Cheetah Mobile Announces Third Quarter 2019 Unaudited Consolidated Financial Results
BEIJING, Nov. 13, 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 third quarter ended September 30, 2019.
Management Commentaries
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "While our utility products and related services business continued facing some challenges, we remain confident in the fundamental strength of Cheetah Mobile and believe we are in the right direction of developing our AI-related business. In the third quarter of 2019, we completed the deconsolidation of LiveMe, which will result in a structural operating margin lift on the corporate level from the fourth quarter of 2019. Notably, our AI-related business also made substantial progress in terms of customer adoption and user engagement. Over the past years, Cheetah Mobile has built a proven track record in capitalizing on our private investment portfolio. Going forward, we will look into how to capture investment returns and use them for business development and shareholder return."
Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "In the third quarter of 2019, we continued to implement cost control measures for our utility products and related services, which helped generate RMB24 million in operating profit. More importantly, Cheetah Mobile continues to have a strong balance sheet. As of September 30, 2019, we had cash, cash equivalents, restricted cash, short-term investments of US$337 million, and long-term investments of US$348 million, which includes several prestigious private investments that we invested in their early rounds."
Third Quarter 2019 Consolidated Financial Results
REVENUES
Total revenues were RMB919.9 million (US$128.7million) in the third quarter of 2019, decreasing by 32.0% year over year.
Revenues from the mobile entertainment business increased by 6.9% year over year to RMB532.2 million (US$74.5million) in the third quarter of 2019.
Revenues from the mobile games business increased by 4.2% year over year to RMB297.2 million (US$41.6 million) in the third quarter of 2019. This increase was mainly attributable to the continued growth of Bricks n Balls.
Revenues from LiveMe increased by 10.6% year over year to RMB235.0 million (US$32.9 million) in the third quarter of 2019. The increase was primarily driven by higher average revenue per paying user.
Revenues from utility products and related services decreased by 57.8% year over year to RMB352.9 million (US$49.4 million) in the third quarter of 2019. This year-over-year decrease was primarily due to the slowdown of activity in overseas markets for the Company's mobile utility product business. Continuous headwinds in the domestic online advertising market in 2019 also contributed to this decrease.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 4.2% year over year to RMB365.7 million (US$51.2 million) in the third quarter of 2019. The year-over-year decrease was due to a significant reduction in costs associated with the Company's utility product business, partially offset by the increases in channel costs related to the Company's mobile games business and costs related to the Company's AI business. Non-GAAP cost of revenues decreased by 4.2% to RMB365.6 million (US$51.2 million) in the third quarter of 2019.
Gross profit decreased by 42.9% year over year to RMB554.2 million (US$77.5 million) in the third quarter of 2019. Non-GAAP gross profit decreased by 42.9% year over year to RMB554.3 million (US$77.5 million).
Gross margin was 60.2% in the third quarter of 2019, compared to 71.8% in the same period last year. Non-GAAP gross margin was 60.3% in the third quarter of 2019, compared to 71.8% in the third quarter of 2018.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by 3.7% year over year to RMB811.2 million (US$113.5 million) in the third quarter of 2019. Total non-GAAP operating expenses decreased by 4.9% year over year to RMB775.8 million (US$108.5 million) in the third quarter of 2019.
Research and development (R&D) expenses increased by 28.6% year over year to RMB225.5 million (US$31.5 million) in the third quarter of 2019. This increase was primarily attributable to the rise in the R&D personnel in the Company's mobile games and AI-related businesses, partially offset by a reduction in the personnel in the Company's utility products and related services. Non-GAAP R&D expenses, which exclude share-based compensation expenses, increased by 27.0% year over year to RMB211.8 million (US$29.6 million) in the third quarter of 2019.
Selling and marketing expenses decreased by 30.4% year over year to RMB395.9 million (US$55.4 million) in the third quarter of 2019. This decrease was mainly due to reduced promotional activities for the Company's utility products and related services business, partially offset by the increased marketing expenses for the Company's mobile games business. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, decreased by 29.8% year over year to RMB396.5 million (US$55.5 million) in the third quarter of 2019.
