Cheetah Mobile Announces Third Quarter 2024 Unaudited Consolidated Financial Results

Rhea-AI Summary

Cheetah Mobile (NYSE: CMCM) reported its Q3 2024 financial results, showing a 16.6% year-over-year revenue growth to RMB192.1 million (US$27.4 million). The company's internet business revenue increased by 25.8% to RMB134.3 million, while AI and others remained stable at RMB57.8 million. Despite improvements in gross profit, which grew 13.9% year-over-year to RMB130.4 million, operating losses widened compared to the same period last year. The company maintains strong liquidity with cash and cash equivalents of RMB1,530.5 million and long-term investments of RMB885.9 million as of September 30, 2024.

Positive

• Revenue growth accelerated 16.6% YoY to RMB192.1 million
• Internet business revenue increased 25.8% YoY to RMB134.3 million
• Gross profit rose 13.9% YoY to RMB130.4 million
• Internet business operating margin improved to 10.3% from 6.2% YoY
• Strong liquidity position with RMB1,530.5 million in cash and equivalents

Negative

• Operating loss widened to RMB72.0 million from RMB41.0 million YoY
• Net loss increased to RMB46.9 million from RMB24.3 million YoY
• Total operating expenses increased 30.2% YoY to RMB202.4 million
• 68% YoY decline in overseas advertising agency business revenue
• R&D expenses increased 44.8% YoY to RMB66.3 million

Insights

Financial Analyst

The Q3 2024 results show mixed performance for Cheetah Mobile. While total revenues grew 16.6% YoY to RMB192.1 million, operating losses widened compared to the same period last year. The company's internet business showed improvement with a 25.8% revenue increase and improved operating margin of 10.3%. However, increased operating expenses, up 30.2% YoY, led to a wider net loss of RMB46.9 million. The strong cash position of RMB1.53 billion provides stability, but rising costs from the OrionStar acquisition and increased R&D spending need careful monitoring. The transition toward service robotics shows promise but is yet to demonstrate profitability.

Tech Industry Analyst

Cheetah Mobile's strategic pivot toward service robotics is gaining traction, particularly in hospitality, manufacturing and logistics sectors. The acquisition of Beijing OrionStar has strengthened their AI capabilities, though it's currently impacting costs. The company's focus on integrating large language models (LLM) into their robotics solutions shows forward-thinking but requires significant R&D investment, as evidenced by the 44.8% increase in R&D expenses. While the legacy internet business remains resilient, the transformation into an AI-driven robotics company represents both opportunity and execution risk in the competitive robotics market.

BEIJING, Dec. 17, 2024 /PRNewswire/ -- 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 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.
• 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

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

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".

 

 

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

 

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

 

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)

 

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

 

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.

 

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)

 

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SOURCE Cheetah Mobile

FAQ

What was Cheetah Mobile's (CMCM) revenue growth in Q3 2024?

Cheetah Mobile's total revenues grew by 16.6% year-over-year to RMB192.1 million (US$27.4 million) in Q3 2024.

How much did CMCM's internet business revenue grow in Q3 2024?

CMCM's internet business revenue increased by 25.8% year-over-year to RMB134.3 million (US$19.1 million) in Q3 2024.

What was CMCM's operating loss in Q3 2024?

CMCM reported an operating loss of RMB72.0 million (US$10.3 million) in Q3 2024, compared to RMB41.0 million in the same period last year.

How much cash does CMCM have as of September 30, 2024?

As of September 30, 2024, CMCM had cash and cash equivalents of RMB1,530.5 million (US$218.1 million).

What was CMCM's internet business operating margin in Q3 2024?

CMCM's internet business operating margin improved to 10.3% in Q3 2024, up from 6.2% in the same period last year.