BEIJING, Nov. 24, 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 third quarter
ended September 30, 2020.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's
Chairman and Chief Executive Officer, stated, "In the third quarter
of 2020, our revenue came in ahead of management's revenue
guidance. However, we still face challenges in growing our total
revenues in the coming quarters due to the unfavorable environment
in overseas markets. On the other hand, we don't expect our
AI-related robotics business to generate significant revenues in
the foreseeable future. During the third quarter of 2020, we
continued to streamline our operations and cut our costs and
expenses. In the quarter, our gross margin expanded to 69% from 60%
in the same period last year. Our operating loss narrowed to
RMB126 million from RMB257 million in the same period last year. By
segment, both the operating profits for our utility products and
related services and our mobile entertainment business improved
year-over-year in the quarter. Looking ahead, we will continue to
streamline our mobile Internet business, focus on the domestic
market, and invest in our AI-related robotic business to create a
long-term growth engine."
Mr. Thomas Ren, Cheetah Mobile's
Chief Financial Officer, commented, "We continued to create
shareholder value. During the third quarter of 2020, the Company
disposed certain business and assets, which boosted our earnings.
Our net income attributable to Cheetah Mobile shareholders was
RMB259 million in the third quarter
of 2020. More importantly, Cheetah Mobile's balance sheet remains
strong. As of September 30, 2020, we
had cash, cash equivalents, restricted cash, short-term investments
of US$235 million. Additionally, we
had long-term investments of US$332
million."
Third Quarter 2020 Consolidated Financial Results
REVENUES
Total revenues were RMB365.1
million (US$53.8 million) in
the third quarter of 2020, representing a decrease of 60.3% year
over year. Excluding the impact resulting from the deconsolidation
of LiveMe, total revenues decreased by 46.7% year over year in the
third quarter of 2020.
Revenues from utility products and related services
decreased by 47.3% year over year to RMB186.1 million (US$27.4
million) in the third quarter of 2020. The year-over-year
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 third quarter of
2020, approximately 65.4% 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 user subscription services, anti-virus
software sales and office software sales.
Revenues from the Company's mobile utility product business in
overseas markets decreased by 72% year over year to RMB39 million in third 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 52% year over year to RMB58 million in the third quarter of 2020. This
year-over-year decrease was primarily as a result of the headwinds
in the domestic online advertising market.
PC-related revenues decreased by 10% year over year to
RMB90 million in the third quarter of
2020 as internet traffic continued to migrate from PCs to mobile
devices.
Revenues from the mobile entertainment business decrease
by 70.4% year over year to RMB157.7
million (US$23.2 million) in
the third quarter of 2020. Excluding the impact resulting from the
deconsolidation of LiveMe, revenues from the mobile games
business decreased by 47.0% year over year to RMB157.7 million (US$23.2
million) in the third quarter of 2020. This decrease was
primarily attributable to the suspension of the Company's
advertising collaborations with Google since February 2020. In the third quarter of 2020,
approximately 48.1% 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 68.9% year over year to
RMB113.6 million (US$16.7 million) in the third quarter of 2020.
The decrease was primarily due to the deconsolidation of LiveMe and
reduced bandwidth and cloud service costs, in particular, in
overseas markets. Non-GAAP cost of revenues decreased by
69.0% year over year to RMB113.2
million (US$16.7 million) in
the third quarter of 2020.
Gross profit decreased by 54.6% year over year to
RMB251.5 million (US$37.0 million) in the third quarter of 2020.
Non-GAAP gross profit decreased by 54.6% year over year to
RMB251.9 million (US$37.1 million) in the third quarter of
2020.
Gross margin was 68.9% in the third quarter of 2020,
compared to 60.2% in the same period last year. Non-GAAP gross
margin was 69.0% in the third quarter of 2020, compared to
60.3% in the same period last year.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by 53.5% year over
year to RMB377.5 million
(US$55.6 million) in the third
quarter of 2020. Total non-GAAP operating expenses decreased
by 52.2% year over year to RMB370.8
million (US$54.6 million) in
the third quarter of 2020.
- Research and development expenses decreased by
47.8% year over year to RMB117.6
million (US$17.3 million) in
the third quarter of 2020. This decrease was primarily attributable
to a reduction in the personnel for the Company's utility products
and related services business and mobile games business in the
overseas market as the Company chose to shift its focus from
overseas markets to the domestic market. This decrease was also due
to the deconsolidation of LiveMe. Non-GAAP research and
development expenses decreased by 46.9% year over year to
RMB112.5 million (US$16.6 million) in the third quarter of
2020.
