BEIJING, Nov. 10, 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 third quarter ended September 30, 2014.
Third Quarter 2014 Financial Highlights
- Total revenues increased by 158.1% year-over-year and
25.9% quarter-over-quarter to RMB478.7 million (US$78.0 million).
- Mobile revenues[1] increased by 627.7% year-over-year
and 48.2% quarter-over-quarter to RMB113.0
million (US$18.4 million), led
by a significant ramp-up in mobile advertising revenues in the
overseas market. Mobile accounted for 24% of total revenues.
- Non-GAAP net income attributable to Cheetah Mobile
shareholders (which excludes share-based compensation expenses)
increased by 360.2% year-over-year to RMB60.3 million (US$9.8
million).
Key Operating Metrics
- Total global mobile user installations increased by 30.2%
quarter-over-quarter to 862.2 million as of September 30, 2014.
- Mobile monthly active users ("Mobile MAUs") increased by 183.9%
year-over-year to 340.7 million as of September 2014. Mobile MAUs from overseas markets
were 65.0% of total mobile MAUs in September
2014.
- Monthly active users ("MAUs") of Duba.com Personal Start Page
increased by 54.5% year-over year to 61.6 million in September 2014.
1
|
Mobile revenues
included revenues from HongKong Zoom Interactive, which was
acquired by Cheetah Mobile in July 2014.
|
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "We are excited to report another
quarter of robust growth, driven by the strong demand for
advertising services on our PC and mobile platforms, as well as
continued user growth. In particular, mobile revenue again
outperformed our expectations as we made significant strides in
expanding our mobile advertising business internationally. In
addition, our on-going product innovation and positive user
word-of-mouth have led to continued strength in organic user
traffic growth and downloads for our applications. According to
App Annie, Cheetah Mobile was once
again the No. 1 publisher for mobile apps in the Tools category on
Google Play by worldwide monthly downloads in September 2014. Recently, our flagship app, Clean
Master, has also reached an important milestone of 100 million
daily active users. Furthermore, because of our strategic alliances
with leading Chinese Internet companies, this quarter we witnessed
accelerated growth in mobile MAUs in China. Overall, our total mobile MAUs exceeded
340 million in September. Going forward, we remain committed to
enhancing product innovation and growing our user base and user
engagement."
Mr. Andy Yeung, Cheetah Mobile's
Chief Financial Officer, commented, "This quarter, we once again
achieved financial results that exceeded our expectations due to
stronger-than-expected user traffic growth and demand for our
advertising services. Total revenues reached a new record of
RMB479 million, up 158%
year-over-year and 26% quarter-over-quarter, and well exceeding the
high end of our previous guidance. We are especially excited to see
significant progress in our mobile and global vision in the third
quarter. Led by a strong ramp-up in our overseas mobile advertising
business, mobile revenues grew 628% year-over-year and 48%
quarter-over-quarter to RMB113
million, which now accounts for 24% of our total quarterly
revenue. In the quarters ahead, we will continue to invest in our
mobile business to strengthen our foundation for future success in
this rapidly developing market."
Third Quarter 2014 Financial Results
REVENUES
Total revenues for the third quarter of 2014 increased by
158.1% to RMB478.7 million
(US$78.0 million) from RMB185.5 million in the prior year period. This
increase was primarily due to growth in our user traffic and strong
demand for our advertising services on both PC and mobile
platforms.
- Revenues from online marketing services increased by
142.7% to RMB360.9 million
(US$58.8 million) in the third
quarter of 2014 from RMB148.7 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 user traffic on the Company's online
marketing platforms. This increase was also a result of growth in
our mobile advertising business, driven by a significant
improvement in contextual native advertising publishing platform
and growth of advertisers worldwide.
- Revenues from internet value added services
("IVAS") increased by 344.3% to RMB107.3
million (US$17.5 million)
in the third quarter of 2014 from RMB24.2
million in the prior year period. This increase was
primarily driven by the increase in the number of PC and mobile
games published by the Company, the increase in the number of
monthly paying users, and the contributions from recently
established online lottery services.
