BEIJING, June 10, 2020 /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, 2020.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's
Chairman and Chief Executive Officer, stated, "In the first quarter
of 2020, we continued to streamline our operations in the mobile
Internet business and implement strict cost and expense controls to
reduce our losses from the previous quarter. Total cost and
expenses decreased by 38.4% year over year and 20.2% sequentially
in the quarter. Gross margin grew to 72.0% in the quarter from
66.2% in the same period last year and from 70.2% in the previous
quarter. Non-GAAP operating loss was RMB141
million in the quarter, decreasing from RMB203 million in the previous quarter. Notably,
non-GAAP operating profit for our mobile Internet business, namely
our utility products and related services and our mobile games
businesses, increased to RMB7.8
million in the quarter from a non-GAAP operating loss of
RMB91.7 million in the previous
quarter. In addition, we continued to execute our AI strategy to
rejuvenate our long-term growth. The recent outbreak of COVID-19
has led to increased number of use cases for our robotics products
and solutions in hospitals and public transit while increasing
customer awareness for the service at the same time. However, we do
not expect our robotics business to generate significant revenues
in the near term."
Mr. Thomas Ren, Cheetah Mobile's
Chief Financial Officer, commented, "In addition to our improved
operating results, we continued to review our investment portfolio
and selectively liquidate some of our investments. Recently, we
disposed of our remaining equity ownership in Bytedance Ltd., which
will result in a gain on investment of approximately US$66 million in the second quarter of 2020. We
also continued to return cash to our shareholders. Recently, our
Board approved a special cash dividend of US$1.44 per ADS. The aggregate amount of the cash
dividends was approximately US$200
million. Importantly, Cheetah Mobile's cash position remains
strong, even after paying out this special cash dividend."
First Quarter 2020 Consolidated Financial Results
REVENUES
Total revenues were RMB528.1
million (US$74.6 million) in
the first quarter of 2020, representing a decrease of 51.4% year
over year. Excluding the impact resulting from the deconsolidation
of LiveMe's revenues, total revenues decreased by 36.4% year over
year in the first quarter of 2020.
Revenues from utility products and related
services decreased by 57.7% year over year to RMB210.8 million (US$29.8
million) in the first quarter of 2020. The year-over-over
decrease was primarily due to (i) a decline in the Company's mobile
utility product business in overseas markets, (ii) a decline in the
Company's mobile utility product business in the domestic market,
and (iii) a decline in PC-related revenues. In the first
quarter of 2020, approximately 71.0% of the Company's revenues from
its utility products and related services business were generated
from advertising while the remaining portion of revenues were
generated from other sources, such as anti-virus software sales and
office software sales.
Revenues from the Company's mobile utility product business in
overseas markets decreased by 62.6% year over year to RMB54.3 million in first quarter of 2020. This
decrease was mainly due to the suspension of the Company's
advertising collaborations with Google since February 2020. On February
21, 2020, the Company announced that the Company's Google
Play Store, Google AdMob, and Google AdManager accounts had been
disabled, which adversely affected its ability to attract new users
and generate revenue from Google. Revenues from the Company's
mobile utility product business in the domestic market decreased by
75.4% year over year to RMB62.1
million in the first quarter of 2020 as a result of the
headwinds in the domestic online advertising market. Our
advertising customers that were negatively impacted by the outbreak
of COVID-19 reduced their budgets on online advertising and
marketing, which materially adversely impacted our revenue from
online marketing services. PC-related revenues decreased by 5.8%
year over year to RMB94.5 million in
the first quarter of 2020 as internet traffic in China continued to migrate from PCs to mobile
devices.
Revenues from the mobile games business decreased by
5.3% year over year to RMB285.5
million (US$40.3 million) in
the first quarter of 2020. This decrease was primarily attributable
to the suspension of the Company's advertising collaborations with
Google since February 2020. In the
first quarter of 2020, approximately 69.9% of the Company's
revenues from its mobile games business were generated from
advertising while the remaining portion of revenues were generated
from in-game purchases.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 59.7% year over year to
RMB147.7 million (US$20.9 million) in the first quarter of 2020.
The decrease was primarily due to the deconsolidation of LiveMe.
Non-GAAP cost of revenues decreased by 59.7% year over year
to RMB147.6 million (US$20.9 million) in the first quarter of
2020.
Gross profit decreased by 47.1% year over year to
RMB380.4 million (US$53.7 million) in the first quarter of 2020.
