BEIJING, May 22, 2017 /PRNewswire/ -- Cheetah Mobile Inc.
(NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile
internet company that aims to provide leading apps for mobile users
worldwide and connect users with personalized content on the mobile
platform, today announced its unaudited consolidated financial
results for the first quarter ended March
31, 2017.
First Quarter 2017 Financial Highlights
- Total revenues increased by 6.8% year over year to
RMB1,190.7 million (US$173.0 million), primarily driven by growth in
revenues from content-driven applications, which contributed to
18.8% of total revenues in the first quarter of 2017, as compared
to 11.3% in the fourth quarter of 2016.
- Net income attributable to Cheetah Mobile shareholders
increased by 752.2% year over year to RMB91.2 million (US$13.3
million). Non-GAAP net income attributable to
Cheetah Mobile shareholders increased by 13.2% year over year
to RMB115.6 million (US$16.8 million).
First Quarter 2017 Key Operating Metrics
- The number of global mobile monthly active users ("Mobile
MAUs") was 603.2 million in March 2017. The number of Mobile
MAUs from markets outside of China, or overseas markets, accounted for
78.8% of the total number of Mobile MAUs in March 2017.
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "2017 is a year of transformation
for Cheetah Mobile. We will continue to enhance our
artificial intelligence-based technology platform that brings new
opportunities to the mobile utility space and drives the rapid
growth of our mobile content products. We are encouraged by
the strong performance we are witnessing in Live.me, one of our
successful content-driven products in the overseas markets.
Driven by Live.me's robust results, our overseas
revenues1 achieved a record high in the first quarter of
2017. We believe Live.me's recent financing by external
investors is an endorsement of its strong future market potential
and will provide more flexibility for Live.me to execute its growth
strategy. Looking at our core utility apps, A.I. allowed us
to further expand our utility product portfolio even though the
segment has entered into a more mature phase of its product
cycle. For example, we launched Panda Keyboard, an
AI-enabled application, early this year. Recently, Panda
Keyboard has become one of the top 5 personalized applications in
the U.S. on Google Play. Importantly, our utility products
and related services continue to generate strong profits, which lay
a solid foundation for our mobile content transformation.
Going forward, we remain focused on content and artificial
intelligence to drive further growth of our business."
Mr. Vincent Jiang, Cheetah
Mobile's Chief Financial Officer, commented, "It is becoming
increasingly clear that our total revenue growth is driven by the
fast growth of our content-driven products. We continue to
optimize cost structure on the utility products side to maintain
profitability and support the growth of our content-driven
products. As our various business lines are in different
phases of growth, starting this quarter, we will report our
revenues according to business lines to help investors better
understand our businesses. We expect to provide more transparency
in our operations in the coming quarters."
[1] Overseas
revenues refer to revenues generated by the Company's operating
legal entities incorporated outside the People's Republic of China
(excluding Hong Kong, Macau and Taiwan for the purposes of this
press release), or the PRC. Such revenues are primarily
attributable to customers located outside the PRC.
|
First Quarter 2017 Consolidated Financial Results
REVENUES
Total revenues increased by 6.8% year over year to RMB1,190.7 million (US$173.0 million) in the first quarter of
2017. Starting from the first quarter of 2017, the Company
will report its revenues according to the following business
lines:
- Revenues from utility products and related
services mainly consist of revenues generated by the Company's
mobile utility applications, internet browsers and PC security
software. The Company's portfolio of utility products has
attracted a massive user base, which enabled the company to become
one of the leading online and mobile advertising platforms.
Revenues from the Company's utility products and related services
for the first quarter of 2017 decreased by 12.9% year over year and
18.0% quarter over quarter to RMB827.2
million (US$120.2 million),
primarily due to decreased PC revenues as a result of the migration
of internet traffic from PC to mobile phones in China. The
quarter-over-quarter fluctuation was also affected by seasonality
in advertising in both China and
the overseas markets.
- Revenues from content-driven products consist of
revenues generated by Live.me and News Republic. Live.me, which was
launched in the fourth quarter of 2015, is a popular live video
streaming application serving overseas users, especially in
developed countries. Users can purchase virtual gifts using
virtual currencies the Company sells on Live.me to show support and
appreciation to their favorite broadcasting hosts. News
Republic, which was acquired by the Company in the second quarter
of 2016, is a popular news feed application that delivers
personalized news and advertisements driven by the Company's
artificial intelligence-based technologies. Revenues from the
content-driven products for the first quarter of 2017 increased by
55.2% quarter over quarter to RMB223.8
million (US$32.5
million). The quarter-over-quarter increase was
primarily driven by a rapid growth of Live.me broadcasting
revenue.
