BEIJING, Aug. 18, 2015 /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 quarter ended June 30,
2015.
Second Quarter 2015 Financial Highlights
- Overseas revenues[1] increased by 1,832.0%
year-over-year and 68.3% quarter-over-quarter to RMB431.4 million (US$69.6
million), which was driven by a significant ramp-up in
mobile advertising revenues in overseas markets. Overseas revenues
accounted for 50% of total revenues and 77% of mobile
revenues.
- Mobile revenues[2] increased by 634.0%
year-over-year and 52.3% quarter-over-quarter to RMB559.6 million (US$90.3
million), which was primarily driven by a significant growth
in mobile advertising revenues in both the overseas and domestic
markets. Mobile revenues accounted for 64% of total
revenues.
- Total revenues increased by 128.9% year-over-year and
29.5% quarter-over-quarter to RMB870.5 million (US$140.4 million).
- Net income attributable to Cheetah Mobile shareholders
increased by 347.4% year-over-year and 95.5% quarter-over-quarter
to RMB60.0 million (US$9.7 million).
- Adjusted EBITDA, a non-GAAP financial measure defined in
this announcement as earnings before interest, taxes, depreciation,
amortization, other non-operating income and share-based
compensation expenses, increased by 59.4% year-over-year to
RMB132.3 million (US$21.3 million).
[1]
|
Overseas revenues refers to
revenues generated by our operating legal entities incorporated
outside China. Such revenues are primarily attributable to
customers located outside China.
|
[2]
|
Mobile revenues included
revenues from Hongkong Zoom Interactive Network Marketing
Technology Limited.
|
Second Quarter 2015 Key Operating Metrics
- Total global mobile user installations increased by 256 million
quarter-over-quarter to 1,596 million as of June 30, 2015.
- Mobile monthly active users ("Mobile MAUs") increased by 50
million quarter-over-quarter to 494 million in June 2015. Mobile MAUs from overseas markets were
71% of total mobile MAUs in June
2015.
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "The second quarter was another
strong quarter for Cheetah Mobile both financially and
operationally. Most importantly, we have achieved our mobile and
global transformation goals with overseas revenue improving to 50%
of total revenues and mobile revenue increasing to 64% of total
revenues. Today, 494 million people use Cheetah apps each month
worldwide, with 71% coming from overseas markets, which underpinned
our robust financial performance. During the quarter, we also
continued to improve our mobile and global monetization
capabilities. Mobile revenues surged 634% year-over-year and
overseas revenues jumped 1,832% year-over-year, which were driven
by a continued ramp-up of our mobile advertising business,
especially in the overseas markets. Our mobile and global
monetization capabilities have benefited from our strong
partnerships with key global Internet giants like Facebook, Google
and Tencent. In addition, we launched
Cheetah Mobile ad platform in June, further improving our mobile
and global monetization
capabilities."
Mr. Andy Yeung, Cheetah Mobile's
Chief Financial Officer, commented, "We are pleased to report our
second quarter financial results, which well exceeded our
expectations. Total revenues grew 129% year-over-year and 30%
quarter-over-quarter. Our accelerated growth in total revenues and
mobile revenues were driven by faster-than-expected overseas
monetization ramp-up. Having begun monetization in overseas markets
only a year ago, our overseas revenue now accounts for 50% of total
revenues and 77% of mobile revenues. We are delighted by the
progress we have achieved in the global mobile Internet market.
Looking ahead, we will continue to invest decisively to solidify
our leading position as a global traffic platform, while further
enhancing our mobile and global monetization capabilities."
Second Quarter 2015 Financial Results
REVENUES
Total revenues for the second quarter of 2015 increased
by 128.9% to RMB870.5 million
(US$140.4 million) from RMB380.3 million in the prior year period. This
increase was driven by the Company's organic business growth,
driven by substantial improvements in mobile monetization,
especially in overseas markets.
