Cheetah Cellular Pronounces 2d Quarter 2024 Unaudited Consolidated Monetary Effects

BEIJING, Sept. 13, 2024 /PRNewswire/ — Cheetah Cellular Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a China-based IT corporate, nowadays introduced its unaudited consolidated monetary effects for the second one quarter ended June 30, 2024.

Control Observation

Mr. Sheng Fu, Cheetah Cellular’s Chairman and Leading Government Officer, remarked, “In Q2, Cheetah Mobile achieved solid revenue growth of 12.3% year-over-year, with AI and others contributing around 40% of total revenue. Our service robotics business, both domestically and internationally, continues to drive growth. Customers choose us for our superior product experience, after-sales services, and strong AI capabilities, including far field speech recognition. With a team that brings extensive experience from the PC and mobile eras, we are investing in developing the best products to capture opportunities in the service robotics and LLMs markets. We remain focused on expanding our robotics use cases, advancing product innovation with LLMs, and growing our global presence. Rather than pursuing short-term gains, we are committed to achieving high-quality, long-term growth. We are confident in our ability to capture long-term opportunities ahead.”

Mr. Thomas Ren, Leading Monetary Officer of Cheetah Cellular, said, “In this quarter, we were able to reduce our operating loss compared to the previous quarter by strategically focusing on AI and service robots. Our operating margin, excluding share-based compensation expense for our legacy internet business, increased by 6.9 percentage points year over year and 4.5 percentage points quarter over quarter. Although Cheetah Mobile is still incurring losses, we generated more than RMB218 million in cash from operating activities in the second quarter, showcasing strong capabilities in cash generation and management. Moving forward, we are committed to continuing to enhance our operational efficiency and cash generation capabilities.”

2d Quarter 2024 Monetary Spotlight

Overall revenues speeded up to a year-over-year expansion of 12.3%, achieving RMB187.4 million (US$25.8 million) in the second one quarter of 2024, pushed by means of an building up within the supply of the Corporate’s carrier robots in each home and world markets.

• Revenues from web trade remained quite flat yr over yr at RMB113.7 million (US$15.7 million) in the second one quarter of 2024. In the second one quarter of 2024, revenues generated from the web trade accounted for 60.7% of general revenues, in comparison to 69.1% in the similar duration utmost yr.
• Revenues from AI and others larger by means of 42.8% yr over yr to RMB73.7 million (US$10.1 million) in the second one quarter of 2024. The expansion was once essentially pushed by means of an building up within the supply of the Corporate’s carrier robots, following the purchase of a controlling stake in Beijing OrionStar. In the second one quarter of 2024, revenues generated from AI and others accounted for 39.3% of general revenues, in comparison to 30.9% in the similar duration utmost yr.

Working loss was once RMB77.5 million (US$10.7 million) in the second one quarter of 2024, in comparison to RMB65.6 million in the similar duration of utmost yr. Non-GAAP working loss was once RMB62.5 million (US$8.6 million) in the second one quarter of 2024, in comparison to RMB48.3 million in the similar duration of utmost yr.

The rise in working losses on a year-over-year foundation was once because of the Corporate’s investments in AI, that have helped it support the product revel in of its carrier robots. As prior to now discussed within the age profits releases, Cheetah Cellular’s year-over-year prices and bills larger, in particular related to headcount and {hardware}.

