Cheetah Mobile Announces Second Quarter 2015 Unaudited Financial Results

Aug 18, 2015, 05:00 ET from Cheetah Mobile

BEIJING, Aug. 18, 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 June 30, 2015.

Second Quarter 2015 Financial Highlights

  • Overseas revenues[1] increased by 1,832.0% year-over-year and 68.3% quarter-over-quarter to RMB431.4 million (US$69.6 million), which was driven by a significant ramp-up in mobile advertising revenues in overseas markets. Overseas revenues accounted for 50% of total revenues and 77% of mobile revenues.
  • Mobile revenues[2] increased by 634.0% year-over-year and 52.3% quarter-over-quarter to RMB559.6 million (US$90.3 million), which was primarily driven by a significant growth in mobile advertising revenues in both the overseas and domestic markets. Mobile revenues accounted for 64% of total revenues. 
  • Total revenues increased by 128.9% year-over-year and 29.5% quarter-over-quarter to RMB870.5 million (US$140.4 million).
  • Net income attributable to Cheetah Mobile shareholders increased by 347.4% year-over-year and 95.5% quarter-over-quarter to RMB60.0 million (US$9.7 million).
  • Adjusted EBITDA, a non-GAAP financial measure defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses, increased by 59.4% year-over-year to RMB132.3 million (US$21.3 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.

[2]

Mobile revenues included revenues from Hongkong Zoom Interactive Network Marketing Technology Limited.

Second Quarter 2015 Key Operating Metrics

  • Total global mobile user installations increased by 256 million quarter-over-quarter to 1,596 million as of June 30, 2015.
  • Mobile monthly active users ("Mobile MAUs") increased by 50 million quarter-over-quarter to 494 million in June 2015. Mobile MAUs from overseas markets were 71% of total mobile MAUs in June 2015.

Mr. Sheng Fu, Cheetah Mobile's Chief Executive Officer, stated, "The second quarter was another strong quarter for Cheetah Mobile both financially and operationally. Most importantly, we have achieved our mobile and global transformation goals with overseas revenue improving to 50% of total revenues and mobile revenue increasing to 64% of total revenues. Today, 494 million people use Cheetah apps each month worldwide, with 71% coming from overseas markets, which underpinned our robust financial performance. During the quarter, we also continued to improve our mobile and global monetization capabilities. Mobile revenues surged 634% year-over-year and overseas revenues jumped 1,832% year-over-year, which were driven by a continued ramp-up of our mobile advertising business, especially in the overseas markets. Our mobile and global monetization capabilities have benefited from our strong partnerships with key global Internet giants like Facebook, Google and Tencent. In addition, we launched Cheetah Mobile ad platform in June, further improving our mobile and global monetization capabilities."     

Mr. Andy Yeung, Cheetah Mobile's Chief Financial Officer, commented, "We are pleased to report our second quarter financial results, which well exceeded our expectations. Total revenues grew 129% year-over-year and 30% quarter-over-quarter. Our accelerated growth in total revenues and mobile revenues were driven by faster-than-expected overseas monetization ramp-up. Having begun monetization in overseas markets only a year ago, our overseas revenue now accounts for 50% of total revenues and 77% of mobile revenues. We are delighted by the progress we have achieved in the global mobile Internet market. Looking ahead, we will continue to invest decisively to solidify our leading position as a global traffic platform, while further enhancing our mobile and global monetization capabilities."

Second Quarter 2015 Financial Results

REVENUES

Total revenues for the second quarter of 2015 increased by 128.9% to RMB870.5 million (US$140.4 million) from RMB380.3 million in the prior year period. This increase was driven by the Company's organic business growth, driven by substantial improvements in mobile monetization, especially in overseas markets. 

