6-K
Cheetah Mobile Inc. (CMCM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OFFOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June 2020
Commission File Number: 001-36427
CHEETAH MOBILE INC.
BuildingNo. 8
Hui Tong Times Square
Yaojiayuan South Road
Beijing 100123
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CHEETAH MOBILE INC. | ||
|---|---|---|
| By | : | /s/ Thomas Jintao Ren |
| Name | : | Thomas Jintao Ren |
| Title | : | Chief Financial Officer |
Date: June 10, 2020
Exhibit Index
Exhibit 99.1 — Press Release
EX-99.1
Exhibit 99.1
Cheetah Mobile Announces First Quarter 2020
Unaudited Consolidated Financial Results
BEIJING, June 10, 2020 — 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, 2020.
ManagementCommentary
Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “In the first quarter of 2020, we continued to streamline our operations in the mobile Internet business and implement strict cost and expense controls to reduce our losses from the previous quarter. Total cost and expenses decreased by 38.4% year over year and 20.2% sequentially in the quarter. Gross margin grew to 72.0% in the quarter from 66.2% in the same period last year and from 70.2% in the previous quarter. Non-GAAP operating loss was RMB141 million in the quarter, decreasing from RMB203 million in the previous quarter. Notably, non-GAAP operating profit for our mobile Internet business, namely our utility products and related services and our mobile games businesses, increased to RMB7.8 million in the quarter from a non-GAAP operating loss of RMB91.7 million in the previous quarter. In addition, we continued to execute our AI strategy to rejuvenate our long-term growth. The recent outbreak of COVID-19 has led to increased number of use cases for our robotics products and solutions in hospitals and public transit while increasing customer awareness for the service at the same time. However, we do not expect our robotics business to generate significant revenues in the near term.”
Mr. Thomas Ren, Cheetah Mobile’s Chief Financial Officer, commented, “In addition to our improved operating results, we continued to review our investment portfolio and selectively liquidate some of our investments. Recently, we disposed of our remaining equity ownership in Bytedance Ltd., which will result in a gain on investment of approximately US$66 million in the second quarter of 2020. We also continued to return cash to our shareholders. Recently, our Board approved a special cash dividend of US$1.44 per ADS. The aggregate amount of the cash dividends was approximately US$200 million. Importantly, Cheetah Mobile’s cash position remains strong, even after paying out this special cash dividend.”
First Quarter 2020 Consolidated Financial Results
REVENUES
Total revenues were RMB528.1 million (US$74.6 million) in the first quarter of 2020, representing a decrease of 51.4% year over year. Excluding the impact resulting from the deconsolidation of LiveMe’s revenues, total revenues decreased by 36.4% year over year in the first quarter of 2020.
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Revenues from utility products and related services decreased by 57.7% year over year to RMB210.8 million (US$29.8 million) in the first quarter of 2020. The year-over-over 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 first quarter of 2020, approximately 71.0% 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 62.6% year over year to RMB54.3 million in first 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 75.4% year over year to RMB62.1 million in the first quarter of 2020 as a result of the headwinds in the domestic online advertising market. Our advertising customers that were negatively impacted by the outbreak of COVID-19 reduced their budgets on online advertising and marketing, which materially adversely impacted our revenue from online marketing services. PC-related revenues decreased by 5.8% year over year to RMB94.5 million in the first quarter of 2020 as internet traffic in China continued to migrate from PCs to mobile devices.
Revenues from the mobile games business decreased by 5.3% year over year to RMB285.5 million (US$40.3 million) in the first quarter of 2020. This decrease was primarily attributable to the suspension of the Company’s advertising collaborations with Google since February 2020. In the first quarter of 2020, approximately 69.9% 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 revenuesdecreased by 59.7% year over year to RMB147.7 million (US$20.9 million) in the first quarter of 2020. The decrease was primarily due to the deconsolidation of LiveMe. Non-GAAP cost of revenues decreased by 59.7% year over year to RMB147.6 million (US$20.9 million) in the first quarter of 2020.
