EX-99.1

Exhibit 99.1

Cheetah Mobile Announces First Quarter 2020

Unaudited Consolidated Financial Results

BEIJING, June 10, 2020 — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a leading mobile internet company with global market coverage, today announced its unaudited consolidated financial results for the first quarter ended March 31, 2020.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “In the first quarter of 2020, we continued to streamline our operations in the mobile Internet business and implement strict cost and expense controls to reduce our losses from the previous quarter. Total cost and expenses decreased by 38.4% year over year and 20.2% sequentially in the quarter. Gross margin grew to 72.0% in the quarter from 66.2% in the same period last year and from 70.2% in the previous quarter. Non-GAAP operating loss was RMB141 million in the quarter, decreasing from RMB203 million in the previous quarter. Notably, non-GAAP operating profit for our mobile Internet business, namely our utility products and related services and our mobile games businesses, increased to RMB7.8 million in the quarter from a non-GAAP operating loss of RMB91.7 million in the previous quarter. In addition, we continued to execute our AI strategy to rejuvenate our long-term growth. The recent outbreak of COVID-19 has led to increased number of use cases for our robotics products and solutions in hospitals and public transit while increasing customer awareness for the service at the same time. However, we do not expect our robotics business to generate significant revenues in the near term.”

Mr. Thomas Ren, Cheetah Mobile’s Chief Financial Officer, commented, “In addition to our improved operating results, we continued to review our investment portfolio and selectively liquidate some of our investments. Recently, we disposed of our remaining equity ownership in Bytedance Ltd., which will result in a gain on investment of approximately US$66 million in the second quarter of 2020. We also continued to return cash to our shareholders. Recently, our Board approved a special cash dividend of US$1.44 per ADS. The aggregate amount of the cash dividends was approximately US$200 million. Importantly, Cheetah Mobile’s cash position remains strong, even after paying out this special cash dividend.”

First Quarter 2020 Consolidated Financial Results

REVENUES

Total revenues were RMB528.1 million (US$74.6 million) in the first quarter of 2020, representing a decrease of 51.4% year over year. Excluding the impact resulting from the deconsolidation of LiveMe’s revenues, total revenues decreased by 36.4% year over year in the first quarter of 2020.

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Revenues from utility products and related services decreased by 57.7% year over year to RMB210.8 million (US$29.8 million) in the first quarter of 2020. The year-over-over decrease was primarily due to (i) a decline in the Company’s mobile utility product business in overseas markets, (ii) a decline in the Company’s mobile utility product business in the domestic market, and (iii) a decline in PC-related revenues. In the first quarter of 2020, approximately 71.0% of the Company’s revenues from its utility products and related services business were generated from advertising while the remaining portion of revenues were generated from other sources, such as anti-virus software sales and office software sales.

Revenues from the Company’s mobile utility product business in overseas markets decreased by 62.6% year over year to RMB54.3 million in first quarter of 2020. This decrease was mainly due to the suspension of the Company’s advertising collaborations with Google since February 2020. On February 21, 2020, the Company announced that the Company’s Google Play Store, Google AdMob, and Google AdManager accounts had been disabled, which adversely affected its ability to attract new users and generate revenue from Google. Revenues from the Company’s mobile utility product business in the domestic market decreased by 75.4% year over year to RMB62.1 million in the first quarter of 2020 as a result of the headwinds in the domestic online advertising market. Our advertising customers that were negatively impacted by the outbreak of COVID-19 reduced their budgets on online advertising and marketing, which materially adversely impacted our revenue from online marketing services. PC-related revenues decreased by 5.8% year over year to RMB94.5 million in the first quarter of 2020 as internet traffic in China continued to migrate from PCs to mobile devices.

