BEIJING, June 14, 2019 /PRNewswire/ -- Cheetah Mobile Inc.
(NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile
internet company with global market coverage, today announced its
unaudited consolidated financial results for the first quarter
ended March 31, 2019.
First Quarter 2019 Financial Highlights
- Total revenues were RMB1,085.6
million (US$161.8 million),
reaching the high end of Company's previous guidance range of
RMB1,060 million to RMB1,090 million.
- Revenues from the mobile entertainment business increased by
41.7% year over year to RMB556.2
million (US$82.9 million),
accounting for 51.2% of total revenues in the first quarter of
2019.
- Other revenues grew by 299.2% to RMB31.5
million (US$4.7 million),
mainly driven by the sales of the artificial intelligence ("AI")
based interpretation device, Cheetah Translator, in China.
- Gross profit was RMB718.7 million
(US$107.1 million) in the first
quarter of 2019. Gross margin remained stable year over year at
66.2%.
- Operating profit from utility products and related services was
RMB123.2 million (US$18.4 million) in the first quarter of 2019.
Operating loss for the mobile entertainment business further
reduced to RMB44.1 million
(US$6.6 million) in the first quarter
of 2019 from RMB75.0 million in the
same period last year.
- Net income attributable to Cheetah Mobile shareholders was
RMB7.1 million (US$1.1 million). Non-GAAP net income attributable
to Cheetah Mobile shareholders was RMB33.8
million (US$5.0 million).
- As of March 31, 2019, the Company
had cash and cash equivalents, restricted cash, and short-term
investments of RMB3,422.6 million
(US$510.0 million).
First Quarter 2019 Operating Metrics
- The average number of global mobile monthly active users
("Mobile MAUs") was 434.8 million in the first quarter of 2019. The
number of Mobile MAUs from markets outside of China, or overseas
markets, accounted for 70.3% of the total number of Mobile MAUs in
the first quarter of 2019.
Mr. Sheng Fu, Cheetah Mobile's
Chairman and Chief Executive Officer, stated, "Our AI businesses
made strong progress in the first quarter of 2019. We continued to
enrich our AI product portfolio and build more use cases for our AI
products. As to consumer-facing products, we launched a tailor-made
version of CM Translator for Chinese primary school students in the
first quarter of 2019 to help them learn English at home. CM
Translator has been the top seller among its peers since its launch
in July 2018. As to
enterprise-focused products, we expanded Cheetah GreetBot's
consumer locations to university libraries to help students easily
find the books they need. Looking ahead, we are quite excited about
additional AI opportunities. We will continue to leverage our AI
technologies and rich experience in developing applications to grow
our AI businesses. Backed with our strong cash position and cash
generation capability, we believe that our AI business will enable
us to drive our long-term growth."
Mr. Vincent Jiang, Cheetah Mobile's Chief Financial
Officer, commented, "Driven by the robust revenue growth in our
mobile entertainment business and AI-related business, our total
revenues in the first quarter of 2019 reached the high end of our
previous guidance. Notably, revenues from the mobile games business
increased by 73% year over year to RMB302
million, already accounted for 28% of total revenue in the
quarter. On the profit side, our utility products and related
services continued to generate solid profit of RMB123 million in the quarter. Losses from the
mobile entertainment business continued to narrow in the quarter
thanks to the reduced loss from our LiveMe business. Looking ahead,
we are confident that our long-term growth prospects remain
healthy. We believe that our strong cash generation capabilities
and our high cash balance will allow us to continue to expand into
the AI space."
First Quarter 2019 Consolidated Financial Results
REVENUES
Total revenues were RMB1,085.6 million (US$161.8 million) in the first quarter of
2019.
Revenues from utility products and related
services decreased by 33.1% year over year
to RMB497.9 million (US$74.2
million) in the first quarter of 2019. The year-over-year
decrease was primarily due to continuous disruptions to the
Company's overseas mobile utility business as a result of the
negative publicity caused by a news article published in
2018.
