Cheetah Mobile Announces First Quarter 2019 Unaudited Consolidated Financial Results
BEIJING, June 14, 2019 /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 first quarter ended March 31, 2019.
First Quarter 2019 Financial Highlights
-- Total revenues were RMB1,085.6 million (US$161.8 million), reaching the
high end of Company's previous guidance range of RMB1,060 million to
RMB1,090 million.
-- Revenues from the mobile entertainment business increased by 41.7% year
over year to RMB556.2 million (US$82.9 million), accounting for 51.2% of
total revenues in the first quarter of 2019.
-- Other revenues grew by 299.2% to RMB31.5 million (US$4.7 million),
mainly driven by the sales of the artificial intelligence ("AI") based
interpretation device, Cheetah Translator, in China.
-- Gross profit was RMB718.7 million (US$107.1 million) in the first
quarter of 2019. Gross margin remained stable year over year at 66.2%.
-- Operating profit from utility products and related services was RMB123.2
million (US$18.4 million) in the first quarter of 2019. Operating loss
for the mobile entertainment business further reduced to RMB44.1 million
(US$6.6 million) in the first quarter of 2019 from RMB75.0 million in
the same period last year.
-- Net income attributable to Cheetah Mobile shareholders was RMB7.1
million (US$1.1 million). Non-GAAP net income attributable to Cheetah
Mobile shareholders was RMB33.8 million (US$5.0 million).
-- As of March 31, 2019, the Company had cash and cash equivalents,
restricted cash, and short-term investments of RMB3,422.6 million
(US$510.0 million).
First Quarter 2019 Operating Metrics
-- The average number of global mobile monthly active users ("Mobile MAUs")
was 434.8 million in the first quarter of 2019. The number of Mobile
MAUs from markets outside of China, or overseas markets, accounted for
70.3% of the total number of Mobile MAUs in the first quarter of 2019.
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "Our AI businesses made strong progress in the first quarter of 2019. We continued to enrich our AI product portfolio and build more use cases for our AI products. As to consumer-facing products, we launched a tailor-made version of CM Translator for Chinese primary school students in the first quarter of 2019 to help them learn English at home. CM Translator has been the top seller among its peers since its launch in July 2018. As to enterprise-focused products, we expanded Cheetah GreetBot's consumer locations to university libraries to help students easily find the books they need. Looking ahead, we are quite excited about additional AI opportunities. We will continue to leverage our AI technologies and rich experience in developing applications to grow our AI businesses. Backed with our strong cash position and cash generation capability, we believe that our AI business will enable us to drive our long-term growth."
Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "Driven by the robust revenue growth in our mobile entertainment business and AI-related business, our total revenues in the first quarter of 2019 reached the high end of our previous guidance. Notably, revenues from the mobile games business increased by 73% year over year to RMB302 million, already accounted for 28% of total revenue in the quarter. On the profit side, our utility products and related services continued to generate solid profit of RMB123 million in the quarter. Losses from the mobile entertainment business continued to narrow in the quarter thanks to the reduced loss from our LiveMe business. Looking ahead, we are confident that our long-term growth prospects remain healthy. We believe that our strong cash generation capabilities and our high cash balance will allow us to continue to expand into the AI space."
First Quarter 2019 Consolidated Financial Results
REVENUES
Total revenues were RMB1,085.6 million (US$161.8 million) in the first quarter of 2019.
Revenues from utility products and related services decreased by 33.1% year over year to RMB497.9 million (US$74.2 million) in the first quarter of 2019. The year-over-year decrease was primarily due to continuous disruptions to the Company's overseas mobile utility business as a result of the negative publicity caused by a news article published in 2018.
Revenues from the mobile entertainment business increased by 41.7% year over year to RMB556.2 million (US$82.9 million), driven by the growth of both mobile games business and LiveMe business. Revenues from the mobile entertainment business contributed to 51.2% of the total revenue in the first quarter of 2019, up from 34.3% in the first quarter of 2018.
-- Revenues from the mobile games business increased by 72.5% year over
year to RMB301.5 million (US$44.9 million) in the quarter. The increase
was mainly attributable to the strong performance of Bricks n Balls,
which started to ramp up from the middle of July 2018. The Company's
flagship titles, including Piano Tiles 2, Rolling Sky, and Dancing Line,
also exhibited very strong performance in the first quarter of 2019. In
the first quarter of 2019, we also launched a number of casual games,
which also contributed to the revenue growth, although their aggregate
revenue contributions were still insignificant.