- Revenues from mobile game business mainly consists
of revenues from the operations of mobile games. The
Company's portfolio of mobile games has attracted a massive user
base, which provides ample advertising revenue opportunities.
Users can also purchase in-game virtual items. Revenues from
mobile game business for the first quarter of 2017 decreased by
15.7% year over year but increased by 15.1% quarter over quarter to
RMB139.7 million (US$20.3 million). The year-over-year
decrease was primarily due to a decline in revenues from Piano
Tiles 2, as the user number was at its peak in early 2016.
The quarter-over-quarter increase was primarily due to the
Company's continuous efforts to introduce more mobile casual games
in the first quarter of 2017, further enriching its mobile game
portfolio.
By platform, revenues generated from mobile business
increased by 22.0% year over year, but decreased by 2.4% quarter
over quarter to RMB1,008.4 million
(US$146.5 million) in the first
quarter of 2017. The year-over-year increase was primarily
driven by the rapid growth of the Company's Live.me business in the
overseas markets. The quarter-over-quarter decline was
primarily attributable to seasonality in advertising in both
China and the overseas
markets.
By region, revenues generated from the overseas markets
increased by 33.9% year over year and 1.9% quarter over quarter to
RMB848.3 million (US$123.2 million) in the first quarter of 2017.
The increases were primarily driven by the rapid growth of
the Company's Live.me business in the overseas markets.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 42.7% year over year, but
decreased by 1.3% quarter over quarter to RMB458.0 million (US$66.5
million) in the first quarter of 2017. The year-over-year
increase was primarily driven by increased investments in the
Company's content-driven products. Non-GAAP cost of
revenues increased by 42.5% year over year, but decreased by
1.4% quarter over quarter to RMB457.0
million (US$66.4 million) in
the first quarter of 2017.
Gross profit decreased by 7.7% year over year and 9.6%
quarter over quarter to RMB732.8
million (US$106.5 million) in
the first quarter of 2017. Non-GAAP gross profit
decreased by 7.6% year over year and 9.6% quarter over quarter to
RMB733.7 million (US$106.6 million) in the first quarter of
2017.
OPERATING INCOME AND EXPENSES
Total operating expenses decreased by 8.5% year over year
and 5.6% quarter over quarter to RMB706.4
million (US$102.6 million) in
the first quarter of 2017. Total non-GAAP operating
expenses increased by 0.3% year over year, but decreased by
1.7% quarter over quarter to RMB683.0
million (US$99.2 million) in
the first quarter of 2017.
- Research and development expenses decreased by 7.8% year
over year and 18.7% quarter over quarter to RMB191.4 million (US$27.8
million) in the first quarter of 2017, primarily due to
decreased share-based compensation expenses and lower research and
development personnel costs for its utility products, which was
partially offset by increased personnel costs in the development of
artificial intelligence technologies and content-driven
products. Non-GAAP research and development expenses,
which exclude share-based compensation expenses, increased by 8.6%
year over year, but decreased by 14.5% quarter over quarter to
RMB181.8 million (US$26.4 million) in the first quarter of
2017.
- Selling and marketing expenses decreased by 6.7% year
over year but increased by 1.5% quarter over quarter to
RMB414.3 million (US$60.2 million) in the first quarter of
2017. The year-over-year decrease was due to lower expenses
on promotional activities for its utility products, which was
partially offset by increased product promotional activities for
its content-driven apps. Non-GAAP selling and marketing
expenses, which exclude share-based compensation expenses,
decreased by 5.3% year over year, but increased by 1.6% quarter
over quarter to RMB414.5 million
(US$60.2 million) in the first
quarter of 2017.
- General and administrative expenses decreased by 22.2%
year over year and 18.3% quarter over quarter to RMB103.6 million (US$15.0
million) in the first quarter of 2017, primarily due to
decreased share-based compensation expenses and professional
service fee. Non-GAAP general and administrative
expenses, which exclude share-based compensation expenses,
increased by 1.5% year over year, but decreased by 6.9% quarter
over quarter to RMB89.5 million
(US$13.0 million) in the first
quarter of 2017.
