BEIJING, June 19, 2025 /PRNewswire/ -- Cheetah Mobile Inc. $(CMCM)$ ("Cheetah Mobile" or the "Company"), a China-based IT company, today announced its unaudited consolidated financial results for the quarter ended March 31, 2025.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, remarked, "We kicked off 2025 with strong momentum - total revenue grew 36.1% year-over-year in the first quarter, and margins improved significantly. Our Internet business continued to perform robustly, with revenue increasing 46.0% year-over-year. Meanwhile, revenue from our AI and Others segment grew by 22.9% year-over-year and accelerated to 29.8% quarter-over-quarter. We narrowed our operating losses this quarter while maintaining strong investment in AI and robotics. We remain encouraged by the momentum we're seeing and expect continued progress as we execute against our AI strategy. Looking ahead, we see agentic AI as a true game-changer. AI models are moving beyond conversation and into real-world action, and Cheetah Mobile's long track record of productizing cutting-edge technology positions us to capture this shift. By doubling down on R&D and infusing AI Agents into both our consumer applications and robotics portfolio, we are helping usher China's LLM industry from infrastructure build-out to application-driven innovation. Our focus remains clear: to keep generating steady revenue and profit growth from our legacy businesses, while strengthening our position in new AI ventures by creating practical, utility-focused AI tools and robots that understand people and help them accomplish more."
Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: "We made significant progress in narrowing our losses in Q1 2025, supported by disciplined execution, cost optimization, and steady topline growth. In particular, our Internet business posted a notable improvement in operating margin, reaching 15.5% in the quarter, up from 7.9% a year ago. We also continued to improve efficiency in our AI and Others segment by focusing on scalable use cases, leveraging open-source models and AI tools and streamlining product development. While we continue to invest in the significant opportunity that LLM technology represents, we remain focused on consistent margin expansion and loss reduction, while maintaining a strong balance sheet."
First Quarter 2025 Financial Highlight
-- Total revenues grew by 36.1% year-over-year and 9.2% quarter-over-quarter,
accelerating to RMB259.0 million (US$35.7 million) in the first quarter
of 2025.
-- Gross profit increased by 67.2% year-over-year and 9.7%
quarter-over-quarter, to RMB189.5 million (US$26.1 million) in the first
quarter of 2025. Non-GAAP gross profit rose by 67.1% year-over-year and
10.0% quarter-over-quarter to RMB189.5 million (US$26.1 million).
-- Operating loss reduced significantly in the first quarter of 2025 to
RMB26.5 million (US$3.7 million), compared to RMB80.6 million in the same
period of last year and RMB207.1 million in the previous quarter.
Non-GAAP operating loss in the first quarter of 2025 improved to RMB14.3
million (US$2.0 million) from RMB66.4 million in the same period of last
year and RMB42.5 million in the previous quarter.
-- Net loss attributable to Cheetah Mobile Shareholders was RMB33.4 million
(US$4.6 million), compared to RMB80.0 million in the same period of last
year and RMB366.8 million in the previous quarter. Non-GAAP net loss
attributable to Cheetah Mobile Shareholders was RMB21.1 million (US$2.9
million), compared to RMB65.8 million in the same period of last year and
RMB202.1 million in the previous quarter.
-- As of March 31, 2025, the Company had cash and cash equivalents of
RMB1,699.2 million (US$234.2 million), ensuring strong liquidity.
-- As of March 31, 2025, the Company had long-term investments of
RMB813.1million (US$112.1 million).
