omniture

Cheetah Mobile Announces Fourth Quarter and Full Year 2018 Unaudited Consolidated Financial Results

2019-03-25 19:55 6921

BEIJING, March 25, 2019 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company with global market coverage, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Financial Highlights

  • Total revenues[1] increased by 1.8% year over year and 2.2% quarter over quarter to RMB1,381.2 million (US$200.9 million).
  • Revenues[1] from the mobile entertainment business increased by 39.4% year over year and 11.6% quarter over quarter to RMB555.6 million (US$80.8 million), accounting for 40.2% of total revenues in the fourth quarter of 2018.
  • Gross profit was RMB964.8 million (US$140.3 million). Gross margin was 69.9%. Non-GAAP[2] gross profit was RMB964.9 million (US$140.3 million). Non-GAAP gross margin was 69.9%.
  • Net income attributable to Cheetah Mobile shareholders was RMB770.2 million (US$112.0 million). Non-GAAP[2] net income attributable to Cheetah Mobile shareholders was RMB805.5 million (US$117.2 million).
  • Diluted net income per ADS was RMB5.35 (US$0.78). Non-GAAP[2] diluted net income per ADS was RMB5.60 (US$0.81).

Fiscal Year 2018 Financial Highlights

  • Total revenues[1] increased by 2.2% to RMB4,981.7 million (US$724.6 million).
  • Revenues[1] from the mobile entertainment business increased by 19.0% to RMB1,778.9 million (US$258.7 million).
  • Gross profit was RMB3,441.1 million (US$500.5 million). Gross margin was 69.1%. Non-GAAP[2] gross profit was RMB3,441.3 million (US$500.5 million). Non-GAAP gross margin was 69.1%.
  • Net income attributable to Cheetah Mobile shareholders was RMB1,203.8 million (US$175.1 million). Non-GAAP[2] net income attributable to Cheetah Mobile shareholders was RMB1,288.9 million (US$187.5 million).
  • Diluted net income per ADS was RMB8.10 (US$1.18). Non-GAAP[2] diluted net income per ADS was RMB8.69 (US$1.26).
  • Net cash from operating activities in 2018 was RMB342.1 million (US$49.8 million). Free cash flow was RMB276.7 million (US$40.2 million) in 2018.

 

[1] Starting from January 1, 2018, Cheetah Mobile adopted a new revenue accounting standard (ASC 606), which reclassifies value added tax from the cost of revenues to net against revenues. To increase comparability of operating results and help investors better understand the Company's business performance and operating trends, 2017 net revenues have been used to calculate all percentage changes in revenues. 2017 net revenues are defined as gross revenues under legacy GAAP after the deduction of value added taxes, which is presented on the same basis as 2018 and going forward.

[2] Non-GAAP measures exclude share-based compensation expenses. See details in the section titled "USE OF NON-GAAP FINANCIAL MEASURES".

Fourth Quarter 2018 Operating Metrics

  • The average number of global mobile monthly active users ("Mobile MAUs") was 470 million in the fourth quarter of 2018. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 72% of the total number of Mobile MAUs in the fourth quarter of 2018. 

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "We achieved full year 2018 financial results that were in line with our previous expectations, mostly driven by growths in our mobile games operation, mobile utility products business in the domestic market, and artificial intelligence ("AI") powered business. In 2018, we further expanded our product offerings by launching many new games including Bricks n Balls, a popular casual elimination game, and introducing a number of new utility products focused on delivering personalized experiences. We also made substantial progress in attracting our users to purchase virtual items and premium services within our mobile applications, which diversified our revenue streams. More importantly, we have been leveraging AI technologies and expanding into AI-powered businesses. We have successfully launched AI hardware such as Cheetah Translator and deployed Cheetah GreetBot in many customer locations. Looking ahead, we are confident that our long-term growth prospects remain healthy and that our business will maximize the benefits of our users and advertisers continuously."

Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "In 2018, we grew our profits and expanded our margins. Our gross profit increased to RMB3.4 billion, and gross margin expanded to 69.1%. Our operating profit increased to RMB467 million and operating margin expanded to 9.4%. In addition, we continued investing in our mobile games business and our mobile utility products business in the domestic market. More importantly, we generated RMB342 million of net cash from operating activities in 2018. In the fourth quarter of 2018, we sold a certain portion of our equity ownership in Bytedance Ltd., which generated a total investment gain of US$87 million and further augmented our balance sheet. As of December 31, 2018, we had cash and cash equivalents, restricted cash, and short-term investments of approximately US$541 million. Our strong cash generation capabilities and our high cash balance should allow us to continue to invest in our long-term growth and our business expansion into the AI space."

Fourth Quarter 2018 Consolidated Financial Results

REVENUES

Total revenues in the fourth quarter increased by 1.8% year over year and 2.2% quarter over quarter to RMB1,381.2 million (US$200.9 million). 

Revenues from utility products and related services decreased by 16.5% year over year and 6.3% quarter over quarter to RMB783.0 million (US$113.9 million) in the fourth quarter of 2018. The year over year decrease was mainly due to the discontinuation of certain ad formats, i.e., ads on mobile phone lock screens, by the Company's overseas third-party advertising partners. The quarter over quarter decrease was mainly due to disruptions to the Company's business as a result of the negative publicity caused by a news article released in November 2018, about which the Company has made a number of public clarification statements.

Revenues from the mobile entertainment business increased by 39.4% year over year and 11.6% quarter over quarter to RMB555.6 million (US$80.8 million) primarily driven by the growth of the Company's mobile games business in the fourth quarter of 2018. Revenues from the mobile entertainment business contributed to 40.2% of total revenues in the quarter.