-- Revenues from LiveMe, increased by 17.0% year over year to RMB254.8
million (US$38.0 million). The increase was primarily driven by higher
average revenue per paying user. LiveMe introduced several new features
in the quarter to enhance user interaction, competition, and engagement.
Other revenues grew by 299.2% year over year to RMB31.5 million (US$4.7 million), mainly driven by the sales of the AI-based interpretation device, Cheetah Translator, in China. Revenues from others represented 2.9% of total revenues in the first quarter of 2019, up from 0.7% in the first quarter of 2018.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 6.2% year over year to RMB366.9 million (US$54.7 million) in the first quarter of 2019. The year-over-year decrease resulted from the reduced traffic acquisition costs associated with the Company's third-party advertising platform business, partially offset by an increase in content and channel costs in relation to the Company's mobile game business, as well as increased costs associated with the AI business. Non-GAAP cost of revenues decreased by 6.3% year over year to RMB366.8 million (US$54.7 million) in the first quarter of 2019.
Gross profit decreased by 4.7% year over year to RMB718.7 million (US$107.1 million) in the first quarter of 2019. Non-GAAP gross profit decreased by 4.6% year over year to RMB718.9 million (US$107.1 million). Gross margin and non-GAAP gross margin remained stable at 66.2% year over year.
OPERATING INCOME AND EXPENSES
Total operating expenses increased by 19.2% year over year to RMB736.4 million (US$109.7 million) in the first quarter of 2019. Total non-GAAP operating expenses increased by 16.7% year over year to RMB709.9 million (US$105.8 million) in the first quarter of 2019.
-- Research and development (R&D) expense increased by 33.7% year over year
to RMB196.9 million (US$29.3 million) in the first quarter of 2019. The
increase primarily resulted from higher share-based compensation
expenses and increased R&D headcount in relation to the Company's mobile
games and AI-related businesses. Non-GAAP R&D expenses, which exclude
share-based compensation expenses, increased by 17.6% year over year to
RMB180.4 million (US$26.9 million) in the first quarter of 2019.
-- Selling and marketing expenses increased by 11.6% year over year to
RMB436.6 million (US$65.1 million) in the first quarter of 2019. The
increase was mainly due to increased promotion efforts for the Company's
mobile games and AI-related business. Non-GAAP selling and marketing
expenses, which exclude share-based compensation expenses, increased by
10.9% year over year to RMB433.8 million (US$64.6 million) in the first
quarter of 2019.
-- General and administrative expenses increased by 16.8% year over year to
RMB105.8 million (US$15.8 million) in the first quarter of 2019. The
year-over-year increase was primarily due to higher professional service
fees and increased employee benefits for general and administrative
staff. Non-GAAP general and administrative expenses, which exclude
share-based compensation expenses, increased by 30.3% year over year to
RMB98.7 million (US$14.7 million) in the first quarter of 2019.
Operating loss was RMB17.7 million (US$2.6 million) in the first quarter of 2019 compared to an operating profit of RMB136.4 million in the same period last year. Non-GAAP operating profit was RMB9.0 million (US$1.3 million) in the first quarter of 2019 compared to RMB145.3 million in the same period last year.
The Company has reported its operating profit (loss) along the following segments since the second quarter of 2017:
-- Operating profit for utility products and related services was RMB123.2
million (US$18.4 million) in the first quarter of 2019, decreasing from
RMB 264.7 million in the first quarter of 2018, mainly due to the
revenue decrease in the overseas market.
-- Operating loss for the mobile entertainment business was RMB44.1 million
(US$6.6 million) in the first quarter of 2019 compared to operating loss
of RMB75.0 million in the same period last year. The reduced losses were
mainly attributable to the increasing operational leverage and stricter
cost and expense management for LiveMe, as well as the improved
operating profits for the Company's flagship games, partially offset by
initiatives to launch new titles.
Share-based compensation expenses was RMB26.7 million (US$4.0 million) in the first quarter of 2019 compared to RMB8.9 million in the same period last year, as the Company granted a certain number of restricted shares to key employees.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was RMB7.1 million (US$1.1 million) in the first quarter of 2019. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB33.8 million (US$5.0 million) in the first quarter of 2019.
NET INCOME PER ADS
Diluted loss per ADS was RMB0.02 (US$0.00) in the first quarter of 2019. Non-GAAP diluted income per ADS was RMB0.17 (US$0.03) in the first quarter of 2019.
ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) decreased by 85.0% year over year to RMB25.3 million (US$3.8 million) in the first quarter of 2019.
BALANCE SHEET
As of March 31, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,422.6 million (US$510.0 million).
SHARES ISSUED AND OUTSTANDING
As of March 31, 2019, the Company had a total of 1,433,343,199 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.