- Revenues from online marketing services increased by
165.5% to RMB752.4 million
(US$121.4 million) in the second
quarter of 2015 from RMB283.4 million
in the prior year period. This increase was primarily due to the
strong demand for the Company's mobile advertising business in both
overseas and domestic markets, and, to a lesser extent, the
additional revenue contributed by the MobPartner business, which we
recently acquired in 2015.
- Revenues from internet value added services
("IVAS") increased by 29.3% to RMB109.3
million (US$17.6 million)
in the second quarter of 2015 from RMB84.6
million in the prior year period. This increase primarily
reflected the growth of revenue from mobile and PC games published
by the Company.
- Revenues from internet security services and others
decreased by 28.8% to RMB8.8 million
(US$1.4 million) in the second
quarter of 2015 from RMB12.4 million
in the prior year period. 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 mobile
business increased by 634.0% to RMB559.6
million (US$90.3 million) from
RMB76.2 million in the prior year
period. This increase was primarily due to the increasing
popularity of the Company's mobile marketing services in overseas
and domestic markets.
By region, revenues generated from overseas markets
increased by 1,832.0% to RMB431.4
million (US$69.6 million) from
RMB22.3 million in the prior year
period. This increase was primarily due to a significant ramp-up in
mobile advertising revenues in overseas markets.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 172.1% to RMB222.5 million (US$35.9
million) in the second quarter of 2015 from RMB81.8 million in the prior year period. The
increase in cost of revenues was mainly due to higher traffic
acquisition costs associated with our MobPartner business, higher
costs associated with the mobile game business, higher bandwidth
and internet data center (IDC) costs associated with increased user
traffic and data analytics, as well as higher amortization costs
from intangible assets resulting from acquisitions.
Gross profit increased by 117.1% to RMB648.0 million (US$104.5
million) in the second quarter of 2015 from RMB298.5 million in the prior year period. Gross
margin was 74.4% in the second quarter of 2015, compared to 78.5%
in the prior year period.
OPERATING INCOME AND EXPENSES
Total operating expenses for the second quarter of 2015
increased by 114.1% to RMB610.4
million (US$98.4 million) from
RMB285.1 million in the prior year
period. Total non-GAAP operating expenses, which exclude
share-based compensation expenses, for the second quarter of 2015
increased by 138.2% to RMB555.1
million (US$89.5 million) from
RMB233.1 million in the prior year
period.
- Research and development expenses increased by 42.1% to
RMB146.9 million (US$23.7 million) from RMB103.3 million in the prior year period. The
increase was primarily due to higher personnel-related costs.
Non-GAAP research and development expenses, which exclude
share-based compensation expenses, for the second quarter of 2015
increased by 46.2% to RMB129.5
million (US$20.9 million) from
RMB88.6 million in the prior year
period.
- Selling and marketing expenses increased by 190.4% to
RMB341.3 million (US$55.0 million) from RMB117.5 million in the prior year period. The
increase was primarily due to the spending in promotional
activities for the Company's mobile business. Non-GAAP selling and
marketing expenses, which exclude share-based compensation
expenses, increased by 192.7% to RMB338.2
million (US$54.6 million) from
RMB115.6 million in the prior year
period.
- General and administrative expenses increased by 90.3% to
RMB122.2 million (US$19.7 million) from RMB64.2 million in the prior year period. The
increase was primarily due to an increase in professional service
fees and the increased expenses associated with headcount
expansion. Non-GAAP general and administrative expenses, which
exclude share-based compensation expenses, increased by 202.5% to
RMB87.4 million (US$14.1 million) from RMB28.9 million in the prior year period.
Operating profit increased by 179.7% to RMB37.6 million (US$6.1
million) in the second quarter of 2015 from RMB13.5 million in the prior year period.
Operating margin increased to 4.3% in the second quarter of 2015
from 3.5% in the prior year period.
Non-GAAP operating profit increased by 43.0% to RMB93.6 million (US$15.1
million) in the second quarter of 2015 from RMB65.5 million in the prior year period.
Non-GAAP operating margin was 10.8%, compared to 17.2% in the prior
year period.
