UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2024

Commission File Number: 001-36427

 

CHEETAH MOBILE INC.

 

Building No. 11

Wandong Science and Technology Cultural Innovation Park

No.7 Sanjianfangnanli, Chaoyang District

Beijing 100024

People’s Republic of China

(Address of principal executive office)

 

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

 

 

 

 

SIGNATURE

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: December 17, 2024

 

 

Exhibit Index

 

Exhibit 99.1 — Cheetah Mobile Announces Third Quarter 2024 Unaudited Consolidated Financial Results

 

Exhibit 99.1

 

Cheetah Mobile Announces Third Quarter 2024 Unaudited Consolidated Financial Results

BEIJING, December 17, 2024 - Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a China-based IT company, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2024.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, remarked, “Our third-quarter results demonstrate strong momentum, with accelerated revenue growth fueled by robust performance in our service robotics and internet businesses. We’re seeing rising demand for service robots as a supplement to human labor, particularly in hospitality, manufacturing, and logistics sectors. Drawing on our extensive experience delivering service robots worldwide, we continue to innovate by refining product experiences and introducing targeted solutions to address specific industry needs. Looking ahead, the integration of large language models represents a pivotal opportunity to enhance our robots’ intelligence and deployment efficiency, unlocking new avenues for growth. With a clear strategy and a focus on innovation, we’re well-positioned to capitalize on the immense potential of the trillion-dollar robotics market.”

 

Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: “In the third quarter, we continued to make meaningful progress in reducing our operating losses. This marks the second consecutive quarter of sequential improvement, driven by ongoing efforts to enhance operational efficiency. Notably, the operating margin for our internet business, excluding share-based compensation, improved to 10.3%—an increase of 4 percentage points compared to 6.2% in the same period last year ”

 

Third Quarter 2024 Financial Highlight

•
Total revenues grew by 16.6% year-over-year, accelerating to RMB192.1 million (US$27.4 million) in the third quarter of 2024.
•
Gross profit increased by 13.9% year-over-year and 7.3% quarter-over-quarter, to RMB130.4 million (US$18.6 million) in the third quarter of 2024. On a non-GAAP basis, gross profit rose by 13.9% year-over-year and 7.0% quarter-over-quarter to RMB130.5 million (US$18.6 million).
•
Operating loss narrowed to RMB72.0 million (US$10.3 million) in the third quarter of 2024, improving from RMB77.5 in the previous quarter. However, the number was RMB41.0 million in the same period of last year. On a non-GAAP basis, operating loss in the third quarter of 2024 improved from RMB62.5 million in the previous quarter to RMB60.5 million (US$8.6 million). However, the number was RMB33.0 million in the same period of last year.
•
Net loss attributable to Cheetah Mobile shareholders was RMB46.9 million (US$6.7 million), a significant improvement from RMB123.8 million in the previous quarter. However, the number was RMB24.3 million in the same period of last year. On a non-GAAP basis, net loss attributable to Cheetah Mobile shareholders was RMB35.4 million (US$5.0 million), a significant improvement from RMB108.8 million in the

1

previous quarter. However, the number was RMB16.3 million in the same period of last year.
•
As of September 30, 2024, the Company had cash and cash equivalents of RMB1,530.5 million (US$218.1 million), ensuring strong liquidity.
•
As of September 30, 2024, the Company had long-term investments of RMB885.9 million (US$126.2 million).

 

 

 

Third Quarter 2024 Consolidated Financial Results

 

Total revenues grew by 16.6% year over year to RMB192.1 million (US$27.4 million) in the third quarter of 2024.

•
Revenues from internet business increased by 25.8% year over year to RMB134.3 million (US$19.1 million) in the third quarter of 2024, as our legacy business remained resilient.
•
Revenues from AI and others remained relatively flat year over year to RMB57.8 million (US$8.2 million) in the third quarter of 2024. This stability was achieved despite an approximately 68% year-over-year decline in revenue from the overseas advertising agency business, which was offset by an increase in revenue from sale of service robots following the acquisition of Beijing OrionStar in November 2023.

 

Cost of revenues increased by 22.6% year over year to RMB61.7 million (US$8.8 million) in the third quarter of 2024. The increases were primarily attributable to the increase in the hardware-related costs for the Company’s service robots. Non-GAAP cost of revenues increased by 22.6% year over year to RMB61.6 million (US$8.8 million) in the third quarter of 2024.