Revenues from the mobile entertainment
business increased by 41.7% year over year
to RMB556.2 million (US$82.9
million), driven by the growth of both mobile games business
and LiveMe business. Revenues from the mobile entertainment
business contributed to 51.2% of the total revenue in the first
quarter of 2019, up from 34.3% in the first quarter of 2018.
- Revenues from the mobile games business increased by 72.5% year
over year to RMB301.5 million
(US$44.9 million) in the quarter. The
increase was mainly attributable to the strong performance of
Bricks n Balls, which started to ramp up from the middle of
July 2018. The Company's flagship
titles, including Piano Tiles 2, Rolling Sky, and
Dancing Line, also exhibited very strong performance in the
first quarter of 2019. In the first quarter of 2019, we also
launched a number of casual games, which also contributed to the
revenue growth, although their aggregate revenue contributions were
still insignificant.
- Revenues from LiveMe, increased by 17.0% year over year to
RMB254.8 million (US$38.0 million). The increase was primarily
driven by higher average revenue per paying user. LiveMe introduced
several new features in the quarter to enhance user interaction,
competition, and engagement.
Other revenues grew by 299.2% year over year
to RMB31.5 million (US$4.7
million), mainly driven by the sales of the AI-based
interpretation device, Cheetah Translator, in China. Revenues from others represented 2.9%
of total revenues in the first quarter of 2019, up from 0.7% in the
first quarter of 2018.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 6.2% year over year
to RMB366.9 million (US$54.7
million) in the first quarter of 2019. The year-over-year
decrease resulted from the reduced traffic acquisition costs
associated with the Company's third-party advertising platform
business, partially offset by an increase in content and channel
costs in relation to the Company's mobile game business, as well as
increased costs associated with the AI business. Non-GAAP cost
of revenues decreased by 6.3% year over year
to RMB366.8 million (US$54.7
million) in the first quarter of 2019.
Gross profit decreased by 4.7% year over year
to RMB718.7 million (US$107.1
million) in the first quarter of 2019. Non-GAAP
gross profit decreased by 4.6% year over year
to RMB718.9 million (US$107.1
million). Gross margin and non-GAAP gross margin
remained stable at 66.2% year over year.
OPERATING INCOME AND EXPENSES
Total operating expenses increased by 19.2% year
over year to RMB736.4 million (US$109.7 million) in the first quarter of
2019. Total non-GAAP operating expenses increased
by 16.7% year over year to RMB709.9 million (US$105.8 million) in the first quarter of
2019.
- Research and development (R&D) expense increased by
33.7% year over year to RMB196.9
million (US$29.3 million) in
the first quarter of 2019. The increase primarily resulted from
higher share-based compensation expenses and increased R&D
headcount in relation to the Company's mobile games and AI-related
businesses. Non-GAAP R&D expenses, which exclude
share-based compensation expenses, increased by 17.6% year over
year to RMB180.4 million
(US$26.9 million) in the first
quarter of 2019.
- Selling and marketing expenses increased by 11.6% year
over year to RMB436.6 million
(US$65.1 million) in the first
quarter of 2019. The increase was mainly due to increased promotion
efforts for the Company's mobile games and AI-related business.
Non-GAAP selling and marketing expenses, which exclude
share-based compensation expenses, increased by 10.9% year over
year to RMB433.8 million
(US$64.6 million) in the first
quarter of 2019.
- General and administrative expenses increased by 16.8%
year over year to RMB105.8 million
(US$15.8 million) in the first
quarter of 2019. The year-over-year increase was primarily due to
higher professional service fees and increased employee benefits
for general and administrative staff. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, increased by 30.3% year over year to RMB98.7 million (US$14.7
million) in the first quarter of 2019.
Operating loss was RMB17.7 million (US$2.6 million) in the first quarter of 2019
compared to an operating profit of RMB136.4 million in
the same period last year. Non-GAAP operating
profit was RMB9.0 million
(US$1.3 million) in the first quarter
of 2019 compared to RMB145.3 million
in the same period last year.
