Cheetah Mobile Announces Second Quarter 2019 Unaudited Consolidated Financial Results
BEIJING, Aug. 20. 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 second quarter ended June 30, 2019.
Management Commentaries
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "Our second quarter revenues exceeded the high end of our revenue guidance for the quarter. Notably, this revenue growth was driven by our mobile games and AI-related businesses. During the quarter, revenues from our mobile games business increased by 109% year over year while revenues from AI and other businesses increased by 236% year over year. These robust growth performances are a testament to our continuous product enhancement and innovation. By leveraging our massive user base and cash generated from our utility product business, we have increasingly streamlined our operations to bolster these two growing business segments. Looking ahead, we will continue to invest heavily in our AI-related business to build our growth engine over the long-term in a new technological era."
Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "In the quarter, our utility products and related services continued to generate a solid profit of RMB121 million while losses from the mobile entertainment business continued to narrow. As of June 30, 2019, we had cash, cash equivalents, restricted cash, short-term investments of US$488 million, and long-term investments of US$287 million. Looking ahead, we are confident in our long-term growth prospects and believe that our strong cash generation capabilities in utilities products and related services and games, combined with our healthy cash balance, will enable us to continue expanding into the AI space through the integration of AI technology and innovative product design."
Second Quarter 2019 Operating Metric
The average number of global mobile monthly active users ("Mobile MAUs") was 376.5 million in the second quarter of 2019. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 74.2% of the total number of Mobile MAUs in the second quarter of 2019.
Second Quarter 2019 Consolidated Financial Results
REVENUES
Total revenues were RMB970.1 million (US$141.3 million) in the second quarter of 2019, decreasing by 12.1% year over year.
Revenues from utility products and related services decreased by 44.0% year over year to RMB423.5 million (US$61.7 million) in the second quarter of 2019. This year-over-year decrease was primarily due to the slowdown of the Company's overseas mobile utility business, resulting from the negative publicity caused by a news article from 2018, and the softness of the domestic advertising industry in 2019.
Revenues from the mobile entertainment business increased by 49.6% year over year to RMB498.0 million (US$72.5million), driven by the growth of both the Company's mobile games business and LiveMe business.
-- Revenues from the mobile games business increased by 108.5% year over year to RMB289.2 million (US$42.1 million) in the quarter. This increase was mainly attributable to the strong performance of Bricks n Balls, which began to ramp up in the middle of July 2018, as well as several new casual games launched earlier in the year. In addition, the Company's flagship titles, including Piano Tiles 2, Rolling Sky, and Dancing Line, also exhibited strong performance throughout the quarter. -- Revenues from LiveMe increased by 7.5% year over year to RMB208.8 million (US$30.4 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.
AI and other revenues grew by 236.2% year over year to RMB48.6 million (US$7.1 million), mainly driven by the sales of Cheetah Translator, the Company's AI-based interpretation device.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 6.9% year over year to RMB327.0 million (US$47.6 million) in the second 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 increases in both content and channel costs in relation to the Company's mobile game business as well as costs associated with the Company's AI business. Non-GAAP cost of revenues decreased by 7.0% year over year to RMB326.8 million (US$47.6 million) in the second quarter of 2019.
Gross profit decreased by 14.5% year over year to RMB643.2 million (US$93.7 million) in the second quarter of 2019. Non-GAAP gross profit decreased by 14.5% year over year to RMB643.3 million (US$93.7 million). Gross margin was 66.3% in the second quarter of 2019, compared to 68.2% in the second quarter of 2018. Non-GAAP gross margin was 66.3% in the second quarter of 2019, compared to 68.2% in the second quarter of 2018.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses increased by 12.0% year over year to RMB698.9 million (US$101.8 million) in the second quarter of 2019. Total non-GAAP operating expenses increased by 9.1% year over year to RMB665.1 million (US$96.9 million) in the second quarter of 2019.