  • Revenues from online marketing services increased by 165.5% to RMB752.4 million (US$121.4 million) in the second quarter of 2015 from RMB283.4 million in the prior year period. This increase was primarily due to the strong demand for the Company's mobile advertising business in both overseas and domestic markets, and, to a lesser extent, the additional revenue contributed by the MobPartner business, which we recently acquired in 2015.
  • Revenues from internet value added services ("IVAS") increased by 29.3% to RMB109.3 million (US$17.6 million) in the second quarter of 2015 from RMB84.6 million in the prior year period. This increase primarily reflected the growth of revenue from mobile and PC games published by the Company.
  • Revenues from internet security services and others decreased by 28.8% to RMB8.8 million (US$1.4 million) in the second quarter of 2015 from RMB12.4 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 634.0% to RMB559.6 million (US$90.3 million) from RMB76.2 million in the prior year period. This increase was primarily due to the increasing popularity of the Company's mobile marketing services in overseas and domestic markets. 

By region, revenues generated from overseas markets increased by 1,832.0% to RMB431.4 million (US$69.6 million) from RMB22.3 million in the prior year period. This increase was primarily due to a significant ramp-up in mobile advertising revenues in overseas markets.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues increased by 172.1% to RMB222.5 million (US$35.9 million) in the second quarter of 2015 from RMB81.8 million in the prior year period. The increase in cost of revenues was mainly due to higher traffic acquisition costs associated with our MobPartner business, higher costs associated with the mobile game business, higher bandwidth and internet data center (IDC) costs associated with increased user traffic and data analytics, as well as higher amortization costs from intangible assets resulting from acquisitions.

Gross profit increased by 117.1% to RMB648.0 million (US$104.5 million) in the second quarter of 2015 from RMB298.5 million in the prior year period. Gross margin was 74.4% in the second quarter of 2015, compared to 78.5% in the prior year period.

OPERATING INCOME AND EXPENSES

Total operating expenses for the second quarter of 2015 increased by 114.1% to RMB610.4 million (US$98.4 million) from RMB285.1 million in the prior year period. Total non-GAAP operating expenses, which exclude share-based compensation expenses, for the second quarter of 2015 increased by 138.2% to RMB555.1 million (US$89.5 million) from RMB233.1 million in the prior year period.

  • Research and development expenses increased by 42.1% to RMB146.9 million (US$23.7 million) from RMB103.3 million in the prior year period. The increase was primarily due to higher personnel-related costs. Non-GAAP research and development expenses, which exclude share-based compensation expenses, for the second quarter of 2015 increased by 46.2% to RMB129.5 million (US$20.9 million) from RMB88.6 million in the prior year period.
  • Selling and marketing expenses increased by 190.4% to RMB341.3 million (US$55.0 million) from RMB117.5 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 192.7% to RMB338.2 million (US$54.6 million) from RMB115.6 million in the prior year period.
  • General and administrative expenses increased by 90.3% to RMB122.2 million (US$19.7 million) from RMB64.2 million in the prior year period. The increase was primarily due to an increase in professional service fees and the increased expenses associated with headcount expansion. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 202.5% to RMB87.4 million (US$14.1 million) from RMB28.9 million in the prior year period.

Operating profit increased by 179.7% to RMB37.6 million (US$6.1 million) in the second quarter of 2015 from RMB13.5 million in the prior year period. Operating margin increased to 4.3% in the second quarter of 2015 from 3.5% in the prior year period.

Non-GAAP operating profit increased by 43.0% to RMB93.6 million (US$15.1 million) in the second quarter of 2015 from RMB65.5 million in the prior year period. Non-GAAP operating margin was 10.8%, compared to 17.2% in the prior year period.

For the second quarter of 2015, share-based compensation expenses were RMB56.0 million (US$9.0 million), compared to RMB52.0 million in the second quarter of 2014.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders increased by 347.4% to RMB60.0 million (US$9.7 million) in the second quarter of 2015 from RMB13.4 million in the prior year period. Net margin increased to 6.9% in the second quarter of 2015 from 3.5% in the prior year period.

Non-GAAP net income attributable to Cheetah Mobile shareholders increased by 77.2% to RMB116.0 million (US$18.7 million) from RMB65.4 million in the prior year period. Non-GAAP net margin was 13.3% in the second quarter of 2015, compared to 17.2% in the prior year period.