The Company has reported its operating profit (loss) along the
following segments since the second quarter of 2017:
- Operating profit for utility products and related
services was RMB123.2 million
(US$18.4 million) in the first
quarter of 2019, decreasing from RMB 264.7
million in the first quarter of 2018, mainly due to the
revenue decrease in the overseas market.
- Operating loss for the mobile entertainment business was
RMB44.1 million (US$6.6 million) in the first quarter of 2019
compared to operating loss of RMB75.0
million in the same period last year. The reduced losses
were mainly attributable to the increasing operational leverage and
stricter cost and expense management for LiveMe, as well as the
improved operating profits for the Company's flagship games,
partially offset by initiatives to launch new titles.
Share-based compensation expenses was RMB26.7 million (US$4.0
million) in the first quarter of 2019 compared
to RMB8.9 million in the same period last year, as the Company
granted a certain number of restricted shares to key
employees.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile
shareholders was RMB7.1 million (US$1.1 million) in the first quarter of
2019. Non-GAAP net income attributable to Cheetah Mobile
shareholders was RMB33.8 million (US$5.0 million) in the first quarter of 2019.
NET INCOME PER ADS
Diluted loss per
ADS was RMB0.02 (US$0.00) in the first quarter of
2019. Non-GAAP diluted income per
ADS was RMB0.17 (US$0.03) in the first quarter of
2019.
ADJUSTED EBITDA
Adjusted EBITDA
(Non-GAAP) decreased by 85.0% year over year
to RMB25.3 million (US$3.8
million) in the first quarter of 2019.
BALANCE SHEET
As of March 31, 2019, the Company
had cash and cash equivalents, restricted cash, and short-term
investments of RMB3,422.6 million (US$510.0 million).
SHARES ISSUED AND OUTSTANDING
As of March 31,
2019, the Company had a total of 1,433,343,199 Class A and Class B
ordinary shares issued and outstanding. One ADS represents 10 Class
A ordinary shares.
SHARE REPURCHASE PROGRAM
On September 13, 2018, the Company announced that
its board of directors had approved a share repurchase program of
up to US$100 million of the Company's
outstanding ADSs for a period not to exceed 12 months. Cheetah
funded repurchases made under this program from its available cash
balance. As of June 14, 2019, the
Company had repurchased approximately 4.5 million ADSs for
approximately US$32 million under
this program.
Business Outlook
For the second quarter of 2019, the
Company expects its total revenues to be between RMB920
million (US$137 million)
and RMB950 million (US$142
million). This estimate represents management's preliminary
view as of the date of this release, which is subject to
change.
Conference Call Information
The Company will hold a
conference call on Friday, June 14, 2019 at 8:00
a.m. Eastern Time or 8:00 p.m. 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: 4001-201-203
Hong Kong Toll Free: 800-905-945
Conference ID: Cheetah Mobile
The replay will be accessible through June 21, 2019 by
dialing the following numbers:
International:
|
+1-412-317-0088
|
United States Toll
Free:
|
+1-877-344-7529
|
|
Access
Code:
|
10131962
|
|
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 RMB 6.7112 to US$1.00, the exchange rate in effect as of
March 31, 2018, as set forth in the
H.10 statistical release of the Federal Reserve Board. Such
translations should not be construed as representations that RMB
amounts could be converted into U.S. dollars at that rate or any
other rate, or to be the amounts that would have been reported
under accounting principles generally accepted in the United States of America ("U.S.
GAAP").
ABOUT CHEETAH MOBILE INC.
