BEIJING, Aug. 20. 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 second quarter
ended June 30, 2019.
Management Commentaries
Mr. Sheng Fu, Cheetah Mobile's
Chairman and Chief Executive Officer, stated, "Our second quarter
revenues exceeded the high end of our revenue guidance for the
quarter. Notably, this revenue growth was driven by our mobile
games and AI-related businesses. During the quarter, revenues from
our mobile games business increased by 109% year over year while
revenues from AI and other businesses increased by 236% year over
year. These robust growth performances are a testament to our
continuous product enhancement and innovation. By leveraging our
massive user base and cash generated from our utility product
business, we have increasingly streamlined our operations to
bolster these two growing business segments. Looking ahead, we will
continue to invest heavily in our AI-related business to build our
growth engine over the long-term in a new technological
era."
Mr. Vincent Jiang, Cheetah
Mobile's Chief Financial Officer, commented, "In the quarter, our
utility products and related services continued to generate a solid
profit of RMB121 million while losses
from the mobile entertainment business continued to narrow. As of
June 30, 2019, we had cash, cash
equivalents, restricted cash, short-term investments of
US$488 million, and long-term
investments of US$287 million.
Looking ahead, we are confident in our long-term growth prospects
and believe that our strong cash generation capabilities in
utilities products and related services and games, combined with
our healthy cash balance, will enable us to continue expanding into
the AI space through the integration of AI technology and
innovative product design."
Second Quarter 2019 Operating Metric
The average number of global mobile monthly active users
("Mobile MAUs") was 376.5 million in the second quarter of 2019.
The number of Mobile MAUs from markets outside of China, or
overseas markets, accounted for 74.2% of the total number of Mobile
MAUs in the second quarter of 2019.
Second Quarter 2019 Consolidated Financial Results
REVENUES
Total revenues were RMB970.1 million (US$141.3
million) in the second quarter of 2019, decreasing by 12.1%
year over year.
Revenues from utility products and related services
decreased by 44.0% year over year to RMB423.5 million (US$61.7
million) in the second quarter of 2019. This year-over-year
decrease was primarily due to the slowdown of the Company's
overseas mobile utility business, resulting from the negative
publicity caused by a news article from 2018, and the softness of
the domestic advertising industry in 2019.
Revenues from the mobile entertainment business increased
by 49.6% year over year to RMB498.0
million (US$72.5million),
driven by the growth of both the Company's mobile games business
and LiveMe business.
- Revenues from the mobile games business increased by 108.5%
year over year to RMB289.2 million
(US$42.1 million) in the quarter.
This increase was mainly attributable to the strong performance of
Bricks n Balls, which began to ramp up in the middle of
July 2018, as well as several new
casual games launched earlier in the year. In addition, the
Company's flagship titles, including Piano Tiles 2, Rolling Sky,
and Dancing Line, also exhibited strong performance throughout the
quarter.
- Revenues from LiveMe increased by 7.5% year over year to
RMB208.8 million (US$30.4 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.
AI and other revenues grew by 236.2% year over year to
RMB48.6 million (US$7.1 million), mainly driven by the sales of
Cheetah Translator, the Company's AI-based interpretation
device.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 6.9% year over year to
RMB327.0 million (US$47.6 million) in the second 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 increases in
both content and channel costs in relation to the Company's mobile
game business as well as costs associated with the Company's AI
business. Non-GAAP cost of revenues decreased by 7.0% year
over year to RMB326.8 million
(US$47.6 million) in the second
quarter of 2019.
Gross profit decreased by 14.5% year over year to
RMB643.2 million (US$93.7 million) in the second quarter of 2019.
Non-GAAP gross profit decreased by 14.5% year over
year to RMB643.3 million
(US$93.7 million). Gross
margin was 66.3% in the second quarter of 2019, compared to
68.2% in the second quarter of 2018. Non-GAAP gross margin was
66.3% in the second quarter of 2019, compared to 68.2% in the
second quarter of 2018.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses increased by 12.0% year over
year to RMB698.9 million
(US$101.8 million) in the second
quarter of 2019. Total non-GAAP operating expenses increased
by 9.1% year over year to RMB665.1
million (US$96.9 million) in
the second quarter of 2019.