Non-GAAP gross profit decreased by 47.1% year over year to
RMB380.4 million (US$53.7 million) in the first quarter of
2020.
Gross margin was 72.0% in the first quarter of 2020,
compared to 66.2% in the same period last year. Non-GAAP gross
margin was 72.0% in the first quarter of 2020, compared to
66.2% in the same period last year.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by 28.2% year
over year to RMB528.4 million
(US$74.6 million) in the first
quarter of 2020. Total non-GAAP operating expenses decreased
by 26.5% year over year to RMB521.6
million (US$73.7 million) in
the first quarter of 2020.
- Research and development expenses decreased by
27.6% year over year to RMB142.6
million (US$20.1 million) in
the first quarter of 2020. This decrease was primarily attributable
to a reduction in the personnel for the Company's utility products
and related services business in overseas markets as well as the
deconsolidation of LiveMe. Non-GAAP research and development
expenses decreased by 24.7% year over year to RMB135.9 million (US$19.2
million) in the first quarter of 2020.
- Selling and marketing expenses decreased by 30.7% year
over year to RMB302.8 million
(US$42.8 million) in the first
quarter of 2020. This decrease was mainly due to the reduction in
promotional activities for the Company's utility products and
related services business in the domestic market as well as the
deconsolidation of LiveMe. Non-GAAP selling and marketing
expenses decreased by 29.9% year over year to RMB304.0 million (US$42.9
million) in the first quarter of 2020.
- General and administrative expenses decreased by 16.3%
year over year to RMB88.6 million
(US$12.5 million) in the first
quarter of 2020. This decrease was primarily due to decreased
professional fees and share based compensation. Non-GAAP general
and administrative expenses decreased by 11.5% year over year
to RMB87.3 million (US$12.3 million) in the first quarter of
2020.
Operating loss was RMB148.0
million (US$20.9 million) in
the first quarter of 2020, compared to an operating loss of
RMB17.7 million in the same period
last year. Non-GAAP operating loss was RMB141.1 million (US$19.9
million) in the first quarter of 2020, compared to an
operating profit of RMB9.0 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 RMB44.2 million
(US$6.2 million) in the first quarter
of 2020, compared to RMB123.2 million
in the same period last year, which was mainly due to the decrease
in revenues.
- Operating loss for the mobile entertainment business was
RMB36.4 million (US$5.1 million) in the first quarter of 2020,
compared to RMB44.1 million in the
same period last year, which was mainly attributable to the
deconsolidation of LiveMe.
- Operating loss for AI and other business was
RMB148.9 million (US$21.0 million) in the first quarter of 2020,
compared to RMB70.1 million in the
same period last year, mainly due to the increased investments in
the Company's AI-related business.
Share-based compensation expenses were RMB6.9 million (US$1.0
million) in the first quarter of 2020, compared to
RMB26.7 million in the same period
last year.
OTHER INCOME, NET
Other income, net was RMB42.9
million (US$6.1 million) in
the first quarter of 2020, which was primarily due to increases in
fair value of certain long-term investments.
NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net loss attributable to Cheetah Mobile
shareholders was RMB104.6
million (US$14.8 million) in
the first quarter of 2020, compared to a net income attributable to
Cheetah Mobile shareholders of RMB7.1
million in the same period last year.
Non-GAAP net loss attributable to Cheetah Mobile
shareholders was RMB97.7
million (US$13.8 million) in
the first quarter of 2020, compared to a net income attributable to
Cheetah Mobile shareholders of RMB33.8
million in the same period last year.
NET INCOME/LOSS PER ADS
Diluted loss per ADS was RMB0.76 (US$0.11)
in the first quarter of 2020, compared to RMB0.02 in the same period last year. Non-GAAP
diluted loss per ADS was RMB0.71
(US$0.10) in first quarter of 2020,
compared to diluted earnings per ADS of RMB0.17 in the same period last year.
BALANCE SHEET
As of March 31, 2020, the Company
had cash and cash equivalents, restricted cash, and short-term
investments of RMB2,345.1 million
(US$331.2 million).
SHARES ISSUED AND OUTSTANDING
As of March 31, 2020, the Company
had a total of 1,393,070,159 Class A and Class B ordinary shares
issued and outstanding. One ADS represents 10 Class A ordinary
shares.
