Cheetah Mobile Announces Second Quarter 2020 Unaudited Consolidated Financial Results
BEIJING, Aug. 18, 2020 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company with global market coverage, today announced its unaudited consolidated financial results for the second quarter ended June 30, 2020.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "Our second quarter revenue came in ahead of management's expectations despite the unfavorable macro environment caused by the outbreak of COVID-19. We have shifted our business focus from overseas markets to the domestic market. As a result, non-GAAP operating losses continued to narrow in the quarter on a sequential basis. Specifically, the second quarter of 2020 was the third straight quarter in which our non-GAAP operating losses reduced since the third quarter of 2019. In addition, our non-GAAP net income attributable to Cheetah Mobile shareholders was RMB243.9 million in the quarter as we disposed of our remaining stake in Bytedance, while our number of AI-related robotics products in shopping malls grew to approximately 7,000 by the end of the second quarter. Looking ahead, we will continue to focus on the domestic market and our AI-related business in shopping malls to build a new growth engine for Cheetah Mobile over the long run."
Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "We continued to streamline our operations and optimize our cost and expense structures for our mobile internet business and AI-related business during the second quarter of 2020. As a result, total cost and expenses decreased by 44.3% year over year and 15.2% quarter over quarter in the second quarter. Our cost savings helped us to expand our gross margin and reduce our non-GAAP operating loss in the quarter. In addition, Cheetah Mobile has a very strong balance sheet. Backed by our clear, strategic focus, strict cost saving measures, and strong cash position, we are confident in our ability to improve our financial condition in the coming quarters."
Second Quarter 2020 Consolidated Financial Results
REVENUES
Total revenues were RMB394.2 million (US$55.8 million) in the second quarter of 2020, representing a decrease of 59.4% year over year. Excluding the impact resulting from the deconsolidation of LiveMe, total revenues decreased by 48.2% year over year in the second quarter of 2020.
Revenues from utility products and related services decreased by 53.9% year over year to RMB195.4 million (US$27.7 million) in the second quarter of 2020. The year-over-year decrease was primarily due to (i) a decline in the Company's mobile utility product business in overseas markets, (ii) a decline in the Company's mobile utility product business in the domestic market, and (iii) a decline in PC-related revenues. In the second quarter of 2020, approximately 64.6% of the Company's revenues from its utility products and related services business were generated from advertising while the remaining portion of revenues were generated from other sources, such as anti-virus software sales and office software sales.
Revenues from the Company's mobile utility product business in overseas markets decreased by 68.4% year over year to RMB41.5 million in second quarter of 2020. This decrease was mainly due to the suspension of the Company's advertising collaborations with Google since February 2020. On February 21, 2020, the Company announced that the Company's Google Play Store, Google AdMob, and Google AdManager accounts had been disabled, which adversely affected its ability to attract new users and generate revenue from Google.
Revenues from the Company's mobile utility product business in the domestic market decreased by 70.7% year over year to RMB54.2 million in the second quarter of 2020 primarily as a result of the headwinds in the domestic online advertising market. During the quarter, a large portion of the Company's advertising clients located in major cities, such as Beijing, were negatively impacted by the second wave of COVID-19 and thus reduced their online advertising and marketing budgets. As a result, revenues generated by the Company from online marketing services were materially impacted in the period.
PC-related revenues decreased by 7.0% year over year to RMB99.6 million in the second quarter of 2020 as internet traffic in China continued to migrate from PCs to mobile devices.