-- Research and development (R&D) expenses increased by 36.2% year over year to RMB211.4 million (US$30.8 million) in the second quarter of 2019. This increase was primarily attributable to higher share-based compensation expenses and an 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 24.7% year over year to RMB197.8 million (US$28.8 million) in the second quarter of 2019. -- Selling and marketing expenses increased by 3.2% year over year to RMB381.8 million (US$55.6 million) in the second quarter of 2019. This increase was mainly a result of the Company's increased promotional efforts for its new mobile games. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 3.8% year over year to RMB381.2 million (US$55.5 million) in the second quarter of 2019. -- General and administrative expenses increased by 17.5% year over year to RMB117.6 million (US$17.1 million) in the second quarter of 2019. This year-over-year increase was primarily due to increases in professional service fees, and share-based compensation expenses. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 15.5% year over year to RMB98.0 million (US$14.3 million) in the second quarter of 2019.
Operating loss was RMB55.7 million (US$8.1 million) in the second quarter of 2019, compared to an operating profit of RMB127.9 million in the same period last year. Non-GAAP operating loss was RMB21.8 million (US$3.2 million) in the second quarter of 2019, compared to a Non-GAAP operating income of RMB142.6 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 RMB121.1 million (US$17.6 million) in the second quarter of 2019, decreasing from RMB282.1 million in the second quarter of 2018, mainly due to the revenue decrease. -- Operating loss for the mobile entertainment business was RMB68.4 million (US$10.0 million) in the second quarter of 2019, compared to operating loss of RMB98.6 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 were RMB34.0 million (US$4.9 million) in the second quarter of 2019, compared to RMB14.6 million in the same period last year, as the Company granted a certain number of restricted shares to employees.
OTHER INCOME, NET
Other income, net was RMB33.8 million (US$4.9 million) in the second quarter of 2019, which was primarily due to increases in fair value of certain long-term investments, including our investments in Codemao, a Chinese online education platform that teaches programming to children, and SuperAtom, an online finance platform focusing on the southeastern Asia markets, in the second quarter of 2019.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was RMB48.5 million (US$7.1 million) in the second quarter of 2019. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB82.5 million (US$12.0 million) in the second quarter of 2019.
NET INCOME PER ADS
Diluted earnings per ADS was RMB0.28 (US$0.04) in the second quarter of 2019. Non-GAAP diluted income per ADS was RMB0.52 (US$0.08) in the second quarter of 2019.
BALANCE SHEET
As of June 30, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,351.4 million (US$488.2 million).
SHARES ISSUED AND OUTSTANDING
As of June 30, 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.
RECENT UPDATES
LiveMe to Amend its Share Incentive Plan
To better incentivize LiveMe's key employees amid increasingly fierce competition throughout the live streaming and short-form video market, both LiveMe's board of directors and Cheetah Mobile's board of directors have approved LiveMe to (i) amend its share incentive plan to increase the number of shares to be issued under the current plan and (ii) issue a certain number of new shares into a trust under the plan for the benefit of current and future recipients of LiveMe's share incentive awards. The amendment of the plan and the issuance of new shares will become effective on September 30, 2019.
As a result, Cheetah Mobile will no longer hold the majority voting power in LiveMe and will cease to consolidate LiveMe's financial results into the Company's consolidated financial statements starting the fourth quarter of 2019.
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. The Company funded repurchases made under this program from its available cash balance. As of August 19, 2019, the Company had repurchased approximately 4.5 million ADSs for approximately US$32 million under this program.
