Cheetah Mobile Announces Fourth Quarter and Fiscal Year 2017 Unaudited Consolidated Financial Results

Mar 19, 2018

BEIJING, March 19, 2018 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company with strong global vision, today announced its unaudited consolidated financial results for the fourth quarter and fiscal year ended December 31, 2017.

Fourth Quarter 2017 Financial Highlights

  • Total revenues increased by 8.9% year over year and 16.2% quarter over quarter to RMB1,387.8 million (US$213.3 million), exceeding the Company's previous guidance range of RMB1,250 million to RMB 1,310 million. Stronger-than-expected growth was driven by the Company's record-high mobile revenues in the fourth quarter of 2017, which increased by 17.8% year over year and 15.9% quarter over quarter.
  • Gross profit increased by 14.3% year over year and 16.5% quarter over quarter to RMB926.4 million (US$142.4 million). Gross margin was 66.8% in the fourth quarter of 2017, compared to 63.6% in the same period last year and 66.5% in the third quarter of 2017.
  • Operating profit increased to RMB222.0 million (US$34.1 million) from RMB62.2 million in the same period last year and RMB132.3 million in the third quarter of 2017. Operating margin expanded to 16.0% from 4.9% in the same period last year and 11.1% in the third quarter of 2017.
  • Operating profit for utility products and related services increased by 3.0% year over year and 25.5% quarter over quarter to RMB327.0 million (US$50.3 million) in the fourth quarter of 2017. Operating margin for utility products and related services expanded to 33.8% in the fourth quarter of 2017 from 31.5% in the same period last year and 31.6% in the third quarter of 2017.
  • Net income attributable to Cheetah Mobile shareholders increased to RMB1,047.1 million (US$160.9 million) from RMB58.8 million in the same period last year and RMB139.7 million in the third quarter of 2017.
  • Diluted income per ADS increased to RMB7.27 (US$1.12) in the fourth quarter of 2017 from RMB0.41 in the same period last year and RMB0.95 in the third quarter of 2017.
  • The Company generated RMB267.5 million (US$41.1 million) of net cash from operating activities and RMB258.9 million (US$39.8 million) of free cash flow[1] in the fourth quarter of 2017.

[1] Free cash flow is defined as net cash generated by operating activities less capital expenditure

Fourth Quarter 2017 Operating Metric

  • The average number of global mobile monthly active users ("Mobile MAUs") was 552 million in the fourth quarter of 2017. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 75.4% of the total number of Mobile MAUs in the fourth quarter of 2017.  

Fiscal Year 2017 Financial Highlights

  • Total revenues increased by 9.0% year over year to RMB4,974.8 million (US$764.6 million).
  • Gross profit increased by 5.8% year over year to RMB3,194.7 million (US$491.0 million).
  • Operating profit increased to RMB446.9 million (US$68.7 million) from an operating loss of RMB12.4 million in 2016.
  • Operating profit for utility products and related services increased by 16.1% year over year to RMB979.4 million (US$150.5 million) in 2017. Operating margin for utility products and related services expanded to 28.5% in 2017 from 21.8% in 2016.
  • Net income attributable to Cheetah Mobile shareholders increased to RMB1,348.2 million (US$207.2 million) from a net loss attributable to Cheetah Mobile shareholders of RMB80.5 million in 2016. 
  • Diluted net income per ADS in 2017 was RMB9.37 (US$1.44) as compared to diluted loss per ADS of RMB0.58 in 2016.
  • Net cash generated by operating activities was RMB621.1 million (US$95.5 million).

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "We are delighted to report a strong set of results for the fourth quarter of 2017. Our utility products and related service continued to expand its profitability and generate cash flow. Revenues from our Live.me and mobile game business continued to grow, thanks to our efforts in product innovation, creative operations, and content enrichment. Cheetah Mobile is a user- and product-focused company, so it is encouraging that our products continue to achieve notable progress. In this quarter, Live.me remained the No.1 grossing social app in the U.S. on Google Play and one of the top 6 in the Apple App Store. CM Launcher and Cheetah Keyboard were among the top 10 personalized apps in the U.S. on Google Play. Recently, we became one of the top 10 game publishers in the U.S. on both Google Play and the Apple App Store. Going forward, we will continue to use artificial intelligence ("AI") to enhance our products and services. We also believe that technologies such as blockchain will create opportunities for us to expand our product offerings."

Mr. Vincent Jiang, Cheetah Mobile's Chief Financial Officer, commented, "Driven by considerable growth in our mobile utility products and related services businesses in China and the overall growth of Live.me and mobile games, our total revenues exceeded the high end of our revenue guidance in the fourth quarter of 2017. Our operating profits continued to improve and achieved all-time highs in the quarter, driven by robust revenue growth and continued optimization of the cost and expense structure for utility products and related services.  In the fourth quarter, we closed two significant disposals, News Republic and our interests in Musical.ly, which generated a gain of RMB1,089.0 million (US$167.4 million) in the fourth quarter of 2017 and greatly boosted our balance sheet. In addition, our core business continues to generate strong cash flow, which allows us to reallocate our resources to execute expansion plans in order to drive our long-term growth."

Fourth Quarter 2017 Consolidated Financial Results

REVENUES

Total revenues increased by 8.9% year over year and 16.2% quarter over quarter to RMB1,387.8 million (US$213.3 million) in the fourth quarter of 2017. 

