Cheetah Mobile Announces Third Quarter 2015 Unaudited Financial Results

17 Nov, 2015, 06:00 ET from Cheetah Mobile

BEIJING, Nov. 17, 2015 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company that provides mission critical applications to help make the internet and mobile experience speedier, simpler, and safer for users worldwide, today announced its unaudited financial results for the quarter ended September 30, 2015.

Third Quarter 2015 Financial Highlights

  • Total revenues increased by 110.7% year-over-year and 15.9% quarter-over-quarter to RMB1,008.7 million (US$158.7 million).
  • Mobile revenues increased by 522.0% year-over-year and 25.6% quarter-over-quarter to RMB702.7 million (US$110.6 million), which was primarily driven by robust growth in mobile advertising revenues in both overseas and domestic markets. Mobile revenues accounted for 69.7% of total revenues. 
  • Overseas revenues[1] increased by 891.6% year-over-year and 24.7% quarter-over-quarter to RMB537.7 million (US$84.6 million), which was driven by a continued increase in mobile advertising revenues in overseas markets. Overseas revenues accounted for 53.3% of total revenues and 76.5% of mobile revenues.
  • Non-GAAP operating profit increased by 153.5% year-over-year and 40.4% quarter-over-quarter to RMB131.4 million (US$20.7 million).
  • Non-GAAP net income attributable to Cheetah Mobile shareholders increased by 138.1% year-over-year and 23.7% quarter-over-quarter to RMB143.4 million (US$22.6 million).

[1] Overseas revenues refers to revenues generated by our operating legal entities incorporated outside China. Such revenues are primarily attributable to customers located outside China

Third Quarter 2015 Key Operating Metrics

  • Mobile monthly active users ("Mobile MAUs") increased by 73 million quarter-over-quarter to 567 million in September 2015. Mobile MAUs from overseas markets were 74% of total mobile MAUs in September 2015.
  • Total global mobile user installations increased by 346 million quarter-over-quarter to 1,942 million as of September 30, 2015.

Mr. Sheng Fu, Cheetah Mobile's Chief Executive Officer, stated, "We are pleased to report another solid quarter.  Mobile MAUs reached 567 million in September. Our total revenues also exceeded RMB 1 billion for the first time, reaching RMB 1.01 billion in the quarter. The strong result was driven by our continued success in the overseas mobile advertising business. In addition to expanding our direct sales team globally, we continue to work closely with key internet players to further enhance our monetization capability. We are delighted that we've recently reached a global strategic partnership with Yahoo, including the integration of our products with Yahoo's Gemini native advertising platform. Furthermore, Cheetah is a user- and product-focused company, first and foremost. So, it is particularly encouraging that our content-driven products, through both organic means and strategic investments, achieved some notable successes in the quarter. For example, Piano Tiles 2, a light, casual mobile game that we developed, reached the No. 1 spot in the United States and the No. 5 spot globally as the most downloaded free game on Google Play in September. Looking forward, we remain firmly committed to strengthening our foundation through high-quality content and user engagement, as well as partnerships as we continue to focus on becoming one of the leading mobile internet companies globally."     

Mr. Andy Yeung, Cheetah Mobile's Chief Financial Officer, commented, "The third quarter is another record-setting quarter for Cheetah Mobile, both financially and operationally. Total revenues grew 111% year-over-year and 16% quarter-over-quarter to RMB1,009 million, driven by growing user traffic and strong demand for our mobile advertising services.  Non-GAAP operating profit grew 154% year-over-year and 40% quarter-over-quarter to RMB131 million, demonstrating the operating leverage inherent in our business model.  Looking ahead, we remain focused on expanding our mobile platform throughout the global markets and building a solid foundation for long-term, sustainable growth."

Third Quarter 2015 Financial Results

REVENUES

Total revenues for the third quarter of 2015 increased by 110.7% to RMB1,008.7 million (US$158.7 million) from RMB478.7 million in the prior year period. This increase was mainly driven by the Company's organic business growth, which was attributable to the Company's growing global mobile user base and substantial improvements in mobile monetization, especially in overseas markets. 