- Research and development (R&D) expenses increased by
36.2% year over year to RMB211.4
million (US$30.8 million) in
the second quarter of 2019. This increase was primarily
attributable to higher share-based compensation expenses and an
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 24.7% year
over year to RMB197.8 million
(US$28.8 million) in the second
quarter of 2019.
- Selling and marketing expenses increased by 3.2% year
over year to RMB381.8 million
(US$55.6 million) in the second
quarter of 2019. This increase was mainly a result of the Company's
increased promotional efforts for its new mobile games. Non-GAAP
selling and marketing expenses, which exclude share-based
compensation expenses, increased by 3.8% year over year to
RMB381.2 million (US$55.5 million) in the second quarter of
2019.
- General and administrative expenses increased by 17.5%
year over year to RMB117.6 million
(US$17.1 million) in the second
quarter of 2019. This year-over-year increase was primarily due to
increases in professional service fees, and share-based
compensation expenses. Non-GAAP general and administrative
expenses, which exclude share-based compensation expenses,
increased by 15.5% year over year to RMB98.0
million (US$14.3 million) in
the second quarter of 2019.
Operating loss was RMB55.7
million (US$8.1 million) in
the second quarter of 2019, compared to an operating profit of
RMB127.9 million in the same period
last year. Non-GAAP operating loss was RMB21.8 million (US$3.2
million) in the second quarter of 2019, compared to a
Non-GAAP operating income of RMB142.6
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 RMB121.1 million
(US$17.6 million) in the second
quarter of 2019, decreasing from RMB282.1
million in the second quarter of 2018, mainly due to the
revenue decrease.
- Operating loss for the mobile entertainment business was
RMB68.4 million (US$10.0 million) in the second quarter of 2019,
compared to operating loss of RMB98.6
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 were RMB34.0 million (US$4.9
million) in the second quarter of 2019, compared to
RMB14.6 million in the same period
last year, as the Company granted a certain number of restricted
shares to employees.
OTHER INCOME, NET
Other income, net was RMB33.8
million (US$4.9 million) in
the second quarter of 2019, which was primarily due to increases in
fair value of certain long-term investments, including our
investments in Codemao, a Chinese online education platform that
teaches programming to children, and SuperAtom, an online finance
platform focusing on the southeastern Asia markets, in the second quarter of
2019.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was
RMB48.5 million (US$7.1 million) in the second quarter of 2019.
Non-GAAP net income attributable to Cheetah Mobile
shareholders was RMB82.5 million
(US$12.0 million) in the second
quarter of 2019.
NET INCOME PER ADS
Diluted earnings per ADS was RMB0.28
(US$0.04) in the second quarter of
2019. Non-GAAP diluted income per ADS was RMB0.52 (US$0.08)
in the second quarter of 2019.
BALANCE SHEET
As of June 30, 2019, the Company had
cash and cash equivalents, restricted cash, and short-term
investments of RMB3,351.4 million
(US$488.2 million).
SHARES ISSUED AND OUTSTANDING
As of June 30, 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.
RECENT UPDATES
LiveMe to Amend its Share Incentive Plan
To better
incentivize LiveMe's key employees amid increasingly fierce
competition throughout the live streaming and short-form video
market, both LiveMe's board of directors and Cheetah Mobile's board
of directors have approved LiveMe to (i) amend its share incentive
plan to increase the number of shares to be issued under the
current plan and (ii) issue a certain number of new shares into a
trust under the plan for the benefit of current and future
recipients of LiveMe's share incentive awards. The amendment of the
plan and the issuance of new shares will become effective on
September 30, 2019.
As a result, Cheetah Mobile will no longer hold the majority
voting power in LiveMe and will cease to consolidate LiveMe's
financial results into the Company's consolidated financial
statements starting the fourth quarter of 2019.
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. The Company
funded repurchases made under this program from its available cash
balance. As of August 19, 2019, the
Company had repurchased approximately 4.5 million ADSs for
approximately US$32 million under
this program.