  • Revenues from utility products and related services decreased by 4.2% year over year but increased by 17.3% quarter over quarter to RMB967.2 million (US$148.7 million) in the fourth quarter of 2017. The year-over-year decrease was primarily due to (i) a decline in revenues from mobile utility products and related services business in the overseas markets as certain ad formats, i.e., ads on mobile phone lock screens, have been discontinued by one of our overseas third-party advertising partners, and (ii) a decline in PC revenues. This decrease was largely offset by an increase in our mobile utility products and related services business in China. The quarter-over-quarter increase was primarily due to the strong growth of our mobile utility products and related services business in China and seasonality in advertising spending in both China and the overseas markets.
  • Revenues from the mobile entertainment business increased by 50.5% year over year and 10.2% quarter over quarter to RMB399.5 million (US$61.4 million). The year-over-year increase was primarily a result of the rapid growth in Live.me's broadcasting revenues and the Company's continued efforts to expand the mobile game portfolio by introducing several new mobile games in early 2017. The quarter-over-quarter growth was mainly attributable to Live.me's increased revenues in the overseas market and mobile game revenues in China, where the Company's mobile games continue to gain popularity.

By platform, revenues generated from the mobile business increased by 17.8% year over year and 15.9% quarter over quarter to RMB1,217.5 million (US$187.1 million), or 87.7% of our total revenues in the fourth quarter of 2017.  

By region, revenues generated from the overseas markets increased by 1.4% year over year and 5.4% quarter over quarter to RMB843.8 million (US$129.7 million) in the fourth quarter of 2017. Revenues generated from the Chinese market increased by 23.0% year over year and 38.0% quarter over quarter to RMB544.0 million (US$83.6 million) in the fourth quarter of 2017. The growth of our revenues in the Chinese market was attributable to a ramp-up of mobile utility products and related services businesses in China and increased mobile game revenues in the Chinese market, where the Company's mobile games continue to gain popularity. Revenues generated from the overseas markets constitutes 60.8% of our total revenues in the fourth quarter of 2017.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 0.6% year over year but increased by 15.4% quarter over quarter to RMB461.4 million (US$70.9 million) in the fourth quarter of 2017. The quarter-over-quarter increase was a result of one-time higher channel costs associated with our mobile game business in China, and higher revenue sharing fees with online broadcasters associated with the Live.me business. Non-GAAP cost of revenues decreased by 0.2% year over year but increased by 15.7% quarter over quarter to RMB462.4 million (US$71.1 million) in the fourth quarter of 2017.

Gross profit increased by 14.3% year over year and 16.5% quarter over quarter to RMB926.4 million (US$142.4 million) in the fourth quarter of 2017. Non-GAAP gross profit increased by 14.1% year over year and 16.4% quarter over quarter to RMB925.4 million (US$142.2 million) in the fourth quarter of 2017.

OPERATING INCOME AND EXPENSES

Total operating expenses decreased by 5.9% year over year but increased by 6.3% quarter over quarter to RMB704.4 million (US$108.3 million) in the fourth quarter of 2017. Total non-GAAP operating expenses increased by 0.7% year over year and 9.2% quarter over quarter to RMB700.1 million (US$107.6 million) in the fourth quarter of 2017.

  • Research and development (R&D) expense decreased by 35.5% year over year and 13.0% quarter over quarter to RMB151.9 million (US$23.3 million) in the fourth quarter of 2017. The decreases were due to lower share-based compensation expenses and reduced R&D headcount resulting from the disposal of News Republic and the Company's strategy to optimize the cost and expense structure for its utility products and related services business. Non-GAAP R&D expenses, which exclude share-based compensation expenses, decreased by 30.7% year over year and 14.2% quarter over quarter to RMB147.4 million (US$22.7 million) in the fourth quarter of 2017.
  • Selling and marketing expenses increased by 2.9% year over year and 2.7% quarter over quarter to RMB420.1 million (US$64.6 million) in the fourth quarter of 2017. The increases were mainly due to increased promotional activities for the Company's mobile utility products in China and Cheez, a short video application operated by Live.me in the overseas markets. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased by 3.7% year over year and 3.0% quarter over quarter to RMB423.1 million (US$65.0 million) in the fourth quarter of 2017.
  • General and administrative expenses decreased by 9.3% year over year but increased by 29.7% quarter over quarter to RMB115.1 million (US$17.7 million) in the fourth quarter of 2017. The year-over-year decrease was primarily due to higher professional service fees and employee benefits, which was offset by lower share-based compensation expenses. The quarter-over-quarter increase primarily resulted from increased professional service fees and employee benefits. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased by 16.6% year over year and 63.9% quarter over quarter to RMB112.2 million (US$17.2 million) in the fourth quarter of 2017.
  • Impairment of goodwill and intangible assets were RMB38.7 million (US$5.9 million) in the fourth quarter of 2017 primarily due to a one-time non-cash write-down of intangible assets, which the Company considered other-than-temporary. Their carrying values exceed the expected undiscounted cash flows expected to result from the use of the assets and their eventual disposition.

Operating profit increased to RMB222.0 million (US$34.1 million) from RMB62.2 million in the same period last year and RMB132.3 million in the previous quarter. Non-GAAP operating profit increased by 93.7% year over year and 46.6% quarter over quarter to RMB225.4 million (US$34.6 million) in the fourth quarter of 2017. 