  • Revenues from the mobile games business increased by 91.4% year over year and 14.3% quarter over quarter to RMB326.2 million (US$47.4 million). The increases were mainly due to contributions from Bricks n Balls, a casual elimination game that started ramping up in the middle of July 2018.
  • Revenues from the content-driven products, namely LiveMe, increased by 0.6% year over year and 7.9% quarter over quarter to RMB229.4 million (US$33.4 million), primarily driven by growths in both of its paying user count and average revenue per user as LiveMe continued to introduce new features to increase its user stickiness.

Revenues from others increased to RMB42.6 million (US$6.2 million) from RMB20.0 million in the same period last year and RMB18.5 million in the third quarter of 2018, mainly driven by the sales of Cheetah Translator, an AI-based interpretation device. Revenues from others accounted for 3.1% of total revenues in the fourth quarter of 2018.

By region, revenues generated from the China market increased by 3.7% year over year, but decreased by 0.6% quarter over quarter to RMB533.2 million (US$77.6 million), and constituted 38.6% of the Company's total revenues in the fourth quarter of 2018, compared to 37.9% in the same period last year and 39.7% in the third quarter of 2018. The year over year revenue growth in the China market was primarily attributable to the sales of Cheetah Translator.

Revenues generated from the overseas market increased by 0.7% year over year and 4.0% quarter over quarter to RMB848.0 million (US$123.3 million), constituting 61.4% of the Company's total revenues in the fourth quarter of 2018, up from 62.1% in the same period last year and 60.3% in the third quarter of 2018. The revenue growth in the overseas market was primarily driven by the rapid growth of the Company's mobile games business, whose market is mostly overseas.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 3.2% year over year and increased by 9.1% quarter over quarter to RMB416.4 million (US$60.6 million) in the fourth quarter of 2018. The year-over-year decrease was primarily due to (i) reduced traffic acquisition costs associated with third-party advertising, and (ii) reduced bandwidth and IDC costs and personnel costs involved in the Company's operation for the News Republic business. The quarter-over-quarter increase was primarily driven by (i) higher revenue sharing with live broadcasters of the Company's LiveMe business, (ii) higher costs as a result of revenue growth in the Company's hardware business, and (iii) higher costs of payment channels, such as Google Play and Apple's App Store, for the Company's mobile games business, as in-game purchase revenues from the Company's mobile games business grew. Non-GAAP cost of revenues decreased by 3.5% year over year and increased by 9.1% quarter over quarter to RMB416.2 million (US$60.5 million) in the fourth quarter of 2018.  

Gross profit increased by 4.1% year over year and remained relatively flat quarter over quarter at RMB964.8 million (US$140.3 million). Non-GAAP gross profit increased by 4.3% year over year and remained relatively flat quarter over quarter at RMB964.9 million (US$140.3 million) in the fourth quarter of 2018. Gross margin was 69.9% in the fourth quarter of 2018, as compared to 68.3% in the same period last year and 71.8% in the third quarter of 2018. Non-GAAP gross margin was 69.9% in the fourth quarter of 2018, as compared to 68.2% in the same period last year and 71.8% in the third quarter of 2018.

OPERATING INCOME AND EXPENSES

Total operating expenses increased by 26.3% year over year and 5.6% quarter over quarter to RMB889.7 million (US$129.4 million) in the fourth quarter of 2018. Total non-GAAP operating expenses increased by 22.1% year over year and 4.7% quarter over quarter to RMB854.6 million (US$124.3 million) in the fourth quarter of 2018.

  • Research and development (R&D) expenses increased by 25.9% year over year and 9.0% quarter over quarter to RMB191.1 million (US$27.8 million) in the fourth quarter of 2018. The increases were primarily due to increased share-based compensation expenses and increased R&D headcount for the mobile games business. Non-GAAP R&D expenses, which exclude share-based compensation expenses, increased by 19.4% year over year and 5.5% quarter over quarter to RMB176.0 million (US$25.6 million) in the fourth quarter of 2018.
  • Selling and marketing expenses increased by 38.1% year over year but remained relatively flat quarter over quarter at RMB580.3 million (US$84.4 million) in the fourth quarter of 2018. The increases were mainly due to increased marketing promotions for the Company's utility products and related services business in the domestic market and its mobile games business in all markets. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 36.5% year over year and 2.2% quarter over quarter to RMB577.7 million (US$84.0 million) in the fourth quarter of 2018.
  • General and administrative expenses increased by 14.6% year over year and 21.8% quarter over quarter to RMB131.8 million (US$19.2 million) in the fourth quarter of 2018. The year-over-year increase was primarily due to the increased share-based compensation expenses. The quarter-over-quarter increase was primarily due to higher employee benefits. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 2.2% year over year and 22.0% quarter over quarter to RMB114.6 million (US$16.7 million) in the fourth quarter of 2018.

Operating profit decreased by 66.2% year over year and 41.3% quarter over quarter to RMB75.1 million (US$10.9 million). The year-over-year decrease in the Company's operating profit was primarily due to the Company's investments in both its mobile utility products business in the domestic market and its mobile games business in all markets. Non-GAAP operating profit decreased by 51.1% year over year and 28.4% quarter over quarter to RMB110.3 million (US$16.0 million). 

The Company has reported its operating profit along the following segments since the second quarter of 2017:

  • Operating profit for utility products and related services decreased by 31.5% year over year and 15.2% quarter over quarter to RMB224.0 million (US$32.6 million) in the fourth quarter of 2018. The decreases were primarily due to a decrease in revenues from this segment and the Company's increased marketing promotions for its utility products and related services business in the domestic market.
  • Operating loss for the mobile entertainment business was RMB64.8 million (US$9.4 million) in the fourth quarter of 2018, compared to an operating loss of RMB61.8 million in the same period last year and RMB74.1 million in the third quarter of 2018. The wider year-over-year loss was mainly due to higher sales and marketing expenses for the Company's mobile games operation. The reduced quarter-over-quarter loss was mainly a result of reduced expenses from the LiveMe business.