Business Outlook
For the third quarter of 2019, the Company expects its total revenues to be between RMB940 million (US$137 million) and RMB980 million (US$143 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, August 20, 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 August 27, 2019 by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10134187
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 RMB6.8650 to US$1.00, the exchange rate in effect as of June 30, 2019, 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 June 30, 2019 June 30, 2019 RMB RMB USD ASSETS Current assets: Cash and cash equivalents 2,783,843 1,928,068 280,855 Restricted cash 6,133 2,657 387 Short-term investments 930,610 1,420,652 206,941 Accounts receivable 655,261 537,329 78,271 Prepayments and other current assets 1,064,714 1,198,326 174,556 Due from related parties 126,990 250,607 36,505 Total current assets 5,567,551 5,337,639 777,515 Non-current assets: Property and equipment, net 63,919 66,575 9,698 Right-of-use assets, net* - 210,267 30,629 Intangible assets, net 48,421 64,687 9,423 Goodwill 617,837 629,583 91,709 Investment in equity investees 151,533 165,690 24,135 Other long term investments 1,697,510 1,803,940 262,773 Due from related parties 21,139 16,878 2,459 Deferred tax assets 88,896 129,085 18,803 Other non-current assets 35,830 36,177 5,269 Total non-current assets 2,725,085 3,122,882 454,898 Total assets 8,292,636 8,460,521 1,232,413 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 171,055 163,490 23,815 Accrued expenses and other current liabilities 1,514,642 1,355,760 197,489 Due to related parties 37,298 37,516 5,465 Income tax payable 112,770 100,745 14,675 Total current liabilities 1,835,765 1,657,511 241,444 Non-current liabilities: Deferred tax liabilities 110,291 116,920 17,031 Other non-current liabilities* 64,185 279,579 40,724 Total non-current liabilities 174,476 396,499 57,755 Total liabilities 2,010,241 2,054,010 299,199 Mezzanine equity: Redeemable noncontrolling interests 687,847 708,534 103,210 Shareholders' equity: Ordinary shares 230 231 34 Treasury stock (221,932) (221,932) (32,328) Additional paid-in capital 2,742,893 2,801,117 408,029 Retained earnings 2,705,970 2,740,847 399,249 Accumulated other comprehensive income 249,304 266,821 38,867 Total Cheetah Mobile shareholders' equity 5,476,465 5,587,084 813,851 Noncontrolling interests 118,083 110,893 16,153 Total equity 5,594,548 5,697,977 830,004 Total liabilities, mezzanine equity and equity 8,292,636 8,460,521 1,232,413 * 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 June 30, 2018 March 31, 2019 June 30, 2019 June 30, 2019 RMB RMB RMB USD Revenues 1,103,456 1,085,628 970,145 141,318 Utility products and related services 756,093 497,933 423,524 61,694 Mobile entertainment 332,907 556,230 498,021 72,545 AI and others 14,456 31,465 48,600 7,079 Cost of revenues (a) (351,360) (366,931) (326,982) (47,630) Gross profit 752,096 718,697 643,163 93,688 Operating income and expenses: Research and development (a) (155,202) (196,938) (211,369) (30,789) Selling and marketing (a) (369,914) (436,629) (381,818) (55,618) General and administrative (a) (100,107) (105,829) (117,644) (17,137) Impairment of goodwill and intangible assets (5,587) - Other operating income 6,660 3,002 11,957 1,742 Total operating income and expenses (624,150) (736,394) (698,874) (101,802) Operating profit (loss) 127,946 (17,697) (55,711) (8,114) Other income (expense): Interest income, net 19,425 31,617 31,988 4,660 Foreign exchange gain (loss) , net 