BEIJING, Aug. 18, 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 second quarter
ended June 30, 2020.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's
Chairman and Chief Executive Officer, stated, "Our second quarter
revenue came in ahead of management's expectations despite the
unfavorable macro environment caused by the outbreak of COVID-19.
We have shifted our business focus from overseas markets to the
domestic market. As a result, non-GAAP operating losses continued
to narrow in the quarter on a sequential basis. Specifically, the
second quarter of 2020 was the third straight quarter in which our
non-GAAP operating losses reduced since the third quarter of 2019.
In addition, our non-GAAP net income attributable to Cheetah Mobile
shareholders was RMB243.9 million in
the quarter as we disposed of our remaining stake in Bytedance,
while our number of AI-related robotics products in shopping malls
grew to approximately 7,000 by the end of the second quarter.
Looking ahead, we will continue to focus on the domestic market and
our AI-related business in shopping malls to build a new growth
engine for Cheetah Mobile over the long run."
Mr. Thomas Ren, Cheetah Mobile's
Chief Financial Officer, commented, "We continued to streamline our
operations and optimize our cost and expense structures for our
mobile internet business and AI-related business during the second
quarter of 2020. As a result, total cost and expenses decreased by
44.3% year over year and 15.2% quarter over quarter in the second
quarter. Our cost savings helped us to expand our gross margin and
reduce our non-GAAP operating loss in the quarter. In addition,
Cheetah Mobile has a very strong balance sheet. Backed by our
clear, strategic focus, strict cost saving measures, and strong
cash position, we are confident in our ability to improve our
financial condition in the coming quarters."
Second Quarter 2020 Consolidated Financial Results
REVENUES
Total revenues were RMB394.2
million (US$55.8 million) in
the second quarter of 2020, representing a decrease of 59.4% year
over year. Excluding the impact resulting from the deconsolidation
of LiveMe, total revenues decreased by 48.2% year over year in the
second quarter of 2020.
Revenues from utility products and related services
decreased by 53.9% year over year to RMB195.4 million (US$27.7
million) in the second 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 second quarter
of 2020, approximately 64.6% of the Company's revenues from its
utility products and related services business were generated from
advertising while the remaining portion of revenues were generated
from other sources, such as anti-virus software sales and office
software sales.
Revenues from the Company's mobile utility product business in
overseas markets decreased by 68.4% year over year to RMB41.5 million in second 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 70.7% year over year to
RMB54.2 million in the second quarter
of 2020 primarily as a result of the headwinds in the domestic
online advertising market. During the quarter, a large portion of
the Company's advertising clients located in major cities, such as
Beijing, were negatively impacted
by the second wave of COVID-19 and thus reduced their online
advertising and marketing budgets. As a result, revenues generated
by the Company from online marketing services were materially
impacted in the period.
PC-related revenues decreased by 7.0% year over year to
RMB99.6 million in the second quarter
of 2020 as internet traffic in China continued to migrate from PCs to mobile
devices.
Revenues from the mobile entertainment business decrease
by 64.0% year over year to RMB179.4
million (US$25.4 million) in
the second quarter of 2020. Excluding the impact resulting from the
deconsolidation of LiveMe, revenues from the mobile games
business decreased by 38.0% year over year to RMB179.4 million (US$25.4
million) in the second quarter of 2020. This decrease was
primarily attributable to the suspension of the Company's
advertising collaborations with Google since February 2020. In the second quarter of 2020,
approximately 54.7% 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 65.2% year over year to
RMB113.7 million (US$16.1 million) in the second quarter of 2020.
The decrease was primarily due to the deconsolidation of LiveMe and
reduced bandwidth and cloud service costs in overseas markets.
Non-GAAP cost of revenues decreased by 65.3% year over year
to RMB113.4 million (US$16.1 million) in the second quarter of
2020.
Gross profit decreased by 56.4% year over year to
RMB280.5 million (US$39.7 million) in the second quarter of 2020.
Non-GAAP gross profit decreased by 56.4% year over year to
RMB280.8 million (US$39.7 million) in the second quarter of
2020.