  • Revenues from online marketing services increased by 149.5% to RMB900.5 million (US$141.7 million) in the third quarter of 2015 from RMB360.9 million in the prior year period. Mobile advertising revenues represented approximately 72% of online marketing revenues in the quarter, which increased from approximately 21% of online marketing revenues in the prior year period. The increase in mobile advertising revenues was driven by the Company's growing global mobile user base, and strong demand from advertisers for the Company's mobile advertising services worldwide.  
  • Revenues from internet value added services ("IVAS") decreased by 7.3% to RMB99.5 million (US$15.7 million) in the third quarter of 2015 from RMB107.3 million in the prior year period. The year-over-year decrease was primarily due to the suspension of our online lottery operation in response to regulatory changes in China.    
  • Revenues from internet security services and others decreased by 16.0% to RMB8.7 million (US$1.4 million) in the third quarter of 2015 from RMB10.4 million in the prior year period. This decrease was primarily due to the Company ceasing to promote subscriptions services to paying users in a strategic reorientation which started in 2011, resulting in a decrease in the number of paying customers.

By platform, revenues generated from mobile business increased by 522.0% to RMB702.7 million (US$110.6 million) from RMB113.0 million in the prior year period. This increase was primarily driven by the Company's growing global mobile user base, and the increasing popularity of the Company's mobile marketing services in overseas and domestic markets. 

By region, revenues generated from overseas markets increased by 891.6% to RMB537.7 million (US$84.6 million) from RMB54.2 million in the prior year period. This increase was primarily due to continued growth of the Company's overseas mobile user base, and rapid growth of the Company's mobile advertising revenues in overseas markets.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues increased by 145.2% to RMB270.4 million (US$42.5 million) in the third quarter of 2015 from RMB110.3 million in the prior year period. The increase in cost of revenues was mainly due to higher traffic acquisition costs associated with the Cheetah Mobile ad platform business, higher bandwidth and internet data center (IDC) costs associated with increased user traffic worldwide and data analytics, in addition to higher amortization costs from intangible assets resulting from acquisitions.

Gross profit increased by 100.4% to RMB738.4 million (US$116.2 million) in the third quarter of 2015 from RMB368.4 million in the prior year period. Gross margin was 73.2% in the third quarter of 2015, compared to 77.0% in the prior year period.

OPERATING INCOME AND EXPENSES

Total operating expenses for the third quarter of 2015 increased by 93.4% to RMB721.6 million (US$113.5 million) from RMB373.2 million in the prior year period. Total non-GAAP operating expenses, which exclude share-based compensation expenses, increased by 91.8% to RMB608.6 million (US$95.8 million) from RMB317.3 million in the prior year period.

  • Research and development expenses increased by 49.7% to RMB203.1 million (US$32.0 million) from RMB135.7 million in the prior year period. The increase was primarily due to higher share-based compensation and personnel-related costs. Non-GAAP research and development expenses, which exclude share-based compensation expenses, increased by 14.9% to RMB138.0 million (US$21.7 million) from RMB120.1 million in the prior year period.
  • Selling and marketing expenses increased by 128.9% to RMB382.6 million (US$60.2 million) from RMB167.2 million in the prior year period. The increase was primarily due to the spending in promotional activities for the Company's mobile business. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 127.7% to RMB375.2 million (US$59.0 million) from RMB164.8 million in the prior year period.
  • General and administrative expenses increased by 93.2% to RMB135.9 million (US$21.4 million) from RMB70.4 million in the prior year period. The increase was primarily due to an increase in professional service fees, acquisition-related expenses and expenses associated with increased headcount. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 194.1% to RMB95.5 million (US$15.0 million) from RMB32.5 million in the prior year period.