Share-based compensation expenses increased to RMB35.3 million (US$5.1 million) in the fourth quarter of 2018 from RMB3.4 million in the same period last year and RMB26.3 million in the third quarter of 2018, as the Company granted a certain quantity of restricted shares to key employees.

IMPAIRMENT OF INVESTMENTS

Impairment of investments were RMB98.9 million (US$14.4 million) in the fourth quarter of 2018 primarily due to a one-time non-cash write-down of some investment assets, which the Company considered as other-than-temporary, to its fair value. This write-down was the result of lower-than-expected performance and financial position of the investment assets.

OTHER INCOME, NET

Other income, net, was RMB789.3 million (US$114.8 million) in the fourth quarter of 2018, mainly resulting from the disposals of a certain portion of the Company's equity ownership in Bytedance Ltd., whose transaction agreement was entered in the fourth quarter of 2018 and resulted in a disposal gain of investment of US$43.3 million. This transaction also resulted in a fair value gain of US$43.3 million in the fourth quarter of 2018 for the remaining portion of the equity ownership which the Company still holds, in accordance with ASC 321, adopted on January 1, 2018.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders decreased by 26.4% year over year, and increased by 361.1% quarter over quarter to RMB770.2 million (US$112.0 million) in the fourth quarter of 2018. Non-GAAP net income attributable to Cheetah Mobile shareholders decreased by 23.3% year over year and increased by 316.6% quarter over quarter to RMB805.5 million (US$117.2 million) in the fourth quarter of 2018.

NET INCOME PER ADS

Diluted income per ADS decreased by 26.4% year over year and increased by 390.8% quarter over quarter to RMB5.35 (US$0.78) in the fourth quarter of 2018. Non-GAAP diluted income per ADS decreased by 23.2% year over year and increased by 340.9% quarter over quarter to RMB5.60 (US$0.81) in the fourth quarter of 2018.

BALANCE SHEET

As of December 31, 2018, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,720.6 million (US$541.1 million). 

SHARES ISSUED AND OUTSTANDING

As of December 31, 2018, the Company had a total of 1,433,343,199 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

Fiscal Year 2018 Results

REVENUES

Total revenues increased by 2.2% to RMB4,981.7 million (US$724.6 million) in 2018. 

Revenues from utility products and related services decreased by 6.7% year over year to RMB3,119.5 million (US$453.7 million) in 2018. The decrease was due to (i) a decline in revenues from the Company's mobile utility products and related services business in the overseas markets mostly as a result of the discontinuation of certain ad formats, i.e., ads on mobile phone lock screens, by the Company's overseas third-party advertising partners, and (ii) a decline in the Company's PC-related revenues. This decrease was largely offset by an increase in revenues from the mobile utility products and related services business in China. Revenues from utility products and related services in the domestic market increased by 22.3% year over year to RMB1,794.4 million (US$261.0 million) in 2018, accounting for 36.0% of total revenues.

Revenues from the mobile entertainment business increased by 19.0% year over year to RMB1,778.9 million (US$258.7 million), mostly driven by the growth of the Company's mobile games operations. Revenues from the mobile entertainment business contributed 35.7% of total revenues in 2018.

  • Revenues from the mobile game business increased by 48.5% year over year to RMB925.0 million (US$134.5 million). The increases were mainly due to the contribution from Bricks n Balls, a casual elimination game that started ramping up in the middle of July 2018.
  • Revenues from the content-driven products remained relatively flat year over year at RMB853.9 million (US$124.2 million).

By region, revenues generated from the China market increased by 27.5% year over year to RMB 1,971.1 million (US$286.7 million), and constituted 39.6% of the Company's total revenues in 2018, up from 31.7% in 2017. The revenue growth in the China market was primarily attributable to a ramp-up of the mobile utility products and related services in China.

Revenues generated from the overseas market decreased by 9.5% year over year to RMB3,010.6 million (US$437.9 million), constituting 60.4% of the Company's total revenues in 2018, down from 68.3% in 2017. The revenue decrease in the overseas market was primarily driven by a decline in revenues from the mobile utility products and related services business in the overseas markets.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 8.3% year over year to RMB1,540.6 million (US$224.1 million) in 2018, primarily due to (i) reduced traffic acquisition costs associated with the Company's third-party advertising business, (ii) reduced bandwidth and IDC costs associated with the Company's mobile utility applications in the overseas markets, (iii) reduced personnel costs involved in the Company's PC business, and (iv) lower amortization of intangible assets in 2018 as the Company had disposed News Republic and completed the amortization of MobPartner, which was acquired in April 2015. Non-GAAP cost of revenues decreased by 8.3% year over year to RMB1,540.4 million (US$224.0 million) in 2018.

Gross profit increased by 7.7% year over year to RMB3,441.1 million (US$500.5 million) in 2018. Gross Margin expanded to 69.1% in 2018 from 65.5% in 2017. Non-GAAP gross profit increased by 7.7% year over year to RMB3,441.3 million (US$500.5 million) in 2018. Non-GAAP gross margin expanded to 69.1% in 2018 from 65.6% in 2017.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses increased by 8.2% year over year to RMB2,973.9 million (US$432.5 million) in 2018. Total non-GAAP operating expenses increased by 8.0% year over year to RMB2,888.9 million (US$420.2 million).