Cheetah Mobile is a leading mobile Internet company with global
market coverage. It has attracted hundreds of millions of monthly
active users through its mobile utility products such as Clean
Master and Cheetah Keyboard, casual games such as Piano Tiles 2,
Bricks n Balls, and live streaming product LiveME. The Company
provides its advertising customers, which include direct
advertisers and mobile advertising networks through which
advertisers place their advertisements, with direct access to
highly targeted mobile users and global promotional channels. The
Company also provides value-added services to its mobile
application users through the sale of in-app virtual items on
selected mobile products and games. Cheetah Mobile is committed to
leveraging its cutting-edge artificial intelligence technologies to
power its products and make the world smarter. It has been listed
on the New York Stock Exchange since May 2014.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These
statements, including management quotes and business outlook,
constitute forward-looking statements under the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Such statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in the
forward-looking statements, including but are not limited to the
following: Cheetah Mobile's growth strategies; Cheetah Mobile's
ability to retain and increase its user base and expand its product
and service offerings; Cheetah Mobile's ability to monetize its
platform; Cheetah Mobile's future business development, financial
condition and results of operations; competition with companies in
a number of industries including internet companies that provide
online marketing services and internet value-added services;
expected changes in Cheetah Mobile's revenues and certain cost or
expense items; and general economic and business condition globally
and in China. Further information
regarding these and other risks is included in Cheetah Mobile's
filings with the U.S. Securities and Exchange Commission. Cheetah
Mobile does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under applicable law.
USE OF NON-GAAP FINANCIAL MEASURES
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 cost of revenues reflects cost of revenues excluding
the portion of share-based compensation expenses allocated to cost
of revenues.
- Non-GAAP gross profit reflects gross profit excluding the
portion of share-based compensation expenses allocated to gross
profit.
- Non-GAAP operating income and expenses reflect operating income
and expenses excluding the portion of share-based compensation
expenses allocated to operating expenses.
- Non-GAAP operating profit reflects operating profit excluding
share-based compensation expenses.
- Non-GAAP net income attributable to Cheetah Mobile shareholders
is net income attributable to Cheetah Mobile shareholders excluding
share-based compensation expenses.
- Non-GAAP diluted earnings per ADS is non-GAAP net income
attributable to Cheetah Mobile shareholders excluding net income
attributable to redeemable non-controlling interests, 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.
- Free cash flow is net cash generated by operating activities
less capital expenditure.
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 ext. 1600
Email: helenjingzhu@cmcm.com
ICR Inc.
Jack Wang
Tel: +1 (646) 417-5395
Email: IR@cmcm.com
CHEETAH MOBILE
INC.
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$")
|
|
|
|
|
|
|
|
As
of