SHARE REPURCHASE PROGRAM
On September 13, 2018, the Company announced that its board of directors had approved a share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months. Cheetah funded repurchases made under this program from its available cash balance. As of June 14, 2019, the Company had repurchased approximately 4.5 million ADSs for approximately US$32 million under this program.
Business Outlook
For the second quarter of 2019, the Company expects its total revenues to be between RMB920 million (US$137 million) and RMB950 million (US$142 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 Friday, June 14, 2019 at 8:00 a.m. Eastern Time or 8:00 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: 4001-201-203
Hong Kong Toll Free: 800-905-945
Conference ID: Cheetah Mobile
The replay will be accessible through June 21, 2019 by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free:
+1-877-344-7529
Access Code: 10131962
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 RMB 6.7112 to US$1.00, the exchange rate in effect as of March 31, 2018, 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, Bricks n Balls, and live streaming product LiveME. 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. 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
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 non-controlling 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.
Jack Wang
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, 2018
31-Mar-19
31-Mar-19
RMB
RMB
USD
ASSETS
Current assets:
Cash and cash equivalents 2,783,843 2,048,801 305,281
Restricted cash 6,133 2,613 389
Short-term investments 930,610 1,371,144 204,307
Accounts receivable 655,261 569,495 84,857
Prepayments and other current assets 1,064,714 1,140,449 169,932
Due from related parties 126,990 198,363 29,557
Total current assets 5,567,551 5,330,865 794,323
Non-current assets:
Property and equipment, net 63,919 60,185 8,968
Right-of-use assets, net* - 216,155 32,208
Intangible assets, net 48,421 44,646 6,652
Goodwill 617,837 610,170 90,918
Investment in equity investees 151,533 160,703 23,945
Other long term investments 1,697,510 1,697,382 252,918
Due from related parties 21,139 19,473 2,902
Deferred tax assets 88,896 95,586 14,243
Other non-current assets 35,830 35,432 5,279
Total non-current assets 2,725,085 2,939,732 438,033
Total assets 8,292,636 8,270,597 1,232,356
LIABILITIES, MEZZANINE EQUITY AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 171,055 159,567 23,776
Accrued expenses and other current liabilities 1,514,642 1,320,065 196,696
Due to related parties 37,298 37,341 5,564
Income tax payable 112,770 121,580 18,116
Total current liabilities 1,835,765 1,638,553 244,152
Non-current liabilities:
Deferred tax liabilities 110,291 112,601 16,778
Other non-current liabilities* 64,185 285,078 42,477
Total non-current liabilities 174,476 397,679 59,255
Total liabilities 2,010,241 2,036,232 303,407
Mezzanine equity:
Redeemable noncontrolling interests 687,847 697,996 104,005
Shareholders' equity:
Ordinary shares 230 231 34
Treasury stock (221,932) (221,932) (33,069)
Additional paid-in capital 2,742,893 2,770,790 412,861
Retained earnings 2,705,970 2,703,251 402,797
Accumulated other comprehensive income 249,304 170,104 25,346
Total Cheetah Mobile shareholders' equity 5,476,465 5,422,444 807,969
Noncontrolling interests 118,083 113,925 16,975
Total equity 5,594,548 5,536,369 824,944
Total liabilities, mezzanine equity and equity 8,292,636 8,270,597 1,232,356
* On January 1, 2019, the company adopted ASC 842, the new lease standard, using the modified retrospective basis and did not restate
comparative periods.