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

  • Operating profit for utility products and related services increased by 3.0% year over year and 25.5% quarter over quarter to RMB327.0 million (US$50.3 million) in the fourth quarter of 2017 mainly due to the optimization of the cost and expense structure and the increase in revenue in the fourth quarter of 2017.   
  • Operating loss for the mobile entertainment business was RMB61.8 million (US$9.5 million) in the fourth quarter of 2017, compared to operating losses of RMB201.1 million in the same period last year and RMB105.0 million in the third quarter of 2017. The reduced loss was mainly a result of increased revenues generated from the Company's Live.me and mobile game businesses and reduced costs and expenses from the News Republic business, partially offset by the Company's increased investments in Live.me and Cheez, the short video business operated by Live.me in overseas markets.

Share-based compensation expenses decreased by 93.8% year over year and 84.2% quarter over quarter to RMB3.4 million (US$0.5 million) in the fourth quarter of 2017. The decrease resulted from a combination of several factors. The Company employed an accelerated method to recognize share-based compensation expenses. A significant number of share-based awards that were granted by the Company during its IPO in 2014 approached the end of their vesting periods in 2017. Furthermore, fewer share-based awards were granted in 2017 than in previous years and more unvested awarded shares were forfeited in 2017.

IMPAIRMENT OF INVESTMENTS

Impairment of investments were RMB209.6 million (US$32.2 million) in the fourth quarter of 2017 primarily due to a one-time non-cash write-down of some investment assets, which the Company considered other-than-temporary, to its fair value. This write-down was the result of lower-than-expected performance and financial position of the investment assets.

OTHER INCOME, NET

Other income, net, was RMB1,089.0 million (US$167.4 million) in the fourth quarter of 2017, mainly resulting from the disposals of the Company's interests in Musical.ly and the Company's News Republic business.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders increased to RMB1,047.1 million (US$160.9 million) in the fourth quarter of 2017 from RMB58.8 million in the same period last year and RMB139.7 million in the third quarter of 2017. Non-GAAP net income attributable to Cheetah Mobile shareholders increased to RMB1,050.5 million (US$161.5 million) in the fourth quarter of 2017 from RMB113.0 million in the same period last year and RMB161.1 million in the third quarter of 2017.

NET INCOME PER ADS

Diluted income per ADS increased to RMB7.27 (US$1.12) in the fourth quarter of 2017 from RMB0.41 in the same period last year and RMB0.95 in the third quarter of 2017. Non-GAAP diluted income per ADS increased to RMB7.29 (US$1.12) in the fourth quarter of 2017 from RMB0.80 in the same period last year and RMB1.10 in the third quarter of 2017.

ADJUSTED EBITDA

Adjusted EBITDA (Non-GAAP) increased by 61.3% year over year and 36.8% quarter over quarter to RMB255.8 million (US$39.3 million) in the fourth quarter of 2017.

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

As of December 31, 2017, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,803.3 million (US$584.6 million). 

CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW

In the fourth quarter of 2017, the Company generated RMB267.5 million (US$41.1 million) of net cash from operating activities and RMB258.9 million (US$39.8 million) of free cash flow.

SHARES ISSUED AND OUTSTANDING

As of December 31, 2017, the Company had a total of 1,421,649,639 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

Fiscal Year 2017 Results

REVENUES

Total revenues increased by 9.0% year over year to RMB4,974.8 million (US$764.6 million) in 2017, which was primarily driven by rapid growth in the Company's Live.me and mobile game businesses. 

  • Revenues from utility products and related services decreased by 11.1% year over year to RMB3,439.6 million (US$528.7 million) in 2017. The decrease was primarily due to a decline in PC revenues as internet traffic in China continued to migrate from PC to mobile devices.
  • Revenues from the mobile entertainment business increased by 115.9% year over year to RMB1,496.4 million (US$230.0 million). The increase was primarily due to the rapid growth in Live.me's revenues and the Company's enriched mobile game portfolio as a result of the introduction of several new mobile games in early 2017.

By platform, revenues generated from the mobile business increased by 22.2% year over year to RMB4,315.0 million (US$663.2 million), or 86.7% of our total revenues in 2017. The increase was a result of the rapid growth of the Company's Live.me business in the overseas markets and the growth of the Company's mobile game revenues, particularly in the overseas markets. 

By region, revenues generated from overseas markets increased by 21.4% year over year to RMB3,335.5 million (US$512.7 million), or 67.0% of our total revenues, in 2017.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues increased by 15.3% year over year to RMB1,780.1 million (US$273.6 million) in 2017, which primarily resulted from increased investment in the Company's Live.me business. Non-GAAP cost of revenues increased by 15.4% year over year to RMB1,779.3 million (US$273.5 million) in 2017.

Gross profit increased by 5.8% year over year to RMB3,194.7 million (US$491.0 million) in 2017. Non-GAAP gross profit increased by 5.7% year over year to RMB3,195.4 million (US$491.1 million) in 2017.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 9.4% year over year to RMB2,747.8 million (US$422.3 million) in 2017. Total non-GAAP operating expenses decreased by 2.0% year over year to RMB2,675.2 million (US$411.2 million).

  • Research and development expenses decreased by 24.4% year over year to RMB684.9 million (US$105.3 million) in 2017, which primarily resulted from lower share-based compensation expenses and reduced R&D headcount for the Company's News Republic business and mobile utility product operation. Non-GAAP research and development expenses, which exclude share-based compensation expenses, decreased by 12.3% year over year to RMB664.2 million (US$102.1 million).
  • Selling and marketing expenses remained relatively flat year over year at RMB1,656.5 million (US$254.6 million) in 2017, which was primarily due to increased product promotional activities for the Live.me business. This was partially offset by reduced spending on product promotional activities for utility applications in the overseas markets. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, remained relatively flat year over year at RMB1,656.5 million (US$254.6 million).
  • General and administrative expenses decreased by 27.5% year over year to RMB407.4 million (US$62.6 million) in 2017, which was a result of lower share-based compensation expenses and a decrease in allowance for doubtful accounts. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, decreased by 15.2% year over year to RMB355.6 million (US$54.7 million).