Conference Call Information
The Company will hold a conference call on June 19, 2025, at 8:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:
Main Line:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: 4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 8588778
English Translation:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: 4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 2026449
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 RMB7.2567 to US$1.00, the exchange rate in effect as of March 31, 2025, 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 China-based IT company with a commitment to AI innovation. It has attracted hundreds of millions of users through an array of internet products and services on PCs and mobile devices. At the same time, it actively engages in the independent research and development of AI technologies, including LLM technologies. Cheetah Mobile provides advertising services to advertisers worldwide, value-added services including the sale of premium membership to its users, multi-cloud management platform to companies globally, as well as service robots to international clients. Cheetah Mobile is also committed to leveraging its cutting-edge AI technologies, including LLM technologies, to empower 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
This release contains non-GAAP financial measures, including but not limited to:
-- Non-GAAP cost of revenues excludes share-based compensation expenses;
-- Non-GAAP gross profit excludes share-based compensation expenses;
-- Non-GAAP gross margin excludes share-based compensation expenses;
-- Total non-GAAP operating expenses exclude share-based compensation
expenses, amortization of intangible assets and impairment of goodwill
resulting from business acquisitions;
-- Non-GAAP research and development expenses exclude share-based
compensation expenses, amortization of intangible assets resulting from
business acquisitions;
-- Non-GAAP selling and marketing expenses exclude share-based compensation
expenses and amortization of intangible assets resulting from business
acquisitions;
-- Non-GAAP general and administrative expenses exclude share-based
compensation expenses;
-- Non-GAAP operating profit/loss excludes share-based compensation expenses,
amortization of intangible assets and impairment of goodwill resulting
from business acquisitions;
-- Non-GAAP net income/loss attributable to Cheetah Mobile shareholders
excludes share-based compensation expenses, amortization of intangible
assets and impairment of goodwill resulting from business acquisitions;
-- Non-GAAP diluted earnings/losses per ADS excludes share-based
compensation expenses, amortization of intangible assets and impairment
of goodwill resulting from business acquisitions; and
-- Non-GAAP adjusted EBITDA represents net loss attributable to Cheetah
Mobile shareholders excluding share-based compensation, interest income,
depreciation and amortization, impairment of goodwill, net income
attributable to noncontrolling interests, other income/expenses, net and
income tax expenses/benefits.
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, amortization of intangible assets and impairment of goodwill resulting from business acquisitions, 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. Reconciliation of GAAP and non-GAAP Results".
Investor Relations Contact
Helen Jing Zhu
Cheetah Mobile Inc.
Tel: +86 10 6292 7779
Email: ir@cmcm.com
CHEETAH MOBILE INC. Condensed Consolidated Balance Sheets (Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
As of
-----------------------------------------
December 31, 2024 March 31, 2025
----------------- ----------------------
RMB RMB USD
ASSETS
Current assets:
Cash and cash equivalents 1,833,031 1,699,237 234,161
Short-term investments 335 321 44
Accounts receivable, net 473,619 393,503 54,226
Prepayments and other current
assets, net 1,365,761 1,006,307 138,673
Due from related parties, net 106,934 109,053 15,028
----------------- ----------- ---------
Total current assets 3,779,680 3,208,421 442,132
----------------- ----------- ---------
Non-current assets:
Property and equipment, net 51,564 41,590 5,731
Operating lease right-of-use
assets 26,323 23,346 3,217
Intangible assets, net 190,665 183,518 25,289
Goodwill 424,099 424,099 58,442
Long-term investments 817,330 813,119 112,051
Deferred tax assets 128,581 124,493 17,156
Other non-current assets 86,059 84,896 11,701
----------------- ----------- ---------
Total non-current assets 1,724,621 1,695,061 233,587
----------------- ----------- ---------
Total assets 5,504,301 4,903,482 675,719
================= =========== =========
LIABILITIES, MEZZANINE EQUITY
AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 219,566 220,088 30,329
Accrued expenses and other
current liabilities 2,756,805 2,178,388 300,190
Due to related parties 69,606 70,896 9,770
Income tax payable 35,804 35,680 4,917
----------------- ----------- ---------
Total current liabilities 3,081,781 2,505,052 345,206
----------------- ----------- ---------
Non-current liabilities:
Deferred tax liabilities 43,046 42,023 5,791
Other non-current liabilities 172,348 169,416 23,346
----------------- ----------- ---------
Total non-current liabilities 215,394 211,439 29,137
----------------- ----------- ---------
Total liabilities 3,297,175 2,716,491 374,343
----------------- ----------- ---------
Mezzanine equity:
Redeemable noncontrolling
interests 189,725 191,984 26,456
Shareholders' equity:
Ordinary shares 248 248 34
Additional paid-in capital 2,722,504 2,730,456 376,267
Accumulated deficit (1,232,577) (1,265,934) (174,450)
Accumulated other comprehensive
income 410,423 411,397 56,692
----------------- ----------- ---------
Total Cheetah Mobile Inc.
