driven by higher bandwidth
and IDC costs as well as costs associated with the mobile game
business.
Gross profit increased by 130.5% to RMB298.5 million (US$48.1
million) in the second quarter of 2014 from RMB129.5 million in the prior year period. Gross
margin was 78.5% in the second quarter of 2014 compared with 81.5%
in the prior year period.
OPERATING INCOME AND EXPENSES
Total operating expenses for the second quarter of 2014
increased by 141.2% to RMB285.1
million (US$46.0 million) from
RMB118.2 million in the prior year
period. Total non-GAAP operating expenses, which exclude
share-based compensation expenses, for the second quarter of 2014
increased by 125.6% to RMB233.1
million (US$37.6 million) from
RMB103.3 million in the prior year
period.
- Research and development expenses increased by 93.8% to
RMB103.3 million (US$16.7 million) from RMB53.3 million in the prior year period. This
increase was primarily due to the expansion of research and
development personnel as well as an increase in share-based
compensation expenses. Non-GAAP research and development expenses,
which exclude share-based compensation expenses, for the second
quarter of 2014 increased by 78.7% to RMB88.6 million (US$14.3
million) from RMB49.6 million
in the prior year period.
- Selling and marketing expenses increased by 312.9% to
RMB117.5 million (US$18.9 million) from RMB28.5 million in the prior year period. The
increase was primarily due to expenses incurred in further
promoting our mobile business. Non-GAAP selling and marketing
expenses, which exclude share-based compensation expenses,
increased by 307.6% to RMB115.6
million (US$18.6 million) from
RMB28.4 million in the prior year
period.
- General and administrative expenses increased by 76.2% to
RMB64.2 million (US$10.4 million) from RMB36.4 million in the prior year period. This
increase was primarily due to an increase in share-based
compensation expenses and professional service fees. Non-GAAP
general and administrative expenses, which exclude share-based
compensation expenses, increased by 13.9% to RMB28.9 million (US$4.7
million) from RMB25.4 million
in the prior year period.
Operating profit increased by 19.2% to RMB13.5 million (US$2.2
million) in the second quarter of 2014 from RMB11.3 million in the prior year period.
Operating margin was 3.5% in the second quarter of 2014 compared
with 7.1% in the prior year period.
Non-GAAP operating profit[1] increased by 150.0% to RMB65.5 million (US$10.6
million) in the second quarter of 2014 from RMB26.2 million in the prior year period. For the
second quarter of 2014, share-based compensation expenses were
RMB52.0 million (US$8.4 million) compared with RMB14.9 million in the second quarter of 2013.
Non-GAAP operating margin[2] increased to 17.2% in the second
quarter of 2014 from 16.5% in the prior year period.
[1] Non-GAAP
operating profit is a non-GAAP financial measure, which is defined
as operating profit excluding share-based compensation
expenses.
|
|
[2] Non-GAAP
operating margin is a non-GAAP financial measure, which is defined
as non-GAAP operating profit as a percentage of total
revenues.
|
NET INCOME
Net income increased by 876.8% to RMB13.4
million (US$2.2 million) in
the second quarter of 2014 from RMB1.4
million in the prior year period. Net margin increased to
3.5% in the second quarter of 2014 from 0.9% in the prior year
period.
Non-GAAP net income[3] increased by 301.9% to RMB65.4 million (US$10.5
million) from RMB16.3 million
in the prior year period. Non-GAAP net margin[4] increased to 17.2%
in the second quarter of 2014 from 10.2% in the prior year
period.
[3] Non-GAAP net
income is a non-GAAP financial measure, which is defined as net
income excluding share-based compensation expenses.
|
|
[4] Non-GAAP net
margin is a non-GAAP financial measure, which is defined as
Non-GAAP net income as a percentage of total revenues.
|
NET INCOME PER ADS
Diluted earnings per ADS in the second quarter of 2014 increased
to RMB0.10 (US$0.02) from RMB0.01 in the prior year period.
Non-GAAP diluted earnings per ADS[5] in the second quarter of
2014 increased to RMB0.49
(US$0.08) from RMB0.15 in the prior year period.