10,022 (5,373) 1,280 186 (Loss) Gain from equity method investments, net (2,818) 6,141 10,566 1,539 Other income, net 67,166 432 33,766 4,919 Income before taxes 221,741 15,120 21,889 3,190 Income tax expenses (benefits) (27,993) (12,434) 24,422 3,557 Net income 193,748 2,686 46,311 6,747 Less: net loss attributable to noncontrolling interests (2,792) (4,428) (2,220) (323) Net income attributable to Cheetah Mobile shareholders 196,540 7,114 48,531 7,070 Earnings (Losses) per share Basic 0.13 0.00 0.03 0.00 Diluted 0.13 0.00 0.03 0.00 Earnings (Losses) per ADS Basic 1.33 (0.02) 0.28 0.04 Diluted 1.29 (0.02) 0.28 0.04 Weighted average number of shares outstanding Basic 1,407,191,965 1,365,622,524 1,367,557,150 1,367,557,150 Diluted 1,452,195,012 1,392,184,524 1,388,236,454 1,388,236,454 Weighted average number of ADSs outstanding Basic 140,719,197 136,562,252 136,755,715 136,755,715 Diluted 145,219,501 139,218,452 138,823,645 138,823,645 Other comprehensive income (loss), net of tax of nil Foreign currency translation adjustments 188,530 (82,541) 93,367 13,600 Unrealized gain on available-for-sale securities, net - 3,498 3,872 564 Other comprehensive income (loss) 188,530 (79,043) 97,239 14,164 Total comprehensive income (loss) 382,278 (76,357) 143,550 20,911 Less: Total comprehensive income (loss) attributable to 1,358 (4,271) (1,698) (247) noncontrolling interests Total comprehensive income (loss) attributable to Cheetah Mobile 380,920 (72,086) 145,248 21,158 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 June 30, 2018 March 31, 2019 June 30, 2019 June 30, 2019 (a) Share-based compensation expenses RMB RMB RMB USD Cost of revenues 90 159 143 21 Research and development (3,365) 16,512 13,578 1,978 Selling and marketing 2,683 2,827 593 86 General and administrative 15,225 7,153 19,640 2,861 Total 14,633 26,651 33,954 4,946
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 June 30, 2019 GAAP % of Net Share-based % of Net Non-GAAP % of Net Non-GAAP Result Revenues Compensation Revenues Result Revenues Result ($) --- Revenues 970,145 970,145 141,318 Cost of revenues (326,982) 33.7% 143 0.0% (326,839) 33.7% (47,609) Gross profit 643,163 66.3% 143 0.0% 643,306 66.3% 93,709 Research and development (211,369) 21.8% 13,578 1.4% (197,791) 20.4% (28,811) Selling and marketing (381,818) 39.4% 593 0.1% (381,225) 39.3% (55,532) General and administrative (117,644) 12.1% 19,640 2.0% (98,004) 10.1% (14,276) Other operating income 11,957 1.2% 0.0% 11,957 1.2% 1,742 Total operating income and expenses (698,874) 72.0% 33,811 3.5% (665,063) 68.6% (96,877) Operating loss (55,711) 5.7% 33,954 3.5% (21,757) 2.2% (3,168) Net income attributable to Cheetah Mobile shareholders 48,531 5.0% 33,954 3.5% 82,485 8.5% 12,015 Diluted earnings per ordinary share (RMB) 0.03 0.02 0.05 Diluted earnings per ADS (RMB) 0.28 0.24 0.52 Diluted earnings per ADS (USD) 0.04 0.04 0.08 For The Three Months Ended March 31, 2019 GAAP % of Net Share-based % of Net Non-GAAP % of Net Result Revenues Compensation Revenues Result Revenues Revenues 1,085,628 1,085,628 Cost of revenues (366,931) 33.8% 159 0.0% (366,772) 33.8% Gross profit 718,697 66.2% 159 0.0% 718,856 66.2% Research and development (196,938) 18.1% 16,512 1.5% (180,426) 16.6% Selling and marketing (436,629) 40.2% 2,827 0.3% (433,802) 40.0% General and administrative (105,829) 9.7% 7,153 0.7% (98,676) 9.1% Other operating income 3,002 0.3% 0.0% 3,002 0.3% Total operating income and expenses (736,394) 67.8% 26,492 2.4% (709,902) 65.4% Operating (loss) profit (17,697) 1.6% 26,651 