BEIJING, Nov. 21, 2017 /PRNewswire/ -- Cheetah Mobile Inc.
(NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile
internet company with strong global vision, today announced its
unaudited consolidated financial results for the third quarter
ended September 30, 2017.
Third Quarter 2017 Financial Highlights
- Total revenues increased by 5.9% year over year to RMB1,194.7 million (US$179.6 million), mostly driven by the Company's
growth in mobile revenues, which increased by 16.9% year over year
and achieved a record high during the third quarter of 2017.
- Operating profit increased to RMB132.3
million (US$19.9 million) from
an operating loss of RMB33.8 million
in the same period last year. Non-GAAP operating profit increased
by 303.4% year over year to RMB153.7
million (US$23.1
million).
- Net income attributable to Cheetah Mobile shareholders
increased to RMB139.7 million
(US$21.0 million) from RMB0.4 million in the same period last year.
Non-GAAP net income attributable to Cheetah Mobile shareholders
increased by 122.5% year over year to RMB161.1 million (US$24.2
million) in the third quarter of 2017.
- The Company generated RMB197.8
million (US$29.7 million) of
net cash from operating activities and RMB192.3 million (US$28.9
million) of free cash flow1 in the third
quarter of 2017.
[1] Free cash flow is
defined as net cash generated by operating activities less capital
expenditure
|
Third Quarter 2017 Key Operating Metrics
- The average number of global mobile monthly active users
("Mobile MAUs") was 589.0 million in the third quarter of 2017. The
number of Mobile MAUs from markets outside of China, or overseas markets, accounted for
75.4% of the total number of Mobile MAUs in the third quarter of
2017.
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "Our overall business remained
robust both financially and operationally in the third quarter of
2017. Notably, the performance of
our mobile game business outperformed our expectations with both
revenues and profits continuing to grow at a healthy pace in this
quarter. In addition, we further enhanced our lead in artificial
intelligence ("A.I.") technologies by acquiring approximately 30%
equity interest in Beijing OrionStar, an A.I. technology company.
A.I. technologies allow us to better serve our massive global user
base by creating more product and service offerings and delivering
more personalized experiences."
Mr. Vincent Jiang, Cheetah
Mobile's Chief Financial Officer, commented, "I am pleased to
announce that both operating profit and net profit continued to
grow, with net profit achieving a record high in the third quarter
of 2017. During the third quarter, we continued to optimize costs
and expenses for our utility products and related services.
Meanwhile, we gradually disposed of some of our non-strategic
assets. These initiatives further improved our cash generation
capability and allowed us to reallocate the Company's resources to
execute our A.I. strategy, which we believe will help unlock the
long-term value of our nearly 600 million global mobile MAUs."
Third Quarter 2017 Consolidated Financial
Results
REVENUES
Total revenues increased by 5.9% year over year to RMB1,194.7 million (US$179.6 million) in the third quarter of
2017.
- Revenues from utility products and related
services, which include mobile utility applications, internet
browsers and PC security software, decreased by 14.6% year over
year to RMB824.8 million
(US$124.0 million) in the third
quarter of 2017. The year-over-year decrease was primarily due to a
decrease in PC revenues as internet traffic in China continued to migrate from PC to mobile
devices. To a lesser extent, the year-over-year decrease was also
due to a decline in revenues from mobile utility products and
related services in the overseas markets, as certain ad formats
have been discontinued by one of our overseas third-party
advertising partners.
- Revenues from the mobile entertainment business, which
includes Live.me, News Republic, and mobile games, increased by
123.9% year over year to RMB362.4
million (US$54.5 million). The
year-over-year increase was primarily driven by a rapid growth in
Live.me's broadcasting revenues and the Company's enriched mobile
game portfolio as a result of the introduction of several new
mobile games earlier this year.
By platform, revenues generated from the mobile business
increased by 16.9% year over year to RMB1,050.3 million (US$157.9 million) in the third quarter of 2017,
primarily driven by the rapid growth of the Company's Live.me
business in the overseas markets and the increase in its mobile
game revenues, particularly in the overseas markets.
By region, revenues generated from the overseas markets
increased by 11.2% year over year to RMB800.5 million (US$120.3
million) in the third quarter of 2017.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 1.0% year over year to
RMB399.7 million (US$60.1 million) in the third quarter of 2017.
