BEIJING, Aug. 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 second quarter ended June
30, 2017.
Second Quarter 2017 Financial Highlights
- Total revenues increased by 14.8% year over year to
RMB1,201.6 million (US$177.2 million), mostly driven by the Company's
growth in mobile revenues, which achieved a record high during the
second quarter of 2017.
- Operating profit increased to RMB66.2
million (US$9.8 million) from
an operating loss of RMB63.0 million
in the same period last year. Non-GAAP operating profit
increased by 254.3% year over year to RMB90.4 million (US$13.3
million). In particular, operating profit for the
Company's utility products and related services business increased
by 50.6% year over year to RMB212.8
million (US$31.4 million) in
the second quarter of 2017, primarily driven by the Company's
effort in optimizing its utility products' cost and expense
structure.
- Net income attributable to Cheetah Mobile shareholders
increased to RMB70.2 million
(US$10.4 million) from a net loss
attributable to Cheetah Mobile shareholders of RMB150.5 million in the same period last
year. Non-GAAP net income attributable to Cheetah Mobile
shareholders increased to RMB94.4
million (US$13.9 million) from
a non-GAAP net loss attributable to Cheetah Mobile shareholders of
RMB61.9 million in the same period
last year.
- The Company generated RMB194.7
million (US$28.7 million) of
net cash from operating activities and RMB185.1 million (US$27.3
million) of free cash flow1 in the second
quarter of 2017.
[1] Free
cash flow is defined as net cash generated by operating activities
less capital expenditure
|
Second Quarter 2017 Key Operating Metrics
- The number of global mobile monthly active users ("Mobile
MAUs") was 581.3 million in June
2017. The number of Mobile MAUs from markets outside of
China, or overseas markets,
accounted for 77.3% of the total number of Mobile MAUs in
June 2017.
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "Our second quarter results remain
stable and were in line with management expectations. We have been
making adjustments to our utility products and realigning our cost
structure. As a result, we continued to generate robust
operating profit and cash flow from our utility product business
during the second quarter of 2017. Also during the quarter, our
mobile game business grew considerably on both top and bottom lines
as we continued to expand our game portfolio with new mobile game
introductions in early 2017. In addition, we further increased
Live.me's user engagement and user stickiness through continued
product improvement and content enrichment. We are confident that
we remain on track to build a sustainable growth model for the long
term."
Mr. Vincent Jiang, Cheetah
Mobile's Chief Financial Officer, commented, "We made a concerted
effort in controlling our utility products' cost and expenses in
the second quarter of 2017. As a result, our operating profit and
net cash generated from operating activities for the quarter grew
significantly both year over year and quarter over quarter. For the
second half of 2017, we have a clear strategy to maintain our
utility products' profitability and at the same time grow our
Live.me and mobile game businesses.
Because our various business lines are in different phases of
growth, in the first quarter of 2017, we reported our revenues
according to business lines to help investors better understand our
businesses. As we increasingly evaluate our utility products and
related services separately from the rest of our business lines to
assess their performance and allocate resources, in the second
quarter of 2017, we will report our utility products and related
services as one operating segment and consolidate our remaining
businesses, including our content-driven products and mobile game
businesses into one segment called the mobile entertainment
business."
Second Quarter 2017 Consolidated Financial
Results
REVENUES
Total revenues increased by 14.8% year over year and 0.9%
quarter over quarter to RMB1,201.6
million (US$177.2 million) in
the second quarter of 2017.
- Revenues from utility products and related services,
which includes mobile utility applications, internet browsers and
PC security software, decreased by 13.3% year over year while
remaining relatively stable quarter over quarter at RMB820.3 million (US$121.0
million) in the second quarter of 2017. The
year-over-year decrease was primarily due to a decrease in PC
revenues as internet traffic in China continuously migrates from PC to mobile
devices. Revenues from the Company's mobile utility products
remained stable year over year.
- Revenues from the mobile entertainment business, which
includes Live.me, News Republic, and mobile games, increased by
270.5% year over year and 2.1% quarter over quarter to RMB371.0 million (US$54.7
million). The year-over-year increase was primarily driven
by a rapid growth in Live.me's broadcasting revenue and the
Company's enriched mobile game portfolio as a result of its
continuous new mobile game introductions earlier this year. The
quarter-over-quarter increase was primarily driven by the growth in
the mobile game business.