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
March 31, 2018
December 31, 2018
March 31, 2019
March 31, 2019
RMB
RMB
RMB
USD
Revenues 1,145,097 1,381,173 1,085,628 161,764
Utility products and related services 744,763 783,021 497,933 74,195
Mobile entertainment 392,452 555,597 556,230 82,881
Others 7,882 42,555 31,465 4,688
Cost of revenues (a) (391,182) (416,399) (366,931) (54,674)
Gross profit 753,915 964,774 718,697 107,090
Operating income and expenses:
Research and development (a) (147,278) (191,135) (196,938) (29,345)
Selling and marketing (a) (391,355) (580,330) (436,629) (65,060)
General and administrative (a) (90,600) (131,849) (105,829) (15,769)
Impairment of goodwill and intangible assets - (7,180)
Other operating income 11,679 20,771 3,002 447
Total operating income and expenses (617,554) (889,723) (736,394) (109,727)
Operating profit (loss) 136,361 75,051 (17,697) (2,637)
Other income (expense):
Interest income, net 16,652 27,519 31,617 4,711
Foreign exchange (loss) gain, net (12,829) 6,096 (5,373) (801)
Impairment of investment impairment (58,000) (98,885) -
(Loss) Gain from equity method investments, net (2,739) 2,694 6,141 915
Other income, net 500 789,325 432 64
Income before taxes 79,945 801,800 15,120 2,252
Income tax expenses (5,042) (57,008) (12,434) (1,853)
Net income 74,903 744,792 2,686 399
Less: net income (loss) attributable to noncontrolling interests 4,906 11,457 (4,428) (660)
Net income attributable to Cheetah Mobile shareholders 69,997 733,335 7,114 1,059
Earnings (Losses) per share
Basic 0.04 0.52 0.00 0.00
Diluted 0.04 0.51 0.00 0.00
Earnings (Losses) per ADS
Basic 0.43 5.19 (0.02) 0.00
Diluted 0.42 5.09 (0.02) 0.00
Weighted average number of shares outstanding
Basic 1,403,597,719 1,393,015,891 1,365,622,524 1,365,622,524
Diluted 1,452,802,118 1,420,765,216 1,392,184,524 1,392,184,524
Weighted average number of ADSs outstanding
Basic 140,359,772 139,301,589 136,562,252 136,562,252
Diluted 145,280,212 142,076,522 139,218,452 139,218,452
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments (134,774) (23,031) (82,541) (12,299)
Unrealized (loss) gain on available-for-sale securities, net - (1,203) 3,498 521
Other comprehensive loss (134,774) (24,234) (79,043) (11,778)
Total comprehensive (loss) income (59,871) 720,558 (76,357) (11,379)
Less: Total comprehensive income (loss) attributable to 3,321 12,574 (4,271) (636)
noncontrolling interests
Total comprehensive (loss) income attributable to Cheetah Mobile (63,192) 707,984 (72,086) (10,743)
shareholders
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
March 31, 2018
December 31, 2018
March 31, 2019
March 31, 2019
(a) Share-based compensation expenses
RMB
RMB
RMB
USD
Cost of revenues (90) 160 159 24
Research and development (6,143) 15,169 16,512 2,460
Selling and marketing 302 2,665 2,827 421
General and administrative 14,850 17,266 7,153 1,066
Total 8,919 35,260 26,651 3,971
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 March 31, 2019
GAAP % of Net
Share-based % of Net Non-GAAP % of Net Non-GAAP
Result Revenues
Compensation Revenues
Result Revenues Result ($)
---
Revenues 1,085,628 1,085,628 161,764
Cost of revenues (366,931) 33.8% 159 0.0% (366,772) 33.8% (54,650)
Gross profit 718,697 66.2% 159 0.0% 718,856 66.2% 107,114
Research and development (196,938) 18.1% 16,512 1.5% (180,426) 16.6% (26,885)
Selling and marketing (436,629) 40.2% 2,827 0.3% (433,802) 40.0% (64,639)
General and administrative (105,829) 9.7% 7,153 0.7% (98,676) 9.1% (14,703)
Other operating income 3,002 0.3% 0.0% 3,002 0.3% 447
Total operating income and expenses (736,394) 67.8% 26,492 2.4% (709,902) 65.4% (105,780)
Operating(loss) profit (17,697) 1.6% 26,651 2.5% 8,954 0.8% 1,334
Net income attributable to Cheetah Mobile shareholders 7,114 0.7% 26,651 2.5% 33,765 3.1% 5,031
Diluted (losses) earnings per ordinary share (RMB) 0.00 0.02 0.02
Diluted (losses) earnings per ADS (RMB) (0.02) 0.19 0.17
Diluted (losses) earnings per ADS (USD) 0.00 0.03 0.03
For The Three Months Ended December 31, 2018
GAAP % of Net
Share-based % of Net Non-GAAP % of Net
Result Revenues
Compensation Revenues
Result Revenues
Revenues 1,381,173 1,381,173