Business Outlook
For the third quarter of 2019, the Company expects its total
revenues to be between RMB940 million
(US$137 million) and RMB980 million (US$143
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 Tuesday, August 20, 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 August 27, 2019 by dialing the following
numbers:
International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10134187
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 RMB6.8650 to US$1.00, the exchange rate in effect as of
June 30, 2019, 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
|
|
June 30,
2019
|
|
June 30,
2019
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
2,783,843
|
|
1,928,068
|
|
280,855
|
Restricted
cash
|
6,133
|
|
2,657
|
|
387
|
Short-term
investments
|
930,610
|
|
1,420,652
|
|
206,941
|
Accounts
receivable
|
655,261
|
|
537,329
|
|
78,271
|
Prepayments and other
current assets
|
1,064,714
|
|
1,198,326
|
|
174,556
|
Due from related
parties
|
126,990
|
|
250,607
|
|
36,505
|
Total current
assets
|
5,567,551
|
|
5,337,639
|
|
777,515
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
63,919
|
|
66,575
|
|
9,698
|
Right-of-use assets,
net*
|
-
|
|
210,267
|
|
30,629
|
Intangible assets,
net
|
48,421
|
|
64,687
|
|
9,423
|
Goodwill
|
617,837
|
|
629,583
|
|
91,709
|
Investment in equity investees
|
151,533
|
|
165,690
|
|
24,135
|
Other long term investments
|
1,697,510
|
|
1,803,940
|
|
262,773
|
Due from related
parties
|
21,139
|
|
16,878
|
|
2,459
|
Deferred tax
assets
|
88,896
|
|
129,085
|
|
18,803
|
Other non-current
assets
|
35,830
|
|
36,177
|
|
5,269
|
Total non-current
assets
|
2,725,085
|
|
3,122,882
|
|
454,898
|
|
|
|
|
|
|
Total
assets
|
8,292,636
|
|
8,460,521
|
|
1,232,413
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
171,055
|
|
163,490
|
|
23,815
|
Accrued expenses and
other current liabilities
|
1,514,642
|
|
1,355,760
|
|
197,489
|
Due to related
parties
|
37,298
|
|
37,516
|
|
5,465
|
Income tax
payable
|
112,770
|
|
100,745
|
|
14,675
|
Total current
liabilities
|
1,835,765
|
|
1,657,511
|
|
241,444
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
110,291
|
|
116,920
|
|
17,031
|
Other non-current
liabilities*
|
64,185
|
|
279,579
|
|
40,724
|
Total non-current
liabilities
|
174,476
|
|
396,499
|
|
57,755
|
|
|
|
|
|
|
Total
liabilities
|
2,010,241
|
|
2,054,010
|
|
299,199
|
|
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
687,847
|
|
708,534
|
|
103,210
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
230
|
|
231
|
|
34
|
Treasury
stock
|
(221,932)
|
|
(221,932)
|
|
(32,328)
|
Additional paid-in
capital
|
2,742,893
|
|
2,801,117
|
|
408,029
|
Retained
earnings
|
2,705,970
|
|
2,740,847
|
|
399,249
|
Accumulated other
comprehensive income
|
249,304
|
|
266,821
|
|
38,867
|
Total Cheetah
Mobile shareholders' equity
|
5,476,465
|
|
5,587,084
|
|
813,851
|
Noncontrolling
interests
|
118,083
|
|
110,893
|
|
16,153
|
|
|
|
|
|
|
Total
equity
|
5,594,548
|
|
5,697,977
|
|
830,004
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
8,292,636
|
|
8,460,521
|
|
1,232,413
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
June 30,
2018
|
|
March 31,
2019
|
|
June 30,
2019
|
|
June 30,
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
1,103,456
|
|
1,085,628
|
|
970,145
|
|
141,318
|
Utility products and
related services