|
|
December 31,
2018
|
|
31-Mar-19
|
|
31-Mar-19
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
2,783,843
|
|
2,048,801
|
|
305,281
|
Restricted
cash
|
6,133
|
|
2,613
|
|
389
|
Short-term
investments
|
930,610
|
|
1,371,144
|
|
204,307
|
Accounts
receivable
|
655,261
|
|
569,495
|
|
84,857
|
Prepayments and other
current assets
|
1,064,714
|
|
1,140,449
|
|
169,932
|
Due from related
parties
|
126,990
|
|
198,363
|
|
29,557
|
Total current
assets
|
5,567,551
|
|
5,330,865
|
|
794,323
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
63,919
|
|
60,185
|
|
8,968
|
Right-of-use assets,
net*
|
-
|
|
216,155
|
|
32,208
|
Intangible assets,
net
|
48,421
|
|
44,646
|
|
6,652
|
Goodwill
|
617,837
|
|
610,170
|
|
90,918
|
Investment in equity investees
|
151,533
|
|
160,703
|
|
23,945
|
Other long term investments
|
1,697,510
|
|
1,697,382
|
|
252,918
|
Due from related
parties
|
21,139
|
|
19,473
|
|
2,902
|
Deferred tax
assets
|
88,896
|
|
95,586
|
|
14,243
|
Other non-current
assets
|
35,830
|
|
35,432
|
|
5,279
|
Total non-current
assets
|
2,725,085
|
|
2,939,732
|
|
438,033
|
|
|
|
|
|
|
Total
assets
|
8,292,636
|
|
8,270,597
|
|
1,232,356
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
171,055
|
|
159,567
|
|
23,776
|
Accrued expenses and
other current liabilities
|
1,514,642
|
|
1,320,065
|
|
196,696
|
Due to related
parties
|
37,298
|
|
37,341
|
|
5,564
|
Income tax
payable
|
112,770
|
|
121,580
|
|
18,116
|
Total current
liabilities
|
1,835,765
|
|
1,638,553
|
|
244,152
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
110,291
|
|
112,601
|
|
16,778
|
Other non-current
liabilities*
|
64,185
|
|
285,078
|
|
42,477
|
Total non-current
liabilities
|
174,476
|
|
397,679
|
|
59,255
|
|
|
|
|
|
|
Total
liabilities
|
2,010,241
|
|
2,036,232
|
|
303,407
|
|
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
687,847
|
|
697,996
|
|
104,005
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
230
|
|
231
|
|
34
|
Treasury
stock
|
(221,932)
|
|
(221,932)
|
|
(33,069)
|
Additional paid-in
capital
|
2,742,893
|
|
2,770,790
|
|
412,861
|
Retained
earnings
|
2,705,970
|
|
2,703,251
|
|
402,797
|
Accumulated other
comprehensive income
|
249,304
|
|
170,104
|
|
25,346
|
Total Cheetah
Mobile shareholders' equity
|
5,476,465
|
|
5,422,444
|
|
807,969
|
Noncontrolling
interests
|
118,083
|
|
113,925
|
|
16,975
|
|
|
|
|
|
|
Total
equity
|
5,594,548
|
|
5,536,369
|
|
824,944
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
8,292,636
|
|
8,270,597
|
|
1,232,356
|
|
|
|
|
|
|
|
|
|
|
|
|
* On January 1, 2019,
the company adopted ASC 842, the new lease standard, using the
modified retrospective basis and did not restate
comparative periods.
|
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Comprehensive Income
(Loss)
|
|
|
|
|
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for number of shares and per share(or ADS)
data)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2018
|
|
December 31,
2018
|
|
March 31,
2019
|
|
March 31,
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
1,145,097
|
|
1,381,173
|
|
1,085,628
|
|
161,764
|
Utility products and
related services
|
744,763
|
|
783,021
|
|
497,933
|
|
74,195
|
Mobile
entertainment
|
392,452
|
|
555,597
|
|
556,230
|
|
82,881
|
Others
|
7,882
|
|
42,555
|
|
31,465
|
|
4,688
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(391,182)
|
|
(416,399)
|
|
(366,931)
|
|
(54,674)
|
Gross
profit
|
753,915
|
|
964,774
|
|
718,697
|
|
107,090