General and administrative expenses increased by 74.6% year over year to RMB189.1 million (US$26.5 million) in the third quarter of 2019. This year-over-year increase was primarily due to the one-time asset impairment charges, increases in employee benefits, and other administrative expenses. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 77.6% year over year to RMB166.7 million (US$23.3 million) in the third quarter of 2019.
Operating loss was RMB257.1 million (US$36.0 million) in the third quarter of 2019, compared to an operating profit of RMB127.9 million in the same period last year. Non-GAAP operating loss was RMB221.5 million (US$31.0 million) in the third quarter of 2019, compared to an operating profit of RMB154.2 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 RMB24.3 million (US$3.4 million) in the third quarter of 2019, decreasing from RMB264.1 million in the third quarter of 2018, mainly due to the revenue decrease and a one-time increase in allowances for doubtful accounts as the Company periodically review its accounts receivable and other receivables.
Operating loss for the mobile entertainment business was RMB142.4 million (US$19.9 million) in the third quarter of 2019, compared to an operating loss of RMB74.1 million in the same period last year. The increased losses were mainly attributable to the increased amount of investment made into the Company's mobile games business as it continued to launch new titles.
Operating loss for AI and other business was RMB103.4 million (US$14.5 million) in the quarter, compared to an operating loss of RMB35.8 million in the same period last year, mainly due to the Company's increased investment in its AI-related business.
Share-based compensation expenses were RMB35.5 million (US$5.0 million) in the third quarter of 2019, compared to RMB 26.3 million in the same period last year.
OTHER INCOME, NET
Other income, net was RMB732.9 million (US$102.5 million) in the third quarter of 2019, primarily resulting from a one-time non-cash gain due to the deconsolidation of LiveMe.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was RMB451.5 million (US$63.2 million) in the third quarter of 2019. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB487.1 million (US$68.1 million) in the third quarter of 2019.
NET INCOME PER ADS
Diluted earnings per ADS was RMB3.21 (US$0.45) in the third quarter of 2019. Non-GAAP diluted earnings per ADS was RMB3.47 (US$0.48) in the third quarter of 2019.
BALANCE SHEET
As of September 30, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB2,406.1 million (US$336.6 million).
SHARES ISSUED AND OUTSTANDING
As of September 30, 2019, the Company had a total of 1,393,070,159 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.
RECENT UPDATES
LiveMe's Amendment of its Share Incentive Plan
On September 30, 2019, LiveMe amended its share incentive plan to (i) 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. Consequently, Cheetah Mobile was no longer a majority shareholder of LiveMe and deconsolidated LiveMe's financial results from the Company's financial statements from September 30, 2019. Meanwhile, LiveMe's Chief Executive Officer, Ms. Yuki Yandan He, resigned from her position as the Senior Vice President of Cheetah Mobile, effective September 30, 2019.
