Cheetah Mobile Announces First Half 2023 Unaudited Consolidated Financial Results
- None.
- None.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "In the first half of 2023, Cheetah Mobile's total revenue was
Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "In the first half of 2023, we continued prudent cost management practices that resulted in a reduction of our non-GAAP operating loss. Furthermore, as of June 30, 2023, we maintained a robust cash position of
First Half 2023 Consolidated Financial Results
REVENUES
Total revenues were
Revenues from the Company's internet business decreased by
Revenues from the AI and others were
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by
Gross profit decreased by
Gross margin was
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by
- Research and development expenses decreased by
2.3% year over year toRMB92.9 million (US ) in the first half of 2023. Non-GAAP research and development expenses decreased by$12.8 million 2.9% year over year toRMB92.0 million (US ) in the first half of 2023. The year-over-year decrease was primarily due to our continuous effort to improve operating efficiency.$12.7 million - Selling and marketing expenses decreased by
23.2% year over year toRMB130.8 million (US ) in the first half of 2023. Non-GAAP selling and marketing expenses decreased by$18.0 million 23.0% year over yearRMB130.4 million (US ) in the first half of 2023. This year-over-year decrease was the result of strategic reduction in promotional activities.$18.0 million - General and administrative expenses increased by
11.4% year over year toRMB110.5 million (US ) in the first half of 2023. The year-over-year increase was attributable to inclusion of share-based compensation expenses arising from our newly implemented 2023 share incentive plan. Non-GAAP general and administrative expenses decreased by$15.2 million 3.3% year over year toRMB93.8 million (US ) in the first half of 2023. The year-over-year decrease was primarily due to a reduction of certain professional fee.$12.9 million
Operating loss was
- Operating profit for the internet business was
RMB10.1 million in the first half of 2023, compared to an operating loss ofRMB18.1 million in the same period last year. - Operating loss for AI and others was
RMB99.9 million in the first half of 2023, compare with an operating loss ofRMB104.0 million in the same period last year.
Share-based compensation expenses were
OTHER EXPENSE, NET
Other expense, net was
NET INCOME/(LOSS) ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS
Net loss attributable to Cheetah Mobile shareholders was
Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB259.3 million (
NET INCOME/(LOSS) PER ADS
Diluted loss per ADS was
BALANCE SHEET
As of June 30, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of
SHARES ISSUED AND OUTSTANDING
As of June 30, 2023, the Company had a total of 1,497,535,861 Class A and Class B ordinary shares issued and outstanding.
Business Outlook
For the second half of 2023, the Company expects its total revenues to be between
Exchange Rate
This press release contains translations of certain Renminbi amounts into
About Cheetah Mobile Inc.
Cheetah Mobile is a
Safe Harbor Statement
This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the
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
- 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
- Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses
- Non-GAAP diluted earnings/losses per ADS excludes share-based compensation expenses
- 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, 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, 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
Investor Relations Contact
Cheetah Mobile Inc.
Tel: +86 10 6292 7779
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, 2022 | June 30, 2023 | ||||||||||
RMB | RMB | USD | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | 1,515,799 | 1,956,275 | 269,783 | ||||||||
Restricted cash | 696 | 723 | 100 | ||||||||
Short-term investments | 156,182 | 114,150 | 15,742 | ||||||||
Accounts receivable, net | 283,774 | 321,990 | 44,404 | ||||||||
Prepayments and other current assets, net | 968,145 | 1,127,692 | 155,516 | ||||||||
Due from related parties, net | 199,099 | 214,027 | 29,516 | ||||||||
Total current assets | 3,123,695 | 3,734,857 | 515,061 | ||||||||
Non-current assets: | |||||||||||
Property and equipment, net | 58,727 | 45,817 | 6,318 | ||||||||
Operating lease right-of-use assets | 39,579 | 32,283 | 4,452 | ||||||||
Intangible assets, net | 8,430 | 7,396 | 1,020 | ||||||||