Revenues from the mobile entertainment business decrease by 64.0% year over year to RMB179.4 million (US$25.4 million) in the second quarter of 2020. Excluding the impact resulting from the deconsolidation of LiveMe, revenues from the mobile games business decreased by 38.0% year over year to RMB179.4 million (US$25.4 million) in the second quarter of 2020. This decrease was primarily attributable to the suspension of the Company's advertising collaborations with Google since February 2020. In the second quarter of 2020, approximately 54.7% of the Company's revenues from its mobile games business were generated from advertising while the remaining portion of revenues were generated from in-game purchases.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 65.2% year over year to RMB113.7 million (US$16.1 million) in the second quarter of 2020. The decrease was primarily due to the deconsolidation of LiveMe and reduced bandwidth and cloud service costs in overseas markets. Non-GAAP cost of revenues decreased by 65.3% year over year to RMB113.4 million (US$16.1 million) in the second quarter of 2020.
Gross profit decreased by 56.4% year over year to RMB280.5 million (US$39.7 million) in the second quarter of 2020. Non-GAAP gross profit decreased by 56.4% year over year to RMB280.8 million (US$39.7 million) in the second quarter of 2020.
Gross margin was 71.2% in the second quarter of 2020, compared to 66.3% in the same period last year. Non-GAAP gross margin was 71.2% in the second quarter of 2020, compared to 66.3% in the same period last year.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by 33.7% year over year to RMB463.4 million (US$65.6 million) in the second quarter of 2020. Total non-GAAP operating expenses decreased by 37.8% year over year to RMB413.5 million (US$58.5 million) in the second quarter of 2020.
-- Research and development expenses decreased by 40.8% year over year to
RMB125.0 million (US$17.7 million) in the second quarter of 2020. This
decrease was primarily attributable to a reduction in the personnel for
the Company's utility products and related services business in overseas
markets as the Company chose to shift its focus from overseas markets to
the domestic market. This decrease was also due to the deconsolidation
of LiveMe. Non-GAAP research and development expenses decreased by 42.8%
year over year to RMB113.2 million (US$16.0 million) in the second
quarter of 2020.
-- Selling and marketing expenses decreased by 46.2% year over year to
RMB205.6 million (US$29.1 million) in the second quarter of 2020. This
decrease was mainly due to the reduction in promotional activities for
the Company's mobile apps in overseas markets, in particular, mobile
games. Non-GAAP selling and marketing expenses decreased by 46.3% year
over year to RMB204.8 million (US$29.0 million) in the second quarter of
2020.
-- General and administrative expenses increased by 13.8% year over year to
RMB133.8 million (US$18.9 million) in the second quarter of 2020. This
increase was primarily due to increased stock-based compensation
expenses. Non-GAAP general and administrative expenses decreased by 1.6%
year over year to RMB96.5 million (US$13.7 million) in the second
quarter of 2020.
Operating loss was RMB182.9 million (US$25.9 million) in the second quarter of 2020, compared to an operating loss of RMB55.7 million in the same period last year and an operating loss of RMB148.0 million in the previous quarter. Non-GAAP operating loss was RMB132.7 million (US$18.8 million) in the second quarter of 2020, compared to a non-GAAP operating loss of RMB21.8 million in the same period last year and a non-GAAP operating loss of RMB141.1 million in the previous quarter.
The Company has reported its operating profit (loss) along the following segments since the second quarter of 2017:
-- Operating profit for utility products and related services was RMB56.5
million in the second quarter of 2020, decreasing from RMB121.1 million
in the same period last year due to the 53.9% year-over-year decrease in
revenues generated from the Company's utility products and related
services business. Cost and expenses for the Company's utility products
and related services decreased by 54.1% year over year in the second
quarter of 2020. These decreases were primarily due to the reduction in
overseas markets expenditures as the Company shifted its focus to the
domestic market.
-- Operating loss for the mobile entertainment business was RMB20.9 million
in the second quarter of 2020, decreasing from RMB68.4 million in the
same period last year and RMB36.4 million in the previous quarter. The
year-over-year reduction in operating loss was mainly attributable to
the deconsolidation of LiveMe, while the quarter-over-quarter reduction
in operating loss resulted from the Company's decision to shift its
focus from overseas markets to the domestic market.
Share-based compensation expenses were RMB50.2 million (US$7.1 million) in the second quarter of 2020, compared to RMB34.0 million in the same period last year.