Revenues from the mobile games business decreased by 5.3% year over year to RMB285.5 million (US$40.3 million) in the first quarter of 2020. This decrease was primarily attributable to the suspension of the Company’s advertising collaborations with Google since February 2020. In the first quarter of 2020, approximately 69.9% of the Company’s revenues from its mobile games business were generated from advertising while the remaining portion of revenues were generated from in-game purchases.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 59.7% year over year to RMB147.7 million (US$20.9 million) in the first quarter of 2020. The decrease was primarily due to the deconsolidation of LiveMe. Non-GAAP cost of revenues decreased by 59.7% year over year to RMB147.6 million (US$20.9 million) in the first quarter of 2020.

Gross profit decreased by 47.1% year over year to RMB380.4 million (US$53.7 million) in the first quarter of 2020. Non-GAAP gross profit decreased by 47.1% year over year to RMB380.4 million (US$53.7 million) in the first quarter of 2020.

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Gross margin was 72.0% in the first quarter of 2020, compared to 66.2% in the same period last year. Non-GAAP gross margin was 72.0% in the first quarter of 2020, compared to 66.2% in the same period last year.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 28.2% year over year to RMB528.4 million (US$74.6 million) in the first quarter of 2020. Total non-GAAP operating expenses decreased by 26.5% year over year to RMB521.6 million (US$73.7 million) in the first quarter of 2020.

•

Research and development expenses decreased by 27.6% year over year to RMB142.6 million (US$20.1 million) in the first quarter of 2020. This decrease was primarily attributable to a reduction in the personnel for the Company’s utility products and related services business in overseas markets as well as the deconsolidation of LiveMe. Non-GAAP research and development expenses decreased by 24.7% year over year to RMB135.9 million (US$19.2 million) in the first quarter of 2020.

•

Selling and marketing expenses decreased by 30.7% year over year to RMB302.8 million (US$42.8 million) in the first quarter of 2020. This decrease was mainly due to the reduction in promotional activities for the Company’s utility products and related services business in the domestic market as well as the deconsolidation of LiveMe. Non-GAAP selling and marketing expenses decreased by 29.9% year over year to RMB304.0 million (US$42.9 million) in the first quarter of 2020.

•

General and administrative expenses decreased by 16.3% year over year to RMB88.6 million (US$12.5 million) in the first quarter of 2020. This decrease was primarily due to decreased professional fees and share based compensation. Non-GAAP general and administrative expenses decreased by 11.5% year over year to RMB87.3 million (US$12.3 million) in the first quarter of 2020.

Operating loss was RMB148.0 million (US$20.9 million) in the first quarter of 2020, compared to an operating loss of RMB17.7 million in the same period last year. Non-GAAP operating loss was RMB141.1 million (US$19.9 million) in the first quarter of 2020, compared to an operating profit of RMB9.0 million in the same period last year.

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

•

Operating profit for utility products and related services was RMB44.2 million (US$6.2 million) in the first quarter of 2020, compared to RMB123.2 million in the same period last year, which was mainly due to the decrease in revenues.

•

Operating loss for the mobile entertainment business was RMB36.4 million (US$5.1 million) in the first quarter of 2020, compared to RMB44.1 million in the same period last year, which was mainly attributable to the deconsolidation of LiveMe.

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•

Operating loss for AI and other business was RMB148.9 million (US$21.0 million) in the first quarter of 2020, compared to RMB70.1 million in the same period last year, mainly due to the increased investments in the Company’s AI-related business.

Share-based compensation expenses were RMB6.9 million (US$1.0 million) in the first quarter of 2020, compared to RMB26.7 million in the same period last year.

OTHER INCOME, NET

Other income, net was RMB42.9 million (US$6.1 million) in the first quarter of 2020, which was primarily due to increases in fair value of certain long-term investments.

NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net loss attributable to Cheetah Mobile shareholders was RMB104.6 million (US$14.8 million) in the first quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB7.1 million in the same period last year.

Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB97.7 million (US$13.8 million) in the first quarter of 2020, compared to a net income attributable to Cheetah Mobile shareholders of RMB33.8 million in the same period last year.