Operating profit was RMB16.7 million (US$2.6 million) in the third quarter of 2015, compared to an operating loss of RMB4.8 million in the prior year period.

Non-GAAP operating profit increased by 153.5% to RMB131.4 million (US$20.7 million) in the third quarter of 2015 from RMB51.8 million in the prior year period. Non-GAAP operating margin increased to 13.0% from 10.8% in the prior year period.

For the third quarter of 2015, share-based compensation expenses were RMB114.7 million (US$18.0 million), compared to RMB56.6 million in the third quarter of 2014.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders increased by 687.2% to RMB28.8 million (US$4.5 million) in the third quarter of 2015 from RMB3.7 million in the prior year period.

Non-GAAP net income attributable to Cheetah Mobile shareholders increased by 138.1% to RMB143.4 million (US$22.6 million) from RMB60.3 million in the prior year period. Non-GAAP net margin increased to 14.2% in the third quarter of 2015 from 12.6% in the prior year period.

NET INCOME PER ADS

Diluted earnings per ADS in the third quarter of 2015 increased by 566.7% to RMB0.20 (US$0.03) from RMB0.03 in the prior year period.

Non-GAAP diluted earnings per ADS in the third quarter of 2015 increased by 132.6% to RMB1.00 (US$0.16) from RMB0.43 in the prior year period.

CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS BALANCE

As of September 30, 2015, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.373 billion (US$216.1 million). 

SHARES ISSUED AND OUTSTANDING

As of September 30, 2015, the Company had a total of 1,423,901,876 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

ADJUSTED EBITDA

Adjusted EBITDA (non-GAAP) was RMB168.8 million ($26.6 million) for the third quarter of 2015, representing a 116.7% increase from the corresponding period in 2014.

Business Outlook

For the fourth quarter of 2015, the Company expects its estimated total revenues to be between RMB1,110 million (US$175 million) and RMB1,160 million (US$183 million), representing a year-over-year growth of approximately 88% to 97%. The forecast reflects the Company's current and preliminary view, which is subject to change.

Conference Call Information

Company will hold a conference call on Tuesday, November 17, 2015 at 8:00 am Eastern Time or 9:00 pm Beijing Time to discuss the 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:           

4001-201203

Hong Kong Toll Free:  

800-905945

Conference ID:                    

Cheetah Mobile

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 RMB6.3556 to US$1.00, the noon buying rate in effect on September 30, 2015 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. 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. The Company aims to provide the best apps for mobile users worldwide, while building a leading global mobile ad platform for advertisers. Cheetah Mobile had approximately 567 million global mobile monthly active users in September 2015. Its mission critical applications, including Clean Master, CM Security, Battery Doctor and Duba Anti-virus, help make the internet and mobile experience speedier, simpler, and safer for users worldwide.  

The Company also provides various platform products such as Duba.com, Cheetah browser, game centers, and mobile app stores to provide multiple user traffic entry points and global content distribution channels for its business partners.

Safe Harbor Statements

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 certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  These forward-looking statements include, but are not limited to, statements about: 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 from 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 operating expenses reflect operating expenses excluding share-based compensation expenses.
  • Non-GAAP operating profit reflects operating profit excluding share-based compensation expenses.
  • Non-GAAP operating margin is non-GAAP operating profit as a percentage of total revenues.
  • Non-GAAP net income attributable to Cheetah Mobile shareholders is net income attributable to Cheetah Mobile shareholders excluding share-based compensation expenses.
  • Non-GAAP net margin is non-GAAP net income attributable to Cheetah Mobile shareholders as a percentage of total revenues.
  • Non-GAAP diluted earnings per ADS is non-GAAP net income attributable to Cheetah Mobile shareholders 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.

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. 66085 Email: IR@cmcm.com

ICR, Inc. Vera Tang Tel: +1 (646) 417-5395 Email: IR@cmcm.com  

 

Cheetah Mobile Inc.