Investment in equity investees | 238,591 | 234,643 | 32,359 | ||||||||
Other long term investments | 1,553,740 | 1,351,555 | 186,388 | ||||||||
Due from related parties, net | 3,840 | - | - | ||||||||
Deferred tax assets | 19,337 | 20,235 | 2,791 | ||||||||
Other non-current assets | 93,480 | 67,419 | 9,296 | ||||||||
Total non-current assets | 2,015,724 | 1,759,348 | 242,624 | ||||||||
Total assets | 5,139,419 | 5,494,205 | 757,685 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | 132,994 | 130,184 | 17,953 | ||||||||
Accrued expenses and other current liabilities | 1,586,769 | 2,126,135 | 293,207 | ||||||||
Due to related parties | 23,629 | 31,253 | 4,310 | ||||||||
Income tax payable | 35,135 | 36,266 | 5,001 | ||||||||
Total current liabilities | 1,778,527 | 2,323,838 | 320,471 | ||||||||
Non-current liabilities: | |||||||||||
Deferred tax liabilities | 55,770 | 57,824 | 7,974 | ||||||||
Other non-current liabilities | 200,336 | 200,667 | 27,673 | ||||||||
Total non-current liabilities | 256,106 | 258,491 | 35,647 | ||||||||
Total liabilities | 2,034,633 | 2,582,329 | 356,118 | ||||||||
Shareholders' equity: | |||||||||||
Ordinary shares | 236 | 244 | 34 | ||||||||
Additional paid-in capital | 2,688,571 | 2,704,592 | 372,980 | ||||||||
Accumulated deficit | (9,424) | (287,190) | (39,605) | ||||||||
Accumulated other comprehensive income | 353,948 | 419,327 | 57,828 | ||||||||
Total Cheetah Mobile shareholders' equity | 3,033,331 | 2,836,973 | 391,237 | ||||||||
Noncontrolling interests | 71,455 | 74,903 | 10,330 | ||||||||
Total equity | 3,104,786 | 2,911,876 | 401,567 | ||||||||
Total liabilities and equity | 5,139,419 | 5,494,205 | 757,685 |
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 Six Months Ended | ||||||||||||
June 30, 2022 | June 30, 2023 | |||||||||||
RMB | RMB | USD | ||||||||||
Revenues | 357,023 | 337,385 | 46,528 | |||||||||
Internet business | 275,468 | 235,645 | 32,497 | |||||||||
AI and others | 81,555 | 101,740 | 14,031 | |||||||||
Cost of revenues (a) | (123,221) | (113,349) | (15,632) | |||||||||
Gross profit | 233,802 | 224,036 | 30,896 | |||||||||
Operating income and expenses: | ||||||||||||
Research and development (a) | (95,037) | (92,854) | (12,805) | |||||||||
Selling and marketing (a) | (170,339) | (130,827) | (18,042) | |||||||||
General and administrative (a) | (99,188) | (110,459) | (15,233) | |||||||||
Other operating income | 4,682 | 2,215 | 305 | |||||||||
Total operating income and expenses | (359,882) | (331,925) | (45,775) | |||||||||
Operating loss | (126,080) | (107,889) | (14,879) | |||||||||
Other income/(expenses): | ||||||||||||
Interest income, net | 14,163 | 27,238 | 3,756 | |||||||||
Foreign exchange losses | (55,039) | (34,221) | (4,719) | |||||||||
Other income/(expense), net | 91,158 | (154,152) | (21,259) | |||||||||
Loss before taxes | (75,798) | (269,024) | (37,101) | |||||||||
Income tax expenses | (1,129) | (3,761) | (519) | |||||||||
Net loss | (76,927) | (272,785) | (37,620) | |||||||||
Less: net (loss)/income attributable to noncontrolling interests | (4,355) | 4,608 | 635 | |||||||||
Net loss attributable to Cheetah Mobile shareholders | (72,572) | (277,393) | (38,255) | |||||||||
Net loss per share | ||||||||||||
Basic | (0.0504) | (0.1925) | (0.0265) | |||||||||
Diluted | (0.0517) | (0.1933) | (0.0267) | |||||||||
Net loss per ADS | ||||||||||||
Basic | (2.5207) | (9.6239) | (1.3272) | |||||||||
Diluted | (2.5865) | (9.6665) | (1.3331) | |||||||||
Weighted average number of shares outstanding | ||||||||||||
Basic | 1,439,543,148 | 1,452,066,835 | 1,452,066,835 | |||||||||
Diluted | 1,439,543,148 | 1,452,066,835 | 1,452,066,835 | |||||||||
Weighted average number of ADSs outstanding | ||||||||||||
Basic | 28,790,863 | 29,041,337 | 29,041,337 | |||||||||
Diluted | 28,790,863 | 29,041,337 | 29,041,337 | |||||||||
Other comprehensive income/(loss), net of tax of nil | ||||||||||||
Foreign currency translation adjustments | 151,644 | 108,142 | 14,913 | |||||||||
Unrealized losses on available-for-sale securities, net | - | (43,494) | (5,998) | |||||||||
Total other comprehensive income | 151,644 | 64,648 | 8,915 | |||||||||
Total comprehensive income/(loss) | 74,717 | (208,137) | (28,705) | |||||||||
Less: Total comprehensive (loss)/income attributable to noncontrolling interests | (7,709) | 3,877 | 535 | |||||||||
Total comprehensive income/(loss) attributable to Cheetah Mobile shareholders | 82,426 | (212,014) | (29,240) |
For The Six Months Ended | ||||||||||||
June 30, 2022 | June 30, 2023 | |||||||||||