  • Research and development expenses decreased by 2.3% year over year to RMB668.9 million (US$97.3 million) in 2018, mainly due to lower share-based compensation expenses. Non-GAAP research and development expenses, which exclude share-based compensation expenses, decreased by 1.4% year over year to RMB654.7 million (US$95.2 million).
  • Selling and marketing expenses increased by 15.3% year over year at RMB1,910.0 million (US$277.8 million) in 2018, which was primarily due to increased promotional activities for the Company's utility products and related services business in the domestic market and its mobile games business in all markets. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 14.8% year over year to RMB1,901.1 million (US$276.5 million).
  • General and administrative expenses increased by 5.7% year over year to RMB430.8 million (US$62.7 million) in 2018, which was mainly due to higher share-based compensation expenses and an increase in allowances for doubtful accounts. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 3.8% year over year to RMB369.1 million (US$53.7 million).

Operating profit increased by 4.6% to RMB467.2 million (US$68.0 million) in 2018. Operating margin was 9.4% in 2018, as compared to 9.2% in 2017. Non-GAAP operating profit increased by 6.2% year over year to RMB552.3 million (US$80.3 million) in 2018. Non-GAAP operating margin was 11.1% in 2018, as compared to 10.7% in 2017.

The Company has reported its operating profit along the following segments since the second quarter of 2017:

  • Operating profit for utility products and related services increased by 5.7% year over year to RMB1,035.0 million (US$150.5 million) in 2018. The increase was a result of the Company's strategy to optimize the cost and expense structure of the mobile utility products and related services business in the overseas markets, as well as revenue increase from the Company's mobile utility products and related services business in the domestic market.
  • Operating loss for the mobile entertainment business decreased to RMB312.5 (US$45.5 million) in 2018 from RMB417.4 million in 2017. The reduced loss was mainly a result of the year-over-year increases in revenues generated from the Company's mobile games business and reduced costs and expenses from News Republic business, which were partially offset by the Company's increased investments in the LiveMe operations.

Share-based compensation expenses increased by 16.1% year over year to RMB85.1 million (US$12.4 million) in 2018, as the Company granted a certain quantity of restricted shares to key employees.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB1,203.8 million (US$175.1 million) in 2018 as compared to RMB1,348.2 million in 2017. Net margin was 24.2% in 2018, as compared to 27.7% in 2017. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB1,288.9 million (US$187.5 million) in 2018, as compared to RMB1,421.5 million in 2017. Non-GAAP net margin was 25.9% in 2018, as compared to 29.2% in 2017.

NET INCOME PER ADS

Diluted income per ADS was RMB8.10 (US$1.18) in 2018, as compared to RMB9.37 in 2017. Non-GAAP diluted income per ADS was RMB8.69 (US$1.26) in 2018, as compared to RMB9.88 in 2017.

CASH FLOW

Net cash from operating activities in 2018 was RMB342.1 million (US$49.8 million). Free cash flow was RMB276.7 million (US$40.2 million) in 2018.

BUSINESS OUTLOOK

For the first quarter of 2019, the Company expects its total revenues to be between RMB1,060 million (US$154.2 million) and RMB1,090 million (US$158.5 million). This estimate represents management's preliminary view as of the date of this release, which is subject to change.

SHARE REPURCHASE PROGRAM

On September 13, 2018, the Company announced that its board of directors had approved a share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months. Cheetah funded repurchases made under this program from its available cash balance. As of March 22, 2019, the Company had repurchased approximately 4.5 million ADSs for approximately US$32 million under this program.

CONFERENCE CALL INFORMATION

The Company will hold a conference call on Monday, March 25, 2019 at 8:00 am Eastern Time or 8:00 pm 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

China Toll Free:

4001-201-203

Hong Kong Toll Free: 

800-905-945

Conference ID: 

Cheetah Mobile

A live and archived webcast of the conference call will be available at the Company's investor relations website at http://ir.cmcm.com/.

A presentation for the Company's earnings call is also available at the aforementioned website.

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 RMB6.8755 to US$1.00, the exchange rate in effect as of December 31, 2018, as set forth in the H.10 statistical release of the Federal Reserve Board.  Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America ("U.S. GAAP").

ABOUT CHEETAH MOBILE INC.

Cheetah Mobile is a leading mobile Internet company with global market coverage. It has attracted hundreds of millions of monthly active users through its mobile utility products such as Clean Master and Cheetah Keyboard, casual games such as Piano Tiles 2, Bricks n Balls, and live streaming product LiveME. 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. 

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

To supplement Cheetah Mobile's consolidated financial information presented in accordance with U.S. GAAP, Cheetah Mobile uses the following non-GAAP financial measures:

  • Non-GAAP cost of revenues reflects cost of revenues excluding the portion of share-based compensation expenses allocated to cost of revenues.
  • Non-GAAP gross profit reflects gross profit excluding the portion of share-based compensation expenses allocated to gross profit.
  • Non-GAAP operating income and expenses reflect operating income and expenses excluding the portion of share-based compensation expenses allocated to operating expenses.
  • Non-GAAP operating profit reflects operating profit excluding share-based compensation expenses.
  • Non-GAAP net income attributable to Cheetah Mobile shareholders is net income attributable to Cheetah Mobile shareholders excluding share-based compensation expenses.
  • Non-GAAP diluted earnings per ADS is non-GAAP net income attributable to Cheetah Mobile shareholders excluding net income attributable to redeemable non-controlling interests, divided by weighted average number of diluted ADSs.
  • Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses.
  • Free cash flow is net cash generated by operating activities less capital expenditure.