Gross profit decreased by 47.1% year over year to RMB380.4 million (US$53.7 million) in the first quarter of 2020. Non-GAAP gross profit decreased by 47.1% year over year to RMB380.4 million (US$53.7 million) in the first quarter of 2020.
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Gross margin was 72.0% in the first quarter of 2020, compared to 66.2% in the same period last year. Non-GAAP gross margin was 72.0% in the first quarter of 2020, compared to 66.2% in the same period last year.
OPERATING INCOME/LOSS AND EXPENSES
Total operatingexpenses decreased by 28.2% year over year to RMB528.4 million (US$74.6 million) in the first quarter of 2020. Total non-GAAP operating expenses decreased by 26.5% year over year to RMB521.6 million (US$73.7 million) in the first quarter of 2020.
| • | Research and development expenses decreased by 27.6% year over year to RMB142.6 million (US$20.1<br>million) in the first 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 well as the deconsolidation of LiveMe. Non-GAAP research and development expenses decreased by 24.7% year over year to RMB135.9 million (US$19.2 million) in the first quarter of 2020. |
|---|---|
| • | Selling and marketing expenses decreased by 30.7% year over year to RMB302.8 million (US$42.8<br>million) in the first quarter of 2020. This decrease was mainly due to the reduction in promotional activities for the Company’s utility products and related services business in the domestic market as well as the deconsolidation of LiveMe. Non-GAAP selling and marketing expenses decreased by 29.9% year over year to RMB304.0 million (US$42.9 million) in the first quarter of 2020. |
| --- | --- |
| • | General and administrative expenses decreased by 16.3% year over year to RMB88.6 million (US$12.5<br>million) in the first quarter of 2020. This decrease was primarily due to decreased professional fees and share based compensation. Non-GAAP general and administrative expenses decreased by 11.5% year<br>over year to RMB87.3 million (US$12.3 million) in the first quarter of 2020. |
| --- | --- |
Operating loss was RMB148.0 million (US$20.9 million) in the first quarter of 2020, compared to an operating loss of RMB17.7 million in the same period last year. Non-GAAP operating loss was RMB141.1 million (US$19.9 million) in the first quarter of 2020, compared to an operating profit of RMB9.0 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 RMB44.2 million (US$6.2 million) in<br>the first quarter of 2020, compared to RMB123.2 million in the same period last year, which was mainly due to the decrease in revenues. |
|---|---|
| • | Operating loss for the mobile entertainment business was RMB36.4 million (US$5.1 million) in the<br>first quarter of 2020, compared to RMB44.1 million in the same period last year, which was mainly attributable to the deconsolidation of LiveMe. |
| --- | --- |
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| • | Operating loss for AI and other business was RMB148.9 million (US$21.0 million) in the first quarter<br>of 2020, compared to RMB70.1 million in the same period last year, mainly due to the increased investments in the Company’s AI-related business. |
|---|
Share-based compensation expenses were RMB6.9 million (US$1.0 million) in the first quarter of 2020, compared to RMB26.7 million in the same period last year.
OTHER INCOME, NET
Other income, net was RMB42.9 million (US$6.1 million) in the first quarter of 2020, which was primarily due to increases in fair value of certain long-term investments.
NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net loss attributable to Cheetah Mobile shareholders was RMB104.6 million (US$14.8 million) in the first quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB7.1 million in the same period last year.
Non-GAAP netloss attributable to Cheetah Mobile shareholders was RMB97.7 million (US$13.8 million) in the first quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB33.8 million in the same period last year.
NET INCOME/LOSS PER ADS
Diluted loss per ADS was RMB0.76 (US$0.11) in the first quarter of 2020, compared to RMB0.02 in the same period last year. Non-GAAP diluted loss per ADS was RMB0.71 (US$0.10) in first quarter of 2020, compared to diluted earnings per ADS of RMB0.17 in the same period last year.
BALANCE SHEET
As of March 31, 2020, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB2,345.1 million (US$331.2 million).
SHARES ISSUED AND OUTSTANDING
As of March 31, 2020, 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.