By platform, revenues generated from the mobile business
increased by 34.5% year over year and 3.0% quarter over quarter to
RMB1,038.8 million (US$153.2 million) in the second quarter of 2017,
primarily driven by the rapid growth of the Company's Live.me
business in overseas markets and the increase in its mobile game
revenues.
By region, revenues generated from overseas markets
increased by 50.3% year over year and remained relatively flat
quarter over quarter at RMB842.9
million (US$124.3 million) in
the second quarter of 2017.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 30.0% year over year and
remained flat quarter over quarter at RMB461.1 million (US$68.0
million) in the second quarter of 2017. The
year-over-year increase was primarily driven by the increased
investment in the Company's content-driven products including
Live.me and News Republic.
Non-GAAP cost of revenues increased by 29.8% year over
year while remaining relatively flat quarter over quarter at
RMB460.2 million (US$67.9 million) in the second quarter of
2017.
Gross profit increased by 7.0% year over year and 1.1%
quarter over quarter to RMB740.5
million (US$109.2 million) in
the second quarter of 2017. Non-GAAP gross profit
increased by 7.1% year over year and 1.0% quarter over quarter to
RMB741.3 million (US$109.4 million) in the second quarter of
2017.
OPERATING INCOME AND EXPENSES
Total operating expenses decreased by 10.7% year over
year and 4.6% quarter over quarter to RMB674.2 million (US$99.5
million) in the second quarter of 2017. Total
non-GAAP operating expenses decreased by 2.3% year over year
and 4.7% quarter over quarter to RMB650.9
million (US$96.0 million) in
the second quarter of 2017.
- Research and development (R&D) expenses decreased by
26.6% year over year and 12.7% quarter over quarter to RMB167.0 million (US$24.6
million) in the second quarter of 2017, primarily due to
lower R&D personnel costs of the Company's utility products,
partially offset by increased R&D personnel costs of its
artificial intelligence technologies and content-driven products.
Non-GAAP R&D expenses, which exclude share-based
compensation expenses, decreased by 8.4% year over year and 10.2%
quarter over quarter to RMB163.2
million (US$24.1 million) in
the second quarter of 2017.
- Selling and marketing expenses remained relatively flat
year over year and quarter over quarter at RMB413.1 million (US$60.9
million) in the second quarter of 2017. The Company shifted
some of its selling and marketing budget from its utility products
to its content-driven products. Non-GAAP selling and
marketing expenses, which exclude share-based compensation
expenses, remained relatively flat year over year while decreasing
by 1.5% quarter over quarter to RMB408.2
million (US$60.2 million) in
the second quarter of 2017.
- General and administrative expenses decreased by 37.8%
year over year and 3.5% quarter over quarter to RMB100.0 million (US$14.8
million) in the second quarter of 2017. The year-over-year
decrease was primarily due to high professional service fees
recorded in the second quarter of 2016 in connection with certain
acquisition activities. Non-GAAP general and administrative
expenses, which exclude share-based compensation expenses,
decreased by 30.5% year over year and 4.6% quarter over quarter to
RMB85.4 million (US$12.6 million) in the second quarter of
2017.
Operating profit increased to RMB66.2 million (US$9.8
million) in the second quarter of 2017 from an operating
loss of RMB63.0 million in the same
period last year and an operating profit of RMB26.3 million in the previous quarter.
Non-GAAP operating profit increased by 254.3% year over
year and 78.4% quarter over quarter to RMB90.4 million (US$13.3
million) in the second quarter of 2017.
Starting from the second quarter of 2017, the Company will
report its operating profit along the following segments:
- Operating profit for utility products and related
services increased by 50.6% year over year and 18.8% quarter
over quarter to RMB212.8 million
(US$31.4 million) in the second
quarter of 2017, mainly due to the Company's effort in optimizing
its utility products' cost and expense structure.
- Operating loss for the mobile entertainment business
was RMB122.1 million (US$18.0 million) in the second quarter of 2017,
mainly due to the Company's increased investments in its
content-driven products. The Company had operating losses of
RMB106.2 million in the same period
last year and RMB128.5 million in the
previous quarter.
