Cheetah Mobile Announces Third Quarter 2017 Unaudited Consolidated Financial Results
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 flow(1) 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 8,522 1,380 2,604 391
noncontrolling interests
Total comprehensive (loss) income attributable to (9,680) 33,028 93,231 14,015
Cheetah Mobile shareholders
(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 Mobile Others Unallocated* Consolidated
and Entertainment
Related Services
----------------
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 Mobile Others Unallocated* Consolidated
and Entertainment
Related Services
----------------
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 Mobile Others Unallocated* Consolidated
and Entertainment
Related Services
----------------
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