The year-over-year decrease was primarily driven by a decrease in
bandwidth costs and internet data center costs as the Company
continued to optimize its product offerings and improve its
operating efficiency. Non-GAAP cost of revenues decreased by
1.0% year over year to RMB399.7
million (US$60.1 million) in
the third quarter of 2017.
Gross profit increased by 9.7% year over year to
RMB795.0 million (US$119.5 million) in the third quarter of 2017.
Non-GAAP gross profit increased by 9.7% year over year to
RMB795.0 million (US$119.5 million) in the third quarter of
2017.
OPERATING INCOME AND EXPENSES
Total operating expenses decreased by 12.6% year over
year to RMB662.7 million
(US$99.6 million) in the third
quarter of 2017. Total non-GAAP operating expenses decreased
by 6.6% year over year to RMB641.2
million (US$96.4 million) in
the third quarter of 2017.
- Research and development (R&D) expenses decreased by
25.9% year over year to RMB174.6
million (US$26.3 million) in
the third quarter of 2017, primarily due to lower share-based
compensation expenses for the Company's utility products and
services business and reduced R&D head count for the Company's
News Republic business. Non-GAAP R&D expenses, which
exclude share-based compensation expenses, decreased by 13.9% year
over year to RMB171.8 million
(US$25.8 million) in the third
quarter of 2017.
- Selling and marketing expenses increased by 4.5% year
over year to RMB409.0 million
(US$61.5 million) in the third
quarter of 2017, primarily due to increased promotional activities
for the Company's mobile game business. Non-GAAP selling and
marketing expenses, which exclude share-based compensation
expenses, increased by 6.6% year over year to RMB410.7 million (US$61.7
million) in the third quarter of 2017.
- General and administrative expenses decreased by 37.1%
year over year to RMB88.7 million
(US$13.3 million) in the third
quarter of 2017. The year-over-year decrease was primarily
attributable to a decrease in allowance for doubtful accounts,
lower administrative expenses, and lower share-based compensation
expenses. Non-GAAP general and administrative expenses,
which exclude share-based compensation expenses, decreased by 38.7%
year over year to RMB68.4 million
(US$10.3 million) in the third
quarter of 2017.
Operating profit increased to RMB132.3 million (US$19.9
million) in the third quarter of 2017 from an operating loss
of RMB33.8 million in the same period
last year. Non-GAAP operating profit increased by 303.4%
year over year to RMB153.7 million
(US$23.1 million) in the third
quarter of 2017.
The Company has reported its operating profit along the
following segments since the second quarter of 2017:
- Operating profit for utility products and related
services increased by 14.4% year over year to RMB260.5 million (US$39.2
million) in the third quarter of 2017, mainly due to the
optimization of cost and expense structure of utility products and
services.
- Operating loss for the mobile entertainment business was
RMB105.0 million (US$15.8 million) in the third quarter of 2017,
mainly due to the Company's increased investments in its
content-driven products. The Company's mobile entertainment
business had operating losses of RMB189.6 million in the same period last
year. The reduced loss was mainly driven by year-over-year
increases in revenues generated from the Company's Live.me and
mobile game businesses.
Share-based compensation expenses decreased by 70.3% year
over year to RMB21.4 million
(US$3.2 million) in the third quarter
of 2017. The decrease resulted from a combination of several
factors. The Company employed an accelerated method to recognize
share-based compensation expenses. As a significant number of
share-based awards were granted by the Company around its IPO in
2014 and most of these awards approached the end of their vesting
periods in 2017, there was a year-over-year decrease of the
Company's share-based compensation expenses in the third quarter of
2017. In addition, fewer share-based awards were granted in
2017 than in previous years, and more unvested awarded shares were
forfeited in 2017 to date.
IMPAIRMENT OF INVESTMENTS
Impairment of investments were RMB65.5
million (US$9.8 million) in
the third quarter of 2017, primarily due to a one-time non-cash
write-down of an investment asset, which the Company considered
other-than-temporary, to its fair value. This write-down was the
result of lower-than-expected performance and financial position of
the investment asset.
OTHER INCOME, NET
Other income, net, was RMB82.6
million (US$12.4 million) in
the third quarter of 2017, primarily consisting of gains from
disposals of certain investment assets in the third quarter of
2017.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders
increased to RMB139.7 million
(US$21.0 million) in the third
quarter of 2017 from RMB0.4 million
in the same period last year. Non-GAAP net income attributable
to Cheetah Mobile shareholders increased by 122.5% year over
year to RMB161.1 million
(US$24.2 million) in the third
quarter of 2017.