Share-based compensation expenses decreased by 72.7% year
over year while remaining relatively flat quarter over quarter at
RMB24.2 million (US$3.6 million) in the second quarter of
2017.
OTHER INCOME, NET
Other income, net was RMB23.7
million (US$3.5 million) in
the second quarter of 2017, primarily due to gains from disposals
of certain investment assets in the second quarter of 2017.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders
was RMB70.2 million (US$10.4 million) in the second quarter of 2017 as
compared to a net loss attributable to Cheetah Mobile shareholders
of RMB150.5 million in the same
period last year and a net income attributable to Cheetah Mobile
shareholders of RMB91.2 million in
the previous quarter.
Non-GAAP net income attributable to Cheetah Mobile
shareholders was RMB94.4 million
(US$13.9 million) as compared to a
non-GAAP net loss attributable to Cheetah Mobile shareholders of
RMB61.9 million in the same period
last year and a non-GAAP net income attributable to Cheetah Mobile
shareholders of RMB115.6 million in
the previous quarter.
NET INCOME PER ADS
Diluted income per ADS in the second quarter of 2017 was
RMB0.47 (US$0.07) as compared to diluted loss per ADS of
RMB1.08 in the prior year period and
diluted income per ADS of RMB0.64 in
the previous quarter.
Non-GAAP diluted income per ADS in the second quarter of
2017 was RMB0.64 (US$0.09) as compared to non-GAAP diluted loss
per ADS of RMB0.44 in the prior year
period and non-GAAP diluted income per ADS of RMB0.81 in the previous quarter.
ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) increased by 87.1% year over
year and 45.0% quarter over quarter to RMB126.6 million (US$18.7
million) in the second quarter of 2017.
CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM
INVESTMENTS BALANCE
As of June 30, 2017, the Company
had cash and cash equivalents, restricted cash and short-term
investments of RMB2,383.3 million
(US$351.5 million).
CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH
FLOW
In the second quarter of 2017, the Company generated
RMB194.7 million (US$28.7 million) of net cash from operating
activities and RMB185.1 million
(US$27.3 million) of free cash
flow.
SHARES ISSUED AND OUTSTANDING
As of June 30, 2017, the Company
had a total of 1,436,330,950 Class A and Class B ordinary shares
issued and outstanding. One ADS represents 10 Class A ordinary
shares.
Business Outlook
For the third quarter of 2017, the Company expects its total
revenues to be between RMB1,150
million (US$170 million) and
RMB1,210 million (US$178 million), representing a year-over-year
increase of 2% to 7%. This estimate represents management's
preliminary view as of the date of this release, which is subject
to change.
Recent Developments
Departure of the Company's Senior Vince President
Cheetah Mobile today announced that Mr. Yong Chen has resigned as Senior Vice President
of the Company for personal reasons, effective June 30, 2017.
Live.me Business's New Financing
On April 28, 2017, Live.me Inc., which operates
Live.me, a live video streaming application, raised new funds from
a group of investors. The new funding is presented as redeemable
non-controlling interests on the Company's balance sheet as of
June 30, 2017.
Conference Call Information
The Company will hold a conference call on Tuesday, August 22, 2017 at 7:00 a.m. Eastern Time or 7:00 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 RMB6.7793 to
US$1.00, the exchange rate in effect
as of June 30, 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, Security Master and Battery Doctor, help make
users' mobile internet experience smarter, speedier, and
safer. 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 excluding net income
attributable to redeemable noncontrolling 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.