- Revenues from internet security services and others
decreased by 17.6% to RMB10.4 million
(US$1.7 million) in the third quarter
of 2014 from RMB12.6 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.
By platform, revenues generated from our mobile
business[2] increased by 627.7% to RMB113.0 million (US$18.4
million) from RMB15.5 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. In the third quarter, we
also experienced a significant ramp-up in our mobile advertising
business in the overseas market.
2
|
Mobile revenues
included revenues from HongKong Zoom Interactive, which was
acquired by Cheetah Mobile in July 2014.
|
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 195.8% to RMB110.3 million (US$18.0
million) in the third quarter of 2014 from RMB37.3 million in the prior year period. The
increase in cost of revenues was mainly driven by higher bandwidth
and IDC costs associated with increased user traffic as well as
costs associated with the mobile game business.
Gross profit increased by 148.6% to RMB368.4 million (US$60.0
million) in the third quarter of 2014 from RMB148.2 million in the prior year period. Gross
margin was 77.0% in the third quarter of 2014 compared with 79.9%
in the prior year period.
OPERATING INCOME AND EXPENSES
Total operating expenses for the third quarter of 2014 increased
by 166.9% to RMB373.2 million
(US$60.8 million) from RMB139.8 million in the prior year period. Total
non-GAAP operating expenses, which exclude share-based compensation
expenses, for the third quarter of 2014 increased by 140.0% to
RMB317.3 million (US$51.7 million) from RMB132.2 million in the prior year period.
- Research and development expenses increased by 100.6% to
RMB135.7 million (US$22.1 million) from RMB67.6 million in the prior year period. This
increase was primarily due to an increase in the number 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 third
quarter of 2014 increased by 89.7% to RMB120.1 million (US$19.6
million) from RMB63.3 million
in the prior year period.
- Selling and marketing expenses increased by 254.6% to
RMB167.2 million (US$27.2 million) from RMB47.1 million in the prior year period. The
increase was primarily due to promotional spending for the mobile
business. Non-GAAP selling and marketing expenses, which exclude
share-based compensation expenses, increased by 251.1% to
RMB164.8 million (US$26.8 million) from RMB46.9 million in the prior year period.
- General and administrative expenses increased by 181.2% to
RMB70.4 million (US$11.5 million) from RMB25.0 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 47.8% to RMB32.5 million (US$5.3
million) from RMB22.0 million
in the prior year period.
Operating loss was RMB4.8 million
(US$0.8 million) in the third quarter
of 2014, compared to an operating profit of RMB8.4 million in the prior year period.
Operating margin was -1.0% in the third quarter of 2014 compared
with 4.5% in the prior year period.
Non-GAAP operating profit[3] increased by 223.8% to RMB51.8 million (US$8.4
million) in the third quarter of 2014 from RMB16.0 million in the prior year period. For the
third quarter of 2014, share-based compensation expenses were
RMB56.6 million (US$9.2 million) compared with RMB7.6 million in the third quarter of 2013.
Non-GAAP operating margin[4] increased to 10.8% in the third
quarter of 2014 from 8.6% in the prior year period.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was
RMB3.7 million (US$0.6 million) in the third quarter of 2014,
compared to RMB5.5 million in the
prior year period. Net margin was 0.8% in the third quarter of
2014, compared to 3.0% in the prior year period.
Non-GAAP net income[5] attributable to Cheetah Mobile
shareholders increased by 360.2% to RMB60.3
million (US$9.8 million) from
RMB13.1 million in the prior year
period. Non-GAAP net margin[6] increased to 12.6% in the third
quarter of 2014 from 7.1% in the prior year period.
3
|
Non-GAAP operating
profit is a non-GAAP financial measure, which is defined as
operating profit excluding share-based compensation
expenses.
|
4
|
Non-GAAP operating
margin is a non-GAAP financial measure, which is defined as
non-GAAP operating profit as a percentage of total
revenues.
|
5
|
Non-GAAP net income
attributable to Cheetah Mobile shareholders is a non-GAAP financial
measure, which is defined as net income to Cheetah Mobile Inc.
excluding share-based compensation expenses.
|
6
|
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 third quarter of 2014 decreased
to RMB0.03 (US0.01) from RMB0.05 in the prior year period.