Gross margin was 71.2% in the second quarter of 2020,
compared to 66.3% in the same period last year. Non-GAAP gross
margin was 71.2% in the second quarter of 2020, compared to
66.3% in the same period last year.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by 33.7% year over
year to RMB463.4 million
(US$65.6 million) in the second
quarter of 2020. Total non-GAAP operating expenses decreased
by 37.8% year over year to RMB413.5
million (US$58.5 million) in
the second quarter of 2020.
- Research and development expenses decreased by
40.8% year over year to RMB125.0
million (US$17.7 million) in
the second quarter of 2020. This decrease was primarily
attributable to a reduction in the personnel for the Company's
utility products and related services business in overseas markets
as 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 42.8% year over year to RMB113.2 million (US$16.0
million) in the second quarter of 2020.
- Selling and marketing expenses decreased by 46.2% year
over year to RMB205.6 million
(US$29.1 million) in the second
quarter of 2020. This decrease was mainly due to the reduction in
promotional activities for the Company's mobile apps in overseas
markets, in particular, mobile games. Non-GAAP selling and
marketing expenses decreased by 46.3% year over year to
RMB204.8 million (US$29.0 million) in the second quarter of
2020.
- General and administrative expenses increased by 13.8%
year over year to RMB133.8 million
(US$18.9 million) in the second
quarter of 2020. This increase was primarily due to increased
stock-based compensation expenses. Non-GAAP general and
administrative expenses decreased by 1.6% year over year to
RMB96.5 million (US$13.7 million) in the second quarter of
2020.
Operating loss was RMB182.9
million (US$25.9 million) in
the second quarter of 2020, compared to an operating loss of
RMB55.7 million in the same period
last year and an operating loss of RMB148.0
million in the previous quarter. Non-GAAP operating
loss was RMB132.7 million
(US$18.8 million) in the second
quarter of 2020, compared to a non-GAAP operating loss of
RMB21.8 million in the same period
last year and a non-GAAP operating loss of RMB141.1 million in the previous quarter.
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 RMB56.5 million in
the second quarter of 2020, decreasing from RMB121.1 million in the same period last year due
to the 53.9% year-over-year decrease in revenues generated from the
Company's utility products and related services business. Cost and
expenses for the Company's utility products and related services
decreased by 54.1% year over year in the second quarter of 2020.
These decreases were primarily due to the reduction in overseas
markets expenditures as the Company shifted its focus to the domestic
market.
- Operating loss for the mobile entertainment business was
RMB20.9 million in the second quarter
of 2020, decreasing from RMB68.4
million in the same period last year and RMB36.4 million in the previous quarter. The
year-over-year reduction in operating loss was mainly attributable
to the deconsolidation of LiveMe, while the quarter-over-quarter
reduction in operating loss resulted from the Company's decision to
shift its focus from overseas markets to the domestic market.
Share-based compensation expenses were RMB50.2 million (US$7.1
million) in the second quarter of 2020, compared to
RMB34.0 million in the same period
last year.
OTHER INCOME, NET
Other income, net was RMB453.5
million (US$64.2 million) in
the second quarter of 2020, which was primarily due to the disposal
of equity ownership in Bytedance Ltd.
NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders
was RMB193.7 million (US$27.4 million) in the second quarter of 2020,
compared to a net income attributable to Cheetah Mobile
shareholders of RMB48.5 million in
the same period last year.
Non-GAAP net income attributable to Cheetah Mobile
shareholders was RMB243.9 million
(US$34.5 million) in the second
quarter of 2020, compared to a net income attributable to Cheetah
Mobile shareholders of RMB82.5
million in the same period last year.
NET INCOME/LOSS PER ADS
Diluted earnings per ADS was RMB1.38 (US$0.20)
in the second quarter of 2020, compared to RMB0.28 in the same period last year. Non-GAAP
diluted earnings per ADS was RMB1.74 (US$0.25)
in second quarter of 2020, compared to diluted earnings per ADS of
RMB0.52 in the same period last
year.
BALANCE SHEET
As of June 30, 2020, the Company
had cash and cash equivalents, restricted cash, and short-term
investments of RMB3,202.4 million
(US$453.3 million).
