EX-99.1 2 d161522dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Cheetah Mobile Announces First Quarter 2021

Unaudited Consolidated Financial Results

BEIJING, June 11th, 2021 — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a leading internet company, today announced its unaudited consolidated financial results for the first quarter 2021 ended March 31, 2021.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “Despite seasonality, Cheetah Mobile’s total revenues in the first quarter of 2021 were RMB198 million, which was within our guidance. Our internet business is in line with our strategy of focusing on driving our membership growth to deliver superior user experience. In this quarter, we saw continued increase in revenues from our membership services, in terms of both absolute numbers and a percentage of total internet revenues. For our AI business, we are on the right track of deploying robots in shopping malls in China’s tier one and tier two cities to amplify our partners’ promotions and help them build brand recognition. So far, we have successfully entered into approximately 1,200 shopping malls in more than 40 cities. We believe that we have been off to a good start and on a firm footing to achieve our strategic goals step by step.”

Mr. Thomas Ren, Cheetah Mobile’s Chief Financial Officer, commented, “In the first quarter of 2021, we continued to improve our operational efficiency. Our costs were well controlled and gross margin was 70.1% in this quarter, compared to 62.1% in the fourth quarter of 2020. Our operating loss narrowed to RMB57 million, from RMB148 million in the same period last year and RMB74 million in the fourth quarter of 2020. In addition, our balance sheet remained robust, with cash and cash equivalents, restricted cash, and short-term investments of approximately US$276 million on March 31, 2021. The abundant cash resources enable us to invest according to our strategies and create new milestones for the Company.”

First Quarter 2021 Consolidated Financial Results

REVENUES

Total revenues were RMB198.4 million (US$30.3 million) in the first quarter of 2021, representing a decrease of 62.4% year over year and a decrease of 25.2% quarter over quarter.

Revenues from the Companys internet business decreased by 62.2% year over year and 25.3% quarter over quarter to RMB187.6 million (US$28.6 million) in the first quarter of 2021. The year-over-year decrease was due to the suspension of the Company’s collaboration with Google since February 2020, as well as the Company’s disposal of certain gaming-related business and assets in the second half of 2020. The quarter-over-quarter decrease was mainly due to the impact of seasonality and decreased revenues from the diminishing mobile gaming business.

 

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Revenues from the AI and others was RMB10.8 million (US$1.7 million) in the first quarter of 2021, representing a 65.9% year-over-year decrease and a 24.0% quarter-over-quarter decrease. The decline was primarily attributable to a decline in sale of consumer-facing AI-related products.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 59.8% year over year and 40.9% quarter over quarter to RMB59.4million (US$9.1 million) in the first quarter of 2021. The decrease was primarily due to the Company’s ongoing efforts to improve operational efficiency as well as disposals of certain overseas utility and gaming-related business and assets. Non-GAAP cost of revenues decreased by 60.0% year over year and 41.0% quarter over quarter to RMB59.0 million (US$9.0 million) in the first quarter of 2021.

Gross profit decreased by 63.4% year over year and 15.6% quarter over quarter to RMB139.1 million (US$21.2 million) in the first quarter of 2021. Non-GAAP gross profit decreased by 63.4% year over year and 15.6% quarter over quarter to RMB139.4 million (US$21.3 million) in the first quarter of 2021.

Gross margin was 70.1% in the first quarter of 2021, compared to 72.0% in the first quarter of 2020 and 62.1% in the fourth quarter of 2020. Non-GAAP gross margin was 70.2% in the first quarter of 2021, compared to 72.0% in the first quarter of 2020 and 62.3% in the fourth quarter of 2020.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 63.0% year over year and 18.2% quarter over quarter to RMB195.6 million (US$29.9 million) in the first quarter of 2021. Total non-GAAP operating expenses decreased by 62.1% year over year and 11.3% quarter over quarter to RMB197.5 million (US$30.1 million) in the first quarter of 2021.