NET INCOME PER ADS
Diluted income per ADS increased to RMB0.95 (US$0.14)
in the third quarter of 2017 from RMB0.00 in the same period last year. Non-GAAP
diluted income per ADS increased by 115.7% year over year to
RMB1.10 (US$0.17) in the third quarter of 2017.
ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) increased by 133.4% year over
year to RMB186.9 million
(US$28.1 million) in the third
quarter of 2017.
CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM
INVESTMENTS BALANCE
As of September 30, 2017, the
Company had cash and cash equivalents, restricted cash and
short-term investments of RMB2,357.9
million (US$354.4
million).
CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH
FLOW
In the third quarter of 2017, the Company generated RMB197.8 million (US$29.7
million) of net cash from operating activities and
RMB192.3 million (US$28.9 million) of free cash flow.
SHARES ISSUED AND OUTSTANDING
As of September 30, 2017, the
Company had a total of 1,441,330,950 Class A and Class B ordinary
shares issued and outstanding. One ADS represents 10 Class A
ordinary shares.
Recent Developments
Departure of the Company's Chief Technology Officer
Cheetah Mobile today announced that Mr. Charles Fan will resign as Chief Technology
Officer of the Company for personal reasons, effective November 30, 2017.
Federal Securities Class Action
Cheetah Mobile announced that a federal securities class action
was filed against the Company on November 8,
2017, with allegations based on a short report issued on
October 26, 2017. The Company
believes the allegations in the short report and the claims in the
class action are without merit and intends to defend itself
vigorously.
Business Outlook
For the fourth quarter of 2017, the Company expects its total
revenues to be between RMB1,250
million (US$188 million) and
RMB1,310 million (US$197 million). This estimate represents
management's preliminary view as of the date of this release, which
is subject to change.
Conference Call Information
The Company will hold a conference call on Tuesday, November 21, 2017 at 8:00 a.m. Eastern Time or 9:00 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 RMB6.6533 to
US$1.00, the exchange rate in effect
as of September 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 with strong
global vision. It has attracted hundreds of millions of monthly
actively users through its mobile utilities products such as Clean
Master and Cheetah Keyboard, casual games such as Piano Tiles 2,
and its live streaming product Live.me. The Company provides its
advertising customers, which include direct advertisers and mobile
advertising networks through which advertisers place their
advertisements, with direct access to highly targeted mobile users
and global promotional channels. Cheetah Mobile is committed to
leveraging its cutting-edge artificial intelligence technologies to
power its products and make the world smarter. It has been listed
on the New York Stock Exchange since May
2014.
Safe Harbor Statement
This press release contains forward-looking statements.
These statements, including management quotes and business outlook,
constitute forward-looking statements under the U.S. Private
Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Such statements
involve inherent risks and uncertainties. A number of factors
could cause actual results to differ materially from those
contained in the forward-looking statements, including but are not
limited to the following: Cheetah Mobile's growth strategies;
Cheetah Mobile's ability to retain and increase its user base and
expand its product and service offerings; Cheetah Mobile's ability
to monetize its platform; Cheetah Mobile's future business
development, financial condition and results of operations;
competition with companies in a number of industries including
internet companies that provide online marketing services and
internet value-added services; expected changes in Cheetah Mobile's
revenues and certain cost or expense items; and general economic
and business condition globally and in China. Further
information regarding these and other risks is included in Cheetah
Mobile's filings with the U.S. Securities and Exchange
Commission. Cheetah Mobile does not undertake any obligation
to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
Use of Non-GAAP Financial Measures
To supplement Cheetah Mobile's consolidated financial
information presented in accordance with U.S. GAAP, Cheetah Mobile
uses the following non-GAAP financial measures:
- Non-GAAP cost of revenues reflects cost of revenues excluding
the portion of share-based compensation expenses allocated to cost
of revenues.
- Non-GAAP gross profit reflects gross profit excluding the
portion of share-based compensation expenses allocated to gross
profit.
- Non-GAAP operating income and expenses reflect operating income
and expenses excluding the portion of share-based compensation
expenses allocated to operating expenses.
- Non-GAAP operating profit reflects operating profit excluding
share-based compensation expenses.
- Non-GAAP net income attributable to Cheetah Mobile shareholders
is net income attributable to Cheetah Mobile shareholders excluding
share-based compensation expenses.