Operating profit increased by 18.3% year over year, but
decreased by 57.7% quarter over quarter to RMB26.3 million (US$3.8
million) in the first quarter of 2017. The
year-over-year increase was mainly attributable to the Company's
overall revenue growth and strategy to implement cost control for
its utility products, which was partially offset by increased
investments in its content-driven products. The Company's
content-driven products lowered its operating margin by
approximately 14.4 percentage points in the first quarter of 2017.
The quarter-over-quarter decrease in operating profit was
mainly due to a decline in revenues from the Company's utility
products and services in the quarter, which was primarily due to
seasonality in advertising in both China and the overseas markets.
Non-GAAP operating profit decreased by 55.4% year over
year and 56.5% quarter over quarter to RMB50.7 million (US$7.4
million) in the first quarter of 2017.
Share-based compensation expenses decreased by 73.4% year
over year and 55.0% quarter over quarter to RMB24.4 million (US$3.5
million) in the first quarter of 2017, mainly due to the
change in the estimated forfeiture rates of share-based
compensation.
OTHER INCOME, NET
Other income, net was RMB67.7
million (US$9.8 million) in
the first quarter of 2017, which was primarily due to gains on
disposal of certain investment assets in the first quarter of
2017.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders
increased by 752.2% year over year and 55.2% quarter over quarter
to RMB91.2 million (US$13.3 million) in the first quarter of
2017.
Non-GAAP net income attributable to Cheetah Mobile
shareholders increased by 13.2% year over year and 2.3% quarter
over quarter to RMB115.6 million
(US$16.8 million).
NET INCOME PER ADS
Diluted income per ADS in the first quarter of 2017 was
RMB0.64 (US$0.09), as compared with RMB0.07 in the prior year period and RMB0.41 in the previous quarter.
Non-GAAP diluted income per ADS in the first quarter of
2017 was RMB0.81 (US$0.12), as compared with RMB0.71 in the prior year period and RMB0.80 in the previous quarter.
ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) decreased by 42.1% year over
year and 45.0% quarter over quarter to RMB87.3 million (US$12.7
million) in the first quarter of 2017.
CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM
INVESTMENTS BALANCE
As of March 31, 2017, the Company
had cash and cash equivalents, restricted cash and short-term
investments of RMB1,960.3 million
(US$284.8 million).
SHARES ISSUED AND OUTSTANDING
As of March 31, 2017, the Company
had a total of 1,430,736,715 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 2017, the Company expects its total
revenues to be between RMB1,190
million (US$173 million) and
RMB1,240 million (US$180 million), representing a year-over-year
increase of 14% to 18% and a quarter-over-quarter increase of 0% to
4%. This estimate represents management's preliminary view as
of the date of this release, which is subject to change.
Conference Call Information
Company will hold a conference call on Monday, May 22, 2017 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: 4001-201203
Hong Kong Toll Free: 800-905945
Conference ID: Cheetah Mobile
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.cmcm.com/.
Exchange Rate
This press release contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all
translations from Renminbi to U.S. dollars in this press release
were made at a rate of RMB6.8832 to
US$1.00, the exchange rate in effect
as of March 31, 2017 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. It
aims to provide leading apps for mobile users worldwide and connect
users with personalized content on the mobile platform.
Cheetah Mobile's products, including its popular utility applications Clean Master, CM
Security and Battery Doctor, help make users' mobile internet
experience smarter, speedier, and safer. The Company has attracted
more than 600 million global Mobile MAUs, of which approximately
80% are located outside of China. Leveraging the success of
its utility applications,
Cheetah Mobile has launched its line of mobile content-driven
applications, including News Republic and Live.me.
Cheetah Mobile 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, which
are capable of delivering targeted content to hundreds of millions
of users.
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 divided by weighted
average number of diluted ADSs.
- Adjusted EBITDA is earnings before interest, taxes,
depreciation, amortization, other non-operating income and
share-based compensation expenses.