Xueli Song
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
|
|
30-Jun-17
|
|
30-Jun-17
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,411,000
|
|
1,848,638
|
|
272,689
|
Restricted
cash
|
167,751
|
|
94,146
|
|
13,887
|
Short-term
investments
|
361,499
|
|
440,472
|
|
64,973
|
Accounts
receivable
|
600,885
|
|
576,355
|
|
85,017
|
Prepayments and other
current assets
|
571,306
|
|
501,812
|
|
74,021
|
Due from related
parities
|
44,278
|
|
92,838
|
|
13,694
|
Deferred tax
assets
|
15,527
|
|
-
|
|
-
|
Total current
assets
|
3,172,246
|
|
3,554,261
|
|
524,281
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
117,439
|
|
100,044
|
|
14,757
|
Intangible assets,
net
|
227,251
|
|
174,464
|
|
25,735
|
Goodwill
|
943,922
|
|
925,049
|
|
136,452
|
Investment in equity investees
|
100,063
|
|
95,271
|
|
14,053
|
Other long term investments
|
877,094
|
|
839,934
|
|
123,897
|
Due from related
parities
|
-
|
|
3,078
|
|
454
|
Deferred tax
assets
|
74,809
|
|
97,423
|
|
14,371
|
Other non-current
assets
|
28,310
|
|
28,933
|
|
4,268
|
Total non-current
assets
|
2,368,888
|
|
2,264,196
|
|
333,987
|
|
|
|
|
|
|
Total
assets
|
5,541,134
|
|
5,818,457
|
|
858,268
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
379,544
|
|
381,565
|
|
56,284
|
Accounts
payable
|
194,882
|
|
163,638
|
|
24,138
|
Accrued expenses and
other current liabilities
|
1,359,758
|
|
1,203,332
|
|
177,501
|
Deferred
revenue
|
48,661
|
|
43,635
|
|
6,437
|
Due to related
parties
|
71,167
|
|
74,640
|
|
11,010
|
Income tax
payable
|
12,209
|
|
12,929
|
|
1,907
|
Total current
liabilities
|
2,066,221
|
|
1,879,739
|
|
277,277
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Bank loans
|
118,797
|
|
96,465
|
|
14,229
|
Deferred
revenue
|
6,001
|
|
5,448
|
|
804
|
Deferred tax
liabilities
|
112,438
|
|
109,127
|
|
16,097
|
Other non-current
liabilities
|
36,499
|
|
30,883
|
|
4,555
|
Total non-current
liabilities
|
273,735
|
|
241,923
|
|
35,685
|
|
|
|
|
|
|
Total
liabilities
|
2,339,956
|
|
2,121,662
|
|
312,962
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
-
|
|
309,073
|
|
45,591
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
230
|
|
232
|
|
34
|
Treasury
stock
|
(178,991)
|
|
(178,991)
|
|
(26,403)
|
Additional paid-in
capital
|
2,725,675
|
|
2,785,161
|
|
410,832
|
Retained
earnings
|
237,293
|
|
402,620
|
|
59,390
|
Accumulated other
comprehensive income
|
228,145
|
|
181,659
|
|
26,797
|
Total Cheetah
Mobile shareholders' equity
|
3,012,352
|
|
3,190,681
|
|
470,650
|
Noncontrolling
interests
|
188,826
|
|
197,041
|
|
29,065
|
|
|
|
|
|
|
Total
equity
|
3,201,178
|
|
3,387,722
|
|
499,715
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
5,541,134
|
|
5,818,457
|
|
858,268
|
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
|
|
30-Jun-16
|
|
31-Mar-17
|
|
30-Jun-17
|
|
30-Jun-17
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
1,046,664
|
|
1,190,703
|
|
1,201,561
|
|
177,239
|
Utility products and
related services
|
946,198
|
|
827,225
|
|
820,342
|
|
121,007
|
Mobile
entertainment
|
100,137
|
|
363,468
|
|
371,034
|
|
54,730
|
Others
|
329
|
|
10
|
|
10,185
|
|
1,502
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(354,710)
|
|
(457,953)
|
|
(461,089)
|
|
(68,014)
|
Gross
profit
|
691,954
|
|
732,750
|
|
740,472
|
|
109,225
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(227,496)
|
|
(191,367)
|
|
(166,983)
|
|
(24,631)
|
Selling and marketing
(a)
|
(407,206)
|
|
(414,264)
|
|