SHARES ISSUED AND OUTSTANDING
As of June 30, 2020, the Company
had a total of 1,398,070,159 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 2020, the Company expects its total
revenues to be between RMB310 million
(US$43.9 million) and RMB360 million (US$51.0
million). This amount reflects the fact that LiveMe's
revenues will no longer be included in the Company's revenues as
well as the Company's current and preliminary expectations, which
assume that the COVID-19 situation will not cause any significant
disruptions to its operations throughout the remainder of the third
quarter.
Recent Development
On July 9, 2020, the Company used
cash from its balance sheet to pay a special cash dividend of
US$1.44 per ADS to its shareholders.
The aggregate amount of the cash dividends was about US$200 million.
Conference Call Information
The Company will hold a conference call on Tuesday, August 18, 2020, at 8:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its financial
results. Listeners may access the call by dialing the following
numbers:
International: +1-412-902-4272
United States Toll Free: +1-888-346-8982
Mainland China Toll Free:
4001-201-203
Hong Kong Toll Free: 800-905-945
Conference ID: Cheetah Mobile
The replay will be accessible August 25,
2020 by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10147113
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.cmcm.com.
Exchange Rate
This press release contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars in this press release were made at a
rate of RMB7.0651 to US$1.00, the exchange rate in effect as of
June 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 such as Clean
Master and Cheetah Keyboard, casual games such as Piano Tiles 2 and
Bricks n Balls. 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
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
983,004
|
|
2,414,931
|
|
341,811
|
Restricted
cash
|
2,638
|
|
1,185
|
|
168
|
Short-term
investments
|
1,369,118
|
|
786,292
|
|
111,292
|
Accounts
receivable
|
469,276
|
|
322,122
|
|
45,593
|
Prepayments and other
current assets
|
936,109
|
|
1,095,753
|
|
155,094
|
Due from related
parties
|
233,255
|
|
225,942
|
|
31,980
|
Total current
assets
|
3,993,400
|
|
4,846,225
|
|
685,938
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
103,397
|
|
96,099
|
|
13,602
|
Right-of-use assets,
net
|
183,563
|
|
158,225
|
|
22,395
|
Intangible assets,
net
|
44,476
|
|
43,879
|
|
6,211
|
Investment in equity investees
|
194,473
|
|
197,317
|
|
27,928
|
Other long term investments
|
2,322,251
|
|
1,866,744
|
|
264,220
|
Due from related
parties
|
25,533
|
|
27,168
|
|
3,845
|
Deferred tax
assets
|
31,951
|
|
54,514
|
|
7,716
|
Other non-current
assets
|
112,700
|
|
115,217
|
|
16,308
|
Total non-current
assets
|
3,018,344
|
|
2,559,163
|
|
362,225
|
|
|
|
|
|
|
Total
assets
|
7,011,744
|
|
7,405,388
|
|
1,048,163
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
-
|
|
70,795
|
|
10,020
|
Accounts
payable
|
87,524
|
|
72,506
|
|
10,263
|
Accrued expenses and
other current liabilities
|
1,504,728
|
|
2,103,133
|
|
297,679
|
Due to related
parties
|
92,210
|
|
1,027,607
|
|
145,448
|
Income tax
payable
|
60,657
|
|
31,407
|
|
4,445
|
Total current
liabilities
|
1,745,119
|
|
3,305,448
|
|
467,855
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
82,847
|
|
66,767
|
|
9,450
|
Other non-current
liabilities
|
189,231
|
|
324,210