The Company believes that separate analysis and exclusion of
share-based compensation expenses and the use of Adjusted EBITDA
add clarity to the constituent parts of its performance from the
cash perspective. The Company reviews these non-GAAP
financial measures together with GAAP financial measures to obtain
a better understanding of its operating performance. It uses
the non-GAAP financial measures for planning, forecasting and
measuring results against the forecast. The Company believes
that non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of share-based compensation
expenses, which have been and will continue to be significant
recurring expenses in its business. However, the use of
non-GAAP financial measures has material limitations as an
analytical tool. One of the limitations of using non-GAAP
financial measures is that they do not include all items that
impact the Company's net income for the period. In addition,
because non-GAAP financial measures are not measured in the same
manner by all companies, they may not be comparable to other
similarly titled measures used by other companies. In light
of the foregoing limitations, you should not consider non-GAAP
financial measure in isolation from or as an alternative to the
financial measure prepared in accordance with U.S. GAAP. For
more information on these non-GAAP financial measures, please see
the tables captioned "Cheetah Mobile Inc. Reconciliations of
GAAP and Non-GAAP Results" and "Cheetah Mobile Inc. Reconciliation
of Net Income Attributable to Cheetah Mobile Shareholders to
Adjusted EBITDA (Non-GAAP)" at the end of this release.
Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: IR@cmcm.com
ICR, Inc.
Jessie Fan
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
|
|
31-Dec-16
|
|
31-Mar-17
|
|
31-Mar-17
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,411,000
|
|
1,327,176
|
|
192,814
|
Restricted
cash
|
167,751
|
|
112,734
|
|
16,378
|
Short-term
investments
|
361,499
|
|
520,399
|
|
75,604
|
Accounts
receivable
|
600,885
|
|
549,111
|
|
79,776
|
Prepayments and other
current assets
|
571,306
|
|
569,700
|
|
82,767
|
Due from related
parities
|
44,278
|
|
47,799
|
|
6,944
|
Deferred tax
assets
|
15,527
|
|
-
|
|
-
|
Total current
assets
|
3,172,246
|
|
3,126,919
|
|
454,283
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
117,439
|
|
108,897
|
|
15,821
|
Intangible assets,
net
|
227,251
|
|
201,954
|
|
29,340
|
Goodwill
|
943,922
|
|
939,716
|
|
136,523
|
Investment in equity investees
|
100,063
|
|
99,677
|
|
14,481
|
Other long term investments
|
877,094
|
|
855,130
|
|
124,234
|
Deferred tax
assets
|
74,809
|
|
88,687
|
|
12,885
|
Other non-current
assets
|
28,310
|
|
28,524
|
|
4,144
|
Total non-current
assets
|
2,368,888
|
|
2,322,585
|
|
337,428
|
|
|
|
|
|
|
Total
assets
|
5,541,134
|
|
5,449,504
|
|
791,711
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
379,544
|
|
384,712
|
|
55,891
|
Accounts
payable
|
194,882
|
|
169,704
|
|
24,655
|
Accrued expenses and
other current liabilities
|
1,359,758
|
|
1,165,420
|
|
169,314
|
Deferred
revenue
|
48,661
|
|
48,685
|
|
7,073
|
Due to related
parties
|
71,167
|
|
78,973
|
|
11,473
|
Income tax
payable
|
12,209
|
|
17,519
|
|
2,545
|
Total current
liabilities
|
2,066,221
|
|
1,865,013
|
|
270,951
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Bank loans
|
118,797
|
|
107,141
|
|
15,566
|
Deferred
revenue
|
6,001
|
|
6,141
|
|
892
|
Deferred tax
liabilities
|
112,438
|
|