- Selling and marketing expenses decreased by 58.2% year
over year to RMB165.5 million
(US$24.4 million) in the third
quarter of 2020. This decrease was mainly due to the reduction in
promotional activities for the Company's mobile games business.
Non-GAAP selling and marketing expenses decreased by 58.0%
year over year to RMB166.7 million
(US$24.5 million) in the third
quarter of 2020.
- General and administrative expenses decreased by 51.9%
year over year to RMB91.0 million
(US$13.4 million) in the third
quarter of 2020. This decrease was primarily due to reduced general
and administrative personnel. Non-GAAP general and
administrative expenses decreased by 47.1% year over year to
RMB88.2 million (US$13.0 million) in the third quarter of
2020.
Operating loss was RMB126.0
million (US$18.6 million) in
the third quarter of 2020, reduced from RMB257.1 million in the same period last year.
Non-GAAP operating loss was RMB118.9
million (US$17.5 million) in
the third quarter of 2020, reduced from RMB221.5 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 RMB51.2 million in
the third quarter of 2020, increasing from RMB24.2 million in the same period last year due
to reduced cost and expenses.
- Operating profit for the mobile entertainment business
was RMB20.3 million in the third
quarter of 2020, compared to an operating loss of RMB142.4 million in the same period last year due
to reduced cost and expenses.
Share-based compensation expenses were RMB7.1 million (US$1.1
million) in the third quarter of 2020, compared to
RMB35.5 million in the same period
last year.
OTHER INCOME, NET
Other income, net was RMB378.3
million (US$55.7 million) in
the third quarter of 2020, which was primarily due to the disposal
of certain business and assets.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders
was RMB259.2 million (US$38.2 million) in the third quarter of 2020,
compared to RMB451.5 million in the
same period last year.
Non-GAAP net income attributable to Cheetah Mobile
shareholders was RMB266.3 million
(US$39.2 million) in the third
quarter of 2020, compared to RMB487.1
million in the same period last year.
NET INCOME PER ADS
Diluted earnings per ADS was RMB1.82 (US$0.27)
in the third quarter of 2020, compared to RMB3.21 in the same period last year. Non-GAAP
diluted earnings per ADS was RMB1.87 (US$0.28)
in third quarter of 2020, compared to diluted earnings per ADS of
RMB3.47 in the same period last
year.
BALANCE SHEET
As of September 30, 2020, the
Company had cash and cash equivalents, restricted cash, and
short-term investments of RMB1,595.0
million (US$234.9
million).
SHARES ISSUED AND OUTSTANDING
As of September 30, 2020, the
Company had a total of 1,398,070,144 Class A and Class B ordinary
shares issued and outstanding. One ADS represents 10 Class A
ordinary shares.
Business Outlook
For the fourth quarter of 2020, the Company expects its total
revenues to be between RMB230 million
(US$34 million) and RMB280 million (US$41
million). This amount reflects the Company's current and
preliminary expectations, which include the fact that the disposed
business and assets will no longer be included in the Company's
revenues as well as the assumption the COVID-19 situation will not
cause any significant disruptions to its operations throughout the
remainder of the fourth quarter.
Conference Call Information
The Company will hold a conference call on Tuesday, November 24, 2020, at 7:00 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 December
01, 2020 by dialing the following numbers:
International:
|
+1-412-317-0088
|
United States Toll
Free:
|
+1-877-344-7529
|
Access
Code:
|
10149829
|
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 RMB6.7896 to US$1.00, the exchange rate in effect as of
September 30, 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 and casual games.