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Business Outlook
For the second quarter of 2020, the Company expects its total revenues to be between RMB340 million (US$48 million) and RMB390 million (US$55 million). This amount reflects the fact that LiveMe’s revenues will no longer be included in the Company’s revenues. This forecast reflects Cheetah Mobile’s current and preliminary expectation, which assumes the COVID-19 situation would not have any significant unexpected disruption to our operations in the remainder of the second quarter.
Conference Call Information
The Company will hold a conference call on Wednesday, June 10 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 June 17, 2020, by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free: +1-877-344-7529
Access Code: 10144811
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 RMB7.0808 to US$1.00, the exchange rate in effect as of March 31, 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, casual games such as Piano Tiles 2, and Bricks n Balls. 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.
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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<br> |
|---|---|
| • | Non-GAAP gross profit excludes share-based compensation expenses<br> |
| --- | --- |
| • | Non-GAAP gross margin excludes share-based compensation expense<br> |
| --- | --- |
| • | Total non-GAAP operating expenses exclude share-based compensation<br>expenses and impairment of goodwill |
| --- | --- |
| • | Non-GAAP research and development expenses exclude share-based<br>compensation expenses |
| --- | --- |
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| • | Non-GAAP selling and marketing expenses exclude share-based compensation<br>expenses |
|---|---|
| • | Non-GAAP general and administrative expenses exclude share-based<br>compensation expenses |
| --- | --- |
| • | Non-GAAP operating profit/loss excludes share-based compensation expenses<br>and impairment of goodwill |
| --- | --- |
| • | Non-GAAP net income/loss attributable to Cheetah Mobile shareholders<br>excludes share-based compensation expenses and impairment of goodwill |
| --- | --- |
| • | Non-GAAP diluted income/loss per ADS excludes share-based compensation<br>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: [email protected]
ICR Inc.
Xinran Rao
Tel: +1 (646) 417-5395
Email: [email protected]
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CHEETAH MOBILE INC.
Condensed Consolidated Balance Sheets
(Unaudited,amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)
| As of | |||||
|---|---|---|---|---|---|
| December 31, 2019 | March 31, 2020 | March 31, 2020 | |||
| RMB | RMB | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 983,004 | 876,845 | |||
| Restricted cash | 2,638 | 2,673 | |||
| Short-term investments | 1,369,118 | 1,465,580 | |||
| Accounts receivable | 469,276 | 387,026 | |||
| Prepayments and other current assets | 936,109 | 908,212 | |||
| Due from related parties | 233,255 | 232,205 | |||
| Total current assets | **** | 3,993,400 | **** | 3,872,541 | |
| Non-current assets: | |||||
| Property and equipment, net | 103,397 | 94,972 | |||
| Right-of-use<br>assets, net | 183,563 | 169,586 | |||
| Intangible assets, net | 44,476 | 47,113 | |||
| Investment in equity investees | 194,473 | 192,782 | |||
| Other long term investments | 2,322,251 | 2,363,828 | |||
| Due from related parties | 25,533 | 18,749 | |||
| Deferred tax assets | 31,951 | 41,148 | |||
| Other non-current assets | 112,700 | 116,505 | |||
| Total non-current assets | **** | 3,018,344 | **** | 3,044,683 | |
| Total assets | **** | 7,011,744 | **** | 6,917,224 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Bank loans | — | 70,851 | |||
| Accounts payable | 87,524 | 75,732 | |||
| Accrued expenses and other current liabilities | 1,446,225 | 1,458,512 | |||
| Due to related parties | 92,210 | 64,919 | |||
| Income tax payable | 60,657 | 54,400 | |||
| Total current liabilities | **** | 1,686,616 | **** | 1,724,414 | |
| Non-current liabilities: | |||||
| Deferred tax liabilities | 82,847 | 93,699 | |||
| Other non-current liabilities | 247,734 | 182,586 | |||
| Total non-current liabilities | **** | 330,581 | **** | 276,285 | |
| Total liabilities | **** | 2,017,197 | **** | 2,000,699 | |
| Shareholders’ equity: | |||||
| Ordinary shares | 225 | 226 | |||
| Additional paid-in capital | 2,649,342 | 2,656,081 | |||
| Retained earnings | 1,944,938 | 1,811,086 | |||
| Accumulated other comprehensive income | 337,773 | 389,437 | |||
| Total Cheetah Mobile shareholders’ equity | **** | 4,932,278 | **** | 4,856,830 | |
| Noncontrolling interests | **** | 62,269 | **** | 59,695 | |
| Total equity | **** | 4,994,547 | **** | 4,916,525 | |
| Total liabilities and equity | **** | 7,011,744 | **** | 6,917,224 |
All values are in US Dollars.