 

   

Research and development expenses decreased by 48.6% year over year and slightly increased by 4.8% quarter over quarter to RMB73.3 million (US$11.2 million) in the first quarter of 2021. The year over year decrease was primarily attributable to the streamlining of our business, such as the deconsolidation of certain gaming business. While at the same time, we have been keeping investing in R&D in our domestic utility and AI business to optimize our products and services. Non-GAAP research and development expenses decreased by 48.1% year over year and increased by 9.3% quarter over quarter to RMB70.5 million (US$10.8 million) in the first quarter of 2021.

 

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Selling and marketing expenses decreased by 73.7% year over year and 14.4% quarter over quarter to RMB79.7 million (US$12.2 million) in the first quarter of 2021. This decrease was mainly due to strategic cut of promotional activities and disposals of certain gaming business. Non-GAAP selling and marketing expenses decreased by 73.8% year over year and 13.9% quarter over quarter to RMB79.8 million (US$12.2 million) in the first quarter of 2021.

 

   

General and administrative expenses decreased by 50.2% year over year and 34.2% quarter over quarter to RMB44.1 million (US$6.7 million) in the first quarter of 2021. This decrease was primarily due to effective expense control, through which both general and administrative personnel and professional service fees have been reduced. Non-GAAP general and administrative expenses decreased by 44.2% year over year and 13.8% quarter over quarter to RMB48.7 million (US$7.4 million) in the first quarter of 2021.

Operating loss was RMB56.5 million (US$8.6 million) in the first quarter of 2021, reduced from RMB148.0 million in the same period last year and RMB74.2 million in the fourth quarter of 2020. Non-GAAP operating loss was RMB58.2 million (US$8.9 million) in the first quarter of 2021, compared to RMB141.1 million in the same period last year and RMB57.4 million in the fourth quarter of 2020.

 

   

Operating profit for the internet business was RMB27.7 million in the first quarter of 2021, compared to an operating profit of RMB7.8 million in the same period last year and RMB75.6 million in the fourth quarter of 2020.

 

   

Operating loss for AI and others business was RMB85.9 million in the first quarter of 2021, narrowed from an operating loss of RMB148.9 million in the same period last year and an operating loss of RMB133.0 million in the fourth quarter of 2020.

Share-based compensation expenses were negative RMB1.6 million (US$0.2 million) in the first quarter of 2021, compared to RMB6.9 million in the same period last year and RMB16.8 million in the fourth quarter of 2020. The negavie share-based compensation was mainly due to the personnel adjustment for business streamlining.

OTHER INCOME, NET

Other income, net was RMB85.6 million (US$13.1 million) in the first quarter of 2021, which was primarily due to the gains from a partial disposal of some of our investees.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB76.4 million (US$11.7 million) in the first quarter of 2021, compared to a net loss attributable to Cheetah Mobile shareholders of RMB104.6 million in the same period last year and a net income attributable to Cheetah Mobile shareholders of RMB68.4 million in the fourth quarter of 2020.

 

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Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB74.8 million (US$11.4 million) in the first quarter of 2021, compared to a non-GAAP net loss attributable to Cheetah Mobile shareholders of RMB97.7 million in the same period last year and non-GAAP net income attributable to Cheetah Mobile shareholders of RMB85.2 million in the fourth quarter of 2020.

NET INCOME PER ADS

Diluted earnings per ADS was RMB0.54 (US$0.08) in the first quarter of 2021, compared to losses per ADS of RMB0.76 in the same period last year and earnings per ADS of RMB0.49 in the fourth quarter of 2020. Non-GAAP diluted earnings per ADS was RMB0.53 (US$0.08) in first quarter of 2021, compared to losses per ADS of RMB0.71 in the same period last year and earnings per ADS of RMB0.60 in the fourth quarter of 2020.

BALANCE SHEET

As of March 31, 2021, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB1,806.3 million (US$275.7 million).