The Company believes that separate analysis and exclusion of share-based compensation expenses and the use of Adjusted EBITDA add clarity to the constituent parts of its performance from the cash perspective. 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" and "Cheetah Mobile Inc. Reconciliation of Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)" at the end of this release.

INVESTOR RELATIONS CONTACT
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: helenjingzhu@cmcm.com

ICR Inc.
Jack Wang
Tel: +1 (646) 417-5395
Email: IR@cmcm.com

 

 

 

CHEETAH MOBILE INC.

Condensed Consolidated Balance Sheets

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








As of


 December 31, 2017


 December 31, 2018


 December 31, 2018


RMB


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

2,317,488


2,783,843


404,893

Restricted cash

90,149


6,133


892

Short-term investments

1,395,694


930,610


135,352

Accounts receivable

621,272


655,261


95,304

Prepayments and other current assets

918,243


1,064,714


154,853

Due from related parties

54,052


126,990


18,470

Total current assets

5,396,898


5,567,551


809,764







Non-current assets:






Property and equipment, net

89,137


63,919


9,297

Intangible assets, net 

70,225


48,421


7,043

Goodwill

634,157


617,837


89,861

Investment in equity investees

149,969


151,533


22,040

Other long term investments

1,002,721


1,697,510


246,893

Due from related parties

5,216


21,139


3,075

Deferred tax assets

57,642


93,733


13,633

Other non-current assets

42,966


35,830


5,211

Total non-current assets

2,052,033


2,729,922


397,053







Total assets

7,448,931


8,297,473


1,206,817







LIABILITIES, MEZZANINE EQUITY AND
SHAREHOLDERS' EQUITY












Current liabilities: 






Bank loans

336,304


-


-

Accounts payable

164,537


171,055


24,879

Accrued expenses and other current liabilities

1,532,489


1,514,642


220,296

Due to related parties

81,810


37,298


5,425

Income tax payable

50,614


117,957


17,156

Total current liabilities

2,165,754


1,840,952


267,756







Non-current liabilities: 






Deferred tax liabilities

73,393


73,718


10,722

Other non-current liabilities

54,574


63,632


9,255

Total non-current liabilities

127,967


137,350


19,977







Total liabilities

2,293,721


1,978,302


287,733







Mezzanine equity:






Redeemable noncontrolling interests

649,246


687,847


100,043







Shareholders' equity:






Ordinary shares

229


230


33

Treasury stock

-


(198,360)


(28,850)

Additional paid-in capital

2,644,043


2,742,893


398,937

Retained earnings

1,564,883


2,742,839


398,929

Accumulated other comprehensive income

84,206


225,639


32,818

Total Cheetah Mobile shareholders' equity

4,293,361


5,513,241


801,867

Noncontrolling interests

212,603


118,083


17,174







Total equity

4,505,964


5,631,324


819,041







Total liabilities, mezzanine equity and equity

7,448,931


8,297,473


1,206,817

 

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


December 31, 2017


 September 30, 2018


December 31, 2018


December 31, 2018


RMB


RMB


RMB


USD

Revenues (a)

1,387,806


1,351,979


1,381,173


200,883

Utility products and related services 

967,232


835,606


783,021


113,886

Mobile entertainment

399,493


497,911


555,597


80,808

Others

21,081


18,462


42,555


6,189









Cost of revenues (b)

(461,383)


(381,692)


(416,399)


(60,563)

Gross profit

926,423


970,287


964,774


140,320









Operating income and expenses: 








Research and development (b)

(151,867)


(175,303)


(191,135)


(27,799)

Selling and marketing (b) 

(420,080)


(568,445)


(580,330)


(84,405)

General and administrative (b) 

(115,089)


(108,270)


(131,849)


(19,177)

Impairment of goodwill and intangible assets

(38,690)


-


(7,180)


(1,044)

Other operating income

21,307


9,595


20,771


3,021

Total operating income and  expenses

(704,419)


(842,423)


(889,723)


(129,404)









Operating profit

222,004


127,864


75,051


10,916

Other income (expense):








Interest income, net

10,227


24,120


27,519


4,002

Foreign exchange (loss) gain, net

(5,943)


10,532


6,096


887

Impairment of investment impairment

(209,565)


-


(98,885)


(14,382)

Gain from equity method investments, net

1,921


2,479


2,694


392

Other income, net

1,088,965


1,242


789,325


114,803









Income before taxes

1,107,609


166,237


801,800


116,618

Income tax expenses

(40,259)


(26,957)


(20,138)


(2,929)

Net income

1,067,350


139,280


781,662


113,689

Less: net income (loss) attributable to noncontrolling interests 

20,264


(27,757)


11,457


1,666

Net income attributable to Cheetah Mobile shareholders

1,047,086


167,037


770,205


112,023









Earnings per share








Basic 

0.74


0.11


0.55


0.08

Diluted 

0.73


0.11


0.54


0.08









Earnings per ADS








Basic 

7.43


1.12


5.46


0.79

Diluted 

7.27


1.09


5.35


0.78









Weighted average number of shares outstanding








Basic 

1,400,420,814


1,408,570,797


1,393,015,891


1,393,015,891

Diluted 

1,432,849,633


1,440,581,762


1,420,765,216


1,420,765,216

Weighted average number of ADSs outstanding








Basic 

140,042,081


140,857,080


139,301,589


139,301,589

Diluted 

143,284,963


144,058,176


142,076,522


142,076,522









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








Foreign currency translation adjustments

(52,267)


149,722


(47,900)


(6,967)

Unrealized losses on available-for-sale securities, net

(433)


-


-


-

Other comprehensive (loss) income

(52,700)


149,722


(47,900)


(6,967)

Total comprehensive income

1,014,650


289,002


733,762


106,722

Less: Total comprehensive income (loss)
    attributable to noncontrolling interests

18,568


(17,293)


12,573


1,829

Total comprehensive income attributable to
    Cheetah Mobile shareholders

996,082


306,295


721,189


104,893

 

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)


   (a) On January 1, 2018, The Group adopted ASC 606, applying the modified retrospective method to contracts that were not completed as of January 1, 2018.  