Cost of revenues (416,399) 30.1% 160 0.0% (416,239) 30.1%
Gross profit 964,774 69.9% 160 0.0% 964,934 69.9%
Research and development (191,135) 13.8% 15,169 1.1% (175,966) 12.7%
Selling and marketing (580,330) 42.0% 2,665 0.2% (577,665) 41.8%
General and administrative (131,849) 9.5% 17,266 1.3% (114,583) 8.3%
Impairment of goodwill and intangible assets (7,180) 0.5% 0.0% (7,180) 0.5%
Other operating income 20,771 1.5% 0.0% 20,771 1.5%
Total operating income and expenses (889,723) 64.4% 35,100 2.5% (854,623) 61.9%
Operating profit 75,051 5.4% 35,260 2.6% 110,311 8.0%
Net income attributable to Cheetah Mobile shareholders 733,335 53.1% 35,260 2.6% 768,595 55.6%
Diluted earnings per ordinary share (RMB) 0.51 0.02 0.53
Diluted earnings per ADS (RMB) 5.09 0.25 5.34
For The Three Months Ended March 31, 2018
GAAP % of Net
Share-based % of Net Non-GAAP % of Net
Result Revenues
Compensation Revenues
Result Revenues
Revenues 1,145,097 1,145,097
Cost of revenues (391,182) 34.2% (90) 0.0% (391,272) 34.2%
Gross profit 753,915 65.8% (90) 0.0% 753,825 65.8%
Research and development (147,278) 12.9% (6,143) 0.5% (153,421) 13.4%
Selling and marketing (391,355) 34.2% 302 0.0% (391,053) 34.2%
General and administrative (90,600) 7.9% 14,850 1.3% (75,750) 6.6%
Other operating income 11,679 1.0% 0.0% 11,679 1.0%
Total operating income and expenses (617,554) 53.9% 9,009 0.8% (608,545) 53.1%
Operating profit 136,361 11.9% 8,919 0.8% 145,280 12.7%
Net income attributable to Cheetah Mobile shareholders 69,997 6.1% 8,919 0.8% 78,916 6.9%
Diluted earnings per ordinary share (RMB) 0.04 0.01 0.05
Diluted earnings per ADS (RMB) 0.42 0.06 0.48
CHEETAH MOBILE INC.
Information about Segment
(Unaudited, in'000, except for percentage)
For The Three Months Ended March 31, 2019
Utility Products
Mobile Entertainment Others Unallocated* Consolidated
and
Related Services
---
RMB
RMB RMB
RMB
RMB USD
Revenue 497,933 556,230 31,465 1,085,628 161,764
Operating profit (loss) 123,175 (44,148) (70,073) (26,651) (17,697) (2,637)
Operating margin 24.7% (7.9)% (222.7)% (1.6)% (1.6)%
For The Three Months Ended December 31, 2018
Utility Products
Mobile Entertainment Others Unallocated* Consolidated
and
Related Services
RMB
RMB RMB
RMB
RMB
Revenue 783,021 555,597 42,555 1,381,173
Operating profit (loss) 224,033 (64,780) (48,942) (35,260) 75,051
Operating margin 28.6% (11.7)% (115.0)% 5.4%
For The Three Months Ended March 31, 2018
Utility Products
Mobile Entertainment Others Unallocated* Consolidated
and
Related Services
RMB
RMB RMB
RMB
RMB
Revenue 744,763 392,452 7,882 1,145,097
Operating profit (loss) 264,706 (75,046) (44,380) (8,919) 136,361
Operating margin 35.5% (19.1)% (563.1)% 11.9%
* Unallocated expenses refer to SBC expenses 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, in '000)
For The Three Months Ended
---
March 31, 2018
December 31, 2018
March 31, 2019
March 31, 2019
RMB
RMB
RMB
USD
Net income attributable to Cheetah Mobile shareholders 69,997 733,335 7,114 1,059
Add:
Income tax expenses 5,042 57,008 12,434 1,853
Interest income, net (16,652) (27,519) (31,617) (4,711)
Depreciation and amortization 23,472 17,237 16,351 2,436
Net income (loss) attributable to noncontrolling interests 4,906 11,457 (4,428) (660)
Other non-operating expense (income), net 73,068 (699,230) (1,200) (178)
Share-based compensation 8,919 35,260 26,651 3,971
Adjusted EBITDA 168,752 127,548 25,305 3,770
===
CHEETAH MOBILE INC.
Revenues Generated from PC-based and Mobile-based Applications and Services
(Unaudited, in '000)
For The Three Months Ended
---
March 31, 2018
December 31, 2018
March 31, 2019
March 31, 2019
RMB
RMB
RMB
USD
PC 127,094 171,837 120,278 17,922
Mobile 1,018,003 1,209,336 965,350 143,842
---
Total 1,145,097 1,381,173 1,085,628 161,764
===
CHEETAH MOBILE INC.
Revenues Generated from Domestic and Overseas Markets
(Unaudited, in '000)
For The Three Months Ended
---
March 31, 2018
December 31, 2018
March 31, 2019
March 31, 2019
RMB
RMB
RMB
USD
Domestic 447,620 533,221 424,323 63,226
Overseas 697,477 847,952 661,305 98,538
---
Total 1,145,097 1,381,173 1,085,628 161,764
===
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SOURCE Cheetah Mobile Inc