For the second quarter of 2015, share-based compensation
expenses were RMB56.0 million
(US$9.0 million), compared to
RMB52.0 million in the second quarter
of 2014.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders increased
by 347.4% to RMB60.0 million
(US$9.7 million) in the second
quarter of 2015 from RMB13.4 million
in the prior year period. Net margin increased to 6.9% in the
second quarter of 2015 from 3.5% in the prior year period.
Non-GAAP net income attributable to Cheetah Mobile shareholders
increased by 77.2% to RMB116.0
million (US$18.7 million) from
RMB65.4 million in the prior year
period. Non-GAAP net margin was 13.3% in the second quarter of
2015, compared to 17.2% in the prior year period.
NET INCOME PER ADS
Diluted earnings per ADS in the second quarter of 2015 increased
to RMB0.42 (US$0.07) from RMB0.10 in the prior year period.
Non-GAAP diluted earnings per ADS in the second quarter of 2015
increased to RMB0.81 (US$0.13) from RMB0.49 in the prior year period.
CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM
INVESTMENTS BALANCE
As of June 30, 2015, the Company
had cash and cash equivalents, restricted cash and short-term
investments of RMB1.3 billion
(US$209.6 million).
SHARES ISSUED AND OUTSTANDING
As of June 30, 2015, the Company
had a total of 1,423,901,876 Class A and Class B ordinary shares
issued and outstanding. One ADS represents 10 Class A ordinary
shares.
ADJUSTED EBITDA
Adjusted EBITDA (non-GAAP) was RMB132.3
million ($21.3 million) for
the second quarter of 2015, representing a 59.4% increase from the
corresponding period in 2014.
Business Outlook
For the third quarter of 2015, the Company expects its estimated
total revenues to be between RMB990
million (US$160 million) and
RMB1,010 million (US$163 million), representing a year-over-year
growth of approximately 107% to 111%. 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 18, 2015 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:
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 RMB6.2000 to US$1.00, the noon buying rate in effect on
June 30, 2015 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. The Company
aims to provide the best apps for mobile users worldwide, while
building a leading global mobile ad platform for advertisers. As of
June 2015, Cheetah Mobile had
approximately 494 million mobile monthly active users in
June 2015. 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 publisher of Clean Master, the #1 mobile app in the Google Play
Tools category worldwide by monthly downloads in June 2015, 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 the following non-GAAP financial measures:
- Non-GAAP operating expenses reflect operating expenses
excluding share-based compensation expenses.
- Non-GAAP operating profit reflects operating profit
excluding share-based compensation expenses.
- Non-GAAP operating margin is non-GAAP operating profit
as a percentage of total revenues.
- Non-GAAP net income attributable to Cheetah Mobile
shareholders is net income attributable to Cheetah Mobile
shareholders excluding share-based compensation expenses.
- Non-GAAP net margin is non-GAAP net income attributable
to Cheetah Mobile shareholders as a percentage of total
revenues.
- Non-GAAP diluted earnings per ADS is non-GAAP net income
attributable to Cheetah Mobile shareholders divided by weighted
average number of diluted ADSs.
- Adjusted EBITDA is earnings before interest, taxes,
depreciation, amortization, other non-operating income and
share-based compensation expenses.
The Company believes that separate analysis and exclusion of
share-based compensation expenses and the use of Adjusted EBITDA
add clarity to the constituent parts of its performance from the
cash perspective. The Company reviews these non-GAAP financial
measures together with GAAP financial measures to obtain a better
understanding of its operating performance. It uses the non-GAAP
financial measures for planning, forecasting and measuring results
against the forecast. The Company believes that non-GAAP financial
measures are useful supplemental information for investors and
analysts to assess its operating performance without the effect of
share-based compensation expenses, which have been and will
continue to be significant recurring expenses in its business.