 

Gross profit increased by 13.9% year over year to RMB130.4 million (US$18.6 million) in the third quarter of 2024. Non-GAAP gross profit increased by 13.9% year over year to RMB130.5 million (US$18.6 million) in the third quarter of 2024.

 

Total operating expenses increased by 30.2% year over year to RMB202.4 million (US$28.8 million) in the third quarter of 2024. Total non-GAAP operating expenses increased by 29.4% year over year to RMB190.9 million (US$27.2 million) in the third quarter of 2024.

•
Research and development expenses increased by 44.8% year over year to RMB66.3 million (US$9.4 million) in the third quarter of 2024, primarily due to: 1) increased amortization of intangible assets resulting from the acquisition of a controlling stake in Beijing OrionStar; and 2) higher R&D personnel-related expenses following the acquisition of Beijing OrionStar. Non-GAAP research and development expenses increased by 31.2% year over year to RMB59.9 million (US$8.5 million) in the third quarter of 2024.
•
Selling and marketing expenses increased by 62.1% year over year to RMB89.0 million (US$12.7 million) in the third quarter of 2024, primarily due to: 1) increased marketing and promotion expenses related to our user acquisition for certain products of our internet business; and 2) increased personnel-related expenses following the acquisition of in Beijing OrionStar. Non-GAAP selling and marketing expenses increased by 61.9% year over year to RMB88.8 million (US$12.7 million) in the third quarter of 2024.

2

•
General and administrative expenses decreased by 14.8% year over year to RMB47.3 million (US$6.7 million) in the third quarter of 2024, primarily due to: 1) reduced stock-based compensation expenses, 2) reduced professional and legal service fees, 3) a reduction in the provision for credit losses. Non-GAAP general and administrative expenses decreased by 11.2% year over year to RMB42.5 million (US$6.1 million) in the third quarter of 2024.

 

Operating loss narrowed to RMB72.0 million (US$10.3 million) in the third quarter of 2024, improving from RMB77.5 in the previous quarter. However, the number was RMB41.0 million in the same period of last year. Non-GAAP operating loss improved to RMB60.5 million (US$8.6 million) in the third quarter of 2024, from RMB62.5 million in the previous quarter. However, the number was RMB33.0 million in the same period of last year.

 

By segment, operating margin excluding share-based compensation expense for internet business improved to 10.3% in the third quarter of 2024, from 6.2% in the same period of last year.

 

Net loss attributable to Cheetah Mobile shareholders was RMB46.9 million (US$6.7 million), a significant improvement from RMB123.8 million in the previous quarter. However, the number was RMB24.3 million in the same period of last year. Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB35.4 million (US$5.0 million), a significant improvement from RMB108.8 million in the previous quarter. However, the number was RMB16.3 million in the same period of last year.

 

Balance Sheet

 

As of September 30, 2024, the Company had cash and cash equivalents of RMB1,530.5 million (US$218.1 million), ensuring strong liquidity.

 

As of September 30, 2024, the Company had long-term investments of RMB885.9 million (US$126.2 million).

 

Conference Call Information

The Company will hold a conference call on December 17th, 2024, at 6:00 a.m. Eastern Time (or 7:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:

Main Line:

International: 1-412-317-6061

United States Toll Free: 1-888-317-6003

Mainland China Toll Free: 4001-206115

Hong Kong Toll Free: 800-963976

Conference ID: 7464171

English Translation:

International: 1-412-317-6061

United States Toll Free: 1-888-317-6003

Mainland China Toll Free: 4001-206115

Hong Kong Toll Free: 800-963976

Conference ID: 0402119

3

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 RMB7.0176 to US$1.00, the exchange rate in effect as of September 30, 2024, 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 China-based IT company with a commitment to AI innovation. It has attracted hundreds of millions of users through an array of internet products and services on PCs and mobile devices. At the same time, it actively engages in the independent research and development of AI technologies, including LLM technologies. Cheetah Mobile provides advertising services to advertisers worldwide, value-added services including the sale of premium membership to its users, multi-cloud management platform to companies globally, as well as service robots to international clients. Cheetah Mobile is also committed to leveraging its cutting-edge AI technologies, including LLM technologies, to empower 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

 

4

This release contains non-GAAP financial measures, including but not limited to:

•
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 expenses;
•
Total non-GAAP operating expenses exclude share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
•
Non-GAAP research and development expenses exclude share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
•
Non-GAAP selling and marketing expenses exclude share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
•
Non-GAAP general and administrative expenses exclude share-based compensation expenses;
•
Non-GAAP operating profit/loss excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
•
Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
•
Non-GAAP diluted earnings/losses per ADS excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;and
•
Non-GAAP adjusted EBITDA represents net income/loss attributable to Cheetah Mobile shareholders excluding share-based compensation, interest income, depreciation and amortization, net income attributable to noncontrolling interests, other income/expenses, net and income tax expenses.