OTHER INCOME, NET
Other income, net was RMB453.5 million (US$64.2 million) in the second quarter of 2020, which was primarily due to the disposal of equity ownership in Bytedance Ltd.
NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders was RMB193.7 million (US$27.4 million) in the second quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB48.5 million in the same period last year.
Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB243.9 million (US$34.5 million) in the second quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB82.5 million in the same period last year.
NET INCOME/LOSS PER ADS
Diluted earnings per ADS was RMB1.38 (US$0.20) in the second quarter of 2020, compared to RMB0.28 in the same period last year. Non-GAAP diluted earnings per ADS was RMB1.74 (US$0.25) in second quarter of 2020, compared to diluted earnings per ADS of RMB0.52 in the same period last year.
BALANCE SHEET
As of June 30, 2020, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,202.4 million (US$453.3 million).
SHARES ISSUED AND OUTSTANDING
As of June 30, 2020, the Company had a total of 1,398,070,159 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.
Business Outlook
For the third quarter of 2020, the Company expects its total revenues to be between RMB310 million (US$43.9 million) and RMB360 million (US$51.0 million). This amount reflects the fact that LiveMe's revenues will no longer be included in the Company's revenues as well as the Company's current and preliminary expectations, which assume that the COVID-19 situation will not cause any significant disruptions to its operations throughout the remainder of the third quarter.
Recent Development
On July 9, 2020, the Company used cash from its balance sheet to pay a special cash dividend of US$1.44 per ADS to its shareholders. The aggregate amount of the cash dividends was about US$200 million.
Conference Call Information
The Company will hold a conference call on Tuesday, August 18, 2020, at 8:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:
International: +1-412-902-4272
United States Toll Free: +1-888-346-8982
Mainland China Toll Free: 4001-201-203
Hong Kong Toll Free: 800-905-945
Conference ID: Cheetah Mobile
The replay will be accessible August 25, 2020 by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10147113
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cmcm.com.
Exchange Rate
This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB7.0651 to US$1.00, the exchange rate in effect as of June 30, 2020, as set forth in the H.10 statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America ("U.S. GAAP").
About Cheetah Mobile Inc.
Cheetah Mobile is a leading mobile Internet company with global market coverage. It has attracted hundreds of millions of monthly active users through its mobile utility products such as Clean Master and Cheetah Keyboard, casual games such as Piano Tiles 2 and Bricks n Balls. The Company's advertising customers include direct advertisers and mobile advertising networks. Through the Company's advertising products, advertisers can promote their products and services to a wide range of mobile users. The Company also provides value-added services to its mobile application users through the sale of in-app virtual items on selected mobile products and games. Cheetah Mobile is committed to leveraging its cutting-edge artificial intelligence technologies to power its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014.
Safe Harbor Statement
This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile's growth strategies; Cheetah Mobile's ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile's ability to monetize its platform; Cheetah Mobile's future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile's revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile's filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Use of Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures:
-- Non-GAAP cost of revenues excludes share-based compensation expenses
-- Non-GAAP gross profit excludes share-based compensation expenses
-- Non-GAAP gross margin excludes share-based compensation expense
-- Total non-GAAP operating expenses exclude share-based compensation
expenses and impairment of goodwill
-- Non-GAAP research and development expenses exclude share-based
compensation expenses
-- Non-GAAP selling and marketing expenses exclude share-based compensation
expenses
-- Non-GAAP general and administrative expenses exclude share-based
compensation expenses
-- Non-GAAP operating profit/loss excludes share-based compensation
expenses and impairment of goodwill
-- Non-GAAP net income/loss attributable to Cheetah Mobile shareholders
excludes share-based compensation expenses and impairment of goodwill
-- Non-GAAP diluted income/loss per ADS excludes share-based compensation
expenses and impairment of goodwill
The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP Results".
Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: helenjingzhu@cmcm.com
ICR Inc.
Xinran Rao
Tel: +1 (646) 417-5395
Email: IR@cmcm.com
CHEETAH MOBILE INC.
Condensed Consolidated Balance Sheets
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$")
As of
December 31, 2019
June 30, 2020
June 30, 2020
---
RMB
RMB
USD
ASSETS
Current assets:
Cash and cash equivalents 983,004 2,414,931 341,811
Restricted cash 2,638 1,185 168
Short-term investments 1,369,118 786,292 111,292
Accounts receivable 469,276 322,122 45,593
Prepayments and other current assets 936,109 1,095,753 155,094
Due from related parties 233,255 225,942 31,980
Total current assets 3,993,400 4,846,225 685,938
Non-current assets:
Property and equipment, net 103,397 96,099 13,602
Right-of-use assets, net 183,563 158,225 22,395
Intangible assets, net 44,476 43,879 6,211
Investment in equity investees 194,473 197,317 27,928
Other long term investments 2,322,251 1,866,744 264,220
Due from related parties 25,533 27,168 3,845
Deferred tax assets 31,951 54,514 7,716
Other non-current assets 112,700 115,217 16,308
Total non-current assets 3,018,344 2,559,163 362,225
Total assets 7,011,744 7,405,388 1,048,163
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank loans - 70,795 10,020
Accounts payable 87,524 72,506 10,263
Accrued expenses and other current liabilities 1,504,728 2,103,133 297,679
Due to related parties 92,210 1,027,607 145,448
Income tax payable 60,657 31,407 4,445
Total current liabilities 1,745,119 3,305,448 467,855
Non-current liabilities:
Deferred tax liabilities 82,847 66,767 9,450
Other non-current liabilities 189,231 324,210 45,889
Total non-current liabilities 272,078 390,977 55,339
Total liabilities 2,017,197 3,696,425 523,194
Shareholders' equity:
Ordinary shares 225 233 33
Additional paid-in capital 2,649,342 2,720,260 385,028
Retained earnings 1,944,938 546,962 77,417
Accumulated other comprehensive income 337,773 387,120 54,793
Total Cheetah Mobile shareholders' equity 4,932,278 3,654,575 517,271
Noncontrolling interests 62,269 54,388 7,698
Total equity 4,994,547 3,708,963 524,969
Total liabilities and equity 7,011,744 7,405,388 1,048,163
CHEETAH MOBILE INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for number of shares and per share(or ADS) data)
For The Three Months Ended
June 30, 2019
March 31, 2020
June 30, 2020
June 30, 2020
---
RMB
RMB
RMB
USD
Revenues 970,145 528,088 394,210 55,797
Utility products and related services 423,524 210,838 195,361 27,652
Mobile entertainment 498,021 285,492 179,398 25,392
AI and others 48,600 31,758 19,451 2,753
Cost of revenues (a) (326,982) (147,736) (113,661) (16,088)
Gross profit 643,163 380,352 280,549 39,709
Operating income and expenses:
Research and development (a) (211,369) (142,588) (125,036) (17,698)
Selling and marketing (a) (381,818) (302,753) (205,562) (29,095)
General and administrative (a) (117,644) (88,621) (133,840) (18,944)
Other operating income, net 11,957 5,596 998 141
Total operating income and expenses (698,874) (528,366) (463,440) (65,596)
Operating loss (55,711) (148,014) (182,891) (25,887)
Other income (expenses):
Interest income, net 31,988 17,854 8,496 1,203
Foreign exchange gain (loss), net 1,280 (12,091) (3,409) (483)
Gain (loss) from equity method investments, net 10,566 (2,463) (5,452) (772)
Other income, net 33,766 42,868 453,549 64,196
Income (loss) before taxes 21,889 (101,846) 270,293 38,257
Income tax benefits (expenses) 24,422 (6,539) (82,198) (11,634)
Net income (loss) 46,311 (108,385) 188,095 26,623
Less: net loss attributable to noncontrolling interests (2,220) (3,796) (5,626) (796)
Net income (loss) attributable to Cheetah Mobile shareholders 48,531 (104,589) 193,721 27,419
Earnings (losses) per share
Basic 0.03 (0.08) 0.14 0.02