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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, 2019 | December 31, 2019 | March 31, 2020 | March 31, 2020 | ||||||||
| RMB | RMB | RMB | |||||||||
| Revenues | **** | 1,085,628 | **** | **** | 612,003 | **** | **** | 528,088 | **** | **** | |
| Utility products and related services | 497,933 | 298,640 | 210,838 | ||||||||
| Mobile entertainment | 556,230 | 285,058 | 285,492 | ||||||||
| AI and others | 31,465 | 28,305 | 31,758 | ||||||||
| Cost of revenues (a) | (366,931 | ) | (182,271 | ) | (147,736 | ) | ) | ||||
| Gross profit | **** | 718,697 | **** | **** | 429,732 | **** | **** | 380,352 | **** | **** | |
| Operating income and expenses: | |||||||||||
| Research and development (a) | (196,938 | ) | (153,530 | ) | (142,588 | ) | ) | ||||
| Selling and marketing (a) | (436,629 | ) | (343,993 | ) | (302,753 | ) | ) | ||||
| General and administrative (a) | (105,829 | ) | (174,899 | ) | (88,621 | ) | ) | ||||
| Impairment of goodwill | — | (545,665 | ) | — | |||||||
| Other operating income | 3,002 | 7,910 | 5,596 | ||||||||
| Total operating income and expenses | **** | (736,394 | ) | **** | (1,210,177 | ) | **** | (528,366 | ) | ) | |
| Operating loss | **** | (17,697 | ) | **** | (780,445 | ) | **** | (148,014 | ) | ) | |
| Other income (expenses): | |||||||||||
| Interest income, net | 31,617 | 18,849 | 17,854 | ||||||||
| Foreign exchange (loss) gain, net | (5,373 | ) | 5,478 | (12,091 | ) | ) | |||||
| Gain (loss) from equity method investments, net | 6,141 | (322 | ) | (2,463 | ) | ) | |||||
| Other income (loss), net | 432 | (151,665 | ) | 42,868 | |||||||
| Income (loss) before taxes | **** | 15,120 | **** | **** | (908,105 | ) | **** | (101,846 | ) | ) | |
| Income tax (expenses) benefits | (12,434 | ) | 36,927 | (6,539 | ) | ) | |||||
| Net income (loss) | **** | 2,686 | **** | **** | (871,178 | ) | **** | (108,385 | ) | ) | |
| Less: net loss attributable to noncontrolling interests | (4,428 | ) | (50,020 | ) | (3,796 | ) | ) | ||||
| Net income (loss) attributable to Cheetah Mobile shareholders | **** | 7,114 | **** | **** | (821,158 | ) | **** | (104,589 | ) | ) | |
| (Losses) Earnings per share | |||||||||||
| Basic | 0.00 | (0.60 | ) | (0.08 | ) | ) | |||||
| Diluted | 0.00 | (0.60 | ) | (0.08 | ) | ) | |||||
| (Losses) Earnings per ADS | |||||||||||
| Basic | (0.02 | ) | (5.98 | ) | (0.76 | ) | ) | ||||
| Diluted | (0.02 | ) | (5.98 | ) | (0.76 | ) | ) | ||||
| Weighted average number of shares outstanding | |||||||||||
| Basic | 1,365,622,524 | 1,374,016,957 | 1,378,171,071 | ||||||||
| Diluted | 1,392,184,524 | 1,374,016,957 | 1,378,171,071 | ||||||||
| Weighted average number of ADSs outstanding | |||||||||||
| Basic | 136,562,252 | 137,401,696 | 137,817,107 | ||||||||
| Diluted | 139,218,452 | 137,401,696 | 137,817,107 | ||||||||
| Other comprehensive (loss) income, net of tax of nil | |||||||||||
| Foreign currency translation adjustments | (82,541 | ) | (60,937 | ) | 59,974 | ||||||
| Unrealized gain (loss) on<br>available-for-sale securities, net | 3,498 | 4,241 | (7,250 | ) | ) | ||||||
| Other comprehensive (loss) income | **** | (79,043 | ) | **** | (56,696 | ) | **** | 52,724 | **** | **** | |
| Total comprehensive loss | **** | (76,357 | ) | **** | (927,874 | ) | **** | (55,661 | ) | ) | |