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 and amortization of intangible assets resulting from business acquisitions, 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. Reconciliation of GAAP and non-GAAP Results”.

5

Investor Relations Contact

 

Helen Jing Zhu

Cheetah Mobile Inc.

Tel: +86 10 6292 7779

Email: ir@cmcm.com

6

 

CHEETAH MOBILE INC.

Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))

 

 

As of

 

December 31, 2023

 

September 30, 2024

 

RMB

 

RMB

 

USD

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

2,020,191

 

1,530,493

 

218,094

Short-term investments

1,023

 

345

 

49

Accounts receivable, net

401,064

 

418,555

 

59,644

Prepayments and other current assets, net

973,127

 

1,352,467

 

192,725

Due from related parties, net

71,505

 

107,418

 

15,307

Total current assets

3,466,910

 

3,409,278

 

485,819

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Property and equipment, net

53,884

 

55,522

 

7,912

Operating lease right-of-use assets

30,451

 

28,839

 

4,110

Intangible assets, net

218,559

 

197,152

 

28,094

Goodwill

576,989

 

576,989

 

82,220

Long-term investments

937,460

 

885,852

 

126,233

Deferred tax assets

188,503

 

193,229

 

27,535

Other non-current assets

160,428

 

86,583

 

12,338

Total non-current assets

2,166,274

 

2,024,166

 

288,442

 

 

 

 

 

 

Total assets

5,633,184

 

5,433,444

 

774,261

 

 

 

 

 

 

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Bank loans

5,000

 

-

 

-

Accounts payable

170,185

 

176,321

 

25,126

Accrued expenses and other current liabilities

2,437,210

 

2,405,699

 

342,811

Due to related parties

84,147

 

87,171

 

12,422

Income tax payable

31,603

 

35,220

 

5,019

Total current liabilities

2,728,145

 

2,704,411

 

385,378

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Deferred tax liabilities

54,540

 

50,242

 

7,159

Other non-current liabilities

189,943

 

172,365

 

24,562

Total non-current liabilities

244,483

 

222,607

 

31,721

 

 

 

 

 

 

Total liabilities

2,972,628

 

2,927,018

 

417,099

 

 

 

 

 

 

Mezzanine equity:

 

 

 

 

 

Redeemable noncontrolling interests

105,978

 

187,688

 

26,745

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Ordinary shares

244

 

247

 

35

Additional paid-in capital

2,711,875

 

2,719,399

 

387,511

Accumulated deficit

(613,102)

 

(865,405)

 

(123,319)

Accumulated other comprehensive income

356,854

 

349,765

 

49,841

Total Cheetah Mobile Inc. shareholders’ equity

2,455,871

 

2,204,006

 

314,068

Noncontrolling interests

98,707

 

114,732

 

16,349

 

 

 

 

 

 

Total shareholders’ equity

2,554,578

 

2,318,738

 

330,417

 

 

 

 

 

 

Total liabilities, mezzanine equity and shareholders’ equity

5,633,184

 

5,433,444

 

774,261

 

7

 

CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive 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

 

For The Nine Months Ended

 

 

September 30, 2023

 

September 30, 2024

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2024

 

 

RMB

 

RMB

 

USD

 

RMB

 

RMB

 

USD

Revenues

 

164,804

 

192,083

 

27,372

 

502,189

 

569,788

 

81,194

     Internet business

 

106,778

 

134,287

 

19,136

 

342,423

 

357,036

 

50,877

     AI and others

 

58,026

 

57,796

 

8,236

 

159,766

 

212,752

 

30,317

Cost of revenues (a)

 

(50,348)

 

(61,714)

 

(8,794)

 

(163,697)

 

(197,365)

 

(28,124)