Business Outlook
For the second quarter of 2020, the Company expects its total
revenues to be between RMB340 million
(US$48 million) and RMB390 million (US$55
million). This amount reflects the fact that LiveMe's
revenues will no longer be included in the Company's revenues. This
forecast reflects Cheetah Mobile's current and preliminary
expectation, which assumes the COVID-19 situation would not have
any significant unexpected disruption to our operations in the
remainder of the second quarter.
Conference Call Information
The Company will hold a conference call on Wednesday, June 10 2020, at 8:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its 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
|
Mainland China Toll
Free:
|
4001-201-203
|
Hong Kong Toll
Free:
|
800-905-945
|
Conference
ID:
|
Cheetah
Mobile
|
The replay will be accessible June 17,
2020, by dialing the following numbers:
International:
|
+1-412-317-0088
|
United States Toll
Free:
|
+1-877-344-7529
|
Access
Code:
|
10144811
|
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 RMB7.0808 to US$1.00, the exchange rate in effect as of
March 31, 2020, 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, casual games such as Piano Tiles 2, and Bricks n Balls. 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
This release contains the following non-GAAP financial
measures:
- Non-GAAP cost of revenues excludes share-based compensation
expenses
- Non-GAAP gross profit excludes share-based compensation
expenses
- Non-GAAP gross margin excludes share-based compensation
expense
- Total non-GAAP operating expenses exclude share-based
compensation expenses and impairment of goodwill
- Non-GAAP research and development expenses exclude share-based
compensation expenses
- Non-GAAP selling and marketing expenses exclude share-based
compensation expenses
- Non-GAAP general and administrative expenses exclude
share-based compensation expenses
- Non-GAAP operating profit/loss excludes share-based
compensation expenses and impairment of goodwill
- Non-GAAP net income/loss attributable to Cheetah Mobile
shareholders excludes share-based compensation expenses and
impairment of goodwill
- Non-GAAP diluted income/loss per ADS excludes share-based
compensation expenses and impairment of goodwill
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".
Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: helenjingzhu@cmcm.com
ICR Inc.
Xinran Rao
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,
2019
|
|
March 31,
2020
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
983,004
|
|
876,845
|
|
123,834
|
Restricted
cash
|
2,638
|
|
2,673
|
|
377
|
Short-term
investments
|
1,369,118
|
|
1,465,580
|
|
206,979
|
Accounts
receivable
|
469,276
|
|
387,026
|
|
54,659
|
Prepayments and other
current assets
|
936,109
|
|
908,212
|
|
128,264
|
Due from related
parties
|
233,255
|
|
232,205
|
|
32,794
|
Total current
assets
|
3,993,400
|
|
3,872,541
|
|
546,907
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
103,397
|
|
94,972
|
|
13,413
|
Right-of-use assets,
net
|
183,563
|
|
169,586
|
|
23,950
|
Intangible assets,
net
|
44,476
|
|
47,113
|
|
6,654
|
Investment in equity investees
|
194,473
|
|
192,782
|
|
27,226
|
Other long term investments
|
2,322,251
|
|
2,363,828
|
|
333,836
|
Due from related
parties
|
25,533
|
|
18,749
|
|
2,648
|
Deferred tax
assets
|
31,951
|
|
41,148
|
|
5,811
|
Other non-current
assets
|
112,700
|
|
116,505
|
|
16,454
|
Total non-current
assets
|
3,018,344
|
|
3,044,683
|
|
429,992
|
|
|
|
|
|
|
Total
assets
|
7,011,744
|
|
6,917,224
|
|
976,899
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
-
|
|