However, the use of non-GAAP financial measures has material
limitations as an analytical tool. One of the limitations of using
non-GAAP financial measures is that they do not include all items
that impact the Company's net income for the period. In addition,
because non-GAAP financial measures are not measured in the same
manner by all companies, they may not be comparable to other
similarly titled measures used by other companies. In light of the
foregoing limitations, you should not consider non-GAAP financial
measure in isolation from or as an alternative to the financial
measure prepared in accordance with U.S. GAAP. For more information
on these non-GAAP financial measures, please see the tables
captioned "Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP
Results" and "Cheetah Mobile Inc. Reconciliation of Net Income
Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA
(Non-GAAP)" at the end of this release.
Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779
Email: IR@cmcm.com
ICR, Inc.
Chenjiazi Zhong
Tel: +1 (646) 417-5395
Email: IR@cmcm.com
Cheetah Mobile
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In '000, except for
per share data)
|
|
As
of
|
|
December 31, 2014
|
|
June 30, 2015
|
|
June 30, 2015
|
|
RMB
|
|
RMB
|
|
US$
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,093,285
|
|
706,773
|
|
113,996
|
Restricted
cash
|
-
|
|
122,192
|
|
19,708
|
Short-term
investments
|
513,621
|
|
470,322
|
|
75,858
|
Accounts
receivable
|
260,347
|
|
439,936
|
|
70,958
|
Prepayments and other
current assets
|
180,029
|
|
225,675
|
|
36,399
|
Due from related
parities
|
43,570
|
|
126,521
|
|
20,407
|
Deferred tax
assets
|
2,693
|
|
7,373
|
|
1,189
|
Total current
assets
|
2,093,545
|
|
2,098,792
|
|
338,515
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
45,905
|
|
40,996
|
|
6,612
|
Intangible assets,
net
|
199,616
|
|
276,123
|
|
44,536
|
Goodwill
|
261,686
|
|
574,505
|
|
92,662
|
Long-term
investments
|
338,842
|
|
792,800
|
|
127,871
|
Deferred tax
assets
|
6,384
|
|
21,471
|
|
3,463
|
Other non-current
assets
|
55,197
|
|
25,465
|
|
4,107
|
Total non-current
assets
|
907,630
|
|
1,731,360
|
|
279,251
|
|
|
|
|
|
|
Total
assets
|
3,001,175
|
|
3,830,152
|
|
617,766
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
61,793
|
|
118,254
|
|
19,073
|
Accrued expenses and
other current liabilities
|
481,694
|
|
739,446
|
|
119,266
|
Redemption right
liabilities
|
520
|
|
170
|
|
27
|
Deferred
revenue
|
44,180
|
|
40,726
|
|
6,569
|
Due to related
parties
|
29,885
|
|
68,609
|
|
11,066
|
Income tax
payable
|
3,584
|
|
37,629
|
|
6,069
|
Deferred tax
liabilities
|
-
|
|
912
|
|
147
|
Total current
liabilities
|
621,656
|
|
1,005,746
|
|
162,217
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Bank loans
|
-
|
|
10,257
|
|
1,654
|
Deferred
revenue
|
1,134
|
|
1,826
|
|
295
|
Deferred tax
liabilities
|
65,991
|
|
106,639
|
|
17,200
|
Other non-current
liabilities
|
29,525
|
|
77,511
|
|
12,501
|
Total non-current
liabilities
|
96,650
|
|
196,233
|
|
31,650
|
|
|
|
|
|
|
Total
liabilities
|
718,306
|
|
1,201,979
|
|
193,867
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
222
|
|
226
|
|
36
|
Additional paid-in
capital
|
2,059,983
|
|
2,257,881
|
|
364,174
|
Retained
earnings
|
142,760
|
|