|
756,093
|
|
497,933
|
|
423,524
|
|
61,694
|
Mobile
entertainment
|
332,907
|
|
556,230
|
|
498,021
|
|
72,545
|
AI and
others
|
14,456
|
|
31,465
|
|
48,600
|
|
7,079
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(351,360)
|
|
(366,931)
|
|
(326,982)
|
|
(47,630)
|
Gross
profit
|
752,096
|
|
718,697
|
|
643,163
|
|
93,688
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(155,202)
|
|
(196,938)
|
|
(211,369)
|
|
(30,789)
|
Selling and marketing
(a)
|
(369,914)
|
|
(436,629)
|
|
(381,818)
|
|
(55,618)
|
General and
administrative (a)
|
(100,107)
|
|
(105,829)
|
|
(117,644)
|
|
(17,137)
|
Impairment of
goodwill and intangible assets
|
(5,587)
|
|
-
|
|
-
|
|
-
|
Other operating
income
|
6,660
|
|
3,002
|
|
11,957
|
|
1,742
|
Total operating
income and expenses
|
(624,150)
|
|
(736,394)
|
|
(698,874)
|
|
(101,802)
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
127,946
|
|
(17,697)
|
|
(55,711)
|
|
(8,114)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income,
net
|
19,425
|
|
31,617
|
|
31,988
|
|
4,660
|
Foreign exchange gain
(loss) , net
|
10,022
|
|
(5,373)
|
|
1,280
|
|
186
|
(Loss) Gain from
equity method investments, net
|
(2,818)
|
|
6,141
|
|
10,566
|
|
1,539
|
Other income,
net
|
67,166
|
|
432
|
|
33,766
|
|
4,919
|
|
|
|
|
|
|
|
|
Income before
taxes
|
221,741
|
|
15,120
|
|
21,889
|
|
3,190
|
Income tax expenses
(benefits)
|
(27,993)
|
|
(12,434)
|
|
24,422
|
|
3,557
|
Net
income
|
193,748
|
|
2,686
|
|
46,311
|
|
6,747
|
Less: net loss
attributable to noncontrolling interests
|
(2,792)
|
|
(4,428)
|
|
(2,220)
|
|
(323)
|
Net income
attributable to Cheetah Mobile shareholders
|
196,540
|
|
7,114
|
|
48,531
|
|
7,070
|
|
|
|
|
|
|
|
|
Earnings (Losses)
per share
|
|
|
|
|
|
|
|
Basic
|
0.13
|
|
0.00
|
|
0.03
|
|
0.00
|
Diluted
|
0.13
|
|
0.00
|
|
0.03
|
|
0.00
|
|
|
|
|
|
|
|
|
Earnings (Losses)
per ADS
|
|
|
|
|
|
|
|
Basic
|
1.33
|
|
(0.02)
|
|
0.28
|
|
0.04
|
Diluted
|
1.29
|
|
(0.02)
|
|
0.28
|
|
0.04
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,407,191,965
|
|
1,365,622,524
|
|
1,367,557,150
|
|
1,367,557,150
|
Diluted
|
1,452,195,012
|
|
1,392,184,524
|
|
1,388,236,454
|
|
1,388,236,454
|
Weighted average
number of ADSs outstanding
|
|
|
|
|
|
|
|
Basic
|
140,719,197
|
|
136,562,252
|
|
136,755,715
|
|
136,755,715
|
Diluted
|
145,219,501
|
|
139,218,452
|
|
138,823,645
|
|
138,823,645
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
188,530
|
|
(82,541)
|
|
93,367
|
|
13,600
|
Unrealized gain on
available-for-sale securities, net
|
-
|
|
3,498
|
|
3,872
|
|
564
|
Other
comprehensive income (loss)
|
188,530
|
|
(79,043)
|
|
97,239
|
|
14,164
|
Total
comprehensive income (loss)
|
382,278
|
|
(76,357)
|
|
143,550
|
|
20,911
|
Less: Total
comprehensive income (loss) attributable to
noncontrolling interests
|
1,358
|
|
(4,271)
|
|
(1,698)
|
|
(247)
|
Total
comprehensive income (loss) attributable to Cheetah Mobile
shareholders
|
380,920
|
|
(72,086)
|
|
145,248
|
|
21,158
|
|
|
|
|
|
|
|
|
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
|
|
June 30,
2018
|
|
March 31,
2019
|
|
June 30,
2019
|
|
June 30,
2019
|
(a) Share-based
compensation expenses
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Cost of
revenues
|
90
|
|
159
|
|
143
|
|
21
|
Research and
development
|
(3,365)
|
|
16,512
|
|
13,578
|
|
1,978
|
Selling and
marketing