Business Outlook
For the fourth quarter of 2019, the Company expects its total revenues to be between RMB610 million (US$85 million) and RMB650 million (US$91 million). This amount has reflected the fact that LiveMe's revenues will no longer be included in the Company's revenues. 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 Wednesday, November 13, 2019 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: 4001-201-203
Hong Kong Toll Free: 800-905-945
Conference ID: Cheetah Mobile
The replay will be accessible November 20, 2019 by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10136438
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 RMB7.1477 to US$1.00, the exchange rate in effect as of September 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
September 30, 2019
September 30, 2019
RMB
RMB
USD
ASSETS
Current assets:
Cash and cash equivalents 2,783,843 1,001,296 140,086
Restricted cash 6,133 2,720 381
Short-term investments 930,610 1,402,129 196,165
Accounts receivable 655,261 496,273 69,431
Prepayments and other current assets 1,064,714 1,015,290 142,044
Due from related parties 126,990 416,162 58,223
Total current assets 5,567,551 4,333,870 606,330
Non-current assets:
Property and equipment, net 63,919 80,074 11,203
Right-of-use assets, net* - 197,562 27,640
Intangible assets, net 48,421 55,336 7,742
Goodwill 617,837 549,303 76,850
Investment in equity investees 151,533 698,140 97,673
Other long term investments 1,697,510 1,792,524 250,783
Due from related parties 21,139 25,887 3,622
Deferred tax assets 88,896 82,752 11,577
Other non-current assets 35,830 33,815 4,731
Total non-current assets 2,725,085 3,515,393 491,821
Total assets 8,292,636 7,849,263 1,098,151
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 171,055 77,749 10,877
Accrued expenses and other current liabilities 1,514,642 1,307,412 182,914
Due to related parties 37,298 72,876 10,196
Income tax payable 112,770 84,324 11,797
Total current liabilities 1,835,765 1,542,361 215,784
Non-current liabilities:
Deferred tax liabilities 110,291 148,188 20,732
Other non-current liabilities* 64,185 269,219 37,666
Total non-current liabilities 174,476 417,407 58,398
Total liabilities 2,010,241 1,959,768 274,182
Mezzanine equity:
Redeemable noncontrolling interests 687,847 -
Shareholders' equity:
Ordinary shares 230 224 31
Treasury stock (221,932) -
Additional paid-in capital 2,742,893 2,616,181 366,017
Retained earnings 2,705,970 2,766,463 387,042
Accumulated other comprehensive income 249,304 392,433 54,903
Total Cheetah Mobile shareholders' equity 5,476,465 5,775,301 807,993
Noncontrolling interests 118,083 114,194 15,976
Total equity 5,594,548 5,889,495 823,969
Total liabilities, mezzanine equity and equity 8,292,636 7,849,263 1,098,151
* 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
September 30, 2018
June 30, 2019
September 30, 2019
September 30, 2019
RMB
RMB
RMB
USD
Revenues 1,351,979 970,145 919,919 128,701
Utility products and related services 835,606 423,524 352,932 49,377
Mobile entertainment 497,911 498,021 532,234 74,462
AI and others 18,462 48,600 34,753 4,862
Cost of revenues (a) (381,692) (326,982) (365,748) (51,170)
Gross profit 970,287 643,163 554,171 77,531
Operating income and expenses:
Research and development (a) (175,303) (211,369) (225,492) (31,547)
Selling and marketing (a) (568,445) (381,818) (395,875) (55,385)
General and administrative (a) (108,270) (117,644) (189,085) (26,454)
Impairment of goodwill and intangible assets - (2,380) (333)
Other operating income 9,595 11,957 1,602 224
Total operating income and expenses (842,423) (698,874) (811,230) (113,495)
Operating profit (loss) 127,864 (55,711) (257,059) (35,964)