233,454
|
|
37,654
|
Accumulated other
comprehensive income
|
3,373
|
|
1,154
|
|
187
|
Total Cheetah
Mobile shareholders' equity
|
2,206,338
|
|
2,492,715
|
|
402,051
|
Noncontrolling
interests
|
76,531
|
|
135,458
|
|
21,848
|
Total
equity
|
2,282,869
|
|
2,628,173
|
|
423,899
|
|
|
|
|
|
|
Total liabilities,
noncontrolling interests and shareholders' equity
|
3,001,175
|
|
3,830,152
|
|
617,766
|
|
|
|
|
|
|
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,
2014
|
March 31, 2015
|
June 30,
2015
|
June 30,
2015
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Revenues
|
380,301
|
672,484
|
870,544
|
140,410
|
Online marketing
services
|
283,356
|
559,873
|
752,416
|
121,357
|
Internet value-added
services
|
84,562
|
97,151
|
109,308
|
17,630
|
Internet security
services and others
|
12,383
|
15,460
|
8,820
|
1,423
|
|
|
|
|
|
Cost of revenues
(a)
|
(81,772)
|
(145,274)
|
(222,540)
|
(35,893)
|
Gross
profit
|
298,529
|
527,210
|
648,004
|
104,517
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development (a)
|
(103,336)
|
(128,892)
|
(146,878)
|
(23,690)
|
Selling and marketing
(a)
|
(117,533)
|
(249,499)
|
(341,298)
|
(55,048)
|
General and
administrative (a)
|
(64,208)
|
(97,729)
|
(122,201)
|
(19,710)
|
Total operating
expenses
|
(285,077)
|
(476,120)
|
(610,377)
|
(98,448)
|
|
|
|
|
|
Operating
profit
|
13,452
|
51,090
|
37,627
|
6,069
|
Other income
(expenses):
|
|
|
|
|
Interest
income
|
5,313
|
5,147
|
4,028
|
650
|
Changes in fair value
of redemption right granted to a non-controlling
shareholder
|
89
|
-
|
167
|
27
|
Changes in fair value
of contingent consideration
|
(525)
|
(3,478)
|
2,677
|
432
|
Changes in fair value
of put options granted to employees
|
140
|
-
|
-
|
-
|
Foreign exchange gain
(loss), net
|
148
|
(166)
|
(447)
|
(72)
|
Impairment loss of
available-for-sale securities
|
-
|
(25,891)
|
-
|
-
|
Impairment loss of
goodwill
|
-
|
-
|
(12,867)
|
(2,075)
|
Losses from equity
method investments
|
(1,306)
|
(2,220)
|
(7,095)
|
(1,144)
|
Other income,
net
|
300
|
10,250
|
42,031
|
6,778
|
|
|
|
|
|
Income before
taxes
|
17,611
|
34,732
|
66,121
|
10,665
|
Income tax
expenses
|
(4,200)
|
(5,543)
|
(9,677)
|
(1,562)
|
Net
income
|
13,411
|
29,189
|
56,444
|
9,103
|
Less: net loss
attributable to noncontrolling interests
|
-
|
(1,499)
|
(3,562)
|
(575)
|
Net income
attributable to Cheetah Mobile shareholders
|
13,411
|
30,688
|
60,006
|
9,678
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
0.01
|
0.02
|
0.04
|
0.01
|
Diluted
|
0.01
|
0.02
|
0.04
|
0.01
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
Basic
|
0.11
|
0.23
|
0.44
|
0.07
|
Diluted
|
0.10
|
0.21
|
0.42
|
0.07
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
1,184,715,115
|
1,360,580,383
|
1,374,275,098
|
1,374,275,098
|
Diluted
|
1,329,554,370
|
1,431,681,212
|
1,438,132,050
|
1,438,132,050
|
Weighted average
number of ADSs used in computation
|
|
|
|
|
Basic
|
118,471,512
|
136,058,038
|
137,427,510
|
137,427,510
|
Diluted
|
132,955,437
|
143,168,121
|
143,813,205
|
143,813,205
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
Foreign currency
translation adjustments
|
(943)
|
6,715
|
(8,197)
|
(1,322)
|
Unrealized gains
(loss) on available-for-sale
securities, net
|
(15,235)
|
(1,064)
|
7,161
|
1,155
|
Reclassification