(413,116)
|
|
(60,938)
|
General and
administrative (a)
|
(160,735)
|
|
(103,588)
|
|
(99,996)
|
|
(14,750)
|
Impairment of
goodwill and intangible assets
|
-
|
|
-
|
|
(172)
|
|
(25)
|
Other operating
income
|
40,446
|
|
2,784
|
|
6,022
|
|
888
|
Total operating
income and expenses
|
(754,991)
|
|
(706,435)
|
|
(674,245)
|
|
(99,456)
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(63,037)
|
|
26,315
|
|
66,227
|
|
9,769
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income,
net
|
2,715
|
|
1,616
|
|
3,380
|
|
499
|
Changes in fair value
of redemption right and put options granted
|
(308)
|
|
(233)
|
|
82
|
|
12
|
Settlement and
changes in fair value of contingent consideration
|
(664)
|
|
(790)
|
|
(8,224)
|
|
(1,213)
|
Foreign exchange gain
(loss), net
|
486
|
|
1,213
|
|
(6,627)
|
|
(978)
|
Impairment of
investments
|
(95,206)
|
|
-
|
|
-
|
|
-
|
Losses from equity
method investments, net
|
(6,070)
|
|
(367)
|
|
(477)
|
|
(70)
|
Other income,
net
|
17,620
|
|
67,708
|
|
23,659
|
|
3,490
|
|
|
|
|
|
|
|
|
(Loss) Income
before taxes
|
(144,464)
|
|
95,462
|
|
78,020
|
|
11,509
|
Income tax
expenses
|
(1,964)
|
|
(4,912)
|
|
(4,664)
|
|
(688)
|
Net (loss)
income
|
(146,428)
|
|
90,550
|
|
73,356
|
|
10,821
|
Less: net income
(loss) attributable to noncontrolling interests
|
4,022
|
|
(679)
|
|
3,157
|
|
466
|
Net (loss) income
attributable to Cheetah Mobile shareholders
|
(150,450)
|
|
91,229
|
|
70,199
|
|
10,355
|
|
|
|
|
|
|
|
|
(Losses) Earnings
per share
|
|
|
|
|
|
|
|
Basic
|
(0.11)
|
|
0.07
|
|
0.05
|
|
0.01
|
Diluted
|
(0.11)
|
|
0.06
|
|
0.05
|
|
0.01
|
|
|
|
|
|
|
|
|
(Losses) Earnings
per ADS
|
|
|
|
|
|
|
|
Basic
|
(1.08)
|
|
0.66
|
|
0.48
|
|
0.07
|
Diluted
|
(1.08)
|
|
0.64
|
|
0.47
|
|
0.07
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,391,355,172
|
|
1,387,446,596
|
|
1,392,558,263
|
|
1,392,558,263
|
Diluted
|
1,391,355,172
|
|
1,422,443,105
|
|
1,430,957,071
|
|
1,430,957,071
|
Weighted average
number of ADSs used in computation
|
|
|
|
|
|
|
|
Basic
|
139,135,517
|
|
138,744,660
|
|
139,255,826
|
|
139,255,826
|
Diluted
|
139,135,517
|
|
142,244,310
|
|
143,095,707
|
|
143,095,707
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
54,165
|
|
(8,517)
|
|
(38,948)
|
|
(5,745)
|
Unrealized loss on
available-for-sale securities, net
|
(389)
|
|
-
|
|
-
|
|
-
|
Other
comprehensive income (loss)
|
53,776
|
|
(8,517)
|
|
(38,948)
|
|
(5,745)
|
Total
comprehensive (loss) income
|
(92,652)
|
|
82,033
|
|
34,408
|
|
5,076
|
Less: Total
comprehensive income attributable to
noncontrolling interests
|
7,117
|
|
119
|
|
1,380
|
|
204
|
Total
comprehensive (loss) income attributable to
Cheetah Mobile shareholders
|
(99,769)
|
|
81,914
|
|
33,028
|
|
4,872
|
|
|
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
Cost of
revenues
|
140
|
|
934
|
|
872
|
|
129
|
Research and
development
|
49,410
|
|
9,571
|
|
3,802
|
|
561
|
Selling and
marketing
|
1,300
|
|
(188)
|
|
4,956
|
|
731
|
General and
administrative
|
37,707
|
|
14,051
|
|
14,552
|
|
2,147
|
Total
|
88,557
|
|
24,368
|
|
24,182
|
|
3,568
|
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, 2017
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
1,201,561
|
|
|
|
|
|
|
|
1,201,561
|
|
|
|
177,239
|
Cost of
revenues
|
(461,089)
|
|
38.4%
|
|
872
|
|
0.1%
|
|
(460,217)
|
|
38.3%
|
|
(67,886)
|
Gross
profit
|
740,472
|
|
61.6%
|
|
872
|
|
0.1%
|
|
741,344
|
|
61.7%
|
|
109,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(166,983)