105,330
|
|
15,302
|
Other non-current
liabilities
|
36,499
|
|
40,884
|
|
5,940
|
Total non-current
liabilities
|
273,735
|
|
259,496
|
|
37,700
|
|
|
|
|
|
|
Total
liabilities
|
2,339,956
|
|
2,124,509
|
|
308,651
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
230
|
|
231
|
|
34
|
Treasury
stock
|
(178,991)
|
|
(178,991)
|
|
(26,004)
|
Additional paid-in
capital
|
2,725,675
|
|
2,761,792
|
|
401,237
|
Retained
earnings
|
237,293
|
|
328,522
|
|
47,728
|
Accumulated other
comprehensive income
|
228,145
|
|
218,830
|
|
31,792
|
Total Cheetah
Mobile shareholders' equity
|
3,012,352
|
|
3,130,384
|
|
454,787
|
Noncontrolling
interests
|
188,826
|
|
194,611
|
|
28,273
|
Total
equity
|
3,201,178
|
|
3,324,995
|
|
483,060
|
|
|
|
|
|
|
Total liabilities,
noncontrolling interests and shareholders' equity
|
5,541,134
|
|
5,449,504
|
|
791,711
|
|
|
|
|
|
|
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
|
|
31-Mar-16
|
|
31-Dec-16
|
|
31-Mar-17
|
|
31-Mar-17
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
1,114,988
|
|
1,274,672
|
|
1,190,703
|
|
172,987
|
Utility products and
related services
|
949,285
|
|
1,009,206
|
|
827,225
|
|
120,181
|
Content driven
products
|
-
|
|
144,160
|
|
223,805
|
|
32,515
|
Mobile
game
|
165,695
|
|
121,306
|
|
139,663
|
|
20,290
|
Others
|
8
|
|
-
|
|
10
|
|
1
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(321,010)
|
|
(464,197)
|
|
(457,953)
|
|
(66,532)
|
Gross
profit
|
793,978
|
|
810,475
|
|
732,750
|
|
106,455
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(207,462)
|
|
(235,355)
|
|
(191,367)
|
|
(27,802)
|
Selling and marketing
(a)
|
(443,782)
|
|
(408,097)
|
|
(414,264)
|
|
(60,185)
|
General and
administrative (a)
|
(133,085)
|
|
(126,846)
|
|
(103,588)
|
|
(15,049)
|
Impairment of
goodwill and intangible assets
|
(2,350)
|
|
(539)
|
|
-
|
|
-
|
Other operating
income
|
14,948
|
|
22,545
|
|
2,784
|
|
404
|
Total operating
income and expenses
|
(771,731)
|
|
(748,292)
|
|
(706,435)
|
|
(102,632)
|
|
|
|
|
|
|
|
|
Operating
profit
|
22,247
|
|
62,183
|
|
26,315
|
|
3,823
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income,
net
|
3,387
|
|
954
|
|
1,616
|
|
235
|
Changes in fair value
of redemption right and put options granted
|
20
|
|
(57)
|
|
(233)
|
|
(34)
|
Settlement and
changes in fair value of contingent consideration
|
(683)
|
|
(3,011)
|
|
(790)
|
|
(115)
|
Foreign exchange
(loss) gain, net
|
(1,362)
|
|
2,951
|
|
1,213
|
|
176
|
Impairment of
investments
|
-
|
|
(45,863)
|
|
-
|
|
-
|
(Losses)
gains from equity method investments, net
|
(7,731)
|
|
2,889
|
|
(367)
|
|
(53)
|
Other income,
net
|
651
|
|
38,705
|
|
67,708
|
|
9,837
|
|
|
|
|
|
|
|
|
Income before
taxes
|
16,529
|
|
58,751
|
|
95,462
|
|
13,869
|
Income tax (expenses)
benefits
|
(2,998)
|
|
9,278
|
|
(4,912)
|
|
(714)
|
Net
income
|
13,531
|
|
68,029
|
|
90,550
|
|
13,155
|
Less: net income
(loss) attributable to noncontrolling interests
|
2,826
|
|
9,254
|
|
(679)
|
|
(99)
|
Net income
attributable to Cheetah Mobile shareholders
|
10,705
|
|
58,775
|
|
91,229
|
|
13,254
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
0.01
|
|
0.04
|
|
0.07
|
|
0.01
|
Diluted
|
0.01
|
|
0.04
|
|
0.06
|
|
0.01
|
|
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
|
Basic
|
0.08
|
|
0.42
|
|
0.66
|
|
0.10
|
Diluted
|
0.07
|
|
0.41
|
|
0.64
|
|
0.09
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,392,324,511
|
|
1,384,035,270
|
|
1,387,446,596
|
|
1,387,446,596
|
Diluted
|