Condensed Consolidated Balance Sheet

(In '000, except for per share data)

 As of 

 December 31, 2014  

 September 30, 2015 

 September 30, 2015 

 RMB 

 RMB 

 USD 

  (Audited)  

  (Unaudited)  

  (Unaudited)  

ASSETS

Current assets:

Cash and cash equivalents

1,093,285

815,463

128,306

Restricted cash

-

127,397

20,045

Short-term investments

513,621

430,379

67,717

Accounts receivable

260,347

551,897

86,836

Prepayments and other current assets

180,029

411,563

64,756

Due from related parities

43,570

132,707

20,880

Deferred tax assets

2,693

3,827

602

Total current assets

2,093,545

2,473,233

389,142

Non-current assets:

Property and equipment, net

45,905

76,552

12,045

Intangible assets, net 

199,616

252,307

39,698

Goodwill

261,686

613,558

96,538

Long-term investments

338,842

857,887

134,981

Deferred tax assets

6,384

39,534

6,220

Other non-current assets

55,197

23,831

3,751

Total non-current assets

907,630

1,863,669

293,233

Total assets

3,001,175

4,336,902

682,375

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities: 

Accounts payable

61,793

117,070

18,420

Accrued expenses and other current liabilities

481,694

1,008,658

158,704

Redemption right liabilities

520

558

88

Deferred revenue

44,180

49,202

7,742

Due to related parties

29,885

53,035

8,345

Income tax payable

3,584

61,019

9,601

Deferred tax liabilities

-

693

109

Total current liabilities

621,656

1,290,235

203,009

Non-current liabilities: 

Bank loans

-

10,736

1,689

Deferred revenue

1,134

4,473

704

Deferred tax liabilities

65,991

102,115

16,067

Other non-current liabilities

29,525

80,959

12,737

Total non-current liabilities

96,650

198,283

31,197

Total liabilities

718,306

1,488,518

234,206

Shareholders' equity:

Ordinary shares

222

226

36

Additional paid-in capital

2,059,983

2,369,481

372,817

Retained earnings

142,760

262,217

41,258

Accumulated other comprehensive income

3,373

79,066

12,440

Total Cheetah Mobile shareholders' equity

2,206,338

2,710,990

426,551

Noncontrolling interests

76,531

137,394

21,618

Total equity

2,282,869

2,848,384

448,169

Total liabilities, noncontrolling interests and shareholders' equity

3,001,175

4,336,902

682,375

 

Cheetah Mobile Inc.

Condensed Consolidated Statements of Comprehensive Income

(In '000, except for per share data and number of shares and ADSs)

For The Three Months Ended

September 30, 2014

June 30, 2015

September 30, 2015

September 30, 2015

RMB

RMB

RMB

USD

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

Revenues                                                       

478,678

870,544

1,008,744

158,717

Online marketing services

360,942

752,416

900,484

141,684

Internet value-added services

107,331

109,308

99,516

15,658

Internet security services and others

10,405

8,820

8,744

1,375

Cost of revenues (a)

(110,250)

(222,540)

(270,375)

(42,541)

Gross profit

368,428

648,004

738,369

116,176

Operating expenses: 

Research and development (a)  

(135,658)

(146,878)

(203,100)

(31,956)

Selling and marketing (a) 

(167,154)

(341,298)

(382,622)

(60,202)

General and administrative (a) 

(70,368)

(122,201)

(135,917)

(21,386)

Total operating expenses

(373,180)

(610,377)

(721,639)

(113,544)

Operating (loss) profit 

(4,752)

37,627

16,730

2,632

Other income:

Interest income

11,245

4,028

2,555

402

Changes in fair value of redemption right granted to a non-controlling shareholder

1

167

(167)

(26)

Changes in fair value of contingent consideration

(1,516)

2,677

(1,286)

(202)

Changes in fair value of put options granted to employees

(47)

-

(46)

(7)

Foreign exchange loss, net

(221)