   Adoption did not have a material impact as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606,   

   while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under ASC 605.  

   As ASC 605 has been superseded by ASC 606 on this subject, value added tax was reclassified from the cost of revenues to net against revenues.    

   Advertising-for-advertising barter transactions should be recorded at the fair value of the advertising received by reference to the fair value of advertising services   

   provided to other customers. Revenues are recognized in the same amount with costs and  expenses. Previously, such transactions were recorded at cost which  

   was nil as no consideration was exchanged. The following table illustrates the effect of the adoption of ASC 606 by presenting a comparison of revenues for  

   the three months ended December 31, 2018, as actually reported and as they would have been reported under ASC 605, without the adoption of ASC 606:  










For The Three Months Ended






December 31, 2018


December 31, 2018






RMB


USD





As reported

1,381,173


200,883





Add: value added taxes

34,412


5,005





Less: barter transactions

4,432


645





Without adoption of ASC 606

1,411,153


205,243














For The Three Months Ended


December 31, 2017


 September 30, 2018


December 31, 2018


December 31, 2018

(b) Share-based compensation expenses

RMB


RMB


RMB


USD

Cost of revenues

(981)


46


160


23

Research and development

4,471


8,563


15,169


2,206

Selling and marketing

(3,049)


3,317


2,665


388

General and administrative

2,933


14,380


17,266


2,511

Total

3,374


26,306


35,260


5,128

 

CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

(Unaudited, in'000, except for per share data and percentage)
















For The Three Months Ended December 31, 2018




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net


Non-GAAP


Result


Revenues


Compensation


Revenues


Result


Revenues


Result ($)

Revenues

1,381,173








1,381,173




200,883

Cost of revenues

(416,399)


30.1%


160


0.0%


(416,239)


30.1%


(60,540)

Gross profit

964,774


69.9%


160


0.0%


964,934


69.9%


140,343















Research and development 

(191,135)


13.8%


15,169


1.1%


(175,966)


12.7%


(25,593)

Selling and marketing 

(580,330)


42.0%


2,665


0.2%


(577,665)


41.8%


(84,017)

General and administrative 

(131,849)


9.5%


17,266


1.3%


(114,583)


8.3%


(16,666)

Impairment of goodwill and intangible assets

(7,180)


0.5%


-


0.0%


(7,180)


0.5%


(1,044)

Other operating income

20,771


1.5%


-


0.0%


20,771


1.5%


3,021

Total operating income and expenses

(889,723)


64.4%


35,100


2.5%


(854,623)


61.9%


(124,299)















Operating profit 

75,051


5.4%


35,260


2.6%


110,311


8.0%


16,044

Net income attributable to Cheetah Mobile shareholders

770,205


55.8%


35,260


2.6%


805,465


58.3%


117,150















Diluted earnings per ordinary share (RMB)

0.54




0.02




0.56





Diluted earnings per ADS (RMB)

5.35




0.25




5.60





Diluted earnings per ADS (USD)

0.78




0.03




0.81
















































For The Three Months Ended September 30, 2018




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,351,979








1,351,979





Cost of revenues

(381,692)


28.2%


46


0.0%


(381,646)


28.2%



Gross profit

970,287


71.8%


46


0.0%


970,333


71.8%

















Research and development 

(175,303)


13.0%


8,563


0.6%


(166,740)


12.3%



Selling and marketing 

(568,445)


42.0%


3,317


0.2%


(565,128)


41.8%



General and administrative 

(108,270)


8.0%


14,380


1.1%


(93,890)


6.9%



Other operating income

9,595


0.7%


-


0.0%


9,595


0.7%



Total operating income and expenses

(842,423)


62.3%


26,260


1.9%


(816,163)


60.4%

















Operating profit 

127,864


9.5%


26,306


1.9%


154,170


11.4%



Net income attributable to Cheetah Mobile shareholders

167,037


12.4%


26,306


1.9%


193,343


14.3%

















Diluted earnings per ordinary share (RMB)

0.11




0.02




0.13





Diluted earnings per ADS (RMB)

1.09




0.18




1.27
















































For The Three Months Ended December 31, 2017




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,387,806








1,387,806





Cost of revenues

(461,383)


33.2%


(981)


0.1%


(462,364)


33.3%



Gross profit

926,423


66.8%


(981)


0.1%


925,442


66.7%

















Research and development 

(151,867)


10.9%


4,471


0.3%


(147,396)


10.6%



Selling and marketing 

(420,080)


30.3%


(3,049)


0.2%


(423,129)


30.5%



General and administrative 

(115,089)


8.3%


2,933


0.2%


(112,156)


8.1%



Impairment of goodwill and intangible assets

(38,690)


2.8%


-


0.0%


(38,690)


2.8%



Other operating income

21,307


1.5%


-


0.0%


21,307


1.5%



Total operating income and expenses

(704,419)


50.8%


4,355


0.3%


(700,064)


50.4%

















Operating profit 

222,004


16.0%


3,374


0.2%


225,378


16.2%



Net income attributable to Cheetah Mobile shareholders

1,047,086


75.4%


3,374


0.2%


1,050,460


75.7%

















Diluted earnings per ordinary share (RMB)

0.73




0.00




0.73





Diluted earnings per ADS (RMB)

7.27




0.02




7.29



















 

CHEETAH MOBILE INC.