The Company's advertising customers include direct advertisers and
mobile advertising networks. Through the Company's advertising
products, advertisers can promote their products and services to a
wide range of mobile users. 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
|
|
September 30,
2020
|
|
September 30,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
983,004
|
|
1,089,268
|
|
160,432
|
Restricted
cash
|
2,638
|
|
1,134
|
|
167
|
Short-term
investments
|
1,369,118
|
|
504,628
|
|
74,324
|
Accounts
receivable
|
469,276
|
|
268,101
|
|
39,487
|
Prepayments and other
current assets
|
936,109
|
|
1,091,981
|
|
160,831
|
Due from related
parties
|
233,255
|
|
231,387
|
|
34,080
|
Total current
assets
|
3,993,400
|
|
3,186,499
|
|
469,321
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
103,397
|
|
91,989
|
|
13,549
|
Right-of-use assets,
net
|
183,563
|
|
143,222
|
|
21,094
|
Intangible assets,
net
|
44,476
|
|
19,597
|
|
2,886
|
Investment in equity investees
|
194,473
|
|
240,216
|
|
35,380
|
Other long term investments
|
2,322,251
|
|
2,013,325
|
|
296,531
|
Due from related
parties
|
25,533
|
|
24,925
|
|
3,671
|
Deferred tax
assets
|
31,951
|
|
38,810
|
|
5,716
|
Other non-current
assets
|
112,700
|
|
121,764
|
|
17,934
|
Total non-current
assets
|
3,018,344
|
|
2,693,848
|
|
396,761
|
|
|
|
|
|
|
Total
assets
|
7,011,744
|
|
5,880,347
|
|
866,082
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
-
|
|
68,101
|
|
10,030
|
Accounts
payable
|
87,524
|
|
80,907
|
|
11,916
|
Accrued expenses and
other current liabilities
|
1,504,728
|
|
1,436,631
|
|
211,593
|
Due to related
parties
|
92,210
|
|
48,415
|
|
7,131
|
Income tax
payable
|
60,657
|
|
45,710
|
|
6,732
|
Total current
liabilities
|
1,745,119
|
|
1,679,764
|
|
247,402
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
82,847
|
|
66,110
|
|
9,737
|
Other non-current
liabilities
|
189,231
|
|
299,918
|
|
44,174
|
Total non-current
liabilities
|
272,078
|
|
366,028
|
|
53,911
|
|
|
|
|
|
|
Total
liabilities
|
2,017,197
|
|
2,045,792
|
|
301,313
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
225
|
|
234
|
|
34
|
Additional paid-in
capital
|
2,649,342
|
|
2,727,276
|
|
401,684
|
Retained
earnings
|
1,944,938
|
|
783,071
|
|
115,334
|
Accumulated other
comprehensive income
|
337,773
|
|
281,810
|
|
41,506
|
Total Cheetah
Mobile shareholders' equity
|
4,932,278
|
|
3,792,391
|
|
558,558
|
Noncontrolling
interests
|
62,269
|
|
42,164
|
|
6,210
|
|
|
|
|
|
|
Total
equity
|
4,994,547
|
|
3,834,555
|
|
564,768
|
|
|
|
|
|
|
Total liabilities
and equity
|
7,011,744
|
|
5,880,347
|
|
866,082
|
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
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
|
September 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
919,919
|
|
394,210
|
|
365,098
|
|
53,773
|
Utility products and
related services
|
352,932
|
|
195,361
|
|
186,136
|
|
27,414
|
Mobile
entertainment
|
532,234
|
|
179,398
|
|
157,665
|
|
23,222
|
AI and
others
|
34,753
|
|
19,451
|
|
21,296
|
|
3,137
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(365,748)
|
|
(113,661)
|
|
(113,584)
|
|
(16,729)
|
Gross
profit
|
554,171
|
|
280,549
|
|
251,514
|
|
37,044
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(225,492)
|
|
(125,036)
|
|
(117,627)
|
|
(17,325)
|
Selling and marketing
(a)
|
(395,875)
|
|
(205,562)
|
|
(165,547)
|
|
(24,382)
|
General and
administrative (a)
|
(189,085)
|
|
(133,840)
|
|
(91,021)
|
|
(13,406)
|
Other operating
(expense) income
|
(778)
|
|
998
|
|
(3,354)
|
|
(494)
|
Total operating
income and expenses
|
(811,230)
|
|
(463,440)
|
|
(377,549)
|
|
(55,607)
|
|
|
|
|
|
|
|
|
Operating
loss
|
(257,059)
|
|
(182,891)
|
|
(126,035)
|
|
(18,563)
|
Other income
(expenses):
|
|
|
|
|
|
|
|
Interest income,
net
|
27,556
|
|
8,496
|
|
7,228
|
|
1,065
|
Foreign exchange
(loss) gain, net
|
(1,336)
|
|
(3,409)
|
|
32,690
|
|
4,815
|
Gain (loss) from
equity method investments, net
|
3,396
|
|
(5,452)
|
|
3,115
|
|
459
|
Other income,
net
|
732,852
|
|
453,549
|
|
378,297
|
|