Gross profit

 

114,456

 

130,369

 

18,578

 

338,492

 

372,423

 

53,070

 

 

 

 

 

 

 

 

 

 

 

 

Operating income and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (a)

 

(45,769)

 

(66,269)

 

(9,443)

 

(138,623)

 

(177,885)

 

(25,348)

Selling and marketing (a)

 

(54,938)

 

(89,038)

 

(12,688)

 

(185,765)

 

(237,570)

 

(33,853)

General and administrative (a)

 

(55,588)

 

(47,349)

 

(6,747)

 

(166,047)

 

(188,104)

 

(26,805)

Other operating income, net

 

838

 

278

 

40

 

3,053

 

1,014

 

144

Total operating income and expenses

 

(155,457)

 

(202,378)

 

(28,838)

 

(487,382)

 

(602,545)

 

(85,862)

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(41,001)

 

(72,009)

 

(10,260)

 

(148,890)

 

(230,122)

 

(32,792)

Other income/(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

17,912

 

9,471

 

1,350

 

45,150

 

34,560

 

4,925

Foreign exchange gains/ (losses)

 

5,392

 

21,351

 

3,042

 

(28,829)

 

10,510

 

1,498

Other (expense)/income, net

 

(1,974)

 

1,738

 

248

 

(156,126)

 

(57,469)

 

(8,189)

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxes

 

(19,671)

 

(39,449)

 

(5,620)

 

(288,695)

 

(242,521)

 

(34,558)

Income tax (expenses)/ benefits

 

(218)

 

(2,387)

 

(340)

 

(3,979)

 

3,806

 

542

Net loss

 

(19,889)

 

(41,836)

 

(5,960)

 

(292,674)

 

(238,715)

 

(34,016)

Less: net income attributable to noncontrolling interests

 

4,403

 

5,061

 

721

 

9,011

 

12,058

 

1,718

Net loss attributable to Cheetah Mobile shareholders

 

(24,292)

 

(46,897)

 

(6,681)

 

(301,685)

 

(250,773)

 

(35,734)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(0.0144)

 

(0.0323)

 

(0.0046)

 

(0.2029)

 

(0.1711)

 

(0.0244)

Diluted

 

(0.0144)

 

(0.0323)

 

(0.0046)

 

(0.2031)

 

(0.1711)

 

(0.0244)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per ADS

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(0.7196)

 

(1.6150)

 

(0.2300)

 

(10.1463)

 

(8.5542)

 

(1.2200)

Diluted

 

(0.7206)

 

(1.6150)

 

(0.2300)

 

(10.1549)

 

(8.5569)

 

(1.2200)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1,492,599,000

 

1,509,057,830

 

1,509,057,830

 

1,465,560,326

 

1,499,799,151

 

1,499,799,151

Diluted

 

1,492,599,000

 

1,509,057,830

 

1,509,057,830

 

1,465,560,326

 

1,499,799,151

 

1,499,799,151

Weighted average number of ADSs outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

29,851,980

 

30,181,157

 

30,181,157

 

29,311,207

 

29,995,983

 

29,995,983

Diluted

 

29,851,980

 

30,181,157

 

30,181,157

 

29,311,207

 

29,995,983

 

29,995,983

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss)/income , net of tax of nil

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

(33,261)

 

(32,036)

 

(4,565)

 

74,881

 

(2,622)

 

(374)

Unrealized gains/(loss) on available-for-sale securities, net

 

-

 

2,799

 

399

 

(43,494)

 

(4,635)

 

(660)

Other comprehensive (loss)/ income

 

(33,261)

 

(29,237)

 

(4,166)

 

31,387

 

(7,257)

 

(1,034)

Total comprehensive loss

 

(53,150)

 

(71,073)

 

(10,126)

 

(261,287)

 

(245,972)

 

(35,050)

Less: Total comprehensive income attributable to noncontrolling interests

 

3,835

 

7,346

 

1,047

 

7,712

 

11,890

 

1,694

Total comprehensive loss attributable to Cheetah Mobile shareholders

 

(56,985)

 

(78,419)

 

(11,173)

 

(268,999)

 

(257,862)

 

(36,744)

 

 

 

 

 

For The Three Months Ended

 

For The Nine Months Ended

 

 

September 30, 2023

 

September 30, 2024

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2024

(a) Share-based compensation expenses

 