| Less: Total comprehensive loss attributable to noncontrolling interests | **** | (4,271 | ) | **** | (52,056 | ) | **** | (2,735 | ) | ) | |
| Total comprehensive loss attributable to Cheetah Mobile shareholders | **** | (72,086 | ) | **** | (875,818 | ) | **** | (52,925 | ) | ) |
All values are in US Dollars.
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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, 2019 | December 31, 2019 | March 31, 2020 | March 31, 2020 | ||||||
| (a) Share-based compensation expenses | RMB | RMB | RMB | ||||||
| Cost of revenues | 159 | 108 | 96 | ||||||
| Research and development | 16,512 | 15,995 | 6,737 | ||||||
| Selling and marketing | 2,827 | 1,058 | (1,222 | ) | ) | ||||
| General and administrative | 7,153 | 14,155 | 1,292 | ||||||
| Total | **** | 26,651 | **** | 31,316 | **** | 6,903 | **** | **** |
All values are in US Dollars.
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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 )
| Share-basedCompensation | Non-GAAPResult | Non-GAAPResult | ||||||||
| 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 | ) | |||||
| Diluted losses per ADS () | (0.11 | ) | 0.01 | (0.10 | ) |
All values are in US Dollars.
| For The Three Months Ended December 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|
| GAAPResult | Share-basedCompensation | Non-GAAPResult | ||||||
| RMB | RMB | RMB | ||||||
| Revenues | 612,003 | — | 612,003 | |||||
| Cost of revenues | (182,271 | ) | 108 | (182,163 | ) | |||
| Gross profit | 429,732 | 108 | 429,840 | |||||
| Research and development | (153,530 | ) | 15,995 | (137,535 | ) | |||
| Selling and marketing | (343,993 | ) | 1,058 | (342,935 | ) | |||
| General and administrative | (174,899 | ) | 14,155 | (160,744 | ) | |||
| Impairment of goodwill | (545,665 | ) | 545,665 | — | ||||
| Other operating income | 7,910 | — | 7,910 | |||||
| Total operating income and expenses | (1,210,177 | ) | 576,873 | (633,304 | ) | |||
| Operating loss | (780,445 | ) | 576,981 | (203,464 | ) | |||
| Net loss attributable to Cheetah Mobile shareholders | (821,158 | ) | 576,981 | (244,177 | ) | |||
| Diluted losses per ordinary share (RMB) | (0.60 | ) | 0.42 | (0.18 | ) | |||
| Diluted losses per ADS (RMB) | (5.98 | ) | 4.20 | (1.78 | ) | |||
| For The Three Months Ended March 31, 2019 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GAAPResult | Share-basedCompensation | Non-GAAPResult | ||||||
| RMB | RMB | RMB | ||||||
| Revenues | 1,085,628 | — | 1,085,628 | |||||
| Cost of revenues | (366,931 | ) | 159 | (366,772 | ) | |||
| Gross profit | 718,697 | 159 | 718,856 | |||||
| Research and development | (196,938 | ) | 16,512 | (180,426 | ) | |||
| Selling and marketing | (436,629 | ) | 2,827 | (433,802 | ) | |||
| General and administrative | (105,829 | ) | 7,153 | (98,676 | ) | |||
| Other operating income | 3,002 | — | 3,002 | |||||
| Total operating income and expenses | (736,394 | ) | 26,492 | (709,902 | ) | |||
| Operating (loss) profit | (17,697 | ) | 26,651 | 8,954 | ||||
| Net income attributable to Cheetah Mobile shareholders | 7,114 | 26,651 | 33,765 | |||||
| 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 |
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CHEETAH MOBILE INC.