55,717
|
|
|
|
|
|
|
|
|
Income before
taxes
|
505,409
|
|
270,293
|
|
295,295
|
|
43,493
|
Income tax
expenses
|
(56,819)
|
|
(82,198)
|
|
(31,794)
|
|
(4,683)
|
Net
income
|
448,590
|
|
188,095
|
|
263,501
|
|
38,810
|
Less: net (loss)
income attributable to noncontrolling interests
|
(2,946)
|
|
(5,626)
|
|
4,333
|
|
638
|
Net income attributable to
Cheetah Mobile shareholders
|
451,536
|
|
193,721
|
|
259,168
|
|
38,172
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
0.32
|
|
0.14
|
|
0.18
|
|
0.03
|
Diluted
|
0.32
|
|
0.14
|
|
0.18
|
|
0.03
|
|
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
|
Basic
|
3.22
|
|
1.41
|
|
1.83
|
|
0.27
|
Diluted
|
3.21
|
|
1.38
|
|
1.82
|
|
0.27
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,368,904,228
|
|
1,383,251,669
|
|
1,416,988,202
|
|
1,416,988,202
|
Diluted
|
1,376,116,022
|
|
1,405,836,201
|
|
1,421,872,320
|
|
1,421,872,320
|
Weighted average
number of ADSs outstanding
|
|
|
|
|
|
|
|
Basic
|
136,890,423
|
|
138,325,167
|
|
141,698,820
|
|
141,698,820
|
Diluted
|
137,611,602
|
|
140,583,620
|
|
142,187,232
|
|
142,187,232
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
127,208
|
|
(2,116)
|
|
(106,081)
|
|
(15,624)
|
Unrealized (loss)
gain on available-for-sale securities, net
|
(698)
|
|
-
|
|
-
|
|
-
|
Other
comprehensive income (loss)
|
126,510
|
|
(2,116)
|
|
(106,081)
|
|
(15,624)
|
Total
comprehensive income
|
575,100
|
|
185,979
|
|
157,420
|
|
23,186
|
Less: Total
comprehensive (loss) income attributable to noncontrolling
interests
|
(2,048)
|
|
(5,426)
|
|
3,563
|
|
525
|
Total
comprehensive income attributable to Cheetah Mobile
shareholders
|
577,148
|
|
191,405
|
|
153,857
|
|
22,661
|
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
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
|
September 30,
2020
|
(a) Share-based
compensation expenses
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Cost of
revenues
|
114
|
|
230
|
|
366
|
|
54
|
Research and
development
|
13,686
|
|
11,826
|
|
5,099
|
|
751
|
Selling and
marketing
|
(660)
|
|
785
|
|
(1,120)
|
|
(165)
|
General and
administrative
|
22,379
|
|
37,359
|
|
2,782
|
|
410
|
Total
|
35,519
|
|
50,200
|
|
7,127
|
|
1,050
|
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 September 30, 2020
|
|
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
Non-GAAP
|
|
Result
|
|
Compensation
|
|
Result
|
|
Result
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
365,098
|
|
-
|
|
365,098
|
|
53,773
|
Cost of
revenues
|
(113,584)
|
|
366
|
|
(113,218)
|
|
(16,675)
|
Gross
profit
|
251,514
|
|
366
|
|
251,880
|
|
37,098
|
|
|
|
|
|
|
|
|
Research and
development
|
(117,627)
|
|
5,099
|
|
(112,528)
|
|
(16,574)
|
Selling and
marketing
|
(165,547)
|
|
(1,120)
|
|
(166,667)
|
|
(24,547)
|
General and
administrative
|
(91,021)
|
|
2,782
|
|
(88,239)
|
|
(12,996)
|
Other operating
expense
|
(3,354)
|
|
-
|
|
(3,354)
|
|
(494)
|
Total operating
income and expenses
|
(377,549)
|
|
6,761
|
|
(370,788)
|
|
(54,611)
|
|
|
|
|
|
|
|
|
Operating
loss
|
(126,035)
|
|
7,127
|
|
(118,908)
|
|
(17,513)
|
Net income
attributable to Cheetah Mobile shareholders
|
259,168
|
|
7,127
|
|
266,295
|
|
39,221
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.18
|
|
0.01
|
|
0.19
|
|
|
Diluted earnings per
ADS (RMB)
|
1.82
|
|
0.05
|
|
1.87
|
|
|
Diluted earnings per
ADS (USD)
|
0.27
|
|
0.01
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2020
|
|
|
|
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
|
|
Result
|
|
Compensation
|
|
Result
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenues
|
394,210
|
|
-
|
|
394,210
|
|
|
Cost of
revenues
|
(113,661)
|
|
230
|
|
(113,431)
|
|
|
Gross
profit
|
280,549
|
|
230
|
|
280,779
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(125,036)
|
|
11,826
|
|
(113,210)
|
|
|
Selling and
marketing
|
(205,562)
|
|
785
|
|
(204,777)
|
|
|
General and
administrative
|
(133,840)
|
|
37,359
|
|
(96,481)
|
|
|
Other operating
income
|
998
|
|
-
|
|
998
|
|
|
Total operating
income and expenses
|
(463,440)
|
|
49,970