RMB

 

RMB

 

USD

 

RMB

 

RMB

 

USD

Cost of revenues

 

73

 

92

 

13

 

299

 

541

 

77

Research and development

 

136

 

236

 

34

 

1,006

 

644

 

92

Selling and marketing

 

46

 

(277)

 

(39)

 

437

 

(167)

 

(24)

General and administrative

 

7,738

 

4,863

 

693

 

24,381

 

19,939

 

2,841

Total

 

7,993

 

4,914

 

701

 

26,123

 

20,957

 

2,986

 

8

 

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 September 30, 2024

 

For The Nine Months Ended September 30, 2024

 

GAAP

 

Share-based

 

Amortization of

 

Non-GAAP

 

GAAP

 

Share-based

 

Amortization of

 

Non-GAAP

 

Result

 

Compensation

 

intangible assets*

 

Result

 

Result

 

Compensation

 

intangible assets*

 

Result

 

RMB

 

RMB

 

RMB

 

RMB

 

USD

 

RMB

 

RMB

 

RMB

 

RMB

 

USD

Revenues

192,083

 

-

 

-

 

192,083

 

27,372

 

569,788

 

-

 

-

 

569,788

 

81,194

Cost of revenues

(61,714)

 

92

 

-

 

(61,622)

 

(8,781)

 

(197,365)

 

541

 

-

 

(196,824)

 

(28,047)

Gross profit

130,369

 

92

 

-

 

130,461

 

18,591

 

372,423

 

541

 

-

 

372,964

 

53,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

(66,269)

 

236

 

6,156

 

(59,877)

 

(8,532)

 

(177,885)

 

644

 

18,468

 

(158,773)

 

(22,625)

Selling and marketing

(89,038)

 

(277)

 

469

 

(88,846)

 

(12,660)

 

(237,570)

 

(167)

 

1,407

 

(236,330)

 

(33,676)

General and administrative

(47,349)

 

4,863

 

-

 

(42,486)

 

(6,054)

 

(188,104)

 

19,939

 

-

 

(168,165)

 

(23,964)

Other operating income, net

278

 

-

 

-

 

278

 

40

 

1,014

 

-

 

-

 

1,014

 

144

Total operating income and expenses

(202,378)

 

4,822

 

6,625

 

(190,931)

 

(27,206)

 

(602,545)

 

20,416

 

19,875

 

(562,254)

 

(80,121)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

(72,009)

 

4,914

 

6,625

 

(60,470)

 

(8,615)

 

(230,122)

 

20,957

 

19,875

 

(189,290)

 

(26,974)

Net loss attributable to Cheetah Mobile shareholders

(46,897)

 

4,914

 

6,625

 

(35,358)

 

(5,036)

 

(250,773)

 

20,957

 

19,875

 

(209,941)

 

(29,916)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted losses per ordinary share (RMB)

(0.0323)

 

0.0033

 

0.0044

 

(0.0246)

 

 

 

(0.1711)

 

0.0140

 

0.0132

 

(0.1439)

 

 

Diluted losses per ADS (RMB)

(1.6150)

 

0.1650

 

0.2200

 

(1.2300)

 

 

 

(8.5569)

 

0.7000

 

0.6619

 

(7.1950)

 

 

Diluted losses per ADS (USD)

(0.2300)

 

0.0235

 

0.0312

 

(0.1753)

 

 

 

(1.2200)

 

0.0997

 

0.0950

 

(1.0253)

 

 

 

* This represents amortization of intangible assets resulting from business acquisitions.

 

 

 

For The Three Months Ended September 30, 2023

 

For The Nine Months Ended September 30, 2023

 

GAAP

 

Share-based

 

Non-GAAP

 

GAAP

 

Share-based

 

Non-GAAP

 

Result

 

Compensation

 

Result

 

Result

 

Compensation

 

Result

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

Revenues

164,804

 

-

 

164,804

 

502,189

 

-

 

502,189

Cost of revenues

(50,348)

 

73

 

(50,275)

 

(163,697)

 

299

 

(163,398)

Gross profit

114,456

 

73

 

114,529

 

338,492

 

299

 

338,791

 

 

 

 

 

 

 

 

 

 

 

Research and development

(45,769)

 

136

 

(45,633)

 

(138,623)

 

1,006

 

(137,617)

Selling and marketing

(54,938)