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(147,278)
|
|
(191,135)
|
|
(196,938)
|
|
(29,345)
|
Selling and marketing
(a)
|
(391,355)
|
|
(580,330)
|
|
(436,629)
|
|
(65,060)
|
General and
administrative (a)
|
(90,600)
|
|
(131,849)
|
|
(105,829)
|
|
(15,769)
|
Impairment of
goodwill and intangible assets
|
-
|
|
(7,180)
|
|
-
|
|
-
|
Other operating
income
|
11,679
|
|
20,771
|
|
3,002
|
|
447
|
Total operating
income and expenses
|
(617,554)
|
|
(889,723)
|
|
(736,394)
|
|
(109,727)
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
136,361
|
|
75,051
|
|
(17,697)
|
|
(2,637)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income,
net
|
16,652
|
|
27,519
|
|
31,617
|
|
4,711
|
Foreign exchange
(loss) gain, net
|
(12,829)
|
|
6,096
|
|
(5,373)
|
|
(801)
|
Impairment of
investment impairment
|
(58,000)
|
|
(98,885)
|
|
-
|
|
-
|
(Loss) Gain from
equity method investments, net
|
(2,739)
|
|
2,694
|
|
6,141
|
|
915
|
Other income,
net
|
500
|
|
789,325
|
|
432
|
|
64
|
|
|
|
|
|
|
|
|
Income before
taxes
|
79,945
|
|
801,800
|
|
15,120
|
|
2,252
|
Income tax
expenses
|
(5,042)
|
|
(57,008)
|
|
(12,434)
|
|
(1,853)
|
Net
income
|
74,903
|
|
744,792
|
|
2,686
|
|
399
|
Less: net income
(loss) attributable to noncontrolling interests
|
4,906
|
|
11,457
|
|
(4,428)
|
|
(660)
|
Net income
attributable to Cheetah Mobile shareholders
|
69,997
|
|
733,335
|
|
7,114
|
|
1,059
|
|
|
|
|
|
|
|
|
Earnings (Losses)
per share
|
|
|
|
|
|
|
|
Basic
|
0.04
|
|
0.52
|
|
0.00
|
|
0.00
|
Diluted
|
0.04
|
|
0.51
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
|
|
Earnings (Losses)
per ADS
|
|
|
|
|
|
|
|
Basic
|
0.43
|
|
5.19
|
|
(0.02)
|
|
0.00
|
Diluted
|
0.42
|
|
5.09
|
|
(0.02)
|
|
0.00
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,403,597,719
|
|
1,393,015,891
|
|
1,365,622,524
|
|
1,365,622,524
|
Diluted
|
1,452,802,118
|
|
1,420,765,216
|
|
1,392,184,524
|
|
1,392,184,524
|
Weighted average
number of ADSs outstanding
|
|
|
|
|
|
|
|
Basic
|
140,359,772
|
|
139,301,589
|
|
136,562,252
|
|
136,562,252
|
Diluted
|
145,280,212
|
|
142,076,522
|
|
139,218,452
|
|
139,218,452
|
|
|
|
|
|
|
|
|
Other
comprehensive (loss) income, net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(134,774)
|
|
(23,031)
|
|
(82,541)
|
|
(12,299)
|
Unrealized (loss)
gain on available-for-sale securities, net
|
-
|
|
(1,203)
|
|
3,498
|
|
521
|
Other
comprehensive loss
|
(134,774)
|
|
(24,234)
|
|
(79,043)
|
|
(11,778)
|
Total
comprehensive (loss) income
|
(59,871)
|
|
720,558
|
|
(76,357)
|
|
(11,379)
|
Less: Total
comprehensive income (loss) attributable to
noncontrolling interests
|
3,321
|
|
12,574
|
|
(4,271)
|
|
(636)
|
Total
comprehensive (loss) income attributable to Cheetah
Mobile
shareholders
|
(63,192)
|
|
707,984
|
|
(72,086)
|
|
(10,743)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Comprehensive Income
(Loss)
|
|
|
|
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for number of shares and per share(or ADS)
data)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2018
|
|
December 31,
2018
|
|
March 31,
2019
|
|
March 31,
2019
|
(a) Share-based
compensation expenses
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Cost of
revenues
|
(90)
|
|
160
|
|
159
|
|
24
|
Research and
development
|
(6,143)
|
|
15,169
|
|
16,512
|
|
2,460
|
Selling and
marketing
|
302
|
|
2,665
|
|
2,827
|
|
421
|
General and
administrative
|
14,850
|
|
17,266
|
|
7,153
|
|
1,066
|
Total
|
8,919
|
|
35,260
|
|
26,651
|
|
3,971