|
2,683
|
|
2,827
|
|
593
|
|
86
|
General and
administrative
|
15,225
|
|
7,153
|
|
19,640
|
|
2,861
|
Total
|
14,633
|
|
26,651
|
|
33,954
|
|
4,946
|
|
|
|
|
|
|
|
|
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 June 30, 2019
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
970,145
|
|
|
|
|
|
|
|
970,145
|
|
|
|
141,318
|
Cost of
revenues
|
(326,982)
|
|
33.7%
|
|
143
|
|
0.0%
|
|
(326,839)
|
|
33.7%
|
|
(47,609)
|
Gross
profit
|
643,163
|
|
66.3%
|
|
143
|
|
0.0%
|
|
643,306
|
|
66.3%
|
|
93,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(211,369)
|
|
21.8%
|
|
13,578
|
|
1.4%
|
|
(197,791)
|
|
20.4%
|
|
(28,811)
|
Selling and
marketing
|
(381,818)
|
|
39.4%
|
|
593
|
|
0.1%
|
|
(381,225)
|
|
39.3%
|
|
(55,532)
|
General and
administrative
|
(117,644)
|
|
12.1%
|
|
19,640
|
|
2.0%
|
|
(98,004)
|
|
10.1%
|
|
(14,276)
|
Other operating
income
|
11,957
|
|
1.2%
|
|
-
|
|
0.0%
|
|
11,957
|
|
1.2%
|
|
1,742
|
Total operating
income and expenses
|
(698,874)
|
|
72.0%
|
|
33,811
|
|
3.5%
|
|
(665,063)
|
|
68.6%
|
|
(96,877)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(55,711)
|
|
5.7%
|
|
33,954
|
|
3.5%
|
|
(21,757)
|
|
2.2%
|
|
(3,168)
|
Net income
attributable to Cheetah Mobile shareholders
|
48,531
|
|
5.0%
|
|
33,954
|
|
3.5%
|
|
82,485
|
|
8.5%
|
|
12,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.03
|
|
|
|
0.02
|
|
|
|
0.05
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.28
|
|
|
|
0.24
|
|
|
|
0.52
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.04
|
|
|
|
0.04
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2019
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,085,628
|
|
|
|
|
|
|
|
1,085,628
|
|
|
|
|
Cost of
revenues
|
(366,931)
|
|
33.8%
|
|
159
|
|
0.0%
|
|
(366,772)
|
|
33.8%
|
|
|
Gross
profit
|
718,697
|
|
66.2%
|
|
159
|
|
0.0%
|
|
718,856
|
|
66.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(196,938)
|
|
18.1%
|
|
16,512
|
|
1.5%
|
|
(180,426)
|
|
16.6%
|
|
|
Selling and
marketing
|
(436,629)
|
|
40.2%
|
|
2,827
|
|
0.3%
|
|
(433,802)
|
|
40.0%
|
|
|
General and
administrative
|
(105,829)
|
|
9.7%
|
|
7,153
|
|
0.7%
|
|
(98,676)
|
|
9.1%
|
|
|
Other operating
income
|
3,002
|
|
0.3%
|
|
-
|
|
0.0%
|
|
3,002
|
|
0.3%
|
|
|
Total operating
income and expenses
|
(736,394)
|
|
67.8%
|
|
26,492
|
|
2.4%
|
|
(709,902)
|
|
65.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(17,697)
|
|
1.6%
|
|
26,651
|
|
2.5%
|
|
8,954
|
|
0.8%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
7,114
|
|
0.7%
|
|
26,651
|
|
2.5%
|
|
33,765
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2018
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,103,456
|
|
|
|
|
|
|
|
1,103,456
|
|
|
|
|
Cost of
revenues
|
(351,360)
|
|
31.8%
|
|
90
|
|
0.0%
|
|
(351,270)
|
|
31.8%
|
|
|
Gross
profit
|
752,096
|
|
68.2%
|
|
90
|
|
0.0%
|
|
752,186
|
|
68.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(155,202)
|
|
14.1%
|
|
(3,365)
|
|
0.3%
|
|
(158,567)
|
|
14.4%
|
|
|
Selling and
marketing
|
(369,914)
|
|
33.5%
|
|
2,683
|
|
0.2%
|
|
(367,231)
|
|
33.3%
|
|
|
General and
administrative
|
(100,107)
|
|
9.1%
|
|
15,225
|
|
1.4%
|
|
(84,882)
|
|
7.7%
|
|
|
Impairment of
goodwill and intangible assets
|
(5,587)
|
|
0.5%
|
|
-
|
|
0.0%
|
|
(5,587)
|
|
0.5%
|
|
|
Other operating
income
|
6,660
|
|
0.6%
|
|
-
|
|
0.0%
|
|
6,660
|
|