|
|
13.9%
|
|
3,802
|
|
0.3%
|
|
(163,181)
|
|
13.6%
|
|
(24,070)
|
Selling and
marketing
|
(413,116)
|
|
34.4%
|
|
4,956
|
|
0.4%
|
|
(408,160)
|
|
34.0%
|
|
(60,207)
|
General and
administrative
|
(99,996)
|
|
8.3%
|
|
14,552
|
|
1.2%
|
|
(85,444)
|
|
7.1%
|
|
(12,604)
|
Impairment of
goodwill and intangible assets
|
(172)
|
|
0.0%
|
|
-
|
|
0.0%
|
|
(172)
|
|
0.0%
|
|
(25)
|
Other operating
income
|
6,022
|
|
0.5%
|
|
-
|
|
0.0%
|
|
6,022
|
|
0.5%
|
|
888
|
Total operating
income and expenses
|
(674,245)
|
|
56.1%
|
|
23,310
|
|
1.9%
|
|
(650,935)
|
|
54.2%
|
|
(96,018)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
66,227
|
|
5.5%
|
|
24,182
|
|
2.0%
|
|
90,409
|
|
7.5%
|
|
13,336
|
Net income
attributable to Cheetah Mobile shareholders
|
70,199
|
|
5.8%
|
|
24,182
|
|
2.0%
|
|
94,381
|
|
7.9%
|
|
13,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.05
|
|
|
|
0.01
|
|
|
|
0.06
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.47
|
|
|
|
0.17
|
|
|
|
0.64
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.07
|
|
|
|
0.02
|
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2017
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,190,703
|
|
|
|
|
|
|
|
1,190,703
|
|
|
|
|
Cost of
revenues
|
(457,953)
|
|
38.5%
|
|
934
|
|
0.1%
|
|
(457,019)
|
|
38.4%
|
|
|
Gross
profit
|
732,750
|
|
61.5%
|
|
934
|
|
0.1%
|
|
733,684
|
|
61.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(191,367)
|
|
16.1%
|
|
9,571
|
|
0.8%
|
|
(181,796)
|
|
15.3%
|
|
|
Selling and
marketing
|
(414,264)
|
|
34.8%
|
|
(188)
|
|
0.0%
|
|
(414,452)
|
|
34.8%
|
|
|
General and
administrative
|
(103,588)
|
|
8.7%
|
|
14,051
|
|
1.2%
|
|
(89,537)
|
|
7.5%
|
|
|
Other operating
income
|
2,784
|
|
0.2%
|
|
-
|
|
0.0%
|
|
2,784
|
|
0.2%
|
|
|
Total operating
income and expenses
|
(706,435)
|
|
59.3%
|
|
23,434
|
|
2.0%
|
|
(683,001)
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
26,315
|
|
2.2%
|
|
24,368
|
|
2.0%
|
|
50,683
|
|
4.3%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
91,229
|
|
7.7%
|
|
24,368
|
|
2.0%
|
|
115,597
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.06
|
|
|
|
0.02
|
|
|
|
0.08
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.64
|
|
|
|
0.17
|
|
|
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,046,664
|
|
|
|
|
|
|
|
1,046,664
|
|
|
|
|
Cost of
revenues
|
(354,710)
|
|
33.9%
|
|
140
|
|
0.0%
|
|
(354,570)
|
|
33.9%
|
|
|
Gross
profit
|
691,954
|
|
66.1%
|
|
140
|
|
0.0%
|
|
692,094
|
|
66.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(227,496)
|
|
21.7%
|
|
49,410
|
|
4.7%
|
|
(178,086)
|
|
17.0%
|
|
|
Selling and
marketing
|
(407,206)
|
|
38.9%
|
|
1,300
|
|
0.1%
|
|
(405,906)
|
|
38.8%
|
|
|
General and
administrative
|
(160,735)
|
|
15.4%
|
|
37,707
|
|
3.6%
|
|
(123,028)
|
|
11.8%
|
|
|
Other operating
income
|
40,446
|
|
3.9%
|
|
-
|
|
0.0%
|
|
40,446
|
|
3.9%
|
|
|
Total operating
income and expenses
|
(754,991)
|
|
72.1%
|
|
88,417
|
|
8.4%
|
|
(666,574)
|
|
63.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(63,037)
|
|
6.0%
|
|
88,557
|
|
8.5%
|
|
25,520
|
|
2.4%
|
|
|
Net loss attributable
to Cheetah Mobile Shareholders
|
(150,450)
|
|
14.4%
|
|
88,557
|
|
8.5%
|
|
(61,893)
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (losses)
earnings per ordinary share (RMB)
|
(0.11)
|
|
|
|
0.07
|
|
|
|
(0.04)
|
|
|
|
|
Diluted (losses)
earnings per ADS (RMB)
|
(1.08)
|
|
|
|
0.64
|
|
|
|
(0.44)
|
|
|
|
|
CHEETAH MOBILE
INC.