- Non-GAAP diluted earnings per ADS is non-GAAP net income
attributable to Cheetah Mobile shareholders excluding net income
attributable to redeemable 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-Sep-17
|
|
30-Sep-17
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,411,000
|
|
1,652,868
|
|
248,428
|
Restricted
cash
|
167,751
|
|
74,862
|
|
11,252
|
Short-term
investments
|
361,499
|
|
630,185
|
|
94,718
|
Accounts
receivable
|
600,885
|
|
539,386
|
|
81,070
|
Prepayments and other
current assets
|
571,306
|
|
576,795
|
|
86,693
|
Due from related
parities
|
44,278
|
|
41,345
|
|
6,214
|
Deferred tax
assets
|
15,527
|
|
-
|
|
-
|
Total current
assets
|
3,172,246
|
|
3,515,441
|
|
528,375
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
117,439
|
|
95,021
|
|
14,282
|
Intangible assets,
net
|
227,251
|
|
157,335
|
|
23,648
|
Goodwill
|
943,922
|
|
922,988
|
|
138,726
|
Investment in equity investees
|
100,063
|
|
108,538
|
|
16,313
|
Other long term investments
|
877,094
|
|
1,017,140
|
|
152,878
|
Due from related
parities
|
-
|
|
3,139
|
|
472
|
Deferred tax
assets
|
74,809
|
|
115,545
|
|
17,367
|
Other non-current
assets
|
28,310
|
|
29,468
|
|
4,429
|
Total non-current
assets
|
2,368,888
|
|
2,449,174
|
|
368,115
|
|
|
|
|
|
|
Total
assets
|
5,541,134
|
|
5,964,615
|
|
896,490
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
379,544
|
|
377,865
|
|
56,794
|
Accounts
payable
|
194,882
|
|
167,209
|
|
25,132
|
Accrued expenses and
other current liabilities
|
1,359,758
|
|
1,183,269
|
|
177,847
|
Deferred
revenue
|
48,661
|
|
42,699
|
|
6,418
|
Due to related
parties
|
71,167
|
|
91,435
|
|
13,743
|
Income tax
payable
|
12,209
|
|
37,433
|
|
5,626
|
Total current
liabilities
|
2,066,221
|
|
1,899,910
|
|
285,560
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Bank loans
|
118,797
|
|
84,167
|
|
12,650
|
Deferred
revenue
|
6,001
|
|
5,441
|
|
818
|
Deferred tax
liabilities
|
112,438
|
|
108,694
|
|
16,337
|
Other non-current
liabilities
|
36,499
|
|
31,525
|
|
4,738
|
Total non-current
liabilities
|
273,735
|
|
229,827
|
|
34,543
|
|
|
|
|
|
|
Total
liabilities
|
2,339,956
|
|
2,129,737
|
|
320,103
|
|
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
-
|
|
313,449
|
|
47,112
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
230
|
|
233
|
|
35
|
Treasury
stock
|
(178,991)
|
|
(178,991)
|
|
(26,903)
|
Additional paid-in
capital
|
2,725,675
|
|
2,814,201
|
|
422,977
|
Retained
earnings
|
237,293
|
|
537,924
|
|
80,851
|
Accumulated other
comprehensive income
|
228,145
|
|
135,210
|
|
20,323
|
Total Cheetah
Mobile shareholders' equity
|
3,012,352
|
|
3,308,577
|
|
497,283
|
Noncontrolling
interests
|
188,826
|
|
212,852
|
|
31,992
|
|
|
|
|
|
|
Total
equity
|
3,201,178
|
|
3,521,429
|
|
529,275
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
5,541,134
|
|
5,964,615
|
|
896,490
|
CHEETAH MOBILE
INC.