NET INCOME/LOSS PER ADS

Diluted loss per ADS was RMB0.76 (US$0.11) in the first quarter of 2020, compared to RMB0.02 in the same period last year. Non-GAAP diluted loss per ADS was RMB0.71 (US$0.10) in first quarter of 2020, compared to diluted earnings per ADS of RMB0.17 in the same period last year.

BALANCE SHEET

As of March 31, 2020, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB2,345.1 million (US$331.2 million).

SHARES ISSUED AND OUTSTANDING

As of March 31, 2020, the Company had a total of 1,393,070,159 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

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Business Outlook

For the second quarter of 2020, the Company expects its total revenues to be between RMB340 million (US$48 million) and RMB390 million (US$55 million). This amount reflects the fact that LiveMe’s revenues will no longer be included in the Company’s revenues. This forecast reflects Cheetah Mobile’s current and preliminary expectation, which assumes the COVID-19 situation would not have any significant unexpected disruption to our operations in the remainder of the second quarter.

Conference Call Information

The Company will hold a conference call on Wednesday, June 10 2020, at 8:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:

International: +1-412-902-4272

United States Toll Free: +1-888-346-8982

Mainland China Toll Free: 4001-201-203

Hong Kong Toll Free: 800-905-945

Conference ID: Cheetah Mobile

The replay will be accessible June 17, 2020, by dialing the following numbers:

International: +1-412-317-0088

United States Toll Free: +1-877-344-7529

Access Code: 10144811

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

Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB7.0808 to US$1.00, the exchange rate in effect as of March 31, 2020, as set forth in the H.10 statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America (“U.S. GAAP”).

About Cheetah Mobile Inc.

Cheetah Mobile is a leading mobile Internet company with global market coverage. It has attracted hundreds of millions of monthly active users through its mobile utility products such as Clean Master, casual games such as Piano Tiles 2, and Bricks n Balls. The Company provides its advertising customers, which include direct advertisers and mobile advertising networks through which advertisers place their advertisements, with direct access to highly targeted mobile users and global promotional channels. The Company also provides value-added services to its mobile application users through the sale of in-app virtual items on selected mobile products and games. Cheetah Mobile is committed to leveraging its cutting-edge artificial intelligence technologies to power its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014.

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Safe Harbor Statement

This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile’s growth strategies; Cheetah Mobile’s ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile’s ability to monetize its platform; Cheetah Mobile’s future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile’s revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile’s filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Use of Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures:

•

Non-GAAP cost of revenues excludes share-based compensation expenses

•

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 and impairment of goodwill

•

Non-GAAP research and development expenses exclude share-based compensation expenses

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•

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 and impairment of goodwill

•

Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses and impairment of goodwill

•

Non-GAAP diluted income/loss per ADS excludes share-based compensation expenses and impairment of goodwill

The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP Results”.

Investor Relations Contact

Cheetah Mobile Inc.

Helen Jing Zhu

Tel: +86 10 6292 7779 ext. 1600

Email: helenjingzhu@cmcm.com

ICR Inc.

Xinran Rao

Tel: +1 (646) 417-5395

Email: IR@cmcm.com

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CHEETAH MOBILE INC.

Condensed Consolidated Balance Sheets

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


	As of
	December 31, 2019		March 31, 2020		March 31, 2020
	RMB		RMB		USD
ASSETS
Current assets:
Cash and cash equivalents		983,004		876,845		123,834
Restricted cash		2,638		2,673		377
Short-term investments		1,369,118		1,465,580		206,979
Accounts receivable		469,276		387,026		54,659
Prepayments and other current assets		936,109		908,212		128,264
Due from related parties		233,255		232,205		32,794