shareholders' equity 1,900,598 1,876,167 258,543
Noncontrolling interests 116,803 118,840 16,377
----------------- ----------- ---------
Total shareholders' equity 2,017,401 1,995,007 274,920
----------------- ----------- ---------
Total liabilities, mezzanine
equity and shareholders'
equity 5,504,301 4,903,482 675,719
================= =========== =========
CHEETAH MOBILE INC. Condensed Consolidated Statements of Comprehensive Loss
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for number of shares and per share(or ADS) data)
For The Three Months Ended
-----------------------------------------------------------
March 31, December 31, March 31,
2024 2024 2025 March 31, 2025
------------- ------------- ------------- --------------
RMB RMB RMB USD
Revenues 190,288 237,089 259,006 35,692
Internet
business 109,020 160,152 159,141 21,930
AI and others 81,268 76,937 99,865 13,762
Cost of revenues (a) (76,952) (64,317) (69,505) (9,578)
------------- ------------- ------------- --------------
Gross profit 113,336 172,772 189,501 26,114
Operating income
and expenses:
Research and
development (a) (57,331) (65,506) (61,244) (8,440)
Selling and
marketing (a) (67,940) (104,851) (104,838) (14,447)
General and
administrative (a) (69,145) (56,281) (52,624) (7,252)
Impairment of
goodwill - (152,890) - -
Other operating
income/(expense),
net 508 (377) 2,670 368
------------- ------------- ------------- --------------
Total operating
income and
expenses (193,908) (379,905) (216,036) (29,771)
Operating loss (80,572) (207,133) (26,535) (3,657)
Other
income/(expenses):
Interest income, net 15,316 9,862 5,605 772
Foreign exchange
(losses)/gains (3,277) (32,236) 1,650 227
Other expense, net (7,595) (82,300) (4,009) (552)
------------- ------------- ------------- --------------
Loss before income
taxes (76,128) (311,807) (23,289) (3,210)
Income tax expenses (198) (51,064) (4,820) (664)
------------- ------------- ------------- --------------
Net loss (76,326) (362,871) (28,109) (3,874)
Less: net income
attributable to
noncontrolling
interests 3,709 3,913 5,248 723
------------- ------------- ------------- --------------
Net loss
attributable to
Cheetah Mobile
shareholders (80,035) (366,784) (33,357) (4,597)
============= ============= ============= ==============
Net loss per share
Basic (0.0549) (0.2438) (0.0235) (0.0032)
Diluted (0.0550) (0.2439) (0.0236) (0.0033)
Net loss per ADS
Basic (2.7450) (12.1907) (1.1749) (0.1600)
Diluted (2.7500) (12.1947) (1.1814) (0.1650)
Weighted average
number of shares
outstanding
Basic 1,494,213,830 1,512,707,145 1,515,787,128 1,515,787,128
Diluted 1,494,213,830 1,512,707,145 1,515,787,128 1,515,787,128
Weighted average
number of ADSs
outstanding
Basic 29,884,277 30,254,143 30,315,743 30,315,743
Diluted 29,884,277 30,254,143 30,315,743 30,315,743
Other comprehensive
income/(loss) , net
of tax of nil
Foreign currency
translation
adjustments 21,031 51,667 (272) (37)
Unrealized gains on
available-for-sale
securities, net 1,772 7,277 2,660 367
------------- ------------- ------------- --------------
Other comprehensive
income 22,803 58,944 2,388 330
------------- ------------- ------------- --------------
Total comprehensive
loss (53,523) (303,927) (25,721) (3,544)
------------- ------------- ------------- --------------
Less: Total
comprehensive
income attributable
to noncontrolling
interests 2,426 2,199 6,662 918
------------- ------------- ------------- --------------
Total comprehensive
loss attributable
to Cheetah Mobile
shareholders (55,949) (306,126) (32,383) (4,462)
============= ============= ============= ==============
For The Three Months Ended
---------------------------------------------
March 31, December 31, March 31, March 31,
2024 2024 2025 2025
--------- ------------ --------- ---------
(a) Share-based
compensation expenses RMB RMB RMB USD