NET INCOME PER ADS

Diluted earnings per ADS in the second quarter of 2015 increased to RMB0.42 (US$0.07) from RMB0.10 in the prior year period.

Non-GAAP diluted earnings per ADS in the second quarter of 2015 increased to RMB0.81 (US$0.13) from RMB0.49 in the prior year period.

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

As of June 30, 2015, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$209.6 million). 

SHARES ISSUED AND OUTSTANDING

As of June 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 RMB132.3 million ($21.3 million) for the second quarter of 2015, representing a 59.4% increase from the corresponding period in 2014.

Business Outlook

For the third quarter of 2015, the Company expects its estimated total revenues to be between RMB990 million (US$160 million) and RMB1,010 million (US$163 million), representing a year-over-year growth of approximately 107% to 111%. 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, August 18, 2015 at 8:00 am Eastern Time or 8:00 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 RMB6.2000 to US$1.00, the noon buying rate in effect on June 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. As of June 2015, Cheetah Mobile had approximately 494 million mobile monthly active users in June 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. Cheetah Mobile is the publisher of Clean Master, the #1 mobile app in the Google Play Tools category worldwide by monthly downloads in June 2015, according to App Annie

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 Email: IR@cmcm.com

ICR, Inc. Chenjiazi Zhong 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  

June 30, 2015 

June 30, 2015 

 RMB 

 RMB 

 US$ 

  (Audited)  

  (Unaudited)  

  (Unaudited)  

ASSETS

Current assets:

Cash and cash equivalents

1,093,285

706,773

113,996

Restricted cash

-

122,192

19,708

Short-term investments

513,621

470,322

75,858

Accounts receivable

260,347

439,936

70,958

Prepayments and other current assets

180,029

225,675

36,399

Due from related parities

43,570

126,521

20,407

Deferred tax assets

2,693

7,373

1,189

Total current assets

2,093,545

2,098,792

338,515

Non-current assets:

Property and equipment, net

45,905

40,996

6,612

Intangible assets, net 

199,616

276,123

44,536

Goodwill

261,686

574,505

92,662

Long-term investments

338,842

792,800

127,871

Deferred tax assets

6,384

21,471

3,463

Other non-current assets

55,197

25,465

4,107

Total non-current assets

907,630

1,731,360

279,251

Total assets

3,001,175

3,830,152

617,766

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities: 

Accounts payable

61,793

118,254

19,073

Accrued expenses and other current liabilities

481,694

739,446

119,266

Redemption right liabilities

520

170

27

Deferred revenue

44,180

40,726

6,569

Due to related parties

29,885

68,609

11,066

Income tax payable

3,584

37,629

6,069

Deferred tax liabilities

-

912

147

Total current liabilities

621,656

1,005,746

162,217

Non-current liabilities: 

Bank loans

-

10,257

1,654

Deferred revenue

1,134

1,826

295

Deferred tax liabilities

65,991

106,639

17,200

Other non-current liabilities

29,525

77,511

12,501

Total non-current liabilities

96,650

196,233

31,650

Total liabilities

718,306

1,201,979

193,867

Shareholders' equity:

Ordinary shares

222

226

36

Additional paid-in capital

2,059,983

2,257,881

364,174

Retained earnings

142,760

233,454

37,654

Accumulated other comprehensive income

3,373

1,154

187

Total Cheetah Mobile shareholders' equity

2,206,338

2,492,715

402,051

Noncontrolling interests

76,531

135,458

21,848

Total equity

2,282,869

2,628,173

423,899

Total liabilities, noncontrolling interests and shareholders' equity

3,001,175

3,830,152

617,766

 

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

June 30, 2014

March 31, 2015

June 30, 2015

June 30, 2015

RMB

RMB

RMB

USD

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

380,301

672,484

870,544

140,410

Online marketing services

283,356

559,873

752,416

121,357

Internet value-added services

84,562

97,151

109,308

17,630

Internet security services and others

12,383

15,460

8,820

1,423

Cost of revenues (a)

(81,772)

(145,274)

(222,540)

(35,893)

Gross profit

298,529

527,210

648,004

104,517

Operating expenses:

Research and development (a)

(103,336)

(128,892)

(146,878)

(23,690)

Selling and marketing (a)

(117,533)

(249,499)

(341,298)

(55,048)

General and administrative (a)

(64,208)

(97,729)

(122,201)

(19,710)

Total operating expenses

(285,077)

(476,120)

(610,377)

(98,448)

Operating profit

13,452

51,090

37,627

6,069

Other income (expenses):

Interest income

5,313

5,147

4,028

650

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

89

-

167

27

Changes in fair value of contingent consideration

(525)

(3,478)

2,677

432

Changes in fair value of put options granted to employees

140

-

-

-

Foreign exchange gain (loss), net

148

(166)

(447)

(72)

Impairment loss of available-for-sale securities

-

(25,891)

-

-

Impairment loss of goodwill

-

-

(12,867)

(2,075)

Losses from equity method investments

(1,306)

(2,220)

(7,095)

(1,144)

Other income, net

300

10,250

42,031

6,778

Income before taxes

17,611

34,732

66,121

10,665

Income tax expenses

(4,200)

(5,543)

(9,677)

(1,562)

Net income

13,411

29,189

56,444

9,103

Less: net loss attributable to noncontrolling interests

-

(1,499)

(3,562)

(575)

Net income attributable to Cheetah Mobile shareholders

13,411

30,688

60,006

9,678

Earnings per share

Basic

0.01

0.02

0.04

0.01

Diluted

0.01

0.02

0.04

0.01

Earnings per ADS

Basic

0.11

0.23

0.44

0.07

Diluted

0.10

0.21

0.42

0.07

Weighted average number of shares outstanding

Basic

1,184,715,115

1,360,580,383

1,374,275,098

1,374,275,098

Diluted

1,329,554,370

1,431,681,212

1,438,132,050

1,438,132,050

Weighted average number of ADSs used in computation

Basic

118,471,512

136,058,038

137,427,510

137,427,510

Diluted

132,955,437

143,168,121

143,813,205

143,813,205

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

(943)

6,715

(8,197)

(1,322)

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

(15,235)

(1,064)

7,161

1,155

Reclassification adjustments for gains included in the consolidated statement of profit or loss

-

(6,814)

-

-

Other comprehensive loss

(16,178)

(1,163)

(1,036)

(167)

Total comprehensive income (loss)

(2,767)

28,026

55,408

8,936

Less: Total comprehensive loss attributable to noncontrolling interests

-

(1,447)

(3,594)

(580)

Total comprehensive income (loss) attributable to Cheetah Mobile shareholders

(2,767)

29,473

59,002

9,516

(a) Share-based compensation expenses

(In '000)

For The Three Months Ended

June 30, 2014

March 31, 2015

June 30, 2015

June 30, 2015

RMB

RMB

RMB

USD

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Cost of revenues

3

746

744

120

Research and development

14,740

11,435

17,350

2,798

Selling and marketing

1,959

1,808

3,062

494

General and administrative

35,325

32,220

34,823

5,617

Total

52,027

46,209

55,979

9,029

 

 

Cheetah Mobile Inc.

Reconciliation of GAAP and Non-GAAP Results

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

For The Three Months Ended June 30, 2015

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Non-GAAP

Result

Revenues

Compensation

Revenues

Result

Revenues

Result $

Revenues

870,544

870,544

140,410

Cost of revenues

(222,540)

25.6%

744

0.1%

(221,796)

25.5%

(35,773)

Gross profit

648,004

74.4%

744

0.1%

648,748

74.5%

104,637

Research and development 

(146,878)

16.9%

17,350

2.0%

(129,528)

14.9%

(20,892)

Selling and marketing 

(341,298)

39.2%

3,062

0.4%

(338,236)

38.9%

(54,554)

General and administrative 

(122,201)

14.0%

34,823

4.0%

(87,378)

10.0%

(14,093)

Total operating expenses

(610,377)

70.1%

55,235

6.3%

(555,142)

63.8%

(89,539)