0.6%
|
|
|
Total operating
income and expenses
|
(624,150)
|
|
56.6%
|
|
14,543
|
|
1.3%
|
|
(609,607)
|
|
55.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
127,946
|
|
11.6%
|
|
14,633
|
|
1.3%
|
|
142,579
|
|
12.9%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
196,540
|
|
17.8%
|
|
14,633
|
|
1.3%
|
|
211,173
|
|
19.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.13
|
|
|
|
0.01
|
|
|
|
0.14
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
1.29
|
|
|
|
0.10
|
|
|
|
1.39
|
|
|
|
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
|
|
|
Information about
Segment
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in'000,
except for percentage)
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2019
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
USD
|
Revenue
|
423,524
|
|
498,021
|
|
48,600
|
|
-
|
|
970,145
|
141,318
|
Operating profit
(loss)
|
121,079
|
|
(68,398)
|
|
(74,438)
|
|
(33,954)
|
|
(55,711)
|
(8,114)
|
Operating
margin
|
28.6%
|
|
(13.7)%
|
|
(153.2)%
|
|
|
|
(5.7)%
|
(5.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2019
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Revenue
|
497,933
|
|
556,230
|
|
31,465
|
|
-
|
|
1,085,628
|
|
Operating profit
(loss)
|
123,175
|
|
(44,148)
|
|
(70,073)
|
|
(26,651)
|
|
(17,697)
|
|
Operating
margin
|
24.7%
|
|
(7.9)%
|
|
(222.7)%
|
|
|
|
(1.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2018
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Revenue
|
756,093
|
|
332,907
|
|
14,456
|
|
-
|
|
1,103,456
|
|
Operating profit
(loss)
|
282,090
|
|
(98,568)
|
|
(40,943)
|
|
(14,633)
|
|
127,946
|
|
Operating
margin
|
37.3%
|
|
(29.6)%
|
|
(283.2)%
|
|
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
June 30,
2018
|
March 31,
2019
|
June 30,
2019
|
June 30,
2019
|
|
RMB
|
RMB
|
RMB
|
USD
|
Net income
attributable to Cheetah Mobile shareholders
|
196,540
|
7,114
|
48,531
|
7,070
|
Add:
|
|
|
|
|
Income tax expenses
(benefits)
|
27,993
|
12,434
|
(24,422)
|
(3,557)
|
Interest income,
net
|
(19,425)
|
(31,617)
|
(31,988)
|
(4,660)
|
Depreciation and
amortization
|
21,573
|
16,351
|
16,809
|
2,449
|
Net loss attributable
to noncontrolling interests
|
(2,792)
|
(4,428)
|
(2,220)
|
(323)
|
Other non-operating
income , net
|
(74,370)
|
(1,200)
|
(45,612)
|
(6,644)
|
Share-based
compensation
|
14,633
|
26,651
|
33,954
|
4,946
|
Adjusted
EBITDA
|
164,152
|
25,305
|
(4,948)
|
(719)
|
CHEETAH MOBILE
INC.
|
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
|
(Unaudited, in
'000)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2018
|
March 31,
2019
|
June 30,
2019
|
June 30,
2019
|
|
RMB
|
RMB
|
RMB
|
USD
|
PC
|
137,763
|
120,278
|
142,346
|
20,735
|
Mobile
|
965,693
|
965,350
|
827,799
|
120,583
|
Total
|
1,103,456
|
1,085,628
|
970,145
|
141,318
|
CHEETAH MOBILE
INC.
|
|
|
|
|
Revenues Generated
from Domestic and Overseas Markets
|
|
|
(Unaudited, in
'000)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2018
|
March 31,
2019
|
June 30,
2019
|
June 30,
2019
|
|
RMB
|
RMB
|
RMB
|
USD
|
Domestic
|
453,837
|
424,323
|
382,396
|
55,702
|
Overseas
|
649,619
|
661,305
|
587,749
|
85,616
|
Total
|
1,103,456
|
1,085,628
|
970,145
|
141,318
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-second-quarter-2019-unaudited-consolidated-financial-results-300904268.html
SOURCE Cheetah Mobile Inc