(447)

(1,081)

(170)

Impairment loss of goodwill

-

(12,867)

-

-

Losses from equity method investments

(2,070)

(7,095)

(5,813)

(915)

Other income, net

2,107

42,031

32,935

5,182

Income before taxes

4,747

66,121

43,827

6,896

Income tax expenses

(1,229)

(9,677)

(14,009)

(2,204)

Net income 

3,518

56,444

29,818

4,692

Less: net (loss) income attributable to noncontrolling interests 

(136)

(3,562)

1,055

166

Net income attributable to Cheetah Mobile shareholders

3,654

60,006

28,763

4,526

Earnings per share

Basic 

0.00

0.04

0.02

0.00

Diluted 

0.00

0.04

0.02

0.00

Earnings per ADS

Basic 

0.03

0.44

0.21

0.03

Diluted 

0.03

0.42

0.20

0.03

Weighted average number of shares outstanding

Basic 

1,354,042,944

1,374,275,098

1,383,355,451

1,383,355,451

Diluted 

1,418,624,992

1,438,132,050

1,434,461,272

1,434,461,272

Weighted average number of ADSs used in computation

Basic 

135,404,294

137,427,510

138,335,545

138,335,545

Diluted 

141,862,499

143,813,205

143,446,127

143,446,127

Other comprehensive (loss) income, net of tax

Foreign currency translation adjustments

(316)

(8,197)

77,782

12,237

Unrealized (loss) gain on available-for-sale securities, net

(6,387)

7,161

413

65

Other comprehensive (loss) income, net of tax

(6,703)

(1,036)

78,195

12,302

Total comprehensive (loss) income 

(3,185)

55,408

108,013

16,994

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

(136)

(3,594)

1,338

210

Total comprehensive (loss) income attributable to Cheetah Mobile shareholders

(3,049)

59,002

106,675

16,784

(a) Share-based compensation expenses

 (In '000)

 For The Three Months Ended 

September 30, 2014

 June 30, 2015 

September 30, 2015

September 30, 2015

 RMB 

 RMB 

 RMB 

 USD 

  (Unaudited)  

  (Unaudited)  

  (Unaudited)  

  (Unaudited)  

Cost of revenues

715

744

1,656

261

Research and development

15,598

17,350

65,141

10,249

Selling and marketing

2,382

3,062

7,448

1,172

General and administrative

37,902

34,823

40,435

6,362

Total

56,597

55,979

114,680

18,044

 

Cheetah Mobile Inc.

Reconciliation of GAAP and Non-GAAP Results

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

For The Three Months Ended September 30, 2015

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Non-GAAP

Result

Revenues

Compensation

Revenues

Result

Revenues

Result$

Revenues                                                        

1,008,744

1,008,744

158,717

Cost of revenues

(270,375)

26.8%

1,656

0.2%

(268,719)

26.6%

(42,280)

Gross profit

738,369

73.2%

1,656

0.2%

740,025

73.4%

116,437

Research and development 

(203,100)

20.1%

65,141

6.5%

(137,959)

13.7%

(21,707)

Selling and marketing 

(382,622)

37.9%

7,448

0.7%

(375,174)

37.2%

(59,030)

General and administrative 

(135,917)

13.5%

40,435

4.0%

(95,482)

9.5%

(15,023)

Total operating expenses

(721,639)

71.5%

113,024

11.2%

(608,615)

60.3%

(95,760)

Operating profit

16,730

1.7%

114,680

11.4%

131,410

13.0%

20,677

Net income attributable to Cheetah Mobile Shareholders

28,763

2.9%

114,680

11.4%

143,443

14.2%

22,570

Diluted earnings per ordinary share (RMB)

0.02

0.08

0.10

Diluted earnings per ADS (RMB)

0.20

0.80

1.00

Diluted earnings per ADS (USD)