Information about Segment 

(Unaudited, in'000, except for percentage)













For The Three Months Ended December 31, 2018



Utility Products
and
Related Services


Mobile
Entertainment


Others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB

USD

Revenue

783,021


555,597


42,555


-


1,381,173

200,883

Operating profit (loss)

224,033


(64,780)


(48,942)


(35,260)


75,051

10,916

Operating margin

28.6%


(11.7)%


(115.0)%




5.4%

5.4%














For The Three Months Ended September 30, 2018



Utility Products
and
Related Services


Mobile
Entertainment


Others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

835,606


497,911


18,462


-


1,351,979


Operating profit (loss)

264,139


(74,121)


(35,848)


(26,306)


127,864


Operating margin

31.6%


(14.9)%


(194.2)%




9.5%

























For The Three Months Ended December 31, 2017



Utility Products
and
Related Services


Mobile
Entertainment


Others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

967,232


399,493


21,081


-


1,387,806


Operating profit (loss)

326,950


(61,846)


(39,726)


(3,374)


222,004


Operating margin

33.8%


(15.5)%


(188.4)%




16.0%













* 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, in '000)





For The Three Months Ended


December 31, 2017

 September 30, 2018

December 31, 2018

December 31, 2018


RMB

RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

1,047,086

167,037

770,205

112,023

Add:





Income tax expenses

40,259

26,957

20,138

2,929

Interest income, net

(10,227)

(24,120)

(27,519)

(4,002)

Depreciation and amortization

30,377

17,826

17,237

2,507

Net income (loss) attributable to noncontrolling interests 

20,264

(27,757)

11,457

1,666

Other non-operating income, net

(875,378)

(14,253)

(699,230)

(101,700)

Share-based compensation 

3,374

26,306

35,260

5,128

Adjusted EBITDA

255,755

171,996

127,548

18,551

 

CHEETAH MOBILE INC.

Revenues Generated from PC-based and Mobile-based Applications and Services

(Unaudited, in '000)






For The Three Months Ended


December 31, 2017

 September 30, 2018

December 31, 2018

December 31, 2018


RMB

RMB

RMB

USD

PC

170,259

143,322

171,837

24,993

Mobile

1,217,547

1,208,657

1,209,336

175,890

Total

1,387,806

1,351,979

1,381,173

200,883

 

CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, in '000)






For The Three Months Ended


December 31, 2017

 September 30, 2018

December 31, 2018

December 31, 2018


RMB

RMB

RMB

USD

Domestic

543,974

536,435

533,221

77,554

Overseas

843,832

815,544

847,952

123,329

Total

1,387,806

1,351,979

1,381,173

200,883

 

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)








2017

2018

2018


RMB

RMB

USD

Revenues

4,974,757

4,981,705

724,559

Utility products and related services 

3,439,563

3,119,483

453,711

Mobile entertainment

1,496,443

1,778,867

258,725

Others

38,751

83,355

12,123





Cost of revenues (a)

(1,780,089)

(1,540,633)

(224,076)

Gross profit

3,194,668

3,441,072

500,483





Operating income and expenses: 




Research and development (a)  

(684,863)

(668,918)

(97,290)

Selling and marketing (a) 

(1,656,505)

(1,910,044)

(277,804)

General and administrative (a) 

(407,410)

(430,826)

(62,661)

Impairment of goodwill and intangible assets

(38,862)

(12,767)

(1,857)

Other operating income

39,852

48,705

7,084

Total operating income and  expenses

(2,747,788)

(2,973,850)

(432,528)





Operating profit

446,880

467,222

67,955

Other income (expense):




Interest income, net

22,603

87,716

12,758

Settlement and changes in fair value of contingent consideration

(9,014)

-

-

Foreign exchange (loss) gain, net

(15,224)

13,821

2,010

Impairment of investments

(275,026)

(142,385)

(20,709)

Gains (Losses) from equity method investments, net

495

(384)

(56)

Other income, net

1,262,551

843,733

122,716





Income before taxes

1,433,265

1,269,723

184,674

Income tax expenses

(57,602)

(80,130)

(11,654)

Net income

1,375,663

1,189,593

173,020

Less: net income (loss) attributable to noncontrolling interests 

27,469

(14,186)

(2,063)

Net income attributable to Cheetah Mobile shareholders

1,348,194

1,203,779

175,083





Earnings per share




Basic 

0.96

0.83

0.12

Diluted 

0.94

0.81

0.12





Earnings per ADS




Basic 

9.57

8.31

1.21

Diluted 

9.37

8.10

1.18





Non-GAAP earnings per ADS




Basic 

10.10

8.92

1.30

Diluted 

9.88

8.69

1.26





Weighted average number of shares outstanding




Basic 

1,394,303,326

1,403,089,609

1,403,089,609

Diluted 

1,425,154,838

1,440,414,849

1,440,414,849

Diluted (non-GAAP)

1,425,154,838

1,440,414,849

1,440,414,849

Weighted average number of ADSs used in computation




Basic 

139,430,333

140,308,961

140,308,961

Diluted 

142,515,484

144,041,485

144,041,485

Diluted (non-GAAP)

142,515,484

144,041,485

144,041,485





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




Foreign currency translation adjustments

(148,304)

155,578

22,628

Unrealized losses on available-for-sale securities, net

(433)

-

-

Other comprehensive (loss) income

(148,737)

155,578

22,628

Total comprehensive income

1,226,926

1,345,171

195,648

Less: Total comprehensive income (loss) attributable to
    noncontrolling interests