[5] Non-GAAP diluted
earnings per ADS is a non-GAAP financial measure, which is defined
as Non-GAAP net income divided by weighted average number of
diluted ADS.
|
CASH AND TIME DEPOSITS BALANCE
As of June 30, 2014, the Company
had cash, cash equivalents, and short-term investments of
RMB1.9 billion (US$310.7 million).
SHARES ISSUED AND OUTSTANDING
As of June 30, 2014, the Company
had a total of 1,399,170,937 Class A and Class B ordinary shares
issued and outstanding. One ADS represents 10 Class A ordinary
shares.
SUMMARY OF CERTAIN RECENT DEVELOPMENTS
- Cheetah Mobile reached a definitive agreement to fully acquire
HongKong Zoom Interactive Network Marketing Technology Limited
("HongKong Zoom Interactive") for a total consideration payable of
up to US$30 million on June 11th, 2014. The transaction was completed in
July 2014.
- Cheetah Mobile entered into a share purchase agreement with
Hong Kong Youloft Technology Limited ("Youloft") and shareholder's
of Youloft to acquire an approximately 51.9% equity interest in
Youloft for a total consideration payable of up to US$16.6 million on June
13th, 2014. Youloft mainly operates the Wannianli series of
mobile applications. The transaction is subject to customary
closing conditions.
- Cheetah Mobile entered into a supplemental agreement with
Shenzhen Tencent Computer Systems
Company Limited ("Tencent Shenzhen"),
a subsidiary of Tencent Holdings
Limited ("Tencent"), which increases
the annual caps for fees payable by Tencent and its subsidiaries and their respective
associates to Cheetah on July 31st,
2014. Under the new supplemental agreement, the annual caps
for the two years ending December 31,
2015 have been increased from RMB22
million and RMB33 million to
RMB100 million and RMB105 million, respectively.
- Cheetah Mobile entered into a share purchase agreement with
Beijing Starsinhand Technology Company Limited ("Starsinhand"), a
subsidiary of Tencent Holdings
Limited ("Tencent"), to acquire an
additional approximately 22.2% equity interest in Moxiu Technology
(Beijing) Co., Ltd. ("Moxiu
Technology") for a total consideration of RMB30 million in cash on August 12th, 2014. Upon completion of the
transaction under the agreement, Cheetah will become the majority
shareholder of Moxiu Technology, holding approximately 50.5% equity
interest.
BUSINESS OUTLOOK
For the third quarter of 2014, the Company expects its total
estimated revenues to be between RMB430
million (US$69.3 million) and
RMB440 million (US$70.9 million), representing a year-over-year
growth of approximately 132% to 137%. The forecast reflects the
Company's current and preliminary view, which is subject to
change.
Conference Call Information
Company will hold a conference call on Tuesday, August 19, 2014 at 8:00 am Eastern Time or 8:00 pm Beijing Time to discuss the financial
results. Listeners may access the call by dialing the following
numbers:
United
States:
|
+1-877-870-4263
|
International Toll
Free:
|
+1-412-317-0790
|
Mainland
China:
|
4001-201203
|
Hong Kong:
|
+800-905945
|
Conference
ID:
|
#10050701
|
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 RMB6.2036 to US$1.00, the noon buying rate in effect on
June 30, 2014 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
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
approximately 284.3 million mobile monthly active users in
June 2014. Its mission critical
applications, including Clean Master, CM Security, Battery Doctor
and Duba Anti-virus, help make the internet and mobile experience
speedier, simpler, and safer for users worldwide. Cheetah Mobile is
the second largest internet security software provider in
China by monthly active users as
of June 2014, according to
iUserTracker of iResearch, and the publisher of Clean Master, the
#1 mobile app in the Google Play Tools category worldwide by
monthly downloads in June 2014,
according to App Annie.
The Company also provides various platform products such as
Duba.com, Cheetah browser, game centers, and mobile app stores to
provide multiple user traffic entry points and global content
distribution channels for its business partners.
Safe Harbor Statements
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 certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. These forward-looking statements include, but are not
limited to, statements about: 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 from 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 adjusted operating profit, adjusted operating margin, adjusted
net income, adjusted net margin and adjusted diluted earnings per
ADS, which are non-GAAP financial measures.
Adjusted operating profit and adjusted operating margin reflects
operating profit excluding share-based compensation costs. Adjusted
net income is net income excluding share-based compensation costs.