Operating profit was RMB446.9 million (US$68.7 million) in 2017 as compared to an operating loss of RMB12.4 million in 2016. Non-GAAP operating profit increased by 77.1% year over year to RMB520.2 million (US$80.0 million) in 2017. 

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

  • Operating profit for utility products and related services increased by 16.1% year over year to RMB979.4 million (US$150.5 million) in 2017 mainly due to the optimization of the cost and expense structure of this segment. 
  • Operating loss for the mobile entertainment business was RMB417.4 million (US$64.1 million) in 2017, compared to operating loss of RMB532.0 million in 2016. The reduced loss was mainly a result of the year-over-year increases in revenues generated from the Company's Live.me and mobile game businesses and reduced costs and expenses from News Republic business, partially offset by the Company's increased investments in Live.me and Cheez, the short video business operated by Live.me in the overseas markets.

Share-based compensation expenses decreased by 76.1% year over year to RMB73.3 million (US$11.3 million) in 2017. The decrease resulted from a combination of several factors. The Company employed an accelerated method to recognize share-based compensation expenses. A significant number of share-based awards that were granted by the Company during its IPO in 2014 approached the end of their vesting periods in 2017. Furthermore, fewer share-based awards were granted in 2017 than in previous years and more unvested awarded shares were forfeited in 2017.

NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB1,348.2 million (US$207.2 million) in 2017 as compared to a net loss attributable to Cheetah Mobile shareholders of RMB80.5 million in 2016. Non-GAAP net income attributable to Cheetah Mobile shareholders increased by 530.0% year over year to RMB1,421.5 million (US$218.5 million) in 2017. 

NET INCOME/LOSS PER ADS

Diluted income per ADS in 2017 was RMB9.37 (US$1.44) as compared to diluted loss per ADS of RMB0.58 in 2016. Non-GAAP diluted income per ADS in 2017 was RMB9.88 (US$1.52) as compared to RMB1.59 in 2016.

ADJUSTED EBITDA

Adjusted EBITDA (Non-GAAP) increased by 43.6% year over year to RMB656.5 million (US$100.9 million) in 2017.

Recent Developments

Senior Management Promotions

Cheetah Mobile's board of directors has approved the promotions of Ms. Yuki Yandan He and Mr. Edward Mingyan Sun as Senior Vice Presidents in the fourth quarter of 2017.

Yuki joined Cheetah Mobile in 2010 and has been in charge of a number of the Company's flagship products, including Duba Anti-virus, Clean Master, and Battery Doctor. In particular, Clean Master has been the Company's most significant mobile product. Yuki has led the launch of Live.me, a popular living streaming application, in the overseas markets since April 2016. Live.me is Cheetah Mobile's first subsidiary to raise funds from outside investors. As the chief executive officer of Live.me, Yuki led Live.me's two rounds of financing in 2017 and raised an aggregate of US$110 million. Live.me has also been named one of Fast Company's Most Innovative Companies in Video for 2017. Prior to Cheetah Mobile, Yuki was a product director at Tencent and Kingsoft and played a significant role in designing various products. Yuki received a bachelor's degree in electronic science and technology from the University of Electronic Science and Technology of China.

Edward joined Cheetah Mobile in 2010 and has been in charge of various mobile utility products, including CM Launcher, Cheetah Keyboard, Cheetah Browser for both PC and mobile, and Duba Aiti-virus. Prior to Cheetah Mobile, Edward worked at Qihoo 360 and Trent Micro, serving in various management roles. Edward received a college degree and continued his post-graduate studies at the University of Science and Technology of China.

Update Regarding Bytedance-Related Deals

Cheetah Mobile completed the disposals of News Republic and Musical.ly to Bytedance in the fourth quarter of 2017.  The two transactions resulted in a gain of RMB1,089.0 million (US$167.4 million) in the fourth quarter of 2017.  In addition, Live.me Inc., which operates Live.me, a live video streaming application raised US$50 million from Bytedance in the fourth quarter of 2017. The new funding is presented as redeemable non-controlling interests on the Company's balance sheet as of December 31, 2017. 

Business Outlook

For the first quarter of 2018, the Company expects its total revenues to be between RMB1,100 million (US$169 million) and RMB1,140 million (US$175 million). This estimate represents management's preliminary view as of the date of this release, which is subject to change.

Conference Call Information

The Company will hold a conference call on Monday, March 19, 2018 at 8:00 a.m. Eastern Time or 8:00 p.m. 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 RMB6.5063 to US$1.00, the exchange rate in effect as of December 31, 2017, as set forth in the H.10 statistical release of the Federal Reserve Board.  Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America ("U.S. GAAP").

About Cheetah Mobile Inc.