|
Condensed
Consolidated Statements of Comprehensive (Loss)
Income
|
(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-Sep-16
|
|
30-Jun-17
|
|
30-Sep-17
|
|
30-Sep-17
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
1,128,326
|
|
1,201,561
|
|
1,194,687
|
|
179,564
|
Utility products and
related services
|
966,306
|
|
820,342
|
|
824,764
|
|
123,964
|
Mobile
entertainment
|
161,897
|
|
371,034
|
|
362,448
|
|
54,476
|
Others
|
123
|
|
10,185
|
|
7,475
|
|
1,124
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(403,900)
|
|
(461,089)
|
|
(399,664)
|
|
(60,070)
|
Gross
profit
|
724,426
|
|
740,472
|
|
795,023
|
|
119,494
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(235,541)
|
|
(166,983)
|
|
(174,646)
|
|
(26,250)
|
Selling and marketing
(a)
|
(391,496)
|
|
(413,116)
|
|
(409,045)
|
|
(61,480)
|
General and
administrative (a)
|
(141,168)
|
|
(99,996)
|
|
(88,737)
|
|
(13,337)
|
Impairment of
goodwill and intangible assets
|
-
|
|
(172)
|
|
-
|
|
-
|
Other operating
income
|
9,938
|
|
6,022
|
|
9,739
|
|
1,464
|
Total operating
income and expenses
|
(758,267)
|
|
(674,245)
|
|
(662,689)
|
|
(99,603)
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(33,841)
|
|
66,227
|
|
132,334
|
|
19,891
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income,
net
|
727
|
|
3,380
|
|
7,380
|
|
1,109
|
Changes in fair value
of redemption right and put options granted
|
251
|
|
82
|
|
(198)
|
|
(30)
|
Settlement and
changes in fair value of contingent consideration
|
981
|
|
(8,224)
|
|
-
|
|
-
|
Foreign exchange gain
(loss), net
|
1,672
|
|
(6,627)
|
|
(3,867)
|
|
(581)
|
Impairment of
investments
|
-
|
|
-
|
|
(65,461)
|
|
(9,839)
|
Losses from equity
method investments, net
|
(451)
|
|
(477)
|
|
(582)
|
|
(87)
|
Other income,
net
|
30,949
|
|
23,659
|
|
82,568
|
|
12,410
|
|
|
|
|
|
|
|
|
Income before
taxes
|
288
|
|
78,020
|
|
152,174
|
|
22,873
|
Income tax benefits
(expenses)
|
7,873
|
|
(4,664)
|
|
(7,767)
|
|
(1,167)
|
Net
income
|
8,161
|
|
73,356
|
|
144,407
|
|
21,706
|
Less: net income
attributable to noncontrolling interests
|
7,716
|
|
3,157
|
|
4,727
|
|
710
|
Net income
attributable to Cheetah Mobile shareholders
|
445
|
|
70,199
|
|
139,680
|
|
20,996
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
0.00
|
|
0.05
|
|
0.10
|
|
0.02
|
Diluted
|
0.00
|
|
0.05
|
|
0.09
|
|
0.01
|
|
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
|
Basic
|
0.00
|
|
0.48
|
|
0.97
|
|
0.15
|
Diluted
|
0.00
|
|
0.47
|
|
0.95
|
|
0.14
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,381,491,089
|
|
1,392,558,263
|
|
1,396,601,023
|
|
1,396,601,023
|
Diluted
|
1,417,898,001
|
|
1,430,957,071
|
|
1,429,237,411
|
|
1,429,237,411
|
Weighted average
number of ADSs outstanding
|
|
|
|
|
|
|
|
Basic
|
138,149,109
|
|
139,255,826
|
|
139,660,102
|
|
139,660,102
|
Diluted
|
141,789,800
|
|
143,095,707
|
|
142,923,741
|
|
142,923,741
|
|
|
|
|
|
|
|
|
Other
comprehensive loss, net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
12,347
|
|
(38,948)
|
|
(48,572)
|
|
(7,300)
|
Reclassification
adjustments for gains included in net income
|
(21,666)
|
|
-
|
|
-
|
|
-
|
Other
comprehensive loss
|
(9,319)
|
|
(38,948)
|
|
(48,572)
|
|
(7,300)
|
Total
comprehensive (loss) income
|
(1,158)
|
|
34,408
|
|
95,835
|
|
14,406
|
Less: Total
comprehensive income attributable to
noncontrolling interests
|
8,522
|
|
1,380
|
|
2,604
|
|
391
|
Total
comprehensive (loss) income attributable to
Cheetah Mobile shareholders
|
(9,680)
|
|
33,028
|
|
93,231
|
|
14,015
|
|
|
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
Cost of
revenues
|
187
|
|
872
|
|
(63)
|
|
(9)
|
Research and
development
|
35,956
|
|
3,802
|
|
2,847
|
|
428
|
Selling and
marketing
|
6,352
|
|
4,956
|
|
(1,680)
|
|
(253)
|
General and
administrative
|
29,449
|
|
14,552
|
|
20,288
|
|
3,049
|
Total
|
71,944
|
|
24,182
|
|
21,392
|
|
3,215
|
CHEETAH MOBILE
INC.