Diluted 0.03 (0.08) 0.14 0.02
Earnings (losses) per ADS
Basic 0.28 (0.76) 1.41 0.20
Diluted 0.28 (0.76) 1.38 0.20
Weighted average number of shares outstanding
Basic 1,367,557,150 1,378,171,071 1,383,251,669 1,383,251,669
Diluted 1,388,236,454 1,378,171,071 1,405,836,201 1,405,836,201
Weighted average number of ADSs outstanding
Basic 136,755,715 137,817,107 138,325,167 138,325,167
Diluted 138,823,645 137,817,107 140,583,620 140,583,620
Other comprehensive income (loss), net of tax of nil
Foreign currency translation adjustments 93,367 59,974 (2,116) (300)
Unrealized gain (loss) on available-for-sale securities, net 3,872 (7,250) -
Other comprehensive income (loss) 97,239 52,724 (2,116) (300)
Total comprehensive income (loss) 143,550 (55,661) 185,979 26,323
Less: Total comprehensive loss attributable to noncontrolling interests (1,698) (2,735) (5,426) (768)
Total comprehensive income (loss) attributable to Cheetah Mobile shareholders 145,248 (52,925) 191,405 27,091
CHEETAH MOBILE INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for number of shares and per share(or ADS) data)
For The Three Months Ended
June 30, 2019
March 31, 2020
June 30, 2020
June 30, 2020
---
(a) Share-based compensation expenses
RMB
RMB
RMB
USD
Cost of revenues 143 96 230 33
Research and development 13,578 6,737 11,826 1,674
Selling and marketing 593 (1,222) 785 111
General and administrative 19,640 1,292 37,359 5,288
Total 33,954 6,903 50,200 7,106
CHEETAH MOBILE INC.
Reconciliation of GAAP and Non-GAAP Results
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for per share data )
For The Three Months Ended June 30, 2020
GAAP
Share-based Non-GAAP Non-GAAP
Result
Compensation
Result
Result
---
RMB
RMB
RMB
USD
Revenues 394,210 394,210 55,797
Cost of revenues (113,661) 230 (113,431) (16,055)
Gross profit 280,549 230 280,779 39,742
Research and development (125,036) 11,826 (113,210) (16,024)
Selling and marketing (205,562) 785 (204,777) (28,984)
General and administrative (133,840) 37,359 (96,481) (13,656)
Other operating income 998 998 141
Total operating income and expenses (463,440) 49,970 (413,470) (58,523)
Operating loss (182,891) 50,200 (132,691) (18,781)
Net income attributable to Cheetah Mobile shareholders 193,721 50,200 243,921 34,525
Diluted earnings per ordinary share (RMB) 0.14 0.04 0.17
Diluted earnings per ADS (RMB) 1.38 0.36 1.74
Diluted earnings per ADS (USD) 0.20 0.05 0.25
For The Three Months Ended March 31, 2020
GAAP
Share-based Non-GAAP
Result
Compensation
Result
RMB
RMB
RMB
Revenues 528,088 528,088
Cost of revenues (147,736) 96 (147,640)
Gross profit 380,352 96 380,448
Research and development (142,588) 6,737 (135,851)
Selling and marketing (302,753) (1,222) (303,975)
General and administrative (88,621) 1,292 (87,329)
Other operating income 5,596 5,596
Total operating income and expenses (528,366) 6,807 (521,559)
Operating loss (148,014) 6,903 (141,111)
Net loss attributable to Cheetah Mobile shareholders (104,589) 6,903 (97,686)
Diluted losses per ordinary share (RMB) (0.08) 0.01 (0.07)
Diluted losses per ADS (RMB) (0.76) 0.05 (0.71)
For The Three Months Ended June 30, 2019
GAAP
Share-based Non-GAAP
Result
Compensation
Result
RMB
RMB
RMB
Revenues 970,145 970,145
Cost of revenues (326,982) 143 (326,839)
Gross profit 643,163 143 643,306
Research and development (211,369) 13,578 (197,791)
Selling and marketing (381,818) 593 (381,225)
General and administrative (117,644) 19,640 (98,004)
Other operating income 11,957 11,957
Total operating income and expenses (698,874) 33,811 (665,063)
Operating loss (55,711) 33,954 (21,757)
Net income attributable to Cheetah Mobile shareholders 48,531 33,954 82,485
Diluted earnings per ordinary share (RMB) 0.03 0.02 0.05
Diluted earnings per ADS (RMB) 0.28 0.24 0.52
CHEETAH MOBILE INC.