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

Safe Harbor Statement

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

Use of Non-GAAP Financial Measures

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 cost of revenues reflects cost of revenues excluding the portion of share-based compensation expenses allocated to cost of revenues.
  • Non-GAAP gross profit reflects gross profit excluding the portion of share-based compensation expenses allocated to gross profit.
  • ŸNon-GAAP operating income and expenses reflect operating income and expenses excluding the portion of share-based compensation expenses allocated to operating expenses.
  • ŸNon-GAAP operating profit reflects operating profit excluding share-based compensation expenses.
  • Non-GAAP net income attributable to Cheetah Mobile shareholders is net income attributable to Cheetah Mobile shareholders excluding share-based compensation expenses.
  • Non-GAAP diluted earnings per ADS is non-GAAP net income attributable to Cheetah Mobile shareholders excluding net income attributable to redeemable noncontrolling interests, 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.
  • ŸFree cash flow is net cash generated by operating activities less capital expenditure.

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. 1600
Email: helenjingzhu@cmcm.com

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

 

 

CHEETAH MOBILE INC.

Condensed Consolidated Balance Sheets

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








As of


31-Dec-16


31-Dec-17


31-Dec-17


 RMB 


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

1,411,000


2,317,488


356,191

Restricted cash

167,751


90,149


13,856

Short-term investments

361,499


1,395,694


214,514

Accounts receivable

600,885


621,272


95,488

Prepayments and other current assets

571,306


918,243


141,131

Due from related parities

44,278


54,052


8,308

Deferred tax assets

15,527


-


-

Total current assets

3,172,246


5,396,898


829,488







Non-current assets:






Property and equipment, net

117,439


89,137


13,700

Intangible assets, net 

227,251


70,225


10,793

Goodwill

943,922


634,157


97,468

Investment in equity investees

100,063


149,969


23,050

Other long term investments

877,094


1,002,721


154,115

Due from related parities

-


5,216


802

Deferred tax assets

74,809


57,642


8,859

Other non-current assets

28,310


42,966


6,604

Total non-current assets

2,368,888


2,052,033


315,391







Total assets

5,541,134


7,448,931


1,144,879







LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY












Current liabilities: 






Bank loans

379,544


336,304


51,689

Accounts payable

194,882


164,537


25,289

Accrued expenses and other current liabilities

1,408,419


1,532,489


235,539

Due to related parties

71,167


81,810


12,574

Income tax payable

12,209


50,614


7,779

Total current liabilities

2,066,221


2,165,754


332,870







Non-current liabilities: 






Bank loans

118,797


-


-

Deferred tax liabilities

112,438


73,393


11,280

Other non-current liabilities

42,500


54,574


8,388

Total non-current liabilities

273,735


127,967


19,668







Total liabilities

2,339,956


2,293,721


352,538







Mezzanine equity:






Redeemable noncontrolling interests

-


649,246


99,787







Shareholders' equity:






Ordinary shares

230


229


35

Treasury stock

(178,991)


-


-

Additional paid-in capital

2,725,675


2,644,043


406,382

Retained earnings

237,293


1,564,883


240,518

Accumulated other comprehensive income

228,145


84,206


12,943

Total Cheetah Mobile shareholders' equity

3,012,352


4,293,361


659,878

Noncontrolling interests

188,826


212,603


32,676







Total equity

3,201,178


4,505,964


692,554







Total liabilities, mezzanine equity and equity

5,541,134


7,448,931


1,144,879

 

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


31-Dec-16


30-Sep-17


31-Dec-17


31-Dec-17


RMB


RMB


RMB


USD

Revenues

1,274,672


1,194,687


1,387,806


213,302

Utility products and related services 

1,009,206


824,764


967,232


148,661

Mobile entertainment

265,466


362,448


399,493


61,401

Others

-


7,475


21,081


3,240









Cost of revenues (a)

(464,197)


(399,664)


(461,383)


(70,913)

Gross profit

810,475


795,023


926,423


142,389









Operating income and expenses: 








Research and development (a)

(235,355)


(174,646)


(151,867)


(23,342)

Selling and marketing (a) 

(408,097)


(409,045)


(420,080)


(64,565)

General and administrative (a) 

(126,846)


(88,737)


(115,089)


(17,689)

Impairment of goodwill and intangible assets

(539)


-


(38,690)


(5,947)

Other operating income

22,545


9,739


21,307


3,275

Total operating income and  expenses

(748,292)


(662,689)


(704,419)


(108,268)









Operating profit

62,183


132,334


222,004


34,121

Other income (expense):








Interest income, net

954


7,380


10,227


1,572

Settlement and changes in fair value of contingent consideration

(3,011)


-


-


-

Foreign exchange gain (loss), net

2,951


(3,867)


(5,943)


(913)

Impairment of investments

(45,863)


(65,461)


(209,565)


(32,210)

Gains (Losses) from equity method investments, net

2,889


(582)


1,921


295

Other income, net

38,648


82,370


1,088,965


167,371









Income before taxes

58,751


152,174


1,107,609


170,236

Income tax benefits (expenses) 

9,278


(7,767)


(40,259)


(6,188)

Net income

68,029


144,407


1,067,350


164,048

Less: net income attributable to noncontrolling interests 

9,254


4,727


20,264


3,115

Net income attributable to Cheetah Mobile shareholders

58,775


139,680


1,047,086


160,933









Earnings per share








Basic 

0.04


0.10


0.74


0.11

Diluted 

0.04


0.09


0.73


0.11









Earnings per ADS








Basic 

0.42


0.97


7.43


1.14

Diluted 

0.41


0.95


7.27


1.12









Weighted average number of shares outstanding








Basic 

1,384,035,270


1,396,601,023


1,400,420,814


1,400,420,814

Diluted 

1,419,820,902


1,429,237,411


1,432,849,633


1,432,849,633

Weighted average number of ADSs outstanding








Basic 

138,403,527


139,660,102


140,042,081


140,042,081

Diluted 

141,982,090


142,923,741


143,284,963


143,284,963









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








Foreign currency translation adjustments

72,411


(48,572)