Other income (expense):
Interest income, net 24,120 31,988 27,556 3,855
Foreign exchange gain (loss) , net 10,532 1,280 (1,336) (187)
Gain from equity method investments, net 2,479 10,566 3,396 475
Other income, net 1,242 33,766 732,852 102,530
Income before taxes 166,237 21,889 505,409 70,709
Income tax (expenses) benefits (26,957) 24,422 (56,819) (7,949)
Net income 139,280 46,311 448,590 62,760
Less: net loss attributable to noncontrolling interests (27,757) (2,220) (2,946) (412)
Net income attributable to Cheetah Mobile shareholders 167,037 48,531 451,536 63,172
Earnings per share
Basic 0.11 0.03 0.32 0.05
Diluted 0.11 0.03 0.32 0.04
Earnings per ADS
Basic 1.12 0.28 3.22 0.45
Diluted 1.09 0.28 3.21 0.45
Weighted average number of shares outstanding
Basic 1,408,570,797 1,367,557,150 1,368,904,228 1,368,904,228
Diluted 1,440,581,762 1,388,236,454 1,376,116,022 1,376,116,022
Weighted average number of ADSs outstanding
Basic 140,857,080 136,755,715 136,890,423 136,890,423
Diluted 144,058,176 138,823,645 137,611,602 137,611,602
Other comprehensive income, net of tax of nil
Foreign currency translation adjustments 149,722 93,367 127,208 17,797
Unrealized (loss) gain on available-for-sale securities, net - 3,872 (698) (98)
Other comprehensive income 149,722 97,239 126,510 17,699
Total comprehensive income 289,002 143,550 575,100 80,459
Less: Total comprehensive loss attributable to (17,293) (1,698) (2,048) (287)
noncontrolling interests
Total comprehensive income attributable to Cheetah 306,295 145,248 577,148 80,746
Mobile shareholders
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
September 30, 2018 June 30, 2019 September 30, 2019 September 30, 2019
(a) Share-based
compensation expenses
RMB RMB
RMB
USD
Cost of revenues 46 143 114 16
Research and
development 8,563 13,578 13,686 1,915
Selling and marketing 3,317 593 (660) (92)
General and
administrative 14,380 19,640 22,379 3,131
Total 26,306 33,954 35,519 4,970
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, 2019
GAAP % of Net
Share-based % of Net Non-GAAP % of Net Non-GAAP
Result Revenues
Compensation Revenues
Result Revenues Result ($)
Revenues 919,919 919,919 128,701
Cost of revenues (365,748) 39.8% 114 0.0% (365,634) 39.7% (51,154)
Gross profit 554,171 60.2% 114 0.0% 554,285 60.3% 77,547
Research and development (225,492) 24.5% 13,686 1.5% (211,806) 23.0% (29,632)
Selling and marketing (395,875) 43.0% (660) 0.1% (396,535) 43.1% (55,477)
General and administrative (189,085) 20.6% 22,379 2.4% (166,706) 18.1% (23,323)
Impairment of goodwill and intangible assets (2,380) 0.3% 0.0% (2,380) 0.3% (333)
Other operating income 1,602 0.2% 0.0% 1,602 0.2% 224
Total operating income and expenses (811,230) 88.2% 35,405 3.8% (775,825) 84.3% (108,541)
Operating loss (257,059) 27.9% 35,519 3.9% (221,540) 24.1% (30,994)
Net income attributable to Cheetah Mobile shareholders 451,536 49.1% 35,519 3.9% 487,055 52.9% 68,142
Diluted earnings per ordinary share (RMB) 0.32 0.03 0.35
Diluted earnings per ADS (RMB) 3.21 0.26 3.47
Diluted earnings per ADS (USD) 0.45 0.03 0.48
For The Three Months Ended June 30, 2019
GAAP % of Net
Share-based % of Net Non-GAAP % of Net
Result Revenues
Compensation Revenues
Result Revenues
Revenues 970,145 970,145
Cost of revenues (326,982) 33.7% 143 0.0% (326,839) 33.7%
Gross profit 643,163 66.3% 143 0.0% 643,306 66.3%
Research and development (211,369) 21.8% 13,578 1.4% (197,791) 20.4%
Selling and marketing (381,818) 39.4% 593 0.1% (381,225) 39.3%
General and administrative (117,644) 12.1% 19,640 2.0% (98,004) 10.1%
Other operating income 11,957 1.2% 0.0% 11,957 1.2%
Total operating income and expenses (698,874) 72.0% 33,811 3.5% (665,063) 68.6%