70,851
|
|
10,006
|
Accounts
payable
|
87,524
|
|
75,732
|
|
11,485
|
Accrued expenses and
other current liabilities
|
1,446,225
|
|
1,458,512
|
|
205,191
|
Due to related
parties
|
92,210
|
|
64,919
|
|
9,168
|
Income tax
payable
|
60,657
|
|
54,400
|
|
7,683
|
Total current
liabilities
|
1,686,616
|
|
1,724,414
|
|
243,533
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
82,847
|
|
93,699
|
|
13,233
|
Other non-current
liabilities
|
247,734
|
|
182,586
|
|
25,787
|
Total non-current
liabilities
|
330,581
|
|
276,285
|
|
39,020
|
|
|
|
|
|
|
Total
liabilities
|
2,017,197
|
|
2,000,699
|
|
282,553
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
225
|
|
226
|
|
32
|
Additional paid-in
capital
|
2,649,342
|
|
2,656,081
|
|
375,110
|
Retained
earnings
|
1,944,938
|
|
1,811,086
|
|
255,774
|
Accumulated other
comprehensive income
|
337,773
|
|
389,437
|
|
54,999
|
Total Cheetah
Mobile shareholders' equity
|
4,932,278
|
|
4,856,830
|
|
685,915
|
Noncontrolling
interests
|
62,269
|
|
59,695
|
|
8,431
|
|
|
|
|
|
|
Total
equity
|
4,994,547
|
|
4,916,525
|
|
694,346
|
|
|
|
|
|
|
Total liabilities
and equity
|
7,011,744
|
|
6,917,224
|
|
976,899
|
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,
2019
|
|
December 31,
2019
|
|
March 31,
2020
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
1,085,628
|
|
612,003
|
|
528,088
|
|
74,580
|
Utility products and
related services
|
497,933
|
|
298,640
|
|
210,838
|
|
29,776
|
Mobile
entertainment
|
556,230
|
|
285,058
|
|
285,492
|
|
40,319
|
AI and
others
|
31,465
|
|
28,305
|
|
31,758
|
|
4,485
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(366,931)
|
|
(182,271)
|
|
(147,736)
|
|
(20,864)
|
Gross
profit
|
718,697
|
|
429,732
|
|
380,352
|
|
53,716
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(196,938)
|
|
(153,530)
|
|
(142,588)
|
|
(20,137)
|
Selling and marketing
(a)
|
(436,629)
|
|
(343,993)
|
|
(302,753)
|
|
(42,757)
|
General and
administrative (a)
|
(105,829)
|
|
(174,899)
|
|
(88,621)
|
|
(12,516)
|
Impairment of
goodwill
|
-
|
|
(545,665)
|
|
-
|
|
-
|
Other operating
income
|
3,002
|
|
7,910
|
|
5,596
|
|
790
|
Total operating
income and expenses
|
(736,394)
|
|
(1,210,177)
|
|
(528,366)
|
|
(74,620)
|
|
|
|
|
|
|
|
|
Operating
loss
|
(17,697)
|
|
(780,445)
|
|
(148,014)
|
|
(20,904)
|
Other income
(expenses):
|
|
|
|
|
|
|
|
Interest income,
net
|
31,617
|
|
18,849
|
|
17,854
|
|
2,521
|
Foreign exchange
(loss) gain, net
|
(5,373)
|
|
5,478
|
|
(12,091)
|
|
(1,708)
|
Gain (loss) from
equity method investments, net
|
6,141
|
|
(322)
|
|
(2,463)
|
|
(348)
|
Other income (loss),
net
|
432
|
|
(151,665)
|
|
42,868
|
|
6,054
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes
|
15,120
|
|
(908,105)
|
|
(101,846)
|
|
(14,385)
|
Income tax (expenses)
benefits
|
(12,434)
|
|
36,927
|
|
(6,539)
|
|
(923)
|
Net income
(loss)
|
2,686
|
|
(871,178)
|
|
(108,385)
|
|
(15,308)
|
Less: net loss
attributable to noncontrolling interests
|
(4,428)
|
|
(50,020)
|
|
(3,796)
|
|
(536)
|
Net income (loss)
attributable to Cheetah Mobile shareholders
|
7,114
|
|
(821,158)
|
|
(104,589)
|
|
(14,772)
|
|
|
|
|
|
|
|
|
(Losses) Earnings
per share
|
|
|
|
|
|
|
|
Basic
|
0.00
|
|
(0.60)
|
|
(0.08)
|
|
(0.01)
|
Diluted
|
0.00
|
|
(0.60)
|
|
(0.08)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
(Losses) Earnings
per ADS
|
|
|
|
|
|
|
|
Basic
|
(0.02)
|
|
(5.98)
|
|
(0.76)
|
|
(0.11)
|
Diluted
|
(0.02)
|
|
(5.98)
|
|
(0.76)
|
|
(0.11)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,365,622,524
|
|
1,374,016,957
|
|
1,378,171,071
|
|
1,378,171,071
|
Diluted
|
1,392,184,524
|
|
1,374,016,957
|
|
1,378,171,071
|
|
1,378,171,071
|