adjustments for gains included in the consolidated statement of
profit or loss
|
-
|
(6,814)
|
-
|
-
|
Other
comprehensive loss
|
(16,178)
|
(1,163)
|
(1,036)
|
(167)
|
Total
comprehensive income (loss)
|
(2,767)
|
28,026
|
55,408
|
8,936
|
Less: Total
comprehensive loss attributable to noncontrolling
interests
|
-
|
(1,447)
|
(3,594)
|
(580)
|
Total
comprehensive income (loss) attributable to Cheetah Mobile
shareholders
|
(2,767)
|
29,473
|
59,002
|
9,516
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
(In '000)
|
For The Three
Months Ended
|
|
June 30,
2014
|
March 31,
2015
|
June 30,
2015
|
June 30,
2015
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Cost of
revenues
|
3
|
746
|
744
|
120
|
Research and
development
|
14,740
|
11,435
|
17,350
|
2,798
|
Selling and
marketing
|
1,959
|
1,808
|
3,062
|
494
|
General and
administrative
|
35,325
|
32,220
|
34,823
|
5,617
|
Total
|
52,027
|
46,209
|
55,979
|
9,029
|
Cheetah Mobile
Inc.
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
|
|
(In'000, except for
per share data and percentage)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2015
|
|
|
|
GAAP
|
% of
Net
|
|
Share-based
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
Revenues
|
|
Compensation
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result ($)
|
Revenues
|
870,544
|
|
|
|
|
|
870,544
|
|
|
|
140,410
|
Cost of
revenues
|
(222,540)
|
25.6%
|
|
744
|
0.1%
|
|
(221,796)
|
|
25.5%
|
|
(35,773)
|
Gross
profit
|
648,004
|
74.4%
|
|
744
|
0.1%
|
|
648,748
|
|
74.5%
|
|
104,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(146,878)
|
16.9%
|
|
17,350
|
2.0%
|
|
(129,528)
|
|
14.9%
|
|
(20,892)
|
Selling and
marketing
|
(341,298)
|
39.2%
|
|
3,062
|
0.4%
|
|
(338,236)
|
|
38.9%
|
|
(54,554)
|
General and
administrative
|
(122,201)
|
14.0%
|
|
34,823
|
4.0%
|
|
(87,378)
|
|
10.0%
|
|
(14,093)
|
Total operating
expenses
|
(610,377)
|
70.1%
|
|
55,235
|
6.3%
|
|
(555,142)
|
|
63.8%
|
|
(89,539)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
37,627
|
4.3%
|
|
55,979
|
6.4%
|
|
93,606
|
|
10.8%
|
|
15,098
|
Net income attributable to Cheetah Mobile Shareholders
|
60,006
|
6.9%
|
|
55,979
|
6.4%
|
|
115,985
|
|
13.3%
|
|
18,707
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.04
|
|
|
0.04
|
|
|
0.08
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.42
|
|
|
0.39
|
|
|
0.81
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.07
|
|
|
0.06
|
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2015
|
|
|
|
GAAP
|
% of
Net
|
|
Share-based
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
Revenues
|
|
Compensation
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
672,484
|
|
|
|
|
|
672,484
|
|
|
|
|
Cost of
revenues
|
(145,274)
|
21.6%
|
|
746
|
0.1%
|
|
(144,528)
|
|
21.5%
|
|
|
Gross
profit
|
527,210
|
78.4%
|
|
746
|
0.1%
|
|
527,956
|
|
78.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(128,892)
|
19.2%
|
|
11,435
|
1.7%
|
|
(117,457)
|
|
17.5%
|
|
|
Selling and
marketing
|
(249,499)
|
37.1%
|
|
1,808
|
0.3%
|
|
(247,691)
|
|
36.8%
|
|
|
General and
administrative
|
(97,729)
|
14.5%
|
|
32,220
|
4.8%
|
|
(65,509)
|
|
9.7%
|
|
|
Total operating
expenses
|
(476,120)
|
70.8%
|
|
45,463
|
6.8%
|
|
(430,657)
|
|
64.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