Adjusted net margin is adjusted net income as a percentage of total
revenues. Adjusted diluted earnings per ADS is adjusted net income
or loss attributable to ordinary shareholders divided by weighted
average number of diluted ADS.
The Company believes that separate analysis and exclusion of the
non-cash impact of share-based compensation costs adds 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 measure for
planning, forecasting and measuring results against the forecast.
The Company believes that non-GAAP financial measure is useful
supplemental information for investors and analysts to assess its
operating performance without the effect of non-cash share-based
compensation costs, 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 similar 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 table captioned
"Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP Results"
at the end of this release.
Cheetah Mobile
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheet
|
|
|
|
(in '000, except for
per share data)
|
|
|
|
|
As
of
|
|
December 31, 2013
|
June 30, 2014
|
June 30, 2014
|
|
RMB
|
RMB
|
US$
|
|
(Audited)
|
(Unaudited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
530,536
|
929,927
|
149,902
|
Short-term
investments
|
55,780
|
997,647
|
160,817
|
Accounts
receivable
|
100,428
|
136,648
|
22,027
|
Prepayments and other
current assets
|
63,037
|
86,092
|
13,878
|
Due from related
parities
|
12,868
|
27,162
|
4,378
|
Deferred tax
assets
|
1,913
|
1,147
|
185
|
Total current
assets
|
764,562
|
2,178,623
|
351,187
|
|
|
|
|
Non-current
assets:
|
|
|
|
Property and
equipment , net
|
31,326
|
36,440
|
5,874
|
Intangible assets,
net
|
32,850
|
113,829
|
18,349
|
Goodwill
|
52,819
|
77,452
|
12,485
|
Long-term
investments
|
12,054
|
105,831
|
17,060
|
Deferred tax
assets
|
7,178
|
8,122
|
1,309
|
Other non-current
assets
|
8,804
|
9,091
|
1,465
|
Total non-current
assets
|
145,031
|
350,765
|
56,542
|
|
|
|
|
Total
assets
|
909,593
|
2,529,388
|
407,729
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts
payable
|
23,439
|
89,569
|
14,438
|
Accrued expenses and
other current liabilities
|
181,551
|
238,846
|
38,501
|
Redemption right
liabilities
|
5,711
|
1,084
|
175
|
Deferred
revenue
|
7,840
|
25,649
|
4,135
|
Due to related
parties
|
31,893
|
25,697
|
4,142
|
Income tax
payable
|
13,534
|
905
|
146
|
Deferred tax
liability
|
-
|
1,450
|
234
|
Total current
liabilities
|
263,968
|
383,200
|
61,771
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Deferred
revenue
|
2,866
|
1,684
|
271
|
Deferred tax
liability
|
39,206
|
46,964
|
7,570
|
Other non-current
liabilities
|
9,485
|
6,602
|
1,065
|
Total non-current
liabilities
|
51,557
|
55,250
|
8,906
|
|
|
|
|
Total
liabilities
|
315,525
|
438,450
|
70,677
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
Series A convertible
preferred shares
|
119,976
|
-
|
-
|
Series B convertible
preferred shares
|
321,965
|
-
|
-
|
Total mezzanine
equity
|
441,941
|
-
|
-
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Ordinary
shares
|
150
|
212
|
34
|
Additional paid-in
capital
|
63,919
|
1,982,253
|
319,533
|
Retained
earnings
|
74,819
|
106,929
|
17,237
|
Accumulated other
comprehensive income
|
13,239
|
1,544
|
248
|
Total
shareholders' equity
|
152,127
|
2,090,938
|
337,052
|
|
|
|
|
Total liabilities, mezzanine equity and shareholders' equity
|
909,593
|
2,529,388
|
407,729
|
Cheetah Mobile
Inc.