|
Information about
Segment
|
(Unaudited,
in'000, except for percentage)
|
|
|
For The Three
Months Ended September 30, 2017
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
USD
|
|
Revenue
|
824,764
|
|
362,448
|
|
7,475
|
|
-
|
|
1,194,687
|
179,564
|
|
Operating profit
(loss)
|
260,490
|
|
(104,957)
|
|
(1,807)
|
|
(21,392)
|
|
132,334
|
19,891
|
|
Operating
margin
|
31.6%
|
|
(29.0)%
|
|
(24.2)%
|
|
|
|
11.1%
|
11.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2017
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
820,342
|
|
371,034
|
|
10,185
|
|
-
|
|
1,201,561
|
|
|
Operating profit
(loss)
|
212,849
|
|
(122,069)
|
|
(371)
|
|
(24,182)
|
|
66,227
|
|
|
Operating
margin
|
25.9%
|
|
(32.9)%
|
|
(3.6)%
|
|
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended September 30, 2016
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
Others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
966,306
|
|
161,897
|
|
123
|
|
-
|
|
1,128,326
|
|
|
Operating profit
(loss)
|
227,658
|
|
(189,576)
|
|
21
|
|
(71,944)
|
|
(33,841)
|
|
|
Operating
margin
|
23.6%
|
|
(117.1)%
|
|
17.1%
|
|
|
|
(3.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Unallocated
expenses refer to SBC expenses that are not allocated to individual
segments.
|
|
|
|
|
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 September 30, 2017
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
1,194,687
|
|
|
|
|
|
|
|
1,194,687
|
|
|
|
179,564
|
Cost of
revenues
|
(399,664)
|
|
33.5%
|
|
(63)
|
|
0.0%
|
|
(399,727)
|
|
33.5%
|
|
(60,081)
|
Gross
profit
|
795,023
|
|
66.5%
|
|
(63)
|
|
0.0%
|
|
794,960
|
|
66.5%
|
|
119,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(174,646)
|
|
14.6%
|
|
2,847
|
|
0.2%
|
|
(171,799)
|
|
14.4%
|
|
(25,822)
|
Selling and
marketing
|
(409,045)
|
|
34.2%
|
|
(1,680)
|
|
0.1%
|
|
(410,725)
|
|
34.4%
|
|
(61,733)
|
General and
administrative
|
(88,737)
|
|
7.4%
|
|
20,288
|
|
1.7%
|
|
(68,449)
|
|
5.7%
|
|
(10,288)
|
Other operating
income
|
9,739
|
|
0.8%
|
|
-
|
|
0.0%
|
|
9,739
|
|
0.8%
|
|
1,464
|
Total operating
income and expenses
|
(662,689)
|
|
55.5%
|
|
21,455
|
|
1.8%
|
|
(641,234)
|
|
53.7%
|
|
(96,379)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
132,334
|
|
11.1%
|
|
21,392
|
|
1.8%
|
|
153,726
|
|
12.9%
|
|
23,104
|
Net income
attributable to Cheetah Mobile shareholders
|
139,680
|
|
11.7%
|
|
21,392
|
|
1.8%
|
|
161,072
|
|
13.5%
|
|
24,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.09
|
|
|
|
0.02
|
|
|
|
0.11
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.95
|
|
|
|
0.15
|
|
|
|
1.10
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.14
|
|
|
|
0.03
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2017
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,201,561
|
|
|
|
|
|
|
|
1,201,561
|
|
|
|
|
Cost of
revenues
|
(461,089)
|
|
38.4%
|
|
872
|
|
0.1%
|
|
(460,217)
|
|
38.3%
|
|
|
Gross
profit
|
740,472
|
|
61.6%
|
|
872
|
|
0.1%
|
|
741,344
|
|
61.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(166,983)
|
|
13.9%
|
|
3,802
|
|
0.3%
|
|
(163,181)
|
|
13.6%
|
|
|
Selling and
marketing
|
(413,116)
|
|
34.4%
|
|
4,956
|
|
0.4%
|
|
(408,160)
|
|
34.0%
|
|
|
General and
administrative
|
(99,996)
|
|
8.3%
|
|
14,552
|
|
1.2%
|
|
(85,444)
|
|
7.1%
|
|
|
Impairment of
goodwill and intangible assets
|
(172)
|
|
0.0%
|
|
-
|
|
0.0%
|
|
(172)