Operating profit

37,627

4.3%

55,979

6.4%

93,606

10.8%

15,098

Net income attributable to Cheetah Mobile Shareholders

60,006

6.9%

55,979

6.4%

115,985

13.3%

18,707

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 March 31, 2015

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Result

Revenues

Compensation

Revenues

Result

Revenues

Revenues

672,484

672,484

Cost of revenues

(145,274)

21.6%

746

0.1%

(144,528)

21.5%

Gross profit

527,210

78.4%

746

0.1%

527,956

78.5%

Research and development 

(128,892)

19.2%

11,435

1.7%

(117,457)

17.5%

Selling and marketing 

(249,499)

37.1%

1,808

0.3%

(247,691)

36.8%

General and administrative 

(97,729)

14.5%

32,220

4.8%

(65,509)

9.7%

Total operating expenses

(476,120)

70.8%

45,463

6.8%

(430,657)

64.0%

Operating profit 

51,090

7.6%

46,209

6.9%

97,299

14.5%

Net income attributable to Cheetah Mobile Shareholders

30,688

4.6%

46,209

6.9%

76,897

11.4%

Diluted earnings per ordinary share (RMB)

0.02

0.03

0.05

Diluted earnings per ADS (RMB)

0.21

0.33

0.54

Diluted earnings per ADS (USD)

0.03

0.06

0.09

For The Three Months Ended June 30, 2014

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Result

Revenues

Compensation

Revenues

Result

Revenues

Revenues

380,301

380,301

Cost of revenues 

(81,772)

21.5%

3

0.0%

(81,769)

21.5%

Gross profit

298,529

78.5%

3

0.0%

298,532

78.5%

Research and development 

(103,336)

27.2%

14,740

3.9%

(88,596)

23.3%

Selling and marketing 

(117,533)

30.9%

1,959

0.5%

(115,574)

30.4%

General and administrative 

(64,208)

16.9%

35,325

9.3%

(28,883)

7.6%

Total operating expenses

(285,077)

75.0%

52,024

13.7%

(233,053)

61.3%

Operating profit

13,452

3.5%

52,027

13.7%

65,479

17.2%

Net income attributable to Cheetah Mobile Shareholders

13,411

3.5%

52,027

13.7%

65,438

17.2%

Diluted earnings per ordinary share (RMB)

0.01

0.04

0.05

Diluted earnings per ADS (RMB)

0.10

0.39

0.49

Diluted earnings per ADS (USD)

0.02

0.06

0.08

 

Cheetah Mobile Inc.

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

(In '000)

For The Three Months Ended

June 30, 2014

March 31, 2015

June 30, 2015

June 30, 2015

RMB

RMB

RMB

USD

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net income attributable to Cheetah Mobile shareholders

13,411

30,688

60,006

9,678

Add:

Income tax expense

4,200

5,543

9,677

1,562

Interest expense (income), net

(5,313)

(5,147)

(4,028)

(650)

Depreciation and amortization

17,489

32,034

38,677

6,238

Net loss attributable to noncontrolling interests

-

(1,499)

(3,562)

(575)

Other non-operating expense (income), net

1,154

21,505

(24,466)

(3,946)

Share-based compensation

52,027

46,209

55,979

9,029

Adjusted EBITDA

82,968

129,333

132,283

21,336

 

 

Cheetah Mobile Inc.

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

(In '000)

For The Three Months Ended

June 30, 2014

March 31, 2015

June 30, 2015

June 30, 2015

RMB

RMB

RMB

USD

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

PC

304,065

305,105

310,966

50,155

Mobile

76,236

367,379

559,578

90,255

Total

380,301

672,484

870,544

140,410

 

 

Cheetah Mobile Inc.

Revenues Generated from Domestic and Overseas Markets

(In '000)

For The Three Months Ended

June 30, 2014

March 31, 2015

June 30, 2015

June 30, 2015

RMB

RMB

RMB

USD

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

Domestic revenues

357,974

416,253

439,190

70,837

Overseas revenues

22,327

256,231

431,354

69,573

Total

380,301

672,484

870,544

140,410

 

SOURCE Cheetah Mobile



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