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in'000,
except for per share data and percentage)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2019
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
1,085,628
|
|
|
|
|
|
|
|
1,085,628
|
|
|
|
161,764
|
Cost of
revenues
|
(366,931)
|
|
33.8%
|
|
159
|
|
0.0%
|
|
(366,772)
|
|
33.8%
|
|
(54,650)
|
Gross
profit
|
718,697
|
|
66.2%
|
|
159
|
|
0.0%
|
|
718,856
|
|
66.2%
|
|
107,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(196,938)
|
|
18.1%
|
|
16,512
|
|
1.5%
|
|
(180,426)
|
|
16.6%
|
|
(26,885)
|
Selling and
marketing
|
(436,629)
|
|
40.2%
|
|
2,827
|
|
0.3%
|
|
(433,802)
|
|
40.0%
|
|
(64,639)
|
General and
administrative
|
(105,829)
|
|
9.7%
|
|
7,153
|
|
0.7%
|
|
(98,676)
|
|
9.1%
|
|
(14,703)
|
Other operating
income
|
3,002
|
|
0.3%
|
|
-
|
|
0.0%
|
|
3,002
|
|
0.3%
|
|
447
|
Total operating
income and expenses
|
(736,394)
|
|
67.8%
|
|
26,492
|
|
2.4%
|
|
(709,902)
|
|
65.4%
|
|
(105,780)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating(loss)
profit
|
(17,697)
|
|
1.6%
|
|
26,651
|
|
2.5%
|
|
8,954
|
|
0.8%
|
|
1,334
|
Net income
attributable to Cheetah Mobile shareholders
|
7,114
|
|
0.7%
|
|
26,651
|
|
2.5%
|
|
33,765
|
|
3.1%
|
|
5,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (losses)
earnings per ordinary share (RMB)
|
0.00
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
|
Diluted (losses)
earnings per ADS (RMB)
|
(0.02)
|
|
|
|
0.19
|
|
|
|
0.17
|
|
|
|
|
Diluted (losses)
earnings per ADS (USD)
|
0.00
|
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2018
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,381,173
|
|
|
|
|
|
|
|
1,381,173
|
|
|
|
|
Cost of
revenues
|
(416,399)
|
|
30.1%
|
|
160
|
|
0.0%
|
|
(416,239)
|
|
30.1%
|
|
|
Gross
profit
|
964,774
|
|
69.9%
|
|
160
|
|
0.0%
|
|
964,934
|
|
69.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(191,135)
|
|
13.8%
|
|
15,169
|
|
1.1%
|
|
(175,966)
|
|
12.7%
|
|
|
Selling and
marketing
|
(580,330)
|
|
42.0%
|
|
2,665
|
|
0.2%
|
|
(577,665)
|
|
41.8%
|
|
|
General and
administrative
|
(131,849)
|
|
9.5%
|
|
17,266
|
|
1.3%
|
|
(114,583)
|
|
8.3%
|
|
|
Impairment of
goodwill and intangible assets
|
(7,180)
|
|
0.5%
|
|
-
|
|
0.0%
|
|
(7,180)
|
|
0.5%
|
|
|
Other operating
income
|
20,771
|
|
1.5%
|
|
-
|
|
0.0%
|
|
20,771
|
|
1.5%
|
|
|
Total operating
income and expenses
|
(889,723)
|
|
64.4%
|
|
35,100
|
|
2.5%
|
|
(854,623)
|
|
61.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
75,051
|
|
5.4%
|
|
35,260
|
|
2.6%
|
|
110,311
|
|
8.0%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
733,335
|
|
53.1%
|
|
35,260
|
|
2.6%
|
|
768,595
|
|
55.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.51
|
|
|
|
0.02
|
|
|
|
0.53
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
5.09
|
|
|
|
0.25
|
|
|
|
5.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2018
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,145,097
|
|
|
|
|
|
|
|
1,145,097
|
|
|
|
|
Cost of
revenues
|
(391,182)
|
|
34.2%
|
|
(90)
|
|
0.0%
|
|
(391,272)
|
|
34.2%
|
|
|
Gross
profit
|
753,915
|
|
65.8%
|
|
(90)
|
|
0.0%
|
|
753,825
|
|
65.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(147,278)
|
|
12.9%
|
|
(6,143)
|
|
0.5%
|
|
(153,421)
|
|
13.4%
|
|
|
Selling and
marketing
|
(391,355)
|
|
34.2%
|
|
302
|
|
0.0%
|
|
(391,053)
|
|
34.2%
|
|
|
General and
administrative
|
(90,600)
|
|
7.9%
|
|
14,850
|
|
1.3%
|
|
(75,750)
|
|
6.6%
|
|
|
Other operating
income
|
11,679
|
|
1.0%
|
|
-
|
|
0.0%
|
|
11,679