|
Information about
Segment
|
(Unaudited,
in'000, except for percentage)
|
|
|
For The Three
Months Ended June 30, 2017
|
|
|
Utility Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
USD
|
|
Revenue
|
820,342
|
|
371,034
|
|
10,185
|
|
-
|
|
1,201,561
|
177,239
|
|
Operating profit
(loss)
|
212,849
|
|
(122,069)
|
|
(371)
|
|
(24,182)
|
|
66,227
|
9,769
|
|
Operating
margin
|
25.9%
|
|
(32.9)%
|
|
(3.6)%
|
|
|
|
5.5%
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2017
|
|
|
|
Utility Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
827,225
|
|
363,468
|
|
10
|
|
-
|
|
1,190,703
|
|
|
Operating profit
(loss)
|
179,158
|
|
(128,478)
|
|
3
|
|
(24,368)
|
|
26,315
|
|
|
Operating
margin
|
21.7%
|
|
(35.3)%
|
|
30.0%
|
|
|
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2016
|
|
|
|
Utility Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
946,198
|
|
100,137
|
|
329
|
|
-
|
|
1,046,664
|
|
|
Operating profit
(loss)
|
141,368
|
|
(106,228)
|
|
(9,620)
|
|
(88,557)
|
|
(63,037)
|
|
|
Operating
margin
|
14.9%
|
|
(106.1)%
|
|
(2924.0)%
|
|
|
|
(6.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Unallocated
expenses refer to SBC expenses that are not allocated to individual
segments.
|
|
|
|
|
Cheetah Mobile
Inc.
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(Unaudited, in
'000)
|
|
|
|
|
|
For The Three
Months Ended
|
|
30-Jun-16
|
31-Mar-17
|
30-Jun-17
|
30-Jun-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
PC
|
274,329
|
182,337
|
162,771
|
24,010
|
Mobile
|
772,335
|
1,008,366
|
1,038,790
|
153,229
|
Total
|
1,046,664
|
1,190,703
|
1,201,561
|
177,239
|
Cheetah Mobile
Inc.
|
Revenues Generated
from Domestic and Overseas Markets
|
(Unaudited, in
'000)
|
|
|
|
|
|
For The Three
Months Ended
|
|
30-Jun-16
|
31-Mar-17
|
30-Jun-17
|
30-Jun-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
Domestic
|
485,972
|
342,383
|
358,655
|
52,904
|
Overseas
|
560,692
|
848,320
|
842,906
|
124,335
|
Total
|
1,046,664
|
1,190,703
|
1,201,561
|
177,239
|
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
|
|
30-Jun-16
|
31-Mar-17
|
30-Jun-17
|
30-Jun-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
Net (loss) income
attributable to Cheetah Mobile shareholders
|
(150,450)
|
91,229
|
70,199
|
10,355
|
Add:
|
|
|
|
|
Income tax
expenses
|
1,964
|
4,912
|
4,664
|
688
|
Interest
income, net
|
(2,715)
|
(1,616)
|
(3,380)
|
(499)
|
Depreciation
and amortization
|
42,126
|
36,595
|
36,166
|
5,335
|
Net income
(loss) attributable to noncontrolling interests
|
4,022
|
(679)
|
3,157
|
466
|
Other
non-operating expense (income), net
|
84,142
|
(67,531)
|
(8,413)
|
(1,241)
|
Share-based
compensation
|
88,557
|
24,368
|
24,182
|
3,568
|
Adjusted
EBITDA
|
67,646
|
87,278
|
126,575
|
18,672
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-second-quarter-2017-unaudited-consolidated-financial-results-300507573.html
SOURCE Cheetah Mobile