Weighted average
number of ADSs outstanding
|
|
|
|
|
|
|
|
Basic
|
136,562,252
|
|
137,401,696
|
|
137,817,107
|
|
137,817,107
|
Diluted
|
139,218,452
|
|
137,401,696
|
|
137,817,107
|
|
137,817,107
|
|
|
|
|
|
|
|
|
Other
comprehensive (loss) income, net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(82,541)
|
|
(60,937)
|
|
59,974
|
|
8,470
|
Unrealized gain
(loss) on available-for-sale securities, net
|
3,498
|
|
4,241
|
|
(7,250)
|
|
(1,024)
|
Other
comprehensive (loss) income
|
(79,043)
|
|
(56,696)
|
|
52,724
|
|
7,446
|
Total
comprehensive loss
|
(76,357)
|
|
(927,874)
|
|
(55,661)
|
|
(7,862)
|
Less: Total
comprehensive loss attributable to noncontrolling
interests
|
(4,271)
|
|
(52,056)
|
|
(2,735)
|
|
(386)
|
Total
comprehensive loss attributable to Cheetah Mobile
shareholders
|
(72,086)
|
|
(875,818)
|
|
(52,925)
|
|
(7,476)
|
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,
2019
|
|
December 31,
2019
|
|
March 31,
2020
|
|
March 31,
2020
|
(a) Share-based
compensation expenses
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Cost of
revenues
|
159
|
|
108
|
|
96
|
|
14
|
Research and
development
|
16,512
|
|
15,995
|
|
6,737
|
|
951
|
Selling and
marketing
|
2,827
|
|
1,058
|
|
(1,222)
|
|
(173)
|
General and
administrative
|
7,153
|
|
14,155
|
|
1,292
|
|
182
|
Total
|
26,651
|
|
31,316
|
|
6,903
|
|
974
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for per share data )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2020
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
Non-GAAP
|
|
Result
|
|
Compensation
|
|
Result
|
|
Result
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
528,088
|
|
-
|
|
528,088
|
|
74,580
|
Cost of
revenues
|
(147,736)
|
|
96
|
|
(147,640)
|
|
(20,850)
|
Gross
profit
|
380,352
|
|
96
|
|
380,448
|
|
53,730
|
|
|
|
|
|
|
|
|
Research and
development
|
(142,588)
|
|
6,737
|
|
(135,851)
|
|
(19,186)
|
Selling and
marketing
|
(302,753)
|
|
(1,222)
|
|
(303,975)
|
|
(42,930)
|
General and
administrative
|
(88,621)
|
|
1,292
|
|
(87,329)
|
|
(12,334)
|
Other operating
income
|
5,596
|
|
-
|
|
5,596
|
|
790
|
Total operating
income and expenses
|
(528,366)
|
|
6,807
|
|
(521,559)
|
|
(73,660)
|
|
|
|
|
|
|
|
|
Operating
loss
|
(148,014)
|
|
6,903
|
|
(141,111)
|
|
(19,930)
|
Net loss attributable
to Cheetah Mobile shareholders
|
(104,589)
|
|
6,903
|
|
(97,686)
|
|
(13,796)
|
|
|
|
|
|
|
|
|
Diluted losses per
ordinary share (RMB)
|
(0.08)
|
|
0.01
|
|
(0.07)
|
|
|
Diluted losses per
ADS (RMB)
|
(0.76)
|
|
0.05
|
|
(0.71)
|
|
|
Diluted losses per
ADS (USD)
|
(0.11)
|
|
0.01
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2019
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
|
|
Result
|
|
Compensation
|
|
Result
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenues
|
612,003
|
|
-
|
|
612,003
|
|
|
Cost of
revenues
|
(182,271)
|
|
108
|
|
(182,163)
|
|
|
Gross
profit
|
429,732
|
|
108
|
|
429,840
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(153,530)
|
|
15,995
|
|
(137,535)
|
|
|
Selling and
marketing
|
(343,993)
|
|
1,058
|
|
(342,935)
|
|
|
General and
administrative
|
(174,899)
|
|
14,155
|
|
(160,744)
|
|
|
Impairment of
goodwill
|
(545,665)
|
|
545,665
|
|
-
|
|
|
Other operating
income
|
7,910
|
|
-
|
|
7,910
|
|
|
Total operating
income and expenses
|
(1,210,177)
|
|
576,873
|
|
(633,304)
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(780,445)
|
|
576,981
|
|
(203,464)
|
|
|
Net loss attributable
to Cheetah Mobile shareholders
|
(821,158)
|
|
576,981
|
|
(244,177)
|
|
|
|
|
|
|
|
|
|
|
Diluted losses per
ordinary share (RMB)
|
(0.60)
|
|
0.42
|
|
(0.18)
|
|
|
Diluted losses per
ADS (RMB)
|