Non-GAAP diluted earnings per ADS[7] in the third quarter of
2014 increased to RMB0.43
(US$0.07) from RMB0.11 in the prior year period.
7
|
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, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
BALANCE
As of September 30, 2014, the
Company had cash, cash equivalents, and short-term investments of
RMB 1.7 billion (US$283.6 million).
SHARES ISSUED AND OUTSTANDING
As of September 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.
BUSINESS OUTLOOK
For the fourth quarter of 2014, the Company expects its total
estimated revenues to be between RMB560
million (US$91 million) and
RMB570 million (US$93 million), representing a year-over-year
growth of approximately 108% to 112%. 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 Monday, November 10, 2014 at 8:00 am Eastern Time or 9:00 pm Beijing Time to discuss the financial
results. Listeners may access the call by dialing the following
numbers:
International:
|
+1-412-902-4272
|
United States Toll
Free:
|
+1-888-346-8982
|
China Toll
Free:
|
4001-201203
|
Hong Kong Toll
Free:
|
800-905945
|
Conference
ID:
|
Cheetah
Mobile
|
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 RMB6.1380 to US$1.00, the noon buying rate in effect on
September 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 340.7 million mobile monthly active users in
September 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 September 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 September 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
|
September 30, 2014
|
September 30, 2014
|
|
RMB
|
RMB
|
US$
|
|
(Audited)
|
(Unaudited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
530,536
|
654,574
|
106,643
|
Short-term
investments
|
55,780
|
1,086,213
|
176,965
|
Accounts
receivable
|
100,428
|
179,332
|
29,217
|
Prepayments and other
current assets
|
63,037
|
172,881
|
28,166
|
Due from related
parities
|
12,868
|
46,781
|
7,622
|
Deferred tax
assets
|
1,913
|
1,212
|
197
|
Total current
assets
|
764,562
|
2,140,993
|
348,810
|
|
|
|
|
Non-current
assets:
|
|
|
|
Property and
equipment , net
|
31,326
|
36,343
|
5,921
|
Intangible assets,
net
|
32,850
|
223,415
|
36,399
|
Goodwill
|
52,819
|
263,619
|
42,949
|
Long-term
investments
|
12,054
|
103,403
|
16,846
|
Deferred tax
assets
|
7,178
|
8,931
|
1,455
|
Other non-current
assets
|
8,804
|
16,870
|
2,748
|
Total non-current
assets
|
145,031
|
652,581
|
106,318
|
|
|
|
|
Total
assets
|
909,593
|
2,793,574
|
455,128
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Accounts
payable
|
23,439
|
77,781
|
12,672
|
Accrued expenses and
other current liabilities
|
181,551
|
326,003
|
53,112
|
Redemption right
liabilities
|
5,711
|
781
|
127
|
Deferred
revenue
|
7,840
|
39,993
|
6,516
|
Due to related
parties
|
31,893
|
34,491
|
5,619
|
Income tax
payable
|
13,534
|
1,750
|
285
|
Deferred tax
liability
|
-
|
2,330
|
380
|
Total current
liabilities
|
263,968
|
483,129
|
78,711
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Deferred
revenue
|
2,866
|
1,479
|
241
|
Deferred tax
liability
|
39,206
|
65,585
|
10,685
|
Other non-current
liabilities
|
9,485
|
19,641
|
3,200
|
Total non-current
liabilities
|
51,557
|
86,705
|
14,126
|
|
|
|
|
Total
liabilities
|
315,525
|
569,834
|
92,837
|
|
|
|
|
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
|
35
|
Additional paid-in
capital
|
63,919
|
2,039,978
|
332,352
|
Retained
earnings
|