Total current assets		3,993,400		3,872,541		546,907

Non-current assets:
Property and equipment, net		103,397		94,972		13,413
Right-of-use assets, net		183,563		169,586		23,950
Intangible assets, net		44,476		47,113		6,654
Investment in equity investees		194,473		192,782		27,226
Other long term investments		2,322,251		2,363,828		333,836
Due from related parties		25,533		18,749		2,648
Deferred tax assets		31,951		41,148		5,811
Other non-current assets		112,700		116,505		16,454

Total non-current assets		3,018,344		3,044,683		429,992

Total assets		7,011,744		6,917,224		976,899

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank loans		—		70,851		10,006
Accounts payable		87,524		75,732		11,485
Accrued expenses and other current liabilities		1,446,225		1,458,512		205,191
Due to related parties		92,210		64,919		9,168
Income tax payable		60,657		54,400		7,683

Total current liabilities		1,686,616		1,724,414		243,533

Non-current liabilities:
Deferred tax liabilities		82,847		93,699		13,233
Other non-current liabilities		247,734		182,586		25,787

Total non-current liabilities		330,581		276,285		39,020

Total liabilities		2,017,197		2,000,699		282,553

Shareholders’ equity:
Ordinary shares		225		226		32
Additional paid-in capital		2,649,342		2,656,081		375,110
Retained earnings		1,944,938		1,811,086		255,774
Accumulated other comprehensive income		337,773		389,437		54,999

Total Cheetah Mobile shareholders’ equity		4,932,278		4,856,830		685,915
Noncontrolling interests		62,269		59,695		8,431

Total equity		4,994,547		4,916,525		694,346

Total liabilities and equity		7,011,744		6,917,224		976,899

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CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share(or ADS) data)


	For The Three Months Ended
	March 31, 2019			December 31, 2019			March 31, 2020			March 31, 2020
	RMB			RMB			RMB			USD
Revenues		1,085,628			612,003			528,088			74,580
Utility products and related services		497,933			298,640			210,838			29,776
Mobile entertainment		556,230			285,058			285,492			40,319
AI and others		31,465			28,305			31,758			4,485
Cost of revenues (a)		(366,931	)		(182,271	)		(147,736	)		(20,864	)

Gross profit		718,697			429,732			380,352			53,716
Operating income and expenses:
Research and development (a)		(196,938	)		(153,530	)		(142,588	)		(20,137	)
Selling and marketing (a)		(436,629	)		(343,993	)		(302,753	)		(42,757	)
General and administrative (a)		(105,829	)		(174,899	)		(88,621	)		(12,516	)
Impairment of goodwill		—			(545,665	)		—			—
Other operating income		3,002			7,910			5,596			790

Total operating income and expenses		(736,394	)		(1,210,177	)		(528,366	)		(74,620	)
Operating loss		(17,697	)		(780,445	)		(148,014	)		(20,904	)
Other income (expenses):
Interest income, net		31,617			18,849			17,854			2,521
Foreign exchange (loss) gain, net		(5,373	)		5,478			(12,091	)		(1,708	)
Gain (loss) from equity method investments, net		6,141			(322	)		(2,463	)		(348	)
Other income (loss), net		432			(151,665	)		42,868			6,054

Income (loss) before taxes		15,120			(908,105	)		(101,846	)		(14,385	)
Income tax (expenses) benefits		(12,434	)		36,927			(6,539	)		(923	)

Net income (loss)		2,686			(871,178	)		(108,385	)		(15,308	)
Less: net loss attributable to noncontrolling interests		(4,428	)		(50,020	)		(3,796	)		(536	)

Net income (loss) attributable to Cheetah Mobile shareholders		7,114			(821,158	)		(104,589	)		(14,772	)