SHARES ISSUED AND OUTSTANDING

As of March 31, 2021, the Company had a total of 1,403,070,144 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

Business Outlook

For the second quarter of 2021, the Company expects its total revenues to be between RMB175 million (US$26.7 million) and RMB225 million (US$34.3 million). This amount reflects the Company’s current and preliminary expectations.

Conference Call Information

The Company will hold a conference call on June 11, 2021, at 7:00 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:

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 through June 18, 2021 by dialing the following numbers:

International: +1-412-317-0088

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

Access Code: 10157331

 

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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 RMB6.5518 to US$1.00, the exchange rate in effect as of March 31, 2021, 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 internet company. It has attracted hundreds of millions of monthly active users through an array of internet products such as Clean Master, Security Master and several casual games. The Company provides advertising services to advertisers worldwide as well as value-added services including the sale of premium membership and in-app virtual items to its users. Cheetah Mobile is also 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.

 

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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

 

   

Non-GAAP selling and marketing expenses exclude share-based compensation expenses

 

   

Non-GAAP general and administrative expenses exclude share-based compensation expenses

 

   

Non-GAAP operating profit/loss excludes share-based compensation expenses

 

   

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

 

   

Non-GAAP diluted income/loss per ADS excludes share-based compensation expenses

 

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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.

Tel: +86 10 6292 7779

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, 2020      March 31, 2021      March 31, 2021  
     RMB      RMB      USD  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     1,299,658        1,259,611        192,254  

Restricted cash

     797        801        122  

Short-term investments

     360,803        545,920        83,324  

Accounts receivable

     225,586        197,479        30,141  

Prepayments and other current assets

     835,694        829,313        126,578  

Due from related parties

     224,323        196,922        30,056  
  

 

 

    

 

 

    

 

 

 

Total current assets

     2,946,861        3,030,046        462,475  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Property and equipment, net

     101,984        96,775        14,771  

Right-of-use assets, net

     17,729        6,951        1,061  

Intangible assets, net

     12,575        11,750        1,793  

Investment in equity investees

     216,126        272,916        41,655  

Other long term investments

     2,193,600        2,120,107        323,592  

Due from related parties

     3,522        —          —    

Deferred tax assets

     15,607        15,274        2,331  

Other non-current assets

     105,479        93,640        14,293  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     2,666,622        2,617,413        399,496  
  

 

 

    

 

 

    

 

 

 

Total assets

     5,613,483        5,647,459        861,971  
  

 

 

    

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Current liabilities:

        

Accounts payable

     105,832        118,300        18,056  

Accrued expenses and other current liabilities

     1,390,042        1,315,707        200,815  

Due to related parties

     48,938        51,405        7,846  

Income tax payable

     27,505        34,705        5,297  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     1,572,317        1,520,117        232,014  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities:

        

Deferred tax liabilities

     60,502        60,813        9,282  

Other non-current liabilities

     192,272        184,915        28,224  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     252,774        245,728        37,506  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     1,825,091        1,765,845        269,520  
  

 

 

    

 

 

    

 

 

 

Shareholders’ equity:

        

Ordinary shares

     234        234        36  

Additional paid-in capital

     2,726,619        2,727,765        416,338  

Retained earnings

     857,188        933,635        142,501  

Accumulated other comprehensive income

     163,340        177,966        27,163  
  

 

 

    

 

 

    

 

 

 

Total Cheetah Mobile shareholders’ equity

     3,747,381        3,839,600        586,038  

Noncontrolling interests

     41,011        42,014        6,413  
  

 

 

    

 

 

    

 

 

 

Total equity

     3,788,392        3,881,614        592,451  
  

 

 

    

 

 

    

 

 

 

Total liabilities and equity

     5,613,483        5,647,459        861,971  
  

 

 

    

 

 

    

 

 

 

 

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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, 2020     December 31, 2020     March 31, 2021     March 31, 2021  
     RMB     RMB     RMB     USD  

Revenues

     528,088       265,249       198,420       30,285  

Internet business

     496,330       251,008       187,598       28,633  

AI and others

     31,758       14,241       10,822       1,652  

Cost of revenues (a)