Information about Segment
(Unaudited, amounts inthousands of Renminbi (“RMB”) and US dollars (“US$”), except for percentage)
| For The Three Months Ended March 31, 2020 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Utility ProductsandRelated Services | MobileEntertainment | AI andothers | Unallocated* | Consolidated | |||||||||||||
| 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 | )% | )% |
All values are in US Dollars.
| For The Three Months Ended December 31, 2019 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Utility ProductsandRelated Services | MobileEntertainment | AI andothers | Unallocated* | Consolidated | |||||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||||
| Revenue | 298,640 | 285,058 | 28,305 | — | 612,003 | ||||||||||
| Operating profit (loss) | 28,596 | (120,310 | ) | (111,750 | ) | (576,981 | ) | (780,445 | ) | ||||||
| Operating margin | 9.6 | % | (42.2 | )% | (394.8 | )% | — | (127.5 | )% | ||||||
| For The Three Months Ended March 31, 2019 | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Utility ProductsandRelated Services | MobileEntertainment | AI andothers | Unallocated* | Consolidated | |||||||||||
| 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 | )% | |||||||
| * | Unallocated expenses refer to SBC expenses and goodwill impairment that are not allocated to individualsegments. | ||||||||||||||
| --- | --- |
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$”))
| For The Three Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2019 | December 31, 2019 | March 31, 2020 | March 31, 2020 | ||||||||
| RMB | RMB | RMB | |||||||||
| Net income (loss) attributable to Cheetah Mobile shareholders | 7,114 | (821,158 | ) | (104,589 | ) | ) | |||||
| Add: | |||||||||||
| Income tax expenses (benefits) | 12,434 | (36,927 | ) | 6,539 | |||||||
| Interest income, net | (31,617 | ) | (18,849 | ) | (17,854 | ) | ) | ||||
| Depreciation and amortization | 16,351 | 16,108 | 18,548 | ||||||||
| Net loss attributable to noncontrolling interests | (4,428 | ) | (50,020 | ) | (3,796 | ) | ) | ||||
| Other (income) loss, net | (1,200 | ) | 146,509 | (28,314 | ) | ) | |||||
| Share-based compensation | 26,651 | 31,316 | 6,903 | ||||||||
| Impairment of goodwill | — | 545,665 | — | ||||||||
| Adjusted EBITDA | **** | 25,305 | **** | **** | (187,356 | ) | **** | (122,563 | ) | ) |
All values are in US Dollars.
CHEETAH MOBILE INC.
Revenues Generated from PC-based and Mobile-based Applications and Services
(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
| For The Three Months Ended | |||||||
|---|---|---|---|---|---|---|---|
| March 31, 2019 | 31-Dec-19 | March 31, 2020 | March 31, 2020 | ||||
| RMB | RMB | RMB | |||||
| PC | 120,278 | 123,842 | 117,502 | ||||
| Mobile | 965,350 | 488,161 | 410,586 | ||||
| Total | **** | 1,085,628 | **** | 612,003 | **** | 528,088 |
All values are in US Dollars.
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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 | |||||||
|---|---|---|---|---|---|---|---|
| March 31, 2019 | December 31, 2019 | March 31, 2020 | March 31, 2020 | ||||
| RMB | RMB | RMB | |||||
| Domestic | 424,323 | 282,049 | 234,335 | ||||
| Overseas | 661,305 | 329,954 | 293,753 | ||||
| Total | **** | 1,085,628 | **** | 612,003 | **** | 528,088 |
All values are in US Dollars.
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