1,441,882,966
|
|
1,419,820,902
|
|
1,422,443,105
|
|
1,422,443,105
|
Weighted average
number of ADSs used in computation
|
|
|
|
|
|
|
|
Basic
|
139,232,451
|
|
138,403,527
|
|
138,744,660
|
|
138,744,660
|
Diluted
|
144,188,297
|
|
141,982,090
|
|
142,244,310
|
|
142,244,310
|
|
|
|
|
|
|
|
|
Other
comprehensive (loss) income, net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(6,473)
|
|
72,411
|
|
(8,517)
|
|
(1,237)
|
Unrealized gains on
available-for-sale securities, net
|
1,215
|
|
415
|
|
-
|
|
-
|
Other
comprehensive (loss) income
|
(5,258)
|
|
72,826
|
|
(8,517)
|
|
(1,237)
|
Total
comprehensive income
|
8,273
|
|
140,855
|
|
82,033
|
|
11,918
|
Less: Total
comprehensive income attributable to noncontrolling
interests
|
4,234
|
|
6,941
|
|
119
|
|
17
|
Total
comprehensive income attributable to Cheetah Mobile
shareholders
|
4,039
|
|
133,914
|
|
81,914
|
|
11,901
|
|
|
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
Cost of
revenues
|
339
|
|
824
|
|
934
|
|
136
|
Research and
development
|
40,129
|
|
22,716
|
|
9,571
|
|
1,390
|
Selling and
marketing
|
6,144
|
|
34
|
|
(188)
|
|
(27)
|
General and
administrative
|
44,835
|
|
30,627
|
|
14,051
|
|
2,041
|
Total
|
91,447
|
|
54,201
|
|
24,368
|
|
3,540
|
|
|
|
|
|
|
|
|
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, 2017
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
1,190,703
|
|
|
|
|
|
|
|
1,190,703
|
|
|
|
172,987
|
Cost of
revenues
|
(457,953)
|
|
38.5%
|
|
934
|
|
0.1%
|
|
(457,019)
|
|
38.4%
|
|
(66,396)
|
Gross
profit
|
732,750
|
|
61.5%
|
|
934
|
|
0.1%
|
|
733,684
|
|
61.6%
|
|
106,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(191,367)
|
|
16.1%
|
|
9,571
|
|
0.8%
|
|
(181,796)
|
|
15.3%
|
|
(26,412)
|
Selling and
marketing
|
(414,264)
|
|
34.8%
|
|
(188)
|
|
0.0%
|
|
(414,452)
|
|
34.8%
|
|
(60,212)
|
General and
administrative
|
(103,588)
|
|
8.7%
|
|
14,051
|
|
1.2%
|
|
(89,537)
|
|
7.5%
|
|
(13,008)
|
Impairment of
goodwill and intangible assets
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
-
|
Other operating
income
|
2,784
|
|
0.2%
|
|
-
|
|
0.0%
|
|
2,784
|
|
0.2%
|
|
404
|
Total operating
income and expenses
|
(706,435)
|
|
59.3%
|
|
23,434
|
|
2.0%
|
|
(683,001)
|
|
57.4%
|
|
(99,228)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
26,315
|
|
2.2%
|
|
24,368
|
|
2.0%
|
|
50,683
|
|
4.3%
|
|
7,363
|
Net income
attributable to Cheetah Mobile shareholders
|
91,229
|
|
7.7%
|
|
24,368
|
|
2.0%
|
|
115,597
|
|
9.7%
|
|
16,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.06
|
|
|
|
0.02
|
|
|
|
0.08
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.64
|
|
|
|
0.17
|
|
|
|
0.81
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.09
|
|
|
|
0.03
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,274,672
|
|
|
|
|
|
|
|
1,274,672
|
|
|
|
|
Cost of
revenues
|
(464,197)
|
|
36.4%
|
|
824
|
|
0.1%
|
|
(463,373)
|
|
36.4%
|
|
|
Gross
profit
|
810,475
|
|
63.6%
|
|
824
|
|
0.1%
|
|
811,299
|
|
63.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(235,355)
|
|
18.5%
|
|
22,716
|
|
1.8%
|
|
(212,639)
|
|
16.7%
|
|
|
Selling and
marketing
|
(408,097)
|
|
32.0%
|
|
34
|
|
0.0%
|
|
(408,063)
|
|
32.0%
|
|
|
General and
administrative
|
(126,846)
|
|
10.0%
|
|
30,627
|
|
2.4%
|
|
(96,219)
|
|
7.5%
|
|
|
Impairment of
goodwill and intangible assets
|
(539)
|
|
0.0%
|
|
-
|
|
0.0%
|
|
(539)
|
|
0.0%
|
|
|
Other operating
income
|
22,545
|
|
1.8%
|
|
-
|
|
0.0%
|
|
22,545
|
|
1.8%
|
|
|
Total operating