|
|
45,889
|
Total non-current
liabilities
|
272,078
|
|
390,977
|
|
55,339
|
|
|
|
|
|
|
Total
liabilities
|
2,017,197
|
|
3,696,425
|
|
523,194
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
225
|
|
233
|
|
33
|
Additional paid-in
capital
|
2,649,342
|
|
2,720,260
|
|
385,028
|
Retained
earnings
|
1,944,938
|
|
546,962
|
|
77,417
|
Accumulated other
comprehensive income
|
337,773
|
|
387,120
|
|
54,793
|
Total Cheetah
Mobile shareholders' equity
|
4,932,278
|
|
3,654,575
|
|
517,271
|
Noncontrolling
interests
|
62,269
|
|
54,388
|
|
7,698
|
|
|
|
|
|
|
Total
equity
|
4,994,547
|
|
3,708,963
|
|
524,969
|
|
|
|
|
|
|
Total liabilities
and equity
|
7,011,744
|
|
7,405,388
|
|
1,048,163
|
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
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
970,145
|
|
528,088
|
|
394,210
|
|
55,797
|
Utility products and
related services
|
423,524
|
|
210,838
|
|
195,361
|
|
27,652
|
Mobile
entertainment
|
498,021
|
|
285,492
|
|
179,398
|
|
25,392
|
AI and
others
|
48,600
|
|
31,758
|
|
19,451
|
|
2,753
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(326,982)
|
|
(147,736)
|
|
(113,661)
|
|
(16,088)
|
Gross
profit
|
643,163
|
|
380,352
|
|
280,549
|
|
39,709
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(211,369)
|
|
(142,588)
|
|
(125,036)
|
|
(17,698)
|
Selling and marketing
(a)
|
(381,818)
|
|
(302,753)
|
|
(205,562)
|
|
(29,095)
|
General and
administrative (a)
|
(117,644)
|
|
(88,621)
|
|
(133,840)
|
|
(18,944)
|
Other operating
income, net
|
11,957
|
|
5,596
|
|
998
|
|
141
|
Total operating
income and expenses
|
(698,874)
|
|
(528,366)
|
|
(463,440)
|
|
(65,596)
|
|
|
|
|
|
|
|
|
Operating
loss
|
(55,711)
|
|
(148,014)
|
|
(182,891)
|
|
(25,887)
|
Other income
(expenses):
|
|
|
|
|
|
|
|
Interest income,
net
|
31,988
|
|
17,854
|
|
8,496
|
|
1,203
|
Foreign exchange gain
(loss), net
|
1,280
|
|
(12,091)
|
|
(3,409)
|
|
(483)
|
Gain (loss) from
equity method investments, net
|
10,566
|
|
(2,463)
|
|
(5,452)
|
|
(772)
|
Other income,
net
|
33,766
|
|
42,868
|
|
453,549
|
|
64,196
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes
|
21,889
|
|
(101,846)
|
|
270,293
|
|
38,257
|
Income tax benefits
(expenses)
|
24,422
|
|
(6,539)
|
|
(82,198)
|
|
(11,634)
|
Net income
(loss)
|
46,311
|
|
(108,385)
|
|
188,095
|
|
26,623
|
Less: net loss
attributable to noncontrolling interests
|
(2,220)
|
|
(3,796)
|
|
(5,626)
|
|
(796)
|
Net income (loss)
attributable to Cheetah Mobile shareholders
|
48,531
|
|
(104,589)
|
|
193,721
|
|
27,419
|
|
|
|
|
|
|
|
|
Earnings (losses)
per share
|
|
|
|
|
|
|
|
Basic
|
0.03
|
|
(0.08)
|
|
0.14
|
|
0.02
|
Diluted
|
0.03
|
|
(0.08)
|
|
0.14
|
|
0.02
|
|
|
|
|
|
|
|
|
Earnings (losses)
per ADS
|
|
|
|
|
|
|
|
Basic
|
0.28
|
|
(0.76)
|
|
1.41
|
|
0.20
|
Diluted
|
0.28
|
|
(0.76)
|
|
1.38
|
|
0.20
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,367,557,150
|
|
1,378,171,071
|
|
1,383,251,669
|
|
1,383,251,669
|
Diluted
|
1,388,236,454
|
|
1,378,171,071
|
|
1,405,836,201
|
|
1,405,836,201
|
Weighted average
number of ADSs outstanding
|
|
|
|
|
|
|
|
Basic
|
136,755,715
|
|
137,817,107
|
|
138,325,167
|
|
138,325,167
|
Diluted
|
138,823,645
|
|
137,817,107
|
|
140,583,620
|
|
140,583,620
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
93,367
|
|
59,974
|
|
(2,116)
|
|
(300)
|
Unrealized gain
(loss) on available-for-sale securities, net
|
3,872
|
|
(7,250)