|
Condensed
Consolidated Statements of Comprehensive Income
|
(in '000, except for
per share data and number of shares and ADSs)
|
|
For The Three
Months Ended
|
|
June 30, 2013
|
March 31, 2014
|
June 30, 2014
|
June 30, 2014
|
|
RMB
|
RMB
|
RMB
|
US$
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Revenues
|
158,931
|
315,712
|
380,301
|
61,303
|
Online marketing
services
|
133,568
|
232,192
|
283,356
|
45,676
|
Internet value-added
services
|
12,596
|
71,810
|
84,562
|
13,631
|
Internet security
services and others
|
12,767
|
11,710
|
12,383
|
1,996
|
|
|
|
|
|
Cost of revenues
(a)
|
(29,442)
|
(70,417)
|
(81,772)
|
(13,181)
|
Gross
profit
|
129,489
|
245,295
|
298,529
|
48,122
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development (a)
|
(53,313)
|
(77,760)
|
(103,336)
|
(16,657)
|
Selling and marketing
(a)
|
(28,463)
|
(111,636)
|
(117,533)
|
(18,946)
|
General and
administrative (a)
|
(36,431)
|
(36,649)
|
(64,208)
|
(10,350)
|
Total operating
expenses
|
(118,207)
|
(226,045)
|
(285,077)
|
(45,953)
|
|
|
|
|
|
Operating
profit
|
11,282
|
19,250
|
13,452
|
2,169
|
Other income
(expenses):
|
|
|
|
|
Interest
income
|
1,213
|
1,980
|
5,313
|
856
|
Changes in fair value
of redemption right granted to a non-
controlling shareholder
|
-
|
3,488
|
89
|
14
|
Changes in fair value
of contingent consideration
|
(139)
|
(437)
|
(525)
|
(85)
|
Changes in fair value
of put options granted to employees
|
-
|
332
|
140
|
23
|
Foreign exchange gain
(loss), net
|
1,198
|
(40)
|
148
|
24
|
Other income,
net
|
22
|
269
|
300
|
49
|
Gains (losses) from
equity method investments
|
(1,340)
|
(1,547)
|
(1,306)
|
(211)
|
|
|
|
|
|
Income before
tax
|
12,236
|
23,295
|
17,611
|
2,839
|
Income tax benefit
(expense)
|
(10,863)
|
(4,596)
|
(4,200)
|
(677)
|
Net
income
|
1,373
|
18,699
|
13,411
|
2,162
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
0.00
|
0.02
|
0.01
|
0.00
|
Diluted
|
0.00
|
0.02
|
0.01
|
0.00
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
Basic
|
0.01
|
0.16
|
0.11
|
0.02
|
Diluted
|
0.01
|
0.16
|
0.10
|
0.02
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
924,401,647
|
944,224,593
|
1,184,715,115
|
1,184,715,115
|
Diluted
|
1,073,287,645
|
1,208,937,986
|
1,329,554,370
|
1,329,554,370
|
Weighted average number of ADSs used in computation
|
|
|
|
|
Basic
|
92,440,165
|
94,422,459
|
118,471,512
|
118,471,512
|
Diluted
|
107,328,765
|
120,893,799
|
132,955,437
|
132,955,437
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
Foreign currency
translation adjustments
|
(1,061)
|
3,513
|
(943)
|
(152)
|
Unrealized gains on
available-for-sale securities, net
|
-
|
969
|
(15,235)
|
(2,456)
|
Other
comprehensive income (loss)
|
(1,061)
|
4,482
|
(16,178)
|
(2,608)
|
Comprehensive
income
|
312
|
23,181
|
(2,767)
|
(446)
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
|
|
In
('000)
|
For The Three
Months Ended
|
|
June 30,
2013
|
March 31, 2014
|
June 30,
2014
|
June 30,
2014
|
|
RMB
|
RMB
|
RMB
|
US$
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Cost of
revenues
|
3
|
-2
|
3
|
1
|
Research and
development
|
3,722
|
6,029
|
14,740
|
2,376
|
Selling and
marketing
|
108
|
817
|
1,959
|
316
|
General and
administrative
|
11,076
|
7,237
|
35,325
|
5,694
|
Total
|
14,909
|
14,081
|
52,027
|
8,387
|
Cheetah Mobile
Inc.