0.03

0.13

0.16

For The Three Months Ended June 30, 2015

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Result

Revenues

Compensation

Revenues

Result

Revenues

Revenues

870,544

870,544

Cost of revenues

(222,540)

25.6%

744

0.1%

(221,796)

25.5%

Gross profit

648,004

74.4%

744

0.1%

648,748

74.5%

Research and development 

(146,878)

16.9%

17,350

2.0%

(129,528)

14.9%

Selling and marketing 

(341,298)

39.2%

3,062

0.4%

(338,236)

38.9%

General and administrative 

(122,201)

14.0%

34,823

4.0%

(87,378)

10.0%

Total operating expenses

(610,377)

70.1%

55,235

6.3%

(555,142)

63.8%

Operating profit 

37,627

4.3%

55,979

6.4%

93,606

10.8%

Net income attributable to Cheetah Mobile Shareholders

60,006

6.9%

55,979

6.4%

115,985

13.3%

Diluted earnings per ordinary share (RMB)

0.04

0.04

0.08

Diluted earnings per ADS (RMB)

0.42

0.39

0.81

Diluted earnings per ADS (USD)

0.07

0.06

0.13

For The Three Months Ended September 30, 2014

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Result

Revenues

Compensation

Revenues

Result

Revenues

Revenues

478,678

478,678

Cost of revenues 

(110,250)

23.0%

715

0.1%

(109,535)

22.9%

Gross profit

368,428

77.0%

715

0.1%

369,143

77.1%

Research and development 

(135,658)

28.3%

15,598

3.3%

(120,060)

25.1%

Selling and marketing 

(167,154)

34.9%

2,382

0.5%

(164,772)

34.4%

General and administrative 

(70,368)

14.7%

37,902

7.9%

(32,466)

6.8%

Total operating expenses

(373,180)

78.0%

55,882

11.7%

(317,298)

66.3%

Operating (loss) profit

(4,752)

-1.0%

56,597

11.8%

51,845

10.8%

Net income attributable to Cheetah Mobile Shareholders

3,654

0.8%

56,597

11.8%

60,251

12.6%

Diluted earnings per ordinary share (RMB)

0.00

0.04

0.04

Diluted earnings per ADS (RMB)

0.03

0.40

0.43

Diluted earnings per ADS (USD)

0.01

0.06

0.07

 

Cheetah Mobile Inc.

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

(In '000)

For The Three Months Ended

September 30, 2014

June 30, 2015

September 30, 2015

September 30, 2015

RMB

RMB

RMB

USD

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

Net income attributable to Cheetah Mobile shareholders

3,654

60,006

28,763

4,526

Add:

        Income tax expense

1,229

9,677

14,009

2,204

        Interest income

(11,245)

(4,028)

(2,555)

(402)

        Depreciation and amortization

26,048

38,677

37,365

5,879

        Net (loss) income attributable to noncontrolling interests 

(136)

(3,562)

1,055

166

        Other non-operating expense (income), net

1,746

(24,466)

(24,542)

(3,862)

        Share-based compensation 

56,597

55,979

114,680

18,044

Adjusted EBITDA

77,893

132,283

168,775

26,555

  

Cheetah Mobile Inc.

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

(In '000)

For The Three Months Ended

September 30, 2014

June 30, 2015

September 30, 2015

September 30, 2015

RMB

RMB

RMB

USD

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

PC

365,710

310,966

306,092

48,161

Mobile

112,968

559,578

702,652

110,556

Total

478,678

870,544

1,008,744

158,717

 

Cheetah Mobile Inc.

Revenues Generated from Domestic and Overseas Markets

(In '000)

For The Three Months Ended

September 30, 2014

June 30, 2015

September 30, 2015

September 30, 2015

RMB

RMB

RMB

USD

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

Domestic revenues

424,452

439,190

471,038

74,114

Overseas revenues

54,226

431,354

537,706

84,603

Total

478,678

870,544

1,008,744

158,717

 

SOURCE Cheetah Mobile



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