22,671

(41)

(6)

Total comprehensive income attributable to Cheetah
    Mobile shareholders

1,204,255

1,345,212

195,654





(a) Share-based compensation expenses




Cost of revenues

762

206

30

Research and development

20,691

14,224

2,069

Selling and marketing

39

8,967

1,304

General and administrative

51,824

61,721

8,977

Total

73,316

85,118

12,380

 

CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

(Unaudited, in'000, except for per share data and percentage)
















For The Year Ended December 31, 2018




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net


Non-GAAP


Result


Revenues


Compensation


Revenues


Result


Revenues


Result ($)

Revenues

4,981,705








4,981,705




724,559

Cost of revenues

(1,540,633)


30.9%


206


0.0%


(1,540,427)


30.9%


(224,046)

Gross profit

3,441,072


69.1%


206


0.0%


3,441,278


69.1%


500,513















Research and development 

(668,918)


13.4%


14,224


0.3%


(654,694)


13.1%


(95,221)

Selling and marketing 

(1,910,044)


38.3%


8,967


0.2%


(1,901,077)


38.2%


(276,500)

General and administrative 

(430,826)


8.6%


61,721


1.2%


(369,105)


7.4%


(53,684)

Impairment of goodwill and intangible assets

(12,767)


0.3%


-


0.0%


(12,767)


0.3%


(1,857)

Other operating income

48,705


1.0%


-


0.0%


48,705


1.0%


7,084

Total operating income and expenses

(2,973,850)


59.7%


84,912


1.7%


(2,888,938)


58.0%


(420,178)















Operating profit 

467,222


9.4%


85,118


1.7%


552,340


11.1%


80,335

Net income attributable to Cheetah Mobile shareholders

1,203,779


24.2%


85,118


1.7%


1,288,897


25.9%


187,462















Diluted earnings per ordinary share (RMB)

0.81




0.06




0.87





Diluted earnings per ADS (RMB)

8.10




0.59




8.69





Diluted earnings per ADS (USD)

1.18




0.09




1.26
















































For The Year Ended December 31, 2017




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

4,974,757








4,974,757





Cost of revenues

(1,780,089)


35.8%


762


0.0%


(1,779,327)


35.8%



Gross profit

3,194,668


64.2%


762


0.0%


3,195,430


64.2%

















Research and development 

(684,863)


13.8%


20,691


0.4%


(664,172)


13.4%



Selling and marketing 

(1,656,505)


33.3%


39


0.0%


(1,656,466)


33.3%



General and administrative 

(407,410)


8.2%


51,824


1.0%


(355,586)


7.1%



Impairment of goodwill and intangible assets

(38,862)


0.8%


-


0.0%


(38,862)


0.8%



Other operating income

39,852


0.8%


-


0.0%


39,852


0.8%



Total operating income and expenses

(2,747,788)


55.2%


72,554


1.5%


(2,675,234)


53.8%

















Operating profit 

446,880


9.0%


73,316


1.5%


520,196


10.5%



Net income attributable to Cheetah Mobile shareholders

1,348,194


27.1%


73,316


1.5%


1,421,510


28.6%

















Diluted earnings per ordinary share (RMB)

0.94




0.05




0.99





Diluted earnings per ADS (RMB)

9.37




0.51




9.88



















 

CHEETAH MOBILE INC.

Information about Segment 

(Unaudited, in'000, except for percentage)













For The Year Ended December 31, 2018



Utility Products
and
Related Services


Mobile
Entertainment


Others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB

USD

Revenue

3,119,483


1,778,867


83,355


-


4,981,705

724,559

Operating profit (loss)

1,034,968


(312,515)


(170,113)


(85,118)


467,222

67,955

Operating margin

33.2%


(17.6)%


(204.1)%




9.4%

9.4%














For The Year Ended December 31, 2017



Utility Products
and
Related Services


Mobile
Entertainment


Others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

3,439,563


1,496,443


38,751


-


4,974,757


Operating profit (loss)

979,447


(417,350)


(41,901)


(73,316)


446,880


Operating margin

28.5%


(27.9)%


(108.1)%




9.0%
























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




 

CHEETAH MOBILE INC.

Reconciliation from Net Income (Loss) Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)

(Unaudited, in '000)










31-Dec-17

31-Dec-18

31-Dec-18


RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

1,348,194

1,203,779

175,083

Add:




        Income tax expense

57,602

80,130

11,654

        Interest income, net

(22,603)

(87,716)

(12,758)

        Depreciation and amortization

136,301

80,108

11,651

        Net income (loss) attributable to noncontrolling interests 

27,469

(14,186)

(2,063)

        Other non-operating income, net

(963,782)

(714,785)

(103,961)

        Share-based compensation 

73,316

85,118

12,380

Adjusted EBITDA

656,497

632,448

91,986

 

CHEETAH MOBILE INC.

Revenues Generated from PC-based and Mobile-based Applications and Services

(Unaudited, in '000)





For The Year Ended December 31


31-Dec-17

31-Dec-18

31-Dec-18


RMB

RMB

USD

PC

659,744

580,016

84,360

Mobile

4,315,013

4,401,689

640,199

Total

4,974,757

4,981,705

724,559

 

CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, in '000)





For The Year Ended December 31


31-Dec-17

31-Dec-18

31-Dec-18


RMB

RMB

USD

Domestic revenues

1,639,248

1,971,113

286,687

Overseas revenues

3,335,509

3,010,592

437,872

Total                                                              

4,974,757

4,981,705

724,559

 

Cision View original content:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-fourth-quarter-and-full-year-2018-unaudited-consolidated-financial-results-300817613.html

Source: Cheetah Mobile
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