|
|
1.0%
|
|
|
Total operating
income and expenses
|
(617,554)
|
|
53.9%
|
|
9,009
|
|
0.8%
|
|
(608,545)
|
|
53.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
136,361
|
|
11.9%
|
|
8,919
|
|
0.8%
|
|
145,280
|
|
12.7%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
69,997
|
|
6.1%
|
|
8,919
|
|
0.8%
|
|
78,916
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.04
|
|
|
|
0.01
|
|
|
|
0.05
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.42
|
|
|
|
0.06
|
|
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
|
|
|
Information about
Segment
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in'000,
except for percentage)
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2019
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
USD
|
Revenue
|
497,933
|
|
556,230
|
|
31,465
|
|
-
|
|
1,085,628
|
161,764
|
Operating profit
(loss)
|
123,175
|
|
(44,148)
|
|
(70,073)
|
|
(26,651)
|
|
(17,697)
|
(2,637)
|
Operating
margin
|
24.7%
|
|
(7.9)%
|
|
(222.7)%
|
|
|
|
(1.6)%
|
(1.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2018
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Revenue
|
783,021
|
|
555,597
|
|
42,555
|
|
-
|
|
1,381,173
|
|
Operating profit
(loss)
|
224,033
|
|
(64,780)
|
|
(48,942)
|
|
(35,260)
|
|
75,051
|
|
Operating
margin
|
28.6%
|
|
(11.7)%
|
|
(115.0)%
|
|
|
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2018
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Revenue
|
744,763
|
|
392,452
|
|
7,882
|
|
-
|
|
1,145,097
|
|
Operating profit
(loss)
|
264,706
|
|
(75,046)
|
|
(44,380)
|
|
(8,919)
|
|
136,361
|
|
Operating
margin
|
35.5%
|
|
(19.1)%
|
|
(563.1)%
|
|
|
|
11.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
* Unallocated
expenses refer to SBC expenses 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, in
'000)
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2018
|
December 31,
2018
|
March 31,
2019
|
March 31,
2019
|
|
RMB
|
RMB
|
RMB
|
USD
|
Net income
attributable to Cheetah Mobile shareholders
|
69,997
|
733,335
|
7,114
|
1,059
|
Add:
|
|
|
|
|
Income tax
expenses
|
5,042
|
57,008
|
12,434
|
1,853
|
Interest income,
net
|
(16,652)
|
(27,519)
|
(31,617)
|
(4,711)
|
Depreciation and
amortization
|
23,472
|
17,237
|
16,351
|
2,436
|
Net income (loss)
attributable to noncontrolling interests
|
4,906
|
11,457
|
(4,428)
|
(660)
|
Other non-operating
expense (income), net
|
73,068
|
(699,230)
|
(1,200)
|
(178)
|
Share-based
compensation
|
8,919
|
35,260
|
26,651
|
3,971
|
Adjusted
EBITDA
|
168,752
|
127,548
|
25,305
|
3,770
|
CHEETAH MOBILE
INC.
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
|
(Unaudited, in
'000)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2018
|
December 31,
2018
|
March 31,
2019
|
March 31,
2019
|
|
RMB
|
RMB
|
RMB
|
USD
|
PC
|
127,094
|
171,837
|
120,278
|
17,922
|
Mobile
|
1,018,003
|
1,209,336
|
965,350
|
143,842
|
Total
|
1,145,097
|
1,381,173
|
1,085,628
|
161,764
|
CHEETAH MOBILE
INC.
|
|
|
|
Revenues Generated
from Domestic and Overseas Markets
|
|
|
(Unaudited, in
'000)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2018
|
December 31,
2018
|
March 31,
2019
|
March 31,
2019
|
|
RMB
|
RMB
|
RMB
|
USD
|
Domestic
|
447,620
|
533,221
|
424,323
|
63,226
|
Overseas
|
697,477
|
847,952
|
661,305
|
98,538
|
Total
|
1,145,097
|
1,381,173
|
1,085,628
|
161,764
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-first-quarter-2019-unaudited-consolidated-financial-results-300867782.html
SOURCE Cheetah Mobile Inc