Cost of revenues 92 (460) 5 1
Research and
development 292 1,280 296 41
Selling and marketing (44) (495) 71 10
General and
administrative 7,245 4,819 5,212 718
--------- ------------ --------- ---------
Total 7,585 5,144 5,584 770
========= ============ ========= =========
CHEETAH MOBILE INC. Reconciliation of GAAP and Non-GAAP Results (Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"), except for
per share data )
For The Three Months Ended March 31, 2025
-------------------------------------------------------------
GAAP Share-based Amortization of Non-GAAP
intangible
Result Compensation assets* Result
--------- ------------ --------------- -------------------
RMB RMB RMB RMB USD
Revenues 259,006 - - 259,006 35,692
Cost of
revenues (69,505) 5 - (69,500) (9,577)
--------- ------------ --------------- --------- --------
Gross profit 189,501 5 - 189,506 26,115
Research and
development (61,244) 296 6,156 (54,792) (7,551)
Selling and
marketing (104,838) 71 469 (104,298) (14,372)
General and
administrative (52,624) 5,212 - (47,412) (6,534)
Other operating
income, net 2,670 - - 2,670 368
--------- ------------ --------------- --------- --------
Total operating
income and
expenses (216,036) 5,579 6,625 (203,832) (28,089)
Operating loss (26,535) 5,584 6,625 (14,326) (1,974)
Net loss
attributable
to Cheetah
Mobile
shareholders (33,357) 5,584 6,625 (21,148) (2,914)
Diluted losses
per ordinary
share (RMB) (0.0236) 0.0037 0.0043 (0.0156)
Diluted losses
per ADS (RMB) (1.1814) 0.1850 0.2164 (0.7800)
Diluted losses
per ADS $(USD)$ (0.1650) 0.0255 0.0320 (0.1075)
For The Three Months Ended December 31, 2024
-------------------------------------------------------------
Amortization
GAAP Share-based of Impairment Non-GAAP
intangible
Result Compensation assets* of goodwill Result
--------- ------------ ------------ ----------- ---------
RMB RMB RMB RMB RMB
Revenues 237,089 - - - 237,089
Cost of
revenues (64,317) (460) - - (64,777)
--------- ------------ ------------ ----------- ---------
Gross profit 172,772 (460) - - 172,312
Research and
development (65,506) 1,280 6,156 - (58,070)
Selling and
marketing (104,851) (495) 469 - (104,877)
General and
administrative (56,281) 4,819 - - (51,462)
Impairment of
goodwill (152,890) - - 152,890 -
Other operating
loss, net (377) - - - (377)
--------- ------------ ------------ ----------- ---------
Total operating
income and
expenses (379,905) 5,604 6,625 152,890 (214,786)
Operating loss (207,133) 5,144 6,625 152,890 (42,474)
Net loss
attributable
to Cheetah
Mobile
shareholders (366,784) 5,144 6,625 152,890 (202,125)
Diluted losses
per ordinary
share (RMB) (0.2439) 0.0034 0.0044 0.1011 (0.1350)
Diluted losses
per ADS (RMB) (12.1947) 0.1700 0.2200 5.0547 (6.7500)
For The Three Months Ended March 31, 2024
------------------------------------------------------
GAAP Share-based Amortization of Non-GAAP
Result Compensation intangible assets* Result
--------- ------------ ------------------ ---------
RMB RMB RMB RMB
Revenues 190,288 - - 190,288
Cost of revenues (76,952) 92 - (76,860)
--------- ------------ ------------------ ---------
Gross profit 113,336 92 - 113,428
Research and
development (57,331) 292 6,156 (50,883)
Selling and marketing (67,940) (44) 469 (67,515)
General and
administrative (69,145) 7,245 - (61,900)
Other operating
income, net 508 - - 508
--------- ------------ ------------------ ---------
Total operating income
and expenses (193,908) 7,493 6,625 (179,790)
Operating loss (80,572) 7,585 6,625 (66,362)
Net loss attributable
to Cheetah Mobile
shareholders (80,035) 7,585 6,625 (65,825)
Diluted losses per
ordinary share (RMB) (0.0550) 0.0052 0.0043 (0.0455)
Diluted losses per ADS
(RMB) (2.7500) 0.2600 0.2150 (2.2750)
* This represents amortization of intangible assets resulting from business
acquisitions.