• Value of revenues larger by means of 15.2% yr over yr to RMB65.9 million (US$9.1 million) in the second one quarter of 2024, essentially on account of the be on one?s feet within the hardware-related prices for the Corporate’s carrier robots. Non-GAAP price of revenues larger by means of 14.8% yr over yr to RMB65.5 million (US$9.0 million) in the second one quarter of 2024.
• Analysis and construction bills larger by means of 14.5% yr over yr to RMB54.3 million (US$7.5 million) in the second one quarter of 2024, essentially because of 1) amortization of intangible belongings on account of the purchase of a controlling stake in Beijing OrionStar, 2) upper R&D personnel-related bills following the purchase of Beijing OrionStar. Non-GAAP analysis and construction bills larger by means of 3.3% yr over yr to RMB48.0 million (US$6.6 million) in the second one quarter of 2024.
• Promoting and advertising bills larger by means of 17.3% yr over yr to RMB73.4 million (US$10.1 million) in the second one quarter of 2024, essentially because of 1) larger advertising and promotion bills connected to our consumer acquisition for sure merchandise of our web trade; and a pair of) larger personnel-related bills because the Corporate larger its gross sales group of workers following the purchase of a controlling stake in Beijing OrionStar. Non-GAAP promoting and advertising bills larger by means of 16.7% yr over yr to RMB72.8 million (US$10.0 million) in the second one quarter of 2024.
• Common and administrative bills larger by means of 8.0% yr over yr to RMB71.6 million (US$9.9 million) in the second one quarter of 2024, essentially because of larger personnel-related bills because the Corporate larger the choice of its G&A group of workers following the purchase of a controlling stake in Beijing OrionStar. Non-GAAP common and administrative bills larger by means of 26.9% yr over yr to RMB63.8 million (US$8.8 million) in the second one quarter of 2024.

When it comes to sequential efficiency, the Corporate was once ready to release its working loss from RMB80.6 million within the first quarter of 2024 to RMB77.5 million on this quarter, and its non-GAAP working loss from RMB66.4 million within the first quarter of 2024 to RMB62.5 million on this quarter. Significantly, working margin, aside from share-based repayment expense for the web trade, was once 12.4% in the second one quarter of 2024, an development from 7.9% within the first quarter of 2024 and 5.5% in the similar duration of utmost yr.

As of June 30, 2024, the Corporate had money and money equivalents and non permanent investments of RMB1,973.0 million (US$271.5 million).

As of June 30, 2024, the Corporate has long-term investments of RMB866.9 million (US$119.3 million). 

Convention Name Knowledge

The Corporate will conserve a convention name on September thirteenth, 2024, at 7:00 a.m. Japanese Day (or 7:00 p.m. Beijing Day) to talk about its monetary effects. Listeners might get entry to the decision by means of dialing refer to numbers:

Major Form:
Global: 1-412-317-6061
United States Toll Independent: 1-888-317-6003
Mainland China Toll Independent: 4001-206115
Hong Kong Toll Independent: 800-963976
Convention ID: 3980144

English Translation:
Global: 1-412-317-6061
United States Toll Independent: 1-888-317-6003
Mainland China Toll Independent: 4001-206115
Hong Kong Toll Independent: 800-963976
Convention ID: 7908950

A reside and archived webcast of the convention name can be on tap on the Corporate’s investor family members web page at http://ir.cmcm.com. 

Trade Price

This press let go comprises translations of sure Renminbi quantities into U.S. bucks at specified charges only for the benefit of readers. Except differently famous, all translations from Renminbi to U.S. bucks on this press let go had been made at a fee of RMB7.2672 to US$1.00, the trade fee in impact as of June 28, 2024, as poised forth within the H.10 statistical let go of the Federal Hold Board. Such translations will have to now not be construed as representations that RMB quantities may well be transformed into U.S. bucks at that fee or any alternative fee, or to be the quantities that might were reported below accounting rules in most cases permitted in the USA of The us (“U.S. GAAP”).

About Cheetah Cellular Inc.

Cheetah Cellular is a China-based IT corporate with a constancy to AI innovation. It has attracted loads of hundreds of thousands of customers via an array of web services and products on PCs and cellular gadgets. On the identical month, it actively engages within the separate analysis and construction of AI applied sciences, together with LLM applied sciences. Cheetah Cellular supplies promoting products and services to advertisers international, value-added products and services together with the sale of top rate club to its customers, multi-cloud control platform to corporations globally, in addition to carrier robots to world purchasers. Cheetah Cellular could also be dedicated to leveraging its state of the art AI applied sciences, together with LLM applied sciences, to empower its merchandise and form the arena smarter. It’s been indexed at the Fresh York Book Trade since Might 2014.