|
|
(413,470)
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(182,891)
|
|
50,200
|
|
(132,691)
|
|
|
Net income attributable to
Cheetah Mobile shareholders
|
193,721
|
|
50,200
|
|
243,921
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.14
|
|
0.04
|
|
0.17
|
|
|
Diluted earnings per
ADS (RMB)
|
1.38
|
|
0.36
|
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended September 30, 2019
|
|
|
|
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
|
|
Result
|
|
Compensation
|
|
Result
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenues
|
919,919
|
|
|
|
919,919
|
|
|
Cost of
revenues
|
(365,748)
|
|
114
|
|
(365,634)
|
|
|
Gross
profit
|
554,171
|
|
114
|
|
554,285
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(225,492)
|
|
13,686
|
|
(211,806)
|
|
|
Selling and
marketing
|
(395,875)
|
|
(660)
|
|
(396,535)
|
|
|
General and
administrative
|
(189,085)
|
|
22,379
|
|
(166,706)
|
|
|
Other operating
expense
|
(778)
|
|
-
|
|
(778)
|
|
|
Total operating
income and expenses
|
(811,230)
|
|
35,405
|
|
(775,825)
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(257,059)
|
|
35,519
|
|
(221,540)
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
451,536
|
|
35,519
|
|
487,055
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.32
|
|
0.03
|
|
0.35
|
|
|
Diluted earnings per
ADS (RMB)
|
3.21
|
|
0.26
|
|
3.47
|
|
|
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 September 30, 2020
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenue
|
186,136
|
|
157,665
|
|
21,296
|
|
-
|
|
365,098
|
|
53,773
|
Operating profit
(loss)
|
51,155
|
|
20,296
|
|
(190,358)
|
|
(7,127)
|
|
(126,035)
|
|
(18,563)
|
Operating
margin
|
27.5%
|
|
12.9%
|
|
(893.9)%
|
|
-
|
|
(34.5)%
|
|
(34.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2020
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
195,361
|
|
179,398
|
|
19,451
|
|
-
|
|
394,210
|
|
|
Operating profit
(loss)
|
56,460
|
|
(20,851)
|
|
(168,300)
|
|
(50,200)
|
|
(182,891)
|
|
|
Operating
margin
|
28.9%
|
|
(11.6)%
|
|
(865.3)%
|
|
-
|
|
(46.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended September 30, 2019
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
352,932
|
|
532,234
|
|
34,753
|
|
-
|
|
919,919
|
|
|
Operating profit
(loss)
|
24,248
|
|
(142,423)
|
|
(103,365)
|
|
(35,519)
|
|
(257,059)
|
|
|
Operating
margin
|
6.9%
|
|
(26.8)%
|
|
(297.4)%
|
|
|
|
(27.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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$"))
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
|
September 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Net income attributable to
Cheetah Mobile shareholders
|
451,536
|
|
193,721
|
|
259,168
|
|
38,172
|
Add:
|
|
|
|
|
|
|
|
Income tax
expenses
|
56,819
|
|
82,198
|
|
31,794
|
|
4,683
|
Interest
income, net
|
(27,556)
|
|
(8,496)
|
|
(7,228)
|
|
(1,065)
|
Depreciation
and amortization
|
16,193
|
|
18,528
|
|
17,297
|
|
2,548
|
Net (loss)
income attributable to noncontrolling interests
|
(2,946)
|
|
(5,626)
|
|
4,333
|
|
638
|
Other income,
net
|
(734,912)
|
|
(444,688)
|
|
(414,102)
|
|
(60,991)
|
Share-based
compensation
|
35,519
|
|
50,200
|
|
7,127
|
|
1,050
|
Adjusted
EBITDA
|
(205,347)
|
|
(114,163)
|
|
(101,611)
|
|
(14,965)
|
CHEETAH MOBILE
INC.
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
|
September 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
PC
|
123,789
|
|
118,343
|
|
109,218
|
|
16,086
|
Mobile
|
796,130
|
|
275,867
|
|
255,880
|
|
37,687
|
Total
|
919,919
|
|
394,210
|
|
365,098
|
|
53,773
|
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
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
|
September 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Domestic
|
299,339
|
|
163,589
|
|
161,882
|
|
23,843
|
Overseas
|
620,580
|
|
230,621
|
|
203,216
|
|
29,930
|
Total
|
919,919
|
|
394,210
|
|
365,098
|
|
53,773
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-third-quarter-2020-unaudited-consolidated-financial-results-301179513.html
SOURCE Cheetah Mobile Inc