(5.98)
|
|
4.20
|
|
(1.78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2019
|
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
|
|
Result
|
|
Compensation
|
|
Result
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenues
|
1,085,628
|
|
-
|
|
1,085,628
|
|
|
Cost of
revenues
|
(366,931)
|
|
159
|
|
(366,772)
|
|
|
Gross
profit
|
718,697
|
|
159
|
|
718,856
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(196,938)
|
|
16,512
|
|
(180,426)
|
|
|
Selling and
marketing
|
(436,629)
|
|
2,827
|
|
(433,802)
|
|
|
General and
administrative
|
(105,829)
|
|
7,153
|
|
(98,676)
|
|
|
Other operating
income
|
3,002
|
|
-
|
|
3,002
|
|
|
Total operating
income and expenses
|
(736,394)
|
|
26,492
|
|
(709,902)
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(17,697)
|
|
26,651
|
|
8,954
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
7,114
|
|
26,651
|
|
33,765
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
|
|
|
|
Information about
Segment
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for percentage)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2020
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenue
|
210,838
|
|
285,492
|
|
31,758
|
|
-
|
|
528,088
|
|
74,580
|
Operating profit
(loss)
|
44,169
|
|
(36,359)
|
|
(148,921)
|
|
(6,903)
|
|
(148,014)
|
|
(20,904)
|
Operating
margin
|
20.9%
|
|
(12.7)%
|
|
(468.9)%
|
|
-
|
|
(28.0)%
|
|
(28.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2019
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
298,640
|
|
285,058
|
|
28,305
|
|
-
|
|
612,003
|
|
|
Operating profit
(loss)
|
28,596
|
|
(120,310)
|
|
(111,750)
|
|
(576,981)
|
|
(780,445)
|
|
|
Operating
margin
|
9.6%
|
|
(42.2)%
|
|
(394.8)%
|
|
-
|
|
(127.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Unallocated
expenses refer to SBC expenses and goodwill impairment 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,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2019
|
|
December 31,
2019
|
|
March 31,
2020
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Net income (loss)
attributable to Cheetah Mobile shareholders
|
7,114
|
|
(821,158)
|
|
(104,589)
|
|
(14,772)
|
Add:
|
|
|
|
|
|
|
|
Income tax expenses
(benefits)
|
12,434
|
|
(36,927)
|
|
6,539
|
|
923
|
Interest income,
net
|
(31,617)
|
|
(18,849)
|
|
(17,854)
|
|
(2,521)
|
Depreciation and
amortization
|
16,351
|
|
16,108
|
|
18,548
|
|
2,619
|
Net loss attributable
to noncontrolling interests
|
(4,428)
|
|
(50,020)
|
|
(3,796)
|
|
(536)
|
Other (income) loss,
net
|
(1,200)
|
|
146,509
|
|
(28,314)
|
|
(3,998)
|
Share-based
compensation
|
26,651
|
|
31,316
|
|
6,903
|
|
974
|
Impairment of
goodwill
|
-
|
|
545,665
|
|
-
|
|
-
|
Adjusted
EBITDA
|
25,305
|
|
(187,356)
|
|
(122,563)
|
|
(17,311)
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2019
|
|
31-Dec-19
|
|
March 31,
2020
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
PC
|
120,278
|
|
123,842
|
|
117,502
|
|
16,594
|
Mobile
|
965,350
|
|
488,161
|
|
410,586
|
|
57,986
|
Total
|
1,085,628
|
|
612,003
|
|
528,088
|
|
74,580
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
|
Revenues Generated
from Domestic and Overseas Markets
|
|
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
March 31,
2019
|
|
December 31,
2019
|
|
March 31,
2020
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Domestic
|
424,323
|
|
282,049
|
|
234,335
|
|
33,094
|
Overseas
|
661,305
|
|
329,954
|
|
293,753
|
|
41,486
|
Total
|
1,085,628
|
|
612,003
|
|
528,088
|
|
74,580
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-first-quarter-2020-unaudited-consolidated-financial-results-301073510.html
SOURCE Cheetah Mobile Inc