(52,267)


(8,033)

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

415


-


(433)


(67)

Other comprehensive income (loss) 

72,826


(48,572)


(52,700)


(8,100)

Total comprehensive income

140,855


95,835


1,014,650


155,948

Less: Total comprehensive income attributable to
noncontrolling interests

6,941


2,604


18,568


2,854

Total comprehensive income attributable to
Cheetah Mobile shareholders

133,914


93,231


996,082


153,094









(a) Share-based compensation expenses








Cost of revenues

824


(63)


(981)


(151)

Research and development

22,716


2,847


4,471


687

Selling and marketing

34


(1,680)


(3,049)


(469)

General and administrative

30,627


20,288


2,933


451

Total

54,201


21,392


3,374


518

 

CHEETAH MOBILE INC.

Information about Segment 

(Unaudited, in'000, except for percentage)













For The Three Months Ended December 31, 2017



Utility Products
and
Related Services


Mobile Entertainment


Others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB

USD

Revenue

967,232


399,493


21,081


-


1,387,806

213,302

Operating profit (loss)

326,950


(61,846)


(39,726)


(3,374)


222,004

34,121

Operating margin

33.8%


(15.5)%


(188.4)%




16.0%

16.0%














For The Three Months Ended September 30, 2017



Utility Products
and
Related Services


Mobile Entertainment


Others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

824,764


362,448


7,475


-


1,194,687


Operating profit (loss)

260,490


(104,957)


(1,807)


(21,392)


132,334


Operating margin

31.6%


(29.0)%


(24.2)%




11.1%

























For The Three Months Ended December 31, 2016



Utility Products
and
Related Services


Mobile Entertainment


Others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

1,009,206


265,466


-


-


1,274,672


Operating profit (loss)

317,463


(201,079)


-


(54,201)


62,183


Operating margin

31.5%


(75.7)%






4.9%













* Unallocated expenses refer to SBC expenses that are not allocated to individual segments.



 

CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

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
















For The Three Months Ended December 31, 2017




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net


Non-GAAP


Result


Revenues


Compensation


Revenues


Result


Revenues


Result ($)

Revenues

1,387,806








1,387,806




213,302

Cost of revenues

(461,383)


33.2%


(981)


0.1%


(462,364)


33.3%


(71,064)

Gross profit

926,423


66.8%


(981)


0.1%


925,442


66.7%


142,238















Research and development 

(151,867)


10.9%


4,471


0.3%


(147,396)


10.6%


(22,654)

Selling and marketing 

(420,080)


30.3%


(3,049)


0.2%


(423,129)


30.5%


(65,034)

General and administrative 

(115,089)


8.3%


2,933


0.2%


(112,156)


8.1%


(17,238)

Impairment of goodwill and intangible assets

(38,690)


2.8%


-


0.0%


(38,690)


2.8%


(5,947)

Other operating income

21,307


1.5%


-


0.0%


21,307


1.5%


3,275

Total operating income and expenses

(704,419)


50.8%


4,355


0.3%


(700,064)


50.4%


(107,598)















Operating profit 

222,004


16.0%


3,374


0.2%


225,378


16.2%


34,640

Net income attributable to Cheetah Mobile shareholders

1,047,086


75.4%


3,374


0.2%


1,050,460


75.7%


161,453















Diluted earnings per ordinary share (RMB)

0.73




0.00




0.73





Diluted earnings per ADS (RMB)

7.27




0.02




7.29





Diluted earnings per ADS (USD)

1.12




0.00




1.12


































For The Three Months Ended September 30, 2017




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,194,687








1,194,687





Cost of revenues

(399,664)


33.5%


(63)


0.0%


(399,727)


33.5%



Gross profit

795,023


66.5%


(63)


0.0%


794,960


66.5%

















Research and development 

(174,646)


14.6%


2,847


0.2%


(171,799)


14.4%



Selling and marketing 

(409,045)


34.2%


(1,680)


0.1%


(410,725)


34.4%



General and administrative 

(88,737)


7.4%


20,288


1.7%


(68,449)


5.7%



Impairment of goodwill and intangible assets

-


0.0%


-


0.0%


-


0.0%



Other operating income

9,739


0.8%


-


0.0%


9,739


0.8%



Total operating income and expenses

(662,689)


55.5%


21,455


1.8%


(641,234)


53.7%

















Operating profit

132,334


11.1%


21,392


1.8%


153,726


12.9%



Net income attributable to Cheetah Mobile shareholders

139,680


11.7%


21,392


1.8%


161,072


13.5%

















Diluted earnings per ordinary share (RMB)

0.09




0.02




0.11





Diluted earnings per ADS (RMB)

0.95




0.15




1.10
















































For The Three Months Ended  December 31, 2016




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

1,274,672








1,274,672





Cost of revenues

(464,197)


36.4%


824


0.1%


(463,373)


36.4%



Gross profit

810,475


63.6%


824


0.1%


811,299


63.6%

















Research and development 

(235,355)


18.5%


22,716


1.8%


(212,639)


16.7%



Selling and marketing 

(408,097)


32.0%


34


0.0%


(408,063)


32.0%



General and administrative 

(126,846)


10.0%


30,627


2.4%


(96,219)


7.5%



Impairment of goodwill and intangible assets

(539)


0.0%


-


0.0%


(539)