(Losses) Earnings per share
Basic		0.00			(0.60	)		(0.08	)		(0.01	)
Diluted		0.00			(0.60	)		(0.08	)		(0.01	)
(Losses) Earnings per ADS
Basic		(0.02	)		(5.98	)		(0.76	)		(0.11	)
Diluted		(0.02	)		(5.98	)		(0.76	)		(0.11	)
Weighted average number of shares outstanding
Basic		1,365,622,524			1,374,016,957			1,378,171,071			1,378,171,071
Diluted		1,392,184,524			1,374,016,957			1,378,171,071			1,378,171,071
Weighted average number of ADSs outstanding
Basic		136,562,252			137,401,696			137,817,107			137,817,107
Diluted		139,218,452			137,401,696			137,817,107			137,817,107
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments		(82,541	)		(60,937	)		59,974			8,470
Unrealized gain (loss) on available-for-sale securities, net		3,498			4,241			(7,250	)		(1,024	)

Other comprehensive (loss) income		(79,043	)		(56,696	)		52,724			7,446

Total comprehensive loss		(76,357	)		(927,874	)		(55,661	)		(7,862	)
Less: Total comprehensive loss attributable to noncontrolling interests		(4,271	)		(52,056	)		(2,735	)		(386	)

Total comprehensive loss attributable to Cheetah Mobile shareholders		(72,086	)		(875,818	)		(52,925	)		(7,476	)

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CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share(or ADS) data)


	For The Three Months Ended
	March 31, 2019		December 31, 2019		March 31, 2020			March 31, 2020
(a) Share-based compensation expenses	RMB		RMB		RMB			USD
Cost of revenues		159		108		96			14
Research and development		16,512		15,995		6,737			951
Selling and marketing		2,827		1,058		(1,222	)		(173	)
General and administrative		7,153		14,155		1,292			182

Total		26,651		31,316		6,903			974

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CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for per share data )


	For The Three Months Ended March 31, 2020
	GAAP Result			Share-based Compensation			Non-GAAP Result			Non-GAAP Result
	RMB			RMB			RMB			USD
Revenues		528,088			—			528,088			74,580
Cost of revenues		(147,736	)		96			(147,640	)		(20,850	)

Gross profit		380,352			96			380,448			53,730
Research and development		(142,588	)		6,737			(135,851	)		(19,186	)
Selling and marketing		(302,753	)		(1,222	)		(303,975	)		(42,930	)
General and administrative		(88,621	)		1,292			(87,329	)		(12,334	)
Other operating income		5,596			—			5,596			790

Total operating income and expenses		(528,366	)		6,807			(521,559	)		(73,660	)
Operating loss		(148,014	)		6,903			(141,111	)		(19,930	)
Net loss attributable to Cheetah Mobile shareholders		(104,589	)		6,903			(97,686	)		(13,796	)
Diluted losses per ordinary share (RMB)		(0.08	)		0.01			(0.07	)
Diluted losses per ADS (RMB)		(0.76	)		0.05			(0.71	)
Diluted losses per ADS (USD)		(0.11	)		0.01			(0.10	)


	For The Three Months Ended December 31, 2019
	GAAP Result			Share-based Compensation		Non-GAAP Result
	RMB			RMB		RMB
Revenues		612,003			—		612,003
Cost of revenues		(182,271	)		108		(182,163	)

Gross profit		429,732			108		429,840
Research and development		(153,530	)		15,995		(137,535	)
Selling and marketing		(343,993	)		1,058		(342,935	)
General and administrative		(174,899	)		14,155		(160,744	)
Impairment of goodwill		(545,665	)		545,665		—
Other operating income		7,910			—		7,910

Total operating income and expenses		(1,210,177	)		576,873		(633,304	)
Operating loss		(780,445	)		576,981		(203,464	)
Net loss attributable to Cheetah Mobile shareholders		(821,158	)		576,981		(244,177	)
Diluted losses per ordinary share (RMB)		(0.60	)		0.42		(0.18	)
Diluted losses per ADS (RMB)		(5.98	)		4.20		(1.78	)