CHEETAH MOBILE INC. Information about Segment (Unaudited, amounts in
thousands of Renminbi ("RMB") and US dollars ("US$"), except for
percentage)
For The Three Months Ended March 31, 2025
-------------------------------------------------
Internet
Business AI and others Consolidated
--------------- ------------- -----------------
RMB RMB RMB USD
Revenues 159,141 99,865 259,006 35,692
Operating Costs
and expenses
Cost of revenues(i) 22,992 46,508 69,500 9,577
Selling and
marketing(i) 67,496 37,271 104,767 14,437
Research and
development(i) 32,843 28,105 60,948 8,399
Other segment
items(i) 11,203 33,539 44,742 6,166
Adjusted operating
income/(losses) 24,607 (45,558) (20,951) (2,887)
Unallocated
amounts-share
based
compensations (5,584) (770)
Operating loss (26,535) (3,657)
Reconciliation of
segment
profit/(loss)
Interest income,
net 5,605 772
Foreign exchange
gains, net 1,650 227
Other
(expense)/income,
net (4,009) (552)
Loss before income
taxes (23,289) (3,210)
For The Three Months Ended December 31, 2024
------------------------------------------------
Internet Business AI and others Consolidated
------------------ -------------- ------------
RMB RMB RMB
Revenues 160,152 76,937 237,089
Operating Costs and
expenses
Cost of revenues(i) 21,174 43,603 64,777
Selling and
marketing(i) 70,243 35,103 105,346
Research and
development(i) 30,651 33,575 64,226
Other segment items(i) 11,877 192,852 204,729
Adjusted operating
income/(losses) 26,207 (228,196) (201,989)
Unallocated
amounts-share based
compensations (5,144)
Operating loss (207,133)
Reconciliation of
segment
profit/(loss)
Interest income, net 9,862
Foreign exchange
losses, net (32,236)
Other
(expense)/income,
net (82,300)
Loss before income
taxes (311,807)
For The Three Months Ended March 31, 2024
----------------------------------------------
Internet Business AI and others Consolidated
----------------- ------------- ------------
RMB RMB RMB
Revenues 109,020 81,268 190,288
Operating Costs and
expenses
Cost of revenues(i) 19,221 57,639 76,860
Selling and marketing(i) 38,205 29,779 67,984
Research and
development(i) 26,787 30,252 57,039
Other segment items(i) 16,145 45,247 61,392
Adjusted operating
income/(losses) 8,662 (81,649) (72,987)
Unallocated
amounts-share based
compensations (7,585)
Operating loss (80,572)
Reconciliation of
segment profit/(loss)
Interest income, net 15,316
Foreign exchange losses,
net (3,277)
Other (expense)/income,
net (7,595)
Loss before income taxes (76,128)
(i) Share-based compensations were not allocated to segments. Other segment
items include general and administrative expenses and other operating expenses
allocated to the respective segments.
CHEETAH MOBILE INC. Reconciliation from Net Loss Attributable to
Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP) (Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
For The Three Months Ended
---------------------------------------------------
March 31, December March 31,
2024 31, 2024 2025 March 31, 2025
---------- ---------- ----------- --------------
RMB RMB RMB USD
Net loss
attributable to
Cheetah Mobile
shareholders (80,035) (366,784) (33,357) (4,597)
Add:
Income tax
expenses 198 51,064 4,820 664
Interest income,
net (15,316) (9,862) (5,605) (772)
Depreciation and
other
amortization 12,312 14,619 9,782 1,348
Net income
attributable to
noncontrolling
interests 3,709 3,913 5,248 723
Other expense 10,872 114,536 2,359 325
Share-based
compensation 7,585 5,144 5,584 770
Impairment of
goodwill - 152,890 - -
---------- ---------- ----------- --------------
Adjusted EBITDA (60,675) (34,480) (11,169) (1,539)
---------- ---------- ----------- --------------
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SOURCE Cheetah Mobile
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