2.5% 8,954 0.8% Net income attributable to Cheetah Mobile shareholders 7,114 0.7% 26,651 2.5% 33,765 3.1% 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 For The Three Months Ended June 30, 2018 GAAP % of Net Share-based % of Net Non-GAAP % of Net Result Revenues Compensation Revenues Result Revenues Revenues 1,103,456 1,103,456 Cost of revenues (351,360) 31.8% 90 0.0% (351,270) 31.8% Gross profit 752,096 68.2% 90 0.0% 752,186 68.2% Research and development (155,202) 14.1% (3,365) 0.3% (158,567) 14.4% Selling and marketing (369,914) 33.5% 2,683 0.2% (367,231) 33.3% General and administrative (100,107) 9.1% 15,225 1.4% (84,882) 7.7% Impairment of goodwill and intangible assets (5,587) 0.5% 0.0% (5,587) 0.5% Other operating income 6,660 0.6% 0.0% 6,660 0.6% Total operating income and expenses (624,150) 56.6% 14,543 1.3% (609,607) 55.2% Operating profit 127,946 11.6% 14,633 1.3% 142,579 12.9% Net income attributable to Cheetah Mobile shareholders 196,540 17.8% 14,633 1.3% 211,173 19.1% Diluted earnings per ordinary share (RMB) 0.13 0.01 0.14 Diluted earnings per ADS (RMB) 1.29 0.10 1.39
CHEETAH MOBILE INC. Information about Segment (Unaudited, in'000, except for percentage) For The Three Months Ended June 30, 2019 Utility Products Mobile AI and others Unallocated* Consolidated and Entertainment Related Services --- RMB RMB RMB RMB RMB USD Revenue 423,524 498,021 48,600 970,145 141,318 Operating profit (loss) 121,079 (68,398) (74,438) (33,954) (55,711) (8,114) Operating margin 28.6% (13.7)% (153.2)% (5.7)% (5.7)% For The Three Months Ended March 31, 2019 Utility Products Mobile AI and others Unallocated* Consolidated and Entertainment Related Services RMB RMB RMB RMB RMB Revenue 497,933 556,230 31,465 1,085,628 Operating profit (loss) 123,175 (44,148) (70,073) (26,651) (17,697) Operating margin 24.7% (7.9)% (222.7)% (1.6)% For The Three Months Ended June 30, 2018 Utility Products Mobile AI and others Unallocated* Consolidated and Entertainment Related Services RMB RMB RMB RMB RMB Revenue 756,093 332,907 14,456 1,103,456 Operating profit (loss) 282,090 (98,568) (40,943) (14,633) 127,946 Operating margin 37.3% (29.6)% (283.2)% 11.6% * 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 --- June 30, 2018 March 31, 2019 June 30, 2019 June 30, 2019 RMB RMB RMB USD Net income attributable to Cheetah Mobile shareholders 196,540 7,114 48,531 7,070 Add: Income tax expenses (benefits) 27,993 12,434 (24,422) (3,557) Interest income, net (19,425) (31,617) (31,988) (4,660) Depreciation and amortization 21,573 16,351 16,809 2,449 Net loss attributable to noncontrolling interests (2,792) (4,428) (2,220) (323) Other non-operating income , net (74,370) (1,200) (45,612) (6,644) Share-based compensation 14,633 26,651 33,954 4,946 Adjusted EBITDA 164,152 25,305 (4,948) (719) ===
CHEETAH MOBILE INC. Revenues Generated from PC-based and Mobile-based Applications and Services (Unaudited, in '000) For The Three Months Ended --- June 30, 2018 March 31, 2019 June 30, 2019 June 30, 2019 RMB RMB RMB USD PC 137,763 120,278 142,346 20,735 Mobile 965,693 965,350 827,799 120,583 --- Total 1,103,456 1,085,628 970,145 141,318 ===
CHEETAH MOBILE INC. Revenues Generated from Domestic and Overseas Markets (Unaudited, in '000) For The Three Months Ended --- June 30, 2018 March 31, 2019 June 30, 2019 June 30, 2019 RMB RMB RMB USD Domestic 453,837 424,323 382,396 55,702 Overseas 649,619 661,305 587,749 85,616 --- Total 1,103,456 1,085,628 970,145 141,318 ===
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SOURCE Cheetah Mobile Inc