Operating loss (55,711) 5.7% 33,954 3.5% (21,757) 2.2%
Net income attributable to Cheetah Mobile shareholders 48,531 5.0% 33,954 3.5% 82,485 8.5%
Diluted earnings per ordinary share (RMB) 0.03 0.02 0.05
Diluted earnings per ADS (RMB) 0.28 0.24 0.52
For The Three Months Ended September 30, 2018
GAAP % of Net
Share-based % of Net Non-GAAP % of Net
Result Revenues
Compensation Revenues
Result Revenues
Revenues 1,351,979 1,351,979
Cost of revenues (381,692) 28.2% 46 0.0% (381,646) 28.2%
Gross profit 970,287 71.8% 46 0.0% 970,333 71.8%
Research and development (175,303) 13.0% 8,563 0.6% (166,740) 12.3%
Selling and marketing (568,445) 42.0% 3,317 0.2% (565,128) 41.8%
General and administrative (108,270) 8.0% 14,380 1.1% (93,890) 6.9%
Other operating income 9,595 0.7% 0.0% 9,595 0.7%
Total operating income and expenses (842,423) 62.3% 26,260 1.9% (816,163) 60.4%
Operating profit 127,864 9.5% 26,306 1.9% 154,170 11.4%
Net income attributable to Cheetah Mobile shareholders 167,037 12.4% 26,306 1.9% 193,343 14.3%
Diluted earnings per ordinary share (RMB) 0.11 0.02 0.13
Diluted earnings per ADS (RMB) 1.09 0.18 1.27
CHEETAH MOBILE INC.
Information about Segment
(Unaudited, in'000, except for percentage)
For The Three Months Ended September 30, 2019
Utility Products
Mobile
AI and others Unallocated* Consolidated
and Entertainment
Related Services
---
RMB
RMB
RMB
RMB
RMB USD
Revenue 352,932 532,234 34,753 919,919 128,701
Operating profit (loss) 24,248 (142,423) (103,365) (35,519) (257,059) (35,964)
Operating margin 6.9% (26.8)% (297.4)% (27.9)% (27.9)%
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
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)%
For The Three Months Ended September 30, 2018
Utility Products
Mobile
AI and others Unallocated* Consolidated
and Entertainment
Related Services
RMB
RMB
RMB
RMB
RMB
Revenue 835,606 497,911 18,462 1,351,979
Operating profit (loss) 264,139 (74,121) (35,848) (26,306) 127,864
Operating margin 31.6% (14.9)% (194.2)% 9.5%
* 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
---
September 30, 2018 June 30, 2019 September 30, 2019 September 30, 2019
RMB RMB
RMB
USD
Net income
attributable to
Cheetah Mobile
shareholders 167,037 48,531 451,536 63,172
Add:
Income tax expenses
(benefits) 26,957 (24,422) 56,819 7,949
Interest income, net (24,120) (31,988) (27,556) (3,855)
Depreciation and
amortization 17,826 16,809 16,193 2,265
Net loss attributable
to noncontrolling
interests (27,757) (2,220) (2,946) (412)
Other non-operating
income, net (14,253) (45,612) (734,912) (102,818)
Share-based
compensation 26,306 33,954 35,519 4,970
Adjusted EBITDA 171,996 (4,948) (205,347) (28,729)
===
CHEETAH MOBILE INC.
Revenues Generated from PC-based and Mobile-based Applications and Services
(Unaudited, in '000)
For The Three Months Ended
---
September 30, 2018 June 30, 2019 September 30, 2019 September 30, 2019
RMB RMB
RMB
USD
PC 143,322 142,346 123,789 17,319
Mobile 1,208,657 827,799 796,130 111,382
---
Total 1,351,979 970,145 919,919 128,701
===
CHEETAH MOBILE INC.
Revenues Generated from Domestic and Overseas Markets
(Unaudited, in '000)
For The Three Months Ended
---
September 30, 2018 June 30, 2019 September 30, 2019 September 30, 2019
RMB RMB
RMB
USD
Domestic 536,435 382,396 299,339 41,879
Overseas 815,544 587,749 620,580 86,822
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Total 1,351,979 970,145 919,919 128,701
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View original content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-third-quarter-2019-unaudited-consolidated-financial-results-300957426.html
SOURCE Cheetah Mobile Inc