Barricade Harbor Commentary

This press let go comprises forward-looking statements. Those statements, together with control quotes and trade outlook, represent forward-looking statements below the U.S. Non-public Securities Litigation Reform Function of 1995. Those forward-looking statements can also be known by means of terminology reminiscent of “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and alike statements. Such statements contain inherent dangers and uncertainties. Numerous elements may motive fresh effects to vary materially from the ones contained within the forward-looking statements, together with however don’t seem to be restricted to refer to: Cheetah Cellular’s expansion methods; Cheetah Cellular’s skill to keep and building up its consumer bottom and increase its product and repair choices; Cheetah Cellular’s skill to monetize its platform; Cheetah Cellular’s occasion trade construction, monetary situation and result of operations; festival with corporations in a variety of industries together with web corporations that lend internet affiliate marketing products and services and web value-added products and services; anticipated adjustments in Cheetah Cellular’s revenues and likely price or expense pieces; and common financial and trade situation globally and in China. Additional knowledge referring to those and alternative dangers is integrated in Cheetah Cellular’s filings with the U.S. Securities and Trade Fee. Cheetah Cellular does now not adopt any legal responsibility to replace any forward-looking remark because of fresh knowledge, occasion occasions or differently, except for as required below acceptable legislation.

Virtue of Non-GAAP Monetary Measures

This let go comprises non-GAAP monetary measures, together with however now not restricted to:

• Non-GAAP price of revenues excludes share-based repayment bills;
• Non-GAAP improper benefit excludes share-based repayment bills;
• Non-GAAP improper margin excludes share-based repayment bills;
• Overall non-GAAP working bills exclude share-based repayment bills and amortization of intangible belongings on account of trade acquisitions;
• Non-GAAP analysis and construction bills exclude share-based repayment bills and amortization of intangible belongings on account of trade acquisitions;
• Non-GAAP promoting and advertising bills exclude share-based repayment bills and amortization of intangible belongings on account of trade acquisitions;
• Non-GAAP common and administrative bills exclude share-based repayment bills;
• Non-GAAP working benefit/loss excludes share-based repayment bills and amortization of intangible belongings on account of trade acquisitions;
• Non-GAAP internet source of revenue/loss resulting from Cheetah Cellular shareholders excludes share-based repayment bills and amortization of intangible belongings on account of trade acquisitions;
• Non-GAAP diluted profits/losses consistent with ADS excludes share-based repayment bills and amortization of intangible belongings on account of trade acquisitions; and
• Non-GAAP adjusted EBITDA represents internet source of revenue/loss resulting from Cheetah Cellular shareholders aside from share-based repayment, pastime source of revenue, depreciation and amortization, internet source of revenue resulting from noncontrolling pursuits, alternative source of revenue, internet and source of revenue tax bills.

The Corporate evaluations those non-GAAP monetary measures in conjunction with GAAP monetary measures to procure a greater working out of its working efficiency. It makes use of the non-GAAP monetary measures for making plans, forecasting and measuring effects towards the forecast. The Corporate believes that non-GAAP monetary measures are helpful supplemental knowledge for buyers and analysts to evaluate its working efficiency with out the impact of share-based repayment bills and amortization of intangible belongings on account of trade acquisitions, which were and can proceed to be vital habitual bills in its trade. Alternatively, the significance of non-GAAP monetary measures has subject material barriers as an analytical software. Some of the barriers of the use of non-GAAP monetary measures is that they don’t come with all pieces that have an effect on the Corporate’s internet source of revenue for the duration. As well as, as a result of non-GAAP monetary measures don’t seem to be slow in the similar way by means of all corporations, they is probably not similar to alternative in a similar way titled measures old by means of alternative corporations. In luminous of the foregoing barriers, you will have to now not believe non-GAAP monetary measure in isolation from or as an supplementary to the monetary measure ready in keeping with U.S. GAAP. For more info on those non-GAAP monetary measures, refer to the tables captioned “Cheetah Mobile Inc. Reconciliation of GAAP and Non-GAAP Results”.

Make investmentsor Family members Touch

Helen Jing Zhu
Cheetah Cellular Inc.
Tel: +86 10 6292 7779
Electronic mail: [email protected]

SOURCE Cheetah Cellular

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