51,090
|
7.6%
|
|
46,209
|
6.9%
|
|
97,299
|
|
14.5%
|
|
|
Net income
attributable to Cheetah Mobile Shareholders
|
30,688
|
4.6%
|
|
46,209
|
6.9%
|
|
76,897
|
|
11.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.02
|
|
|
0.03
|
|
|
0.05
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.21
|
|
|
0.33
|
|
|
0.54
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.03
|
|
|
0.06
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2014
|
|
|
|
GAAP
|
% of
Net
|
|
Share-based
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
Revenues
|
|
Compensation
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
380,301
|
|
|
|
|
|
380,301
|
|
|
|
|
Cost of
revenues
|
(81,772)
|
21.5%
|
|
3
|
0.0%
|
|
(81,769)
|
|
21.5%
|
|
|
Gross
profit
|
298,529
|
78.5%
|
|
3
|
0.0%
|
|
298,532
|
|
78.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(103,336)
|
27.2%
|
|
14,740
|
3.9%
|
|
(88,596)
|
|
23.3%
|
|
|
Selling and
marketing
|
(117,533)
|
30.9%
|
|
1,959
|
0.5%
|
|
(115,574)
|
|
30.4%
|
|
|
General and
administrative
|
(64,208)
|
16.9%
|
|
35,325
|
9.3%
|
|
(28,883)
|
|
7.6%
|
|
|
Total operating
expenses
|
(285,077)
|
75.0%
|
|
52,024
|
13.7%
|
|
(233,053)
|
|
61.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
13,452
|
3.5%
|
|
52,027
|
13.7%
|
|
65,479
|
|
17.2%
|
|
|
Net income
attributable to Cheetah Mobile Shareholders
|
13,411
|
3.5%
|
|
52,027
|
13.7%
|
|
65,438
|
|
17.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
Cheetah Mobile
Inc.
|
|
Reconciliation
from Net Income Attributable to Cheetah Mobile Shareholders to
Adjusted EBITDA (Non-GAAP)
|
(In '000)
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2014
|
March 31,
2015
|
June 30,
2015
|
June 30,
2015
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Net income
attributable to Cheetah Mobile shareholders
|
13,411
|
30,688
|
60,006
|
9,678
|
Add:
|
|
|
|
|
Income tax
expense
|
4,200
|
5,543
|
9,677
|
1,562
|
Interest expense
(income), net
|
(5,313)
|
(5,147)
|
(4,028)
|
(650)
|
Depreciation and
amortization
|
17,489
|
32,034
|
38,677
|
6,238
|
Net loss attributable
to noncontrolling interests
|
-
|
(1,499)
|
(3,562)
|
(575)
|
Other non-operating
expense (income), net
|
1,154
|
21,505
|
(24,466)
|
(3,946)
|
Share-based
compensation
|
52,027
|
46,209
|
55,979
|
9,029
|
Adjusted
EBITDA
|
82,968
|
129,333
|
132,283
|
21,336
|
Cheetah Mobile
Inc.
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(In '000)
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2014
|
March 31,
2015
|
June 30,
2015
|
June 30,
2015
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
PC
|
304,065
|
305,105
|
310,966
|
50,155
|
Mobile
|
76,236
|
367,379
|
559,578
|
90,255
|
Total
|
380,301
|
672,484
|
870,544
|
140,410
|
Cheetah Mobile
Inc.
|
|
Revenues Generated
from Domestic and Overseas Markets
|
(In '000)
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2014
|
March 31,
2015
|
June 30,
2015
|
June 30,
2015
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Domestic
revenues
|
357,974
|
416,253
|
439,190
|
70,837
|
Overseas
revenues
|
22,327
|
256,231
|
431,354
|
69,573
|
Total
|
380,301
|
672,484
|
870,544
|
140,410
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-second-quarter-2015-unaudited-financial-results-300129799.html
SOURCE Cheetah Mobile