74,819
|
110,583
|
18,017
|
Accumulated other
comprehensive income
|
13,239
|
(5,160)
|
(841)
|
Total Cheetah
Mobile Inc. shareholders' equity
|
152,127
|
2,145,613
|
349,563
|
Non-controlling
interests
|
-
|
78,127
|
12,728
|
Total
equity
|
152,127
|
2,223,740
|
362,291
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' equity
|
909,593
|
2,793,574
|
455,128
|
|
|
|
|
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
|
|
September 30, 2013
|
June 30, 2014
|
September 30, 2014
|
September 30, 2014
|
|
RMB
|
RMB
|
RMB
|
US$
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Revenues
|
185,490
|
380,301
|
478,678
|
77,986
|
Online marketing
services
|
148,698
|
283,356
|
360,942
|
58,805
|
Internet value-added
services
|
24,160
|
84,562
|
107,331
|
17,486
|
Internet security
services and others
|
12,632
|
12,383
|
10,405
|
1,695
|
|
|
|
|
|
Cost of revenues
(a)
|
(37,275)
|
(81,772)
|
(110,250)
|
(17,962)
|
Gross
profit
|
148,215
|
298,529
|
368,428
|
60,024
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development (a)
|
(67,635)
|
(103,336)
|
(135,658)
|
(22,101)
|
Selling and marketing
(a)
|
(47,138)
|
(117,533)
|
(167,154)
|
(27,233)
|
General and
administrative (a)
|
(25,025)
|
(64,208)
|
(70,368)
|
(11,464)
|
Total operating
expenses
|
(139,798)
|
(285,077)
|
(373,180)
|
(60,798)
|
|
|
|
|
|
Operating profit
(loss)
|
8,417
|
13,452
|
(4,752)
|
(774)
|
Other income
(expenses):
|
|
|
|
|
Interest
income
|
2,204
|
5,313
|
11,245
|
1,832
|
Changes in fair value
of redemption right granted to a non-controlling
shareholder
|
4,553
|
89
|
1
|
-
|
Changes in fair value
of contingent consideration
|
(409)
|
(525)
|
(1,516)
|
(247)
|
Changes in fair value
of put options granted to employees
|
-
|
140
|
(47)
|
(8)
|
Foreign exchange gain
(loss), net
|
(30)
|
148
|
(221)
|
(36)
|
Other income,
net
|
(269)
|
300
|
2,107
|
343
|
Losses from equity
method investments
|
(1,230)
|
(1,306)
|
(2,070)
|
(337)
|
|
|
|
|
|
Income before
tax
|
13,236
|
17,611
|
4,747
|
773
|
Income tax
expenses
|
(7,738)
|
(4,200)
|
(1,229)
|
(200)
|
Net
income
|
5,498
|
13,411
|
3,518
|
573
|
Less:net loss
attributable to non-controlling interests
|
-
|
-
|
(136)
|
(22)
|
Net income
attributable to Cheetah Mobile Inc.
|
5,498
|
13,411
|
3,654
|
595
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
0.00
|
0.01
|
0.00
|
0.00
|
Diluted
|
0.00
|
0.01
|
0.00
|
0.00
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
Basic
|
0.05
|
0.11
|
0.03
|
0.01
|
Diluted
|
0.05
|
0.10
|
0.03
|
0.01
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
934,225,015
|
1,184,715,115
|
1,354,042,944
|
1,354,042,944
|
Diluted
|
1,199,486,209
|
1,329,554,370
|
1,418,624,992
|
1,418,624,992
|
Weighted average
number of ADSs used in computation
|
|
|
|
|
Basic
|
93,422,502
|
118,471,512
|
135,404,294
|
135,404,294
|
Diluted
|
119,948,621
|
132,955,437
|
141,862,499
|
141,862,499
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
Foreign currency
translation adjustments
|
(1,532)
|
(943)
|
(316)
|
(51)
|
Unrealized losses on
available-for-sale
securities, net
|
(31)
|
(15,235)
|
(6,387)
|
(1,041)
|
Other
comprehensive income (loss)
|
(1,563)
|
(16,178)
|
(6,703)
|
(1,092)
|
Total
comprehensive income (loss)
|
3,935
|
(2,767)
|
(3,185)
|
(519)
|
Less: Total
comprehensive loss attributable to non-controlling
interests
|
-
|
-
|
(136)
|
(22)
|
Total comprehensive income (loss) attributable to Cheetah
Mobile Inc.