(a) Share-based compensation expenses | RMB | RMB | USD | |||||||||
Cost of revenues | 403 | 226 | 31 | |||||||||
Research and development | 321 | 870 | 120 | |||||||||
Selling and marketing | 1,039 | 391 | 54 | |||||||||
General and administrative | 2,165 | 16,643 | 2,295 | |||||||||
Total | 3,928 | 18,130 | 2,500 |
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 Six Months Ended June 30, 2023 | |||||||||||||||
GAAP | Share-based | Non-GAAP | |||||||||||||
Result | Compensation | Result | |||||||||||||
RMB | RMB | RMB | USD | ||||||||||||
Revenues | 337,385 | - | 337,385 | 46,528 | |||||||||||
Cost of revenues | (113,349) | 226 | (113,123) | (15,601) | |||||||||||
Gross profit | 224,036 | 226 | 224,262 | 30,927 | |||||||||||
Research and development | (92,854) | 870 | (91,984) | (12,685) | |||||||||||
Selling and marketing | (130,827) | 391 | (130,436) | (17,988) | |||||||||||
General and administrative | (110,459) | 16,643 | (93,816) | (12,938) | |||||||||||
Other operating income | 2,215 | - | 2,215 | 305 | |||||||||||
Total operating income and expenses | (331,925) | 17,904 | (314,021) | (43,306) | |||||||||||
Operating loss | (107,889) | 18,130 | (89,759) | (12,379) | |||||||||||
Net loss attributable to Cheetah Mobile shareholders | (277,393) | 18,130 | (259,263) | (35,755) | |||||||||||
Diluted loss per ordinary share (RMB) | (0.1933) | 0.0125 | (0.1808) | ||||||||||||
Diluted loss per ADS (RMB) | (9.6665) | 0.6243 | (9.0422) | ||||||||||||
Diluted loss per ADS (USD) | (1.3331) | 0.0861 | (1.2470) |
For The Six Months Ended June 30, 2022 | ||||||||||||
GAAP | Share-based | Non-GAAP | ||||||||||
Result | Compensation | Result | ||||||||||
RMB | RMB | RMB | ||||||||||
Revenues | 357,023 | - | 357,023 | |||||||||
Cost of revenues | (123,221) | 403 | (122,818) | |||||||||
Gross profit | 233,802 | 403 | 234,205 | |||||||||
Research and development | (95,037) | 321 | (94,716) | |||||||||
Selling and marketing | (170,339) | 1,039 | (169,300) | |||||||||
General and administrative | (99,188) | 2,165 | (97,023) | |||||||||
Other operating income | 4,682 | - | 4,682 | |||||||||
Total operating income and expenses | (359,882) | 3,525 | (356,357) | |||||||||
Operating loss | (126,080) | 3,928 | (122,152) | |||||||||
Net loss attributable to Cheetah Mobile shareholders | (72,572) | 3,928 | (68,644) | |||||||||
Diluted loss per ordinary share (RMB) | (0.0517) | 0.0027 | (0.0490) | |||||||||
Diluted loss per ADS (RMB) | (2.5865) | 0.1364 | (2.4501) |
CHEETAH MOBILE INC. | ||||||||||||||||||||
Information about Segment | ||||||||||||||||||||
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for percentage) | ||||||||||||||||||||
For The Six Months Ended June 30, 2023 | ||||||||||||||||||||
Internet Business | AI and others | Unallocated* | Consolidated | |||||||||||||||||
RMB | RMB | RMB | RMB | USD | ||||||||||||||||
Revenue | 235,645 | 101,740 | - | 337,385 | 46,528 | |||||||||||||||
Operating profit/(loss) | 10,125 | (99,884) | (18,130) | (107,889) | (14,879) | |||||||||||||||
Operating margin | 4.3 | % | (98.2) | % | - | (32.0) | % | (32.0) | % |
For The Six Months Ended June 30, 2022 | |||||||||||||||||
Internet Business | AI and others | Unallocated* | Consolidated | ||||||||||||||
RMB | RMB | RMB | RMB | ||||||||||||||
Revenue | 275,468 | 81,555 | - | 357,023 | |||||||||||||
Operating loss | (18,107) | (104,045) | (3,928) | (126,080) | |||||||||||||
Operating margin | (6.6) | % | (127.6) | % | - | (35.3) | % |
* Unallocated expenses refer to SBC expenses that are not allocated to individual segments.
CHEETAH MOBILE INC. | ||||||||||||
Reconciliation from Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP) | ||||||||||||
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||||||||
For The Six Months Ended | ||||||||||||
June 30, 2022 | June 30, 2023 | |||||||||||
RMB | RMB | USD | ||||||||||
Net loss attributable to Cheetah Mobile shareholders | (72,572) | (277,393) | (38,255) | |||||||||
Add: | ||||||||||||
Income tax expenses | 1,129 | 3,761 | 519 | |||||||||
Interest income, net | (14,163) | (27,238) | (3,756) | |||||||||
Depreciation and amortization | 27,892 | 17,106 | 2,359 | |||||||||
Net (loss)/income attributable to noncontrolling interests | (4,355) | 4,608 | 635 | |||||||||
Other (income)/expense, net | (36,119) | 188,373 | 25,978 | |||||||||
Share-based compensation | 3,928 | 18,130 | 2,500 | |||||||||
Adjusted EBITDA | (94,260) | (72,653) | (10,020) |
View original content:https://www.prnewswire.com/news-releases/cheetah-mobile-announces-first-half-2023-unaudited-consolidated-financial-results-301904360.html
SOURCE Cheetah Mobile