0.0%



Other operating income

22,545


1.8%


-


0.0%


22,545


1.8%



Total operating income and expenses

(748,292)


58.7%


53,377


4.2%


(694,915)


54.5%

















Operating profit

62,183


4.9%


54,201


4.3%


116,384


9.1%



Net income attributable to Cheetah Mobile Shareholders

58,775


4.6%


54,201


4.3%


112,976


8.9%

















Diluted earnings per ordinary share (RMB)

0.04




0.04




0.08





Diluted earnings per ADS (RMB)

0.41




0.39




0.80





 

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)






Year Ended December 31


2016

2017

2017


RMB

RMB

USD

Revenues

4,564,650

4,974,757

764,606

Utility products and related services 

3,870,995

3,439,563

528,651

Mobile entertainment

693,195

1,496,443

229,999

Others

460

38,751

5,956





Cost of revenues (a)

(1,543,817)

(1,780,089)

(273,595)

Gross profit

3,020,833

3,194,668

491,011





Operating income and expenses: 




Research and development (a)  

(905,854)

(684,863)

(105,262)

Selling and marketing (a) 

(1,650,581)

(1,656,505)

(254,600)

General and administrative (a) 

(561,834)

(407,410)

(62,618)

Impairment of goodwill and intangible assets

(2,889)

(38,862)

(5,973)

Other operating income

87,877

39,852

6,125

Total operating income and expenses

(3,033,281)

(2,747,788)

(422,328)





Operating (loss) profit 

(12,448)

446,880

68,683

Other income (expense):




Interest income, net

7,783

22,603

3,474

Settlement and changes in fair value of contingent consideration

(3,377)

(9,014)

(1,385)

Foreign exchange gain (loss) , net

3,747

(15,224)

(2,340)

Impairment of investments

(141,069)

(275,026)

(42,271)

(Losses) Gains from equity method investments, net

(11,363)

495

76

Other income, net

87,831

1,262,551

194,051





(Loss) Income before taxes

(68,896)

1,433,265

220,288

Income tax benefits (expenses) 

12,189

(57,602)

(8,853)

Net (loss) income 

(56,707)

1,375,663

211,435

Less: net income attributable to noncontrolling interests 

23,818

27,469

4,222

Net (loss) income attributable to Cheetah Mobile shareholders

(80,525)

1,348,194

207,213





(Losses) Earnings per share




Basic 

(0.06)

0.96

0.15

Diluted 

(0.06)

0.94

0.14





(Losses) Earnings per ADS




Basic 

(0.58)

9.57

1.47

Diluted 

(0.58)

9.37

1.44





Non-GAAP earnings per ADS




Basic 

1.63

10.10

1.55

Diluted 

1.59

9.88

1.52





Weighted average number of shares outstanding




Basic 

1,387,254,551

1,394,303,326

1,394,303,326

Diluted 

1,387,254,551

1,425,154,838

1,425,154,838

Diluted (non-GAAP)

1,423,086,096

1,425,154,838

1,425,154,838

Weighted average number of ADSs used in computation




Basic 

138,725,455

139,430,333

139,430,333

Diluted 

138,725,455

142,515,484

142,515,484

Diluted (non-GAAP)

142,308,610

142,515,484

142,515,484





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




Foreign currency translation adjustments

132,450

(148,304)

-22,794

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

1,241

(433)

(67)

Reclassification adjustments for gains included in net loss

(21,666)

-

-

Other comprehensive income (loss)

112,025

(148,737)

(22,861)

Total comprehensive income

55,318

1,226,926

188,574

Less: Total comprehensive income attributable to
noncontrolling interests

26,814

22,671

3,484

Total comprehensive income attributable to
Cheetah Mobile shareholders

28,504

1,204,255

185,090





(a) Share-based compensation expenses




Cost of revenues

1,490

762

117

Research and development

148,211

20,691

3,180

Selling and marketing

13,830

39

6

General and administrative

142,618

51,824

7,965

Total

306,149

73,316

11,268

 

CHEETAH MOBILE INC.

Information about Segment 

(Unaudited, in'000, except for percentage)













For The Year Ended December 31, 2017


Utility Products
and
Related Services


Mobile Entertainment


Others 


Unallocated*


Consolidated


RMB


RMB


RMB


RMB


RMB

USD

Revenue

3,439,563


1,496,443


38,751


-


4,974,757

764,606

Operating profit (loss)

979,447


(417,350)


(41,901)


(73,316)


446,880

68,683

Operating margin

28.5%


(27.9)%


(108.1)%




9.0%

9.0%














For The Year Ended December 31, 2016



Utility Products
and
Related Services


Mobile Entertainment


Others 


Unallocated*


Consolidated



RMB


RMB


RMB


RMB


RMB


Revenue

3,870,995


693,195


460


-


4,564,650


Operating profit (loss)

843,518


(531,989)


(17,828)


(306,149)


(12,448)


Operating margin

21.8%


(76.7)%


(3,875.7)%




-0.3%













* Unallocated expenses refer to SBC expenses that are not allocated to individual segments.