Information about Segment
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for percentage)
For The Three Months Ended June 30, 2020
Utility Products
Mobile Entertainment
AI and others Unallocated* Consolidated
and
Related Services
---
RMB
RMB
RMB
RMB
RMB USD
Revenue 195,361 179,398 19,451 394,210 55,797
Operating profit (loss) 56,460 (20,851) (168,300) (50,200) (182,891) (25,887)
Operating margin 28.9% (11.6)% (865.3)% (46.4)% (46.4)%
For The Three Months Ended March 31, 2020
Utility Products
Mobile Entertainment
AI and others Unallocated* Consolidated
and
Related Services
RMB
RMB
RMB
RMB
RMB
Revenue 210,838 285,492 31,758 528,088
Operating profit (loss) 44,169 (36,359) (148,921) (6,903) (148,014)
Operating margin 20.9% (12.7)% (468.9)% (28.0)%
For The Three Months Ended June 30, 2019
Utility Products
Mobile Entertainment
AI and others Unallocated* Consolidated
and
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)%
* Unallocated expenses refer to SBC expenses and goodwill impairment that are not allocated to individual segments.
CHEETAH MOBILE INC.
Reconciliation from Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
For The Three Months Ended
June 30, 2019
March 31, 2020 June 30, 2020 June 30, 2020
---
RMB
RMB
RMB
USD
Net income (loss) attributable to Cheetah Mobile shareholders 48,531 (104,589) 193,721 27,419
Add:
Income tax (benefits) expenses (24,422) 6,539 82,198 11,634
Interest income, net (31,988) (17,854) (8,496) (1,203)
Depreciation and amortization 16,809 18,548 18,528 2,622
Net loss attributable to noncontrolling interests (2,220) (3,796) (5,626) (796)
Other income, net (45,612) (28,314) (444,688) (62,941)
Share-based compensation 33,954 6,903 50,200 7,106
Adjusted EBITDA (4,948) (122,563) (114,163) (16,159)
CHEETAH MOBILE INC.
Revenues Generated from PC-based and Mobile-based Applications and Services
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
For The Three Months Ended
June 30, 2019
March 31, 2020
June 30, 2020 June 30, 2020
---
RMB
RMB
RMB
USD
PC 142,346 117,502 118,343 16,750
Mobile 827,799 410,586 275,867 39,047
Total 970,145 528,088 394,210 55,797
CHEETAH MOBILE INC.
Revenues Generated from Domestic and Overseas Markets
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
For The Three Months Ended
June 30, 2019
March 31, 2020
June 30, 2020 June 30, 2020
---
RMB
RMB
RMB
USD
Domestic 382,396 234,335 163,589 23,155
Overseas 587,749 293,753 230,621 32,642
Total 970,145 528,088 394,210 55,797
View original content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-second-quarter-2020-unaudited-consolidated-financial-results-301113701.html
SOURCE Cheetah Mobile Inc