     (147,736     (100,397     (59,359     (9,060
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     380,352       164,852       139,061       21,225  

Operating income and expenses:

        

Research and development (a)

     (142,588     (69,928     (73,251     (11,180

Selling and marketing (a)

     (302,753     (93,124     (79,716     (12,167

General and administrative (a)

     (88,621     (67,050     (44,106     (6,733

Other operating income (expense)

     5,596       (8,924     1,484       227  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (528,366     (239,027     (195,589     (29,853

Operating loss

     (148,014     (74,174     (56,528     (8,628

Other income (expenses):

        

Interest income, net

     17,854       2,077       4,786       730  

Foreign exchange (loss) gain

     (12,091     22,203       (4,846     (739

(Loss) gain from equity method investments, net

     (2,463     (7,883     56,040       8,553  

Other income, net

     42,868       102,286       85,561       13,059  
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income before taxes

     (101,846     44,509       85,013       12,975  

Income tax (expenses) benefit

     (6,539     23,441       (7,792     (1,189
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

     (108,385     67,950       77,221       11,786  

Less: net (loss) income attributable to noncontrolling interests

     (3,796     (486     774       118  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to Cheetah Mobile shareholders

     (104,589     68,436       76,447       11,668  
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Earnings per share

        

Basic

     (0.08     0.05       0.05       0.01  

Diluted

     (0.08     0.05       0.05       0.01  

(Loss) Earnings per ADS

        

Basic

     (0.76     0.49       0.54       0.08  

Diluted

     (0.76     0.49       0.54       0.08  

Weighted average number of shares outstanding

        

Basic

     1,378,171,071       1,425,122,249       1,427,820,687       1,427,820,687  

Diluted

     1,378,171,071       1,427,342,492       1,431,305,814       1,431,305,814  

Weighted average number of ADSs outstanding

        

Basic

     137,817,107       142,512,225       142,782,069       142,782,069  

Diluted

     137,817,107       142,734,249       143,130,581       143,130,581  

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

        

Foreign currency translation adjustments

     59,974       (119,253     16,797       2,564  

Unrealized gain on available-for-sale securities, net

     (7,250     —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss)

     52,724       (119,253     16,797       2,564  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive (loss) income

     (55,661     (51,303     94,018       14,350  

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

     (2,735     (1,268     2,946       450  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive (loss) income attributable to Cheetah Mobile shareholders

     (52,925     (50,034     91,072       13,900  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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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, 2020     December 31, 2020      March 31, 2021     March 31, 2021  
(a) Share-based compensation expenses    RMB     RMB      RMB     USD  

Cost of revenues

     96       352        313       48  

Research and development

     6,737       5,429        2,722       415  

Selling and marketing

     (1,222     470        (49     (7

General and administrative

     1,292       10,501        (4,612     (704
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

     6,903       16,752        (1,626     (248
  

 

 

   

 

 

    

 

 

   

 

 

 

 

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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, 2021  
     GAAP
Result
    Share-based
Compensation
    Non-GAAP
Result
    Non-GAAP
Result
 
     RMB     RMB     RMB     USD  

Revenues

     198,420       —         198,420       30,285  

Cost of revenues

     (59,359     313       (59,046     (9,012
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     139,061       313       139,374       21,273  

Research and development

     (73,251     2,722       (70,529     (10,765

Selling and marketing

     (79,716     (49     (79,765     (12,174

General and administrative

     (44,106     (4,612     (48,718     (7,437

Other operating expense

     1,484       —         1,484       227  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income and expenses

     (195,589     (1,939     (197,528     (30,149

Operating loss

     (56,528     (1,626     (58,154     (8,876

Net income attributable to Cheetah Mobile shareholders

     76,447       (1,626     74,821       11,420  

Diluted earnings per ordinary share (RMB)

     0.05       0.00       0.05    

Diluted earnings per ADS (RMB)

     0.54       (0.01     0.53    

Diluted earnings per ADS (USD)