|
|
-
|
|
-
|
Other
comprehensive income (loss)
|
97,239
|
|
52,724
|
|
(2,116)
|
|
(300)
|
Total
comprehensive income (loss)
|
143,550
|
|
(55,661)
|
|
185,979
|
|
26,323
|
Less: Total
comprehensive loss attributable to noncontrolling
interests
|
(1,698)
|
|
(2,735)
|
|
(5,426)
|
|
(768)
|
Total
comprehensive income (loss) attributable to Cheetah Mobile
shareholders
|
145,248
|
|
(52,925)
|
|
191,405
|
|
27,091
|
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
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
(a) Share-based
compensation expenses
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Cost of
revenues
|
143
|
|
96
|
|
230
|
|
33
|
Research and
development
|
13,578
|
|
6,737
|
|
11,826
|
|
1,674
|
Selling and
marketing
|
593
|
|
(1,222)
|
|
785
|
|
111
|
General and
administrative
|
19,640
|
|
1,292
|
|
37,359
|
|
5,288
|
Total
|
33,954
|
|
6,903
|
|
50,200
|
|
7,106
|
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 June 30, 2020
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
Non-GAAP
|
|
Result
|
|
Compensation
|
|
Result
|
|
Result
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
394,210
|
|
-
|
|
394,210
|
|
55,797
|
Cost of
revenues
|
(113,661)
|
|
230
|
|
(113,431)
|
|
(16,055)
|
Gross
profit
|
280,549
|
|
230
|
|
280,779
|
|
39,742
|
|
|
|
|
|
|
|
|
Research and
development
|
(125,036)
|
|
11,826
|
|
(113,210)
|
|
(16,024)
|
Selling and
marketing
|
(205,562)
|
|
785
|
|
(204,777)
|
|
(28,984)
|
General and
administrative
|
(133,840)
|
|
37,359
|
|
(96,481)
|
|
(13,656)
|
Other operating
income
|
998
|
|
-
|
|
998
|
|
141
|
Total operating
income and expenses
|
(463,440)
|
|
49,970
|
|
(413,470)
|
|
(58,523)
|
|
|
|
|
|
|
|
|
Operating
loss
|
(182,891)
|
|
50,200
|
|
(132,691)
|
|
(18,781)
|
Net income
attributable to Cheetah Mobile shareholders
|
193,721
|
|
50,200
|
|
243,921
|
|
34,525
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.14
|
|
0.04
|
|
0.17
|
|
|
Diluted earnings per
ADS (RMB)
|
1.38
|
|
0.36
|
|
1.74
|
|
|
Diluted earnings per
ADS (USD)
|
0.20
|
|
0.05
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2020
|
|
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
|
|
Result
|
|
Compensation
|
|
Result
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenues
|
528,088
|
|
-
|
|
528,088
|
|
|
Cost of
revenues
|
(147,736)
|
|
96
|
|
(147,640)
|
|
|
Gross
profit
|
380,352
|
|
96
|
|
380,448
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(142,588)
|
|
6,737
|
|
(135,851)
|
|
|
Selling and
marketing
|
(302,753)
|
|
(1,222)
|
|
(303,975)
|
|
|
General and
administrative
|
(88,621)
|
|
1,292
|
|
(87,329)
|
|
|
Other operating
income
|
5,596
|
|
-
|
|
5,596
|
|
|
Total operating
income and expenses
|
(528,366)
|
|
6,807
|
|
(521,559)
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(148,014)
|
|
6,903
|
|
(141,111)
|
|
|
Net loss attributable
to Cheetah Mobile shareholders
|
(104,589)
|
|
6,903
|
|
(97,686)
|
|
|
|
|
|
|
|
|
|
|
Diluted losses per
ordinary share (RMB)
|
(0.08)
|
|
0.01
|
|
(0.07)
|
|
|
Diluted losses per
ADS (RMB)
|
(0.76)
|
|
0.05
|
|
(0.71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2019
|
|
|
|
GAAP
|
|
Share-based
|
|
Non-GAAP
|
|
|
|
Result
|
|
Compensation
|
|
Result
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenues
|
970,145
|
|
-
|
|
970,145
|
|
|
Cost of
revenues
|
(326,982)
|
|
143
|
|
(326,839)
|
|
|
Gross
profit
|
643,163
|
|
143
|