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
(in '000 of RMB
unless otherwise indicated, except for per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2014
|
|
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
GAAP Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
Revenues
|
380,301
|
|
|
|
-
|
|
|
|
380,301
|
|
|
Cost of
revenues
|
(81,772)
|
|
22%
|
|
3
|
|
0%
|
|
(81,769)
|
|
22%
|
Gross
profit
|
298,529
|
|
78%
|
|
3
|
|
0%
|
|
298,532
|
|
78%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(103,336)
|
|
27%
|
|
14,740
|
|
4%
|
|
(88,596)
|
|
23%
|
Selling and
marketing
|
(117,533)
|
|
31%
|
|
1,959
|
|
1%
|
|
(115,574)
|
|
30%
|
General and
administrative
|
(64,208)
|
|
17%
|
|
35,325
|
|
9%
|
|
(28,883)
|
|
8%
|
Total operating
expenses
|
(285,077)
|
|
75%
|
|
52,024
|
|
14%
|
|
(233,053)
|
|
61%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
13,452
|
|
4%
|
|
52,027
|
|
13%
|
|
65,479
|
|
17%
|
Net income
|
13,411
|
|
4%
|
|
52,027
|
|
13%
|
|
65,438
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per ordinary share (RMB)
|
0.01
|
|
|
|
0.04
|
|
|
|
0.05
|
|
|
Diluted earnings per
ADS (RMB)
|
0.10
|
|
|
|
0.39
|
|
|
|
0.49
|
|
|
Diluted earnings per
ADS (USD)
|
0.02
|
|
|
|
0.06
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2014
|
|
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
GAAP
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
Revenues
|
315,712
|
|
|
|
-
|
|
|
|
315,712
|
|
|
Cost of
revenues
|
(70,417)
|
|
22%
|
|
(2)
|
|
0%
|
|
(70,419)
|
|
22%
|
Gross
profit
|
245,295
|
|
78%
|
|
(2)
|
|
0%
|
|
245,293
|
|
78%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(77,760)
|
|
25%
|
|
6,029
|
|
2%
|
|
(71,731)
|
|
23%
|
Selling and
marketing
|
(111,636)
|
|
35%
|
|
817
|
|
0%
|
|
(110,819)
|
|
35%
|
General and
administrative
|
(36,649)
|
|
11%
|
|
7,237
|
|
2%
|
|
(29,412)
|
|
9%
|
Total operating
expenses
|
(226,045)
|
|
71%
|
|
14,083
|
|
4%
|
|
(211,962)
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
19,250
|
|
7%
|
|
14,081
|
|
4%
|
|
33,331
|
|
11%
|
Net
income
|
18,699
|
|
6%
|
|
14,081
|
|
4%
|
|
32,780
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.02
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
Diluted earnings per
ADS (RMB)
|
0.16
|
|
|
|
0.12
|
|
|
|
0.28
|
|
|
Diluted earnings per
ADS (USD)
|
0.02
|
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2013
|
|
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
GAAP
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
Revenues
|
158,931
|
|
|
|
-
|
|
|
|
158,931
|
|
|
Cost of revenues
(a)
|
(29,442)
|
|
19%
|
|
3
|
|
0%
|
|
(29,439)
|
|
19%
|
Gross
profit
|
129,489
|
|
81%
|
|
3
|
|
0%
|
|
129,492
|
|
81%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(53,313)
|
|
33%
|
|
3,722
|
|
2%
|
|
(49,591)
|
|
31%
|
Selling and
marketing
|
(28,463)
|
|
18%
|
|
108
|
|
0%
|
|
(28,355)
|
|
18%
|
General and
administrative
|
(36,431)
|
|
23%
|
|
11,076
|
|
7%
|
|
(25,355)
|
|
16%
|
Total operating
expenses
|
(118,207)
|
|
74%
|
|
14,906
|
|
9%
|
|
(103,301)
|
|
65%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
11,282
|
|
7%
|
|
14,909
|
|
9%
|
|
26,191
|
|
16%
|
Net
income
|
1,373
|
|
1%
|
|
14,909
|
|
9%
|
|
16,282
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.00
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Diluted earnings per
ADS (RMB)
|
0.01
|
|
|
|
0.14
|
|
|
|
0.15
|
|
|
Diluted earnings per
ADS (USD)
|
0.00
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
Cheetah Mobile
Inc.
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(Unaudited, in '000,
except for per share data)
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2013
|
March 31,
2014
|
June 30,
2014
|
June 30,
2014
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
PC
|
152,594
|
262,009
|
304,065
|
49,014
|
Mobile
|
6,337
|
53,703
|
76,236
|
12,289
|
Total
|
158,931
|
315,712
|
380,301
|
61,303
|
SOURCE Cheetah Mobile Inc.