     0.08       (0.00     0.08    

 

     For The Three Months Ended December 31, 2020  
     GAAP
Result
    Share-based
Compensation
     Non-GAAP
Result
 
     RMB     RMB      RMB  

Revenues

     265,249       —          265,249  

Cost of revenues

     (100,397     352        (100,045
  

 

 

   

 

 

    

 

 

 

Gross profit

     164,852       352        165,204  

Research and development

     (69,928     5,429        (64,499

Selling and marketing

     (93,124     470        (92,654

General and administrative

     (67,050     10,501        (56,549

Other operating expense

     (8,924     —          (8,924
  

 

 

   

 

 

    

 

 

 

Total operating income and expenses

     (239,027     16,400        (222,627

Operating loss

     (74,174     16,752        (57,422

Net income attributable to Cheetah Mobile shareholders

     68,436       16,752        85,188  

Diluted earnings per ordinary share (RMB)

     0.05       0.01        0.06  

Diluted earnings per ADS (RMB)

     0.49       0.12        0.60  

 

     For The Three Months Ended March 31, 2020  
     GAAP
Result
    Share-based
Compensation
    Non-GAAP
Result
 
     RMB     RMB     RMB  

Revenues

     528,088       —         528,088  

Cost of revenues

     (147,736     96       (147,640
  

 

 

   

 

 

   

 

 

 

Gross profit

     380,352       96       380,448  

Research and development

     (142,588     6,737       (135,851

Selling and marketing

     (302,753     (1,222     (303,975

General and administrative

     (88,621     1,292       (87,329

Other operating income

     5,596       —         5,596  

Total operating income and expenses

     (528,366     6,807       (521,559
  

 

 

   

 

 

   

 

 

 

Operating loss

     (148,014     6,903       (141,111

Net loss attributable to Cheetah Mobile shareholders

     (104,589     6,903       (97,686

Diluted losses per ordinary share (RMB)

     (0.08     0.01       (0.07

Diluted losses per ADS (RMB)

     (0.76     0.05       (0.71

 

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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, 2021  
     Internet
Business
    AI and
others
    Unallocated*      Consolidated  
     RMB     RMB     RMB      RMB     USD  

Revenue

     187,598       10,822       —          198,420       30,285  

Operating profit (loss)

     27,731       (85,885     1,626        (56,528     (8,628

Operating margin

     14.8     (793.6 )%      —          (28.5 )%      (28.5 )% 

 

     For The Three Months Ended December 31, 2020  
     Internet
Business
    AI and
others
    Unallocated*     Consolidated  
     RMB     RMB     RMB     RMB  

Revenue

     251,008       14,241       —         265,249  

Operating profit (loss)

     75,559       (132,981     (16,752     (74,174

Operating margin

     30.1     (933.8 )%      —         (28.0 )% 

 

     For The Three Months Ended March 31, 2020  
     Internet
Business
    AI and
others
    Unallocated*     Consolidated  
     RMB     RMB     RMB     RMB  

Revenue

     496,330       31,758       —         528,088  

Operating profit (loss)

     7,810       (148,921     (6,903     (148,014

Operating margin

     1.6     (468.9 )%      —         (28.0 )% 

 

*

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  
     Mar 31, 2020     December 31, 2020     March 31, 2021     March 31, 2021  
     RMB     RMB     RMB     USD  

Net (loss) income attributable to Cheetah Mobile shareholders

     (104,589     68,436       76,447       11,668  

Add:

        

Income tax expenses (benefits)

     6,539       (23,441     7,792       1,189  

Interest income, net

     (17,854     (2,077     (4,786     (730

Depreciation and amortization

     18,548       14,172       8,144       1,243  

Net (loss) income attributable to noncontrolling interests

     (3,796     (486     774       118  

Other expense (income), net

     (28,314     (116,606     (136,755     (20,872

Share-based compensation

     6,903       16,752       (1,626     (248
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (122,563     (43,250     (50,010     (7,632
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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