|
3,935
|
(2,767)
|
(3,049)
|
(497)
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
|
|
In
('000)
|
|
|
|
|
|
September 30,
2013
|
June 30,
2014
|
September 30,
2014
|
September
30, 2014
|
|
RMB
|
RMB
|
RMB
|
US$
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Cost of
revenues
|
1
|
3
|
715
|
116
|
Research and
development
|
4,336
|
14,740
|
15,598
|
2,541
|
Selling and
marketing
|
206
|
1,959
|
2,382
|
388
|
General and
administrative
|
3,052
|
35,325
|
37,902
|
6,175
|
Total
|
7,595
|
52,027
|
56,597
|
9,220
|
Cheetah Mobile
Inc.
|
Reconciliation of
GAAP to Non-GAAP Results
|
(in '000, except for
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended September 30, 2014
|
|
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
GAAP Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
Revenues
|
478,678
|
|
|
|
-
|
|
|
|
478,678
|
|
|
Cost of
revenues
|
(110,250)
|
|
23%
|
|
715
|
|
0%
|
|
(109,535)
|
|
23%
|
Gross
profit
|
368,428
|
|
77%
|
|
715
|
|
0%
|
|
369,143
|
|
77%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(135,658)
|
|
28%
|
|
15,598
|
|
3%
|
|
(120,060)
|
|
25%
|
Selling and
marketing
|
(167,154)
|
|
35%
|
|
2,382
|
|
0%
|
|
(164,772)
|
|
35%
|
General and
administrative
|
(70,368)
|
|
15%
|
|
37,902
|
|
9%
|
|
(32,466)
|
|
6%
|
Total operating
expenses
|
(373,180)
|
|
78%
|
|
55,882
|
|
12%
|
|
(317,298)
|
|
66%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
(4,752)
|
|
-1%
|
|
56,597
|
|
12%
|
|
51,845
|
|
11%
|
Net income
|
3,654
|
|
1%
|
|
56,597
|
|
12%
|
|
60,251
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.00
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
Diluted earnings per
ADS (RMB)
|
0.03
|
|
|
|
0.40
|
|
|
|
0.43
|
|
|
Diluted earnings per
ADS (USD)
|
0.01
|
|
|
|
0.06
|
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
attributable to Cheetah Mobile Inc.
|
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 September 30, 2013
|
|
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
GAAP
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
Revenues
|
185,490
|
|
|
|
-
|
|
|
|
185,490
|
|
|
Cost of revenues
(a)
|
(37,275)
|
|
20%
|
|
1
|
|
0%
|
|
(37,274)
|
|
20%
|
Gross
profit
|
148,215
|
|
80%
|
|
1
|
|
0%
|
|
148,216
|
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(67,635)
|
|
35%
|
|
4,336
|
|
2%
|
|
(63,299)
|
|
33%
|
Selling and
marketing
|
(47,138)
|
|
25%
|
|
206
|
|
0%
|
|
(46,932)
|
|
25%
|
General and
administrative
|
(25,025)
|
|
14%
|
|
3,052
|
|
2%
|
|
(21,973)
|
|
12%
|
Total operating
expenses
|
(139,798)
|
|
74%
|
|
7,594
|
|
4%
|
|
(132,204)
|
|
70%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
8,417
|
|
5%
|
|
7,595
|
|
4%
|
|
16,012
|
|
9%
|
Net income attributable to Cheetah Mobile Inc.
|
5,498
|
|
3%
|
|
7,595
|
|
4%
|
|
13,093
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.00
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Diluted earnings per
ADS (RMB)
|
0.05
|
|
|
|
0.06
|
|
|
|
0.11
|
|
|
Diluted earnings per
ADS (USD)
|
0.01
|
|
|
|
0.01
|
|
|
|
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
|
|
September 30,
2013
|
June 30,
2014
|
September 30,
2014
|
September 30,
2014
|
|
RMB
|
RMB
|
RMB
|
US$
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
PC
|
169,965
|
304,065
|
365,710
|
59,581
|
Mobile
|
15,525
|
76,236
|
112,968
|
18,405
|
Total
|
185,490
|
380,301
|
478,678
|
77,986
|
SOURCE Cheetah Mobile Inc.