|
643,306
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(211,369)
|
|
13,578
|
|
(197,791)
|
|
|
Selling and
marketing
|
(381,818)
|
|
593
|
|
(381,225)
|
|
|
General and
administrative
|
(117,644)
|
|
19,640
|
|
(98,004)
|
|
|
Other operating
income
|
11,957
|
|
-
|
|
11,957
|
|
|
Total operating
income and expenses
|
(698,874)
|
|
33,811
|
|
(665,063)
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(55,711)
|
|
33,954
|
|
(21,757)
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
48,531
|
|
33,954
|
|
82,485
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.03
|
|
0.02
|
|
0.05
|
|
|
Diluted earnings per
ADS (RMB)
|
0.28
|
|
0.24
|
|
0.52
|
|
|
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 June 30, 2020
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenue
|
195,361
|
|
179,398
|
|
19,451
|
|
-
|
|
394,210
|
|
55,797
|
Operating profit
(loss)
|
56,460
|
|
(20,851)
|
|
(168,300)
|
|
(50,200)
|
|
(182,891)
|
|
(25,887)
|
Operating
margin
|
28.9%
|
|
(11.6)%
|
|
(865.3)%
|
|
-
|
|
(46.4)%
|
|
(46.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended March 31, 2020
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
210,838
|
|
285,492
|
|
31,758
|
|
-
|
|
528,088
|
|
|
Operating profit
(loss)
|
44,169
|
|
(36,359)
|
|
(148,921)
|
|
(6,903)
|
|
(148,014)
|
|
|
Operating
margin
|
20.9%
|
|
(12.7)%
|
|
(468.9)%
|
|
-
|
|
(28.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended June 30, 2019
|
|
|
|
Utility
Products
and
Related Services
|
|
Mobile
Entertainment
|
|
AI and
others
|
|
Unallocated*
|
|
Consolidated
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
Revenue
|
423,524
|
|
498,021
|
|
48,600
|
|
-
|
|
970,145
|
|
|
Operating profit
(loss)
|
121,079
|
|
(68,398)
|
|
(74,438)
|
|
(33,954)
|
|
(55,711)
|
|
|
Operating
margin
|
28.6%
|
|
(13.7)%
|
|
(153.2)%
|
|
-
|
|
(5.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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$"))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Net income (loss)
attributable to Cheetah Mobile shareholders
|
48,531
|
|
(104,589)
|
|
193,721
|
|
27,419
|
Add:
|
|
|
|
|
|
|
|
Income tax (benefits)
expenses
|
(24,422)
|
|
6,539
|
|
82,198
|
|
11,634
|
Interest income,
net
|
(31,988)
|
|
(17,854)
|
|
(8,496)
|
|
(1,203)
|
Depreciation and
amortization
|
16,809
|
|
18,548
|
|
18,528
|
|
2,622
|
Net loss attributable
to noncontrolling interests
|
(2,220)
|
|
(3,796)
|
|
(5,626)
|
|
(796)
|
Other income,
net
|
(45,612)
|
|
(28,314)
|
|
(444,688)
|
|
(62,941)
|
Share-based
compensation
|
33,954
|
|
6,903
|
|
50,200
|
|
7,106
|
Adjusted
EBITDA
|
(4,948)
|
|
(122,563)
|
|
(114,163)
|
|
(16,159)
|
CHEETAH MOBILE
INC.
|
|
|
|
|
|
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
|
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
PC
|
142,346
|
|
117,502
|
|
118,343
|
|
16,750
|
Mobile
|
827,799
|
|
410,586
|
|
275,867
|
|
39,047
|
Total
|
970,145
|
|
528,088
|
|
394,210
|
|
55,797
|
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
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Domestic
|
382,396
|
|
234,335
|
|
163,589
|
|
23,155
|
Overseas
|
587,749
|
|
293,753
|
|
230,621
|
|
32,642
|
Total
|
970,145
|
|
528,088
|
|
394,210
|
|
55,797
|
View original
content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-second-quarter-2020-unaudited-consolidated-financial-results-301113701.html
SOURCE Cheetah Mobile Inc