|
|
0.0%
|
|
|
Other operating
income
|
6,022
|
|
0.5%
|
|
-
|
|
0.0%
|
|
6,022
|
|
0.5%
|
|
|
Total operating
income and expenses
|
(674,245)
|
|
56.1%
|
|
23,310
|
|
1.9%
|
|
(650,935)
|
|
54.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
66,227
|
|
5.5%
|
|
24,182
|
|
2.0%
|
|
90,409
|
|
7.5%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
70,199
|
|
5.8%
|
|
24,182
|
|
2.0%
|
|
94,381
|
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.05
|
|
|
|
0.01
|
|
|
|
0.06
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.47
|
|
|
|
0.17
|
|
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended September 30, 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,128,326
|
|
|
|
|
|
|
|
1,128,326
|
|
|
|
|
Cost of
revenues
|
(403,900)
|
|
35.8%
|
|
187
|
|
0.0%
|
|
(403,713)
|
|
35.8%
|
|
|
Gross
profit
|
724,426
|
|
64.2%
|
|
187
|
|
0.0%
|
|
724,613
|
|
64.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(235,541)
|
|
20.9%
|
|
35,956
|
|
3.2%
|
|
(199,585)
|
|
17.7%
|
|
|
Selling and
marketing
|
(391,496)
|
|
34.7%
|
|
6,352
|
|
0.6%
|
|
(385,144)
|
|
34.1%
|
|
|
General and
administrative
|
(141,168)
|
|
12.5%
|
|
29,449
|
|
2.6%
|
|
(111,719)
|
|
9.9%
|
|
|
Other operating
income
|
9,938
|
|
0.9%
|
|
-
|
|
0.0%
|
|
9,938
|
|
0.9%
|
|
|
Total operating
income and expenses
|
(758,267)
|
|
67.2%
|
|
71,757
|
|
6.4%
|
|
(686,510)
|
|
60.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(33,841)
|
|
3.0%
|
|
71,944
|
|
6.4%
|
|
38,103
|
|
3.4%
|
|
|
Net income
attributable to Cheetah Mobile Shareholders
|
445
|
|
0.0%
|
|
71,944
|
|
6.4%
|
|
72,389
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.00
|
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.00
|
|
|
|
0.51
|
|
|
|
0.51
|
|
|
|
|
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-Sep-16
|
30-Jun-17
|
30-Sep-17
|
30-Sep-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
Net income
attributable to Cheetah Mobile shareholders
|
445
|
70,199
|
139,680
|
20,996
|
Add:
|
|
|
|
|
Income tax (benefits)
expenses
|
(7,873)
|
4,664
|
7,767
|
1,167
|
Interest income,
net
|
(727)
|
(3,380)
|
(7,380)
|
(1,109)
|
Depreciation and
amortization
|
41,959
|
36,166
|
33,162
|
4,984
|
Net income
attributable to noncontrolling interests
|
7,716
|
3,157
|
4,727
|
710
|
Other non-operating
income, net
|
(33,402)
|
(8,413)
|
(12,460)
|
(1,873)
|
Share-based
compensation
|
71,944
|
24,182
|
21,392
|
3,215
|
Adjusted
EBITDA
|
80,062
|
126,575
|
186,888
|
28,090
|
CHEETAH MOBILE
INC.
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(Unaudited, in
'000)
|
|
|
|
|
|
For The Three
Months Ended
|
|
30-Sep-16
|
30-Jun-17
|
30-Sep-17
|
30-Sep-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
PC
|
230,125
|
162,771
|
144,377
|
21,700
|
Mobile
|
898,201
|
1,038,790
|
1,050,310
|
157,864
|
Total
|
1,128,326
|
1,201,561
|
1,194,687
|
179,564
|
CHEETAH MOBILE
INC.
|
Revenues Generated
from Domestic and Overseas Markets
|
(Unaudited, in
'000)
|
|
For The Three
Months Ended
|
|
30-Sep-16
|
30-Jun-17
|
30-Sep-17
|
30-Sep-17
|
|
RMB
|
RMB
|
RMB
|
USD
|
Domestic
|
408,440
|
358,655
|
394,236
|
59,254
|
Overseas
|
719,886
|
842,906
|
800,451
|
120,310
|
Total
|
1,128,326
|
1,201,561
|
1,194,687
|
179,564
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-third-quarter-2017-unaudited-consolidated-financial-results-300560121.html
SOURCE Cheetah Mobile