income and expenses
|
(748,292)
|
|
58.7%
|
|
53,377
|
|
4.2%
|
|
(694,915)
|
|
54.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
62,183
|
|
4.9%
|
|
54,201
|
|
4.3%
|
|
116,384
|
|
9.1%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
58,775
|
|
4.6%
|
|
54,201
|
|
4.3%
|
|
112,976
|
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.04
|
|
|
|
0.04
|
|
|
|
0.08
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.41
|
|
|
|
0.39
|
|
|
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,114,988
|
|
|
|
|
|
|
|
1,114,988
|
|
|
|
|
Cost of
revenues
|
(321,010)
|
|
28.8%
|
|
339
|
|
0.0%
|
|
(320,671)
|
|
28.8%
|
|
|
Gross
profit
|
793,978
|
|
71.2%
|
|
339
|
|
0.0%
|
|
794,317
|
|
71.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(207,462)
|
|
18.6%
|
|
40,129
|
|
3.6%
|
|
(167,333)
|
|
15.0%
|
|
|
Selling and
marketing
|
(443,782)
|
|
39.8%
|
|
6,144
|
|
0.6%
|
|
(437,638)
|
|
39.3%
|
|
|
General and
administrative
|
(133,085)
|
|
11.9%
|
|
44,835
|
|
4.0%
|
|
(88,250)
|
|
7.9%
|
|
|
Impairment of
goodwill and intangible assets
|
(2,350)
|
|
0.2%
|
|
-
|
|
0.0%
|
|
(2,350)
|
|
0.2%
|
|
|
Other operating
income
|
14,948
|
|
1.3%
|
|
-
|
|
0.0%
|
|
14,948
|
|
1.3%
|
|
|
Total operating
income and expenses
|
(771,731)
|
|
69.2%
|
|
91,108
|
|
8.2%
|
|
(680,623)
|
|
61.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
22,247
|
|
2.0%
|
|
91,447
|
|
8.2%
|
|
113,694
|
|
10.2%
|
|
|
Net income
attributable to Cheetah Mobile Shareholders
|
10,705
|
|
1.0%
|
|
91,447
|
|
8.2%
|
|
102,152
|
|
9.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.01
|
|
|
|
0.06
|
|
|
|
0.07
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.07
|
|
|
|
0.64
|
|
|
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
31-Mar-16
|
31-Dec-16
|
31-Mar-17
|
31-Mar-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
Net income
attributable to Cheetah Mobile shareholders
|
10,705
|
58,775
|
91,229
|
13,254
|
Add:
|
|
|
|
|
Income tax
expenses (benefits)
|
2,998
|
(9,278)
|
4,912
|
714
|
Interest
income, net
|
(3,387)
|
(954)
|
(1,616)
|
(235)
|
Depreciation and amortization
|
37,076
|
42,196
|
36,595
|
5,317
|
Net income
attributable to noncontrolling interests
|
2,826
|
9,254
|
(679)
|
(99)
|
Other
non-operating expense (income), net
|
9,105
|
4,386
|
(67,531)
|
(9,811)
|
Share-based compensation
|
91,447
|
54,201
|
24,368
|
3,540
|
Adjusted
EBITDA
|
150,770
|
158,580
|
87,278
|
12,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cheetah Mobile
Inc.
|
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
|
(Unaudited, in
'000)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
31-Mar-16
|
31-Dec-16
|
31-Mar-17
|
31-Mar-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
PC
|
288,398
|
241,353
|
182,337
|
26,490
|
Mobile
|
826,590
|
1,033,319
|
1,008,366
|
146,497
|
Total
|
1,114,988
|
1,274,672
|
1,190,703
|
172,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cheetah Mobile
Inc.
|
|
|
|
|
Revenues Generated
from Domestic and Overseas Markets
|
|
|
(Unaudited, in
'000)
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
31-Mar-16
|
31-Dec-16
|
31-Mar-17
|
31-Mar-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
Domestic
|
481,373
|
442,089
|
342,383
|
49,742
|
Overseas
|
633,615
|
832,583
|
848,320
|
123,245
|
Total
|
1,114,988
|
1,274,672
|
1,190,703
|
172,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-first-quarter-2017-unaudited-consolidated-financial-results-300461215.html
SOURCE Cheetah Mobile