	For The Three Months Ended March 31, 2019
	GAAP Result			Share-based Compensation		Non-GAAP Result
	RMB			RMB		RMB
Revenues		1,085,628			—		1,085,628
Cost of revenues		(366,931	)		159		(366,772	)

Gross profit		718,697			159		718,856
Research and development		(196,938	)		16,512		(180,426	)
Selling and marketing		(436,629	)		2,827		(433,802	)
General and administrative		(105,829	)		7,153		(98,676	)
Other operating income		3,002			—		3,002

Total operating income and expenses		(736,394	)		26,492		(709,902	)
Operating (loss) profit		(17,697	)		26,651		8,954
Net income attributable to Cheetah Mobile shareholders		7,114			26,651		33,765
Diluted (losses) earnings per ordinary share (RMB)		0.00			0.02		0.02
Diluted (losses) earnings per ADS (RMB)		(0.02	)		0.19		0.17

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CHEETAH MOBILE INC.

Information about Segment

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for percentage)


	For The Three Months Ended March 31, 2020
	Utility Products and Related Services			Mobile Entertainment			AI and others			Unallocated*			Consolidated
	RMB			RMB			RMB			RMB			RMB			USD
Revenue		210,838			285,492			31,758			—			528,088			74,580
Operating profit (loss)		44,169			(36,359	)		(148,921	)		(6,903	)		(148,014	)		(20,904	)
Operating margin		20.9	%		(12.7	)%		(468.9	)%		—			(28.0	)%		(28.0	)%


	For The Three Months Ended December 31, 2019
	Utility Products and Related Services			Mobile Entertainment			AI and others			Unallocated*			Consolidated
	RMB			RMB			RMB			RMB			RMB
Revenue		298,640			285,058			28,305			—			612,003
Operating profit (loss)		28,596			(120,310	)		(111,750	)		(576,981	)		(780,445	)
Operating margin		9.6	%		(42.2	)%		(394.8	)%		—			(127.5	)%


	For The Three Months Ended March 31, 2019
	Utility Products and Related Services			Mobile Entertainment			AI and others			Unallocated*			Consolidated
	RMB			RMB			RMB			RMB			RMB
Revenue		497,933			556,230			31,465			—			1,085,628
Operating profit (loss)		123,175			(44,148	)		(70,073	)		(26,651	)		(17,697	)
Operating margin		24.7	%		(7.9	)%		(222.7	)%					(1.6	)%

*	Unallocated expenses refer to SBC expenses and goodwill impairment that are not allocated to 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 Three Months Ended
	March 31, 2019			December 31, 2019			March 31, 2020			March 31, 2020
	RMB			RMB			RMB			USD
Net income (loss) attributable to Cheetah Mobile shareholders		7,114			(821,158	)		(104,589	)		(14,772	)
Add:
Income tax expenses (benefits)		12,434			(36,927	)		6,539			923
Interest income, net		(31,617	)		(18,849	)		(17,854	)		(2,521	)
Depreciation and amortization		16,351			16,108			18,548			2,619
Net loss attributable to noncontrolling interests		(4,428	)		(50,020	)		(3,796	)		(536	)
Other (income) loss, net		(1,200	)		146,509			(28,314	)		(3,998	)
Share-based compensation		26,651			31,316			6,903			974
Impairment of goodwill		—			545,665			—			—

Adjusted EBITDA		25,305			(187,356	)		(122,563	)		(17,311	)

CHEETAH MOBILE INC.

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

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

For The Three Months Ended

March 31, 2019

31-Dec-19

March 31, 2020

RMB

USD

120,278

123,842

117,502

16,594

Mobile

965,350

488,161

410,586

57,986

Total

1,085,628

612,003

528,088

74,580

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CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

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

For The Three Months Ended

March 31, 2019

December 31, 2019

March 31, 2020

RMB

USD

Domestic

424,323

282,049

234,335

33,094

Overseas

661,305

329,954

293,753

41,486

Total

1,085,628

612,003

528,088

74,580

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