 

CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

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
















For The Year Ended December 31, 2017




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net


Non-GAAP


Result


Revenues


Compensation


Revenues


Result


Revenues


Result ($)

Revenues

4,974,757








4,974,757




764,606

Cost of revenues

(1,780,089)


35.8%


762


0.0%


(1,779,327)


35.8%


(273,478)

Gross profit

3,194,668


64.2%


762


0.0%


3,195,430


64.2%


491,128















Research and development 

(684,863)


13.8%


20,691


0.4%


(664,172)


13.4%


(102,081)

Selling and marketing 

(1,656,505)


33.3%


39


0.0%


(1,656,466)


33.3%


(254,594)

General and administrative 

(407,410)


8.2%


51,824


1.0%


(355,586)


7.1%


(54,653)

Impairment of goodwill and intangible assets

(38,862)


0.8%


-


0.0%


(38,862)


0.8%


(5,973)

Other operating income

39,852


0.8%


-


0.0%


39,852


0.8%


6,125

Total operating income and expenses

(2,747,788)


55.2%


72,554


1.5%


(2,675,234)


53.8%


(411,176)















Operating profit 

446,880


9.0%


73,316


1.5%


520,196


10.5%


79,953

Net income attributable to Cheetah Mobile shareholders

1,348,194


27.1%


73,316


1.5%


1,421,510


28.6%


218,482















Diluted earnings per ordinary share (RMB)

0.94




0.05




0.99





Diluted earnings per ADS (RMB)

9.37




0.51




9.88





Diluted earnings per ADS (USD)

1.44




0.08




1.52
















































For The Year Ended December 31, 2016




GAAP


% of Net


Share-based 


% of Net


Non-GAAP


% of Net




Result


Revenues


Compensation


Revenues


Result


Revenues



Revenues

4,564,650








4,564,650





Cost of revenues

(1,543,817)


33.8%


1,490


0.0%


(1,542,327)


33.8%



Gross profit

3,020,833


66.2%


1,490


0.0%


3,022,323


66.2%

















Research and development 

(905,854)


19.8%


148,211


3.2%


(757,643)


16.6%



Selling and marketing 

(1,650,581)


36.2%


13,830


0.3%


(1,636,751)


35.9%



General and administrative 

(561,834)


12.3%


142,618


3.1%


(419,216)


9.2%



Impairment of goodwill and intangible assets

(2,889)


0.1%


-


0.0%


(2,889)


0.1%



Other operating income

87,877


1.9%


-


0.0%


87,877


1.9%



Total operating income and expenses

(3,033,281)


66.5%


304,659


6.7%


(2,728,622)


59.8%

















Operating (loss) profit

(12,448)


0.3%


306,149


6.7%


293,701


6.4%



Net (loss) income attributable to Cheetah Mobile shareholders

(80,525)


1.8%


306,149


6.7%


225,624


4.9%

















Diluted (losses) earnings per ordinary share (RMB)

(0.06)




0.22




0.16





Diluted (losses) earnings per ADS (RMB)

(0.58)




2.17




1.59





 

CHEETAH MOBILE INC.

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

(Unaudited, in '000)






For The Three Months Ended


31-Dec-16

30-Sep-17

31-Dec-17

31-Dec-17


RMB

RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

58,775

139,680

1,047,086

160,933

Add:





Income tax (benefits) expenses

(9,278)

7,767

40,259

6,188

Interest income, net

(954)

(7,380)

(10,227)

(1,572)

Depreciation and amortization

42,196

33,162

30,377

4,669

Net income attributable to noncontrolling interests 

9,254

4,727

20,264

3,115

Other non-operating expense (income), net

4,386

(12,460)

(875,378)

(134,543)

Share-based compensation 

54,201

21,392

3,374

518

Adjusted EBITDA

158,580

186,888

255,755

39,308

 

CHEETAH MOBILE INC.

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

(Unaudited, in '000)






For The Year Ended December 31


31-Dec-16

31-Dec-17

31-Dec-17


RMB

RMB

USD

Net  (loss) income attributable to Cheetah Mobile shareholders

(80,525)

1,348,194

207,213

Add:




        Income tax (benefits) expense

(12,189)

57,602

8,853

        Interest income,net

(7,783)

(22,603)

(3,474)

        Depreciation and amortization

163,357

136,301

20,949

        Net income attributable to noncontrolling interests 

23,818

27,469

4,222

        Other non-operating expense (income), net

64,231

(963,782)

(148,131)

        Share-based compensation 

306,149

73,316

11,268

Adjusted EBITDA

457,058

656,497

100,900

 

CHEETAH MOBILE INC.

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

(Unaudited, in '000)







For The Three Months Ended


31-Dec-16

30-Sep-17

31-Dec-17

31-Dec-17


RMB

RMB

RMB

USD

PC

241,353

144,377

170,259

26,168

Mobile

1,033,319

1,050,310

1,217,547

187,134

Total

1,274,672

1,194,687

1,387,806

213,302

 

 

Cheetah Mobile Inc.

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

(Unaudited, in '000)






For The Year Ended December 31


31-Dec-16

31-Dec-17

31-Dec-17


RMB

RMB

USD

PC

1,034,205

659,744

101,400

Mobile

3,530,445

4,315,013

663,206

Total

4,564,650

4,974,757

764,606

 

 

CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, in '000)







For The Three Months Ended


31-Dec-16

30-Sep-17

31-Dec-17

31-Dec-17


RMB

RMB

RMB

USD

Domestic

442,089

394,236

543,974

83,607

Overseas

832,583

800,451

843,832

129,695

Total

1,274,672

1,194,687

1,387,806

213,302

 

Cheetah Mobile Inc.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, in '000)






For The Year Ended December 31


31-Dec-16

31-Dec-17

31-Dec-17


RMB

RMB

USD

Domestic

1,817,874

1,639,248

251,947

Overseas

2,746,776

3,335,509

512,659

Total

4,564,650

4,974,757

764,606

SOURCE Cheetah Mobile


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