 

46

 

(54,892)

 

(185,765)

 

437

 

(185,328)

General and administrative

(55,588)

 

7,738

 

(47,850)

 

(166,047)

 

24,381

 

(141,666)

Other operating income, net

838

 

-

 

838

 

3,053

 

-

 

3,053

Total operating income and expenses

(155,457)

 

7,920

 

(147,537)

 

(487,382)

 

25,824

 

(461,558)

 

 

 

 

 

 

 

 

 

 

 

Operating loss

(41,001)

 

7,993

 

(33,008)

 

(148,890)

 

26,123

 

(122,767)

Net loss attributable to Cheetah Mobile shareholders

(24,292)

 

7,993

 

(16,299)

 

(301,685)

 

26,123

 

(275,562)

 

 

 

 

 

 

 

 

 

 

 

Diluted losses per ordinary share (RMB)

(0.0144)

 

0.0053

 

(0.0091)

 

(0.2031)

 

0.0178

 

(0.1853)

Diluted losses per ADS (RMB)

(0.7206)

 

0.2656

 

(0.4550)

 

(10.1549)

 

0.8899

 

(9.2650)

 

 

9

 

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 September 30, 2024

 

For The Nine Months Ended September 30, 2024

 

 

Internet Business

 

AI and others

 

Unallocated*

 

Consolidated

 

Internet Business

 

AI and others

 

Unallocated*

 

Consolidated

 

 

RMB

 

RMB

 

RMB

 

RMB

 

USD

 

RMB

 

RMB

 

RMB

 

RMB

 

USD

Revenue

 

134,287

 

57,796

 

-

 

192,083

 

27,372

 

357,036

 

212,752

 

-

 

569,788

 

81,194

Operating profit/(loss)

 

13,805

 

(80,900)

 

(4,914)

 

(72,009)

 

(10,260)

 

36,626

 

(245,791)

 

(20,957)

 

(230,122)

 

(32,792)

Operating margin

 

10.3%

 

(140.0)%

 

-

 

(37.5)%

 

(37.5)%

 

10.3%

 

(115.5)%

 

-

 

(40.4)%

 

(40.4)%

 

 

 

For The Three Months Ended September 30, 2023

 

For The Nine Months Ended September 30, 2023

 

 

Internet Business

 

AI and others

 

Unallocated*

 

Consolidated

 

Internet Business

 

AI and others

 

Unallocated*

 

Consolidated

 

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

Revenue

 

106,778

 

58,026

 

-

 

164,804

 

342,423

 

159,766

 

-

 

502,189

Operating profit/(loss)

 

6,646

 

(39,654)

 

(7,993)

 

(41,001)

 

16,771

 

(139,538)

 

(26,123)

 

(148,890)

Operating margin

 

6.2%

 

(68.3)%

 

-

 

(24.9)%

 

4.9%

 

(87.3)%

 

-

 

(29.6)%

 

*Unallocated expenses refer to SBC expenses that are not allocated to individual segments.

10

 

CHEETAH MOBILE INC.

Reconciliation from Net Loss 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

 

For The Nine Months Ended

 

 

September 30, 2023

 

September 30, 2024

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2024

 

 

RMB

 

RMB

 

USD

 

RMB

 

RMB

 

USD

Net loss attributable to Cheetah Mobile shareholders

 

(24,292)

 

(46,897)

 

(6,681)

 

(301,685)

 

(250,773)

 

(35,734)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expenses/ (benefits)

 

218

 

2,387

 

340

 

3,979

 

(3,806)

 

(542)

Interest income, net

 

(17,912)

 

(9,471)

 

(1,350)

 

(45,150)

 

(34,560)

 

(4,925)

Depreciation and other amortization

 

6,881

 

12,205

 

1,739

 

23,987

 

36,834

 

5,249

Net income attributable to noncontrolling interests

 

4,403

 

5,061

 

721

 

9,011

 

12,058

 

1,718

Other (income)/ expense, net

 

(3,418)

 

(23,089)

 

(3,290)

 

184,955

 

46,959

 

6,691

Share-based compensation

 

7,993

 

4,914

 

701

 

26,123

 

20,957

 

2,986

Adjusted EBITDA

 

(26,127)

 

(54,890)

 

(7,820)

 

(98,780)

 

(172,331)

 

(24,557)

 

 

11

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