Cheetah Mobile Announces Fourth Quarter and Fiscal Year 2024 Unaudited Consolidated Financial Results
BEIJING, March 26, 2025 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a China-based IT company, today announced its unaudited consolidated financial results for the quarter and fiscal year ended December 31, 2024.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, remarked, "In Q4, our total revenue accelerated robustly, demonstrating our commitment to high-quality growth and ongoing business turnaround. With the momentum of LLMs, we entered 2025 with tremendous opportunities, including the upcoming launch of AgentOS, our next-generation voice interaction system for service robots, which further strengthens our leadership in voice-enabled robotics. By focusing on scalable robotics solutions and leveraging our strong product technology, we are well-positioned to become a top 3 service robot provider globally within three years. Meanwhile, our legacy Internet business continues to drive strong revenue growth and margin expansion on a year-over-year basis, providing a solid foundation for our AI and robotics investments."
Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: "In Q4, our revenue once again accelerated year-over-year, and we reduced our non-GAAP operating losses quarter-over-quarter. Furthermore, Q4 was the first quarter in which we reduced our non-GAAP operating losses on a year-over-year basis since 4Q 2022. These improvements reflect our continued business progress since Q1 2024. Additionally, we delivered strong cash flow this quarter. Looking ahead, we remain focused on driving revenue growth while working towards breakeven and profitability. At the same time, we will continue to manage our net cash position with discipline."
Fourth Quarter 2024 Financial Highlight
Total revenues grew by 41.7% year-over-year and 23.4% quarter-over-quarter, accelerating to RMB237.1 million (US$32.5 million) in the fourth quarter of 2024.
Gross profit increased by 74.4% year-over-year and 32.5% quarter-over-quarter, to RMB172.8 million (US$23.7 million) in the fourth quarter of 2024. Non-GAAP gross profit rose by 73.8% year-over-year and 32.1% quarter-over-quarter to RMB172.3 million (US$23.6 million).
Operating loss in the fourth quarter of 2024 was RMB207.1 million (US$28.4 million), compared to RMB60.9 million in the same period of last year and RMB72.0 million in the previous quarter. Non-GAAP operating loss in the fourth quarter of 2024 improved to RMB42.5 million (US$5.8 million) from RMB49.1 million in the same period of last year and RMB60.5 million in the previous quarter.
Net loss attributable to Cheetah Mobile Shareholders was RMB366.8 million (US$50.2 million), compared to RMB301.2 million in the same period of last year. Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB202.1 million (US$27.7 million), compared to RMB289.4 million in the same period of last year.
Cash flow generated by operating activities was RMB283.0 million (US$38.8 million) in the fourth quarter of 2024.
As of December 31, 2024, the Company had cash and cash equivalents of RMB1,833.0 million (US$251.1 million), ensuring strong liquidity.
As of December 31, 2024, the Company had long-term investments of RMB817.3 million (US$112.0 million).
Fiscal Year 2024 Financial Highlight
Total revenues grew by 20.5% year-over-year to RMB806.9 million (US$110.5 million) in 2024.
Gross profit rose by 24.6% year-over-year to RMB545.2 million (US$74.7 million). Non-GAAP gross profit rose by 24.5% year-over-year to RMB545.3 million (US$74.7 million).
Operating loss was RMB437.3 million (US$59.9 million) in 2024, compared to RMB209.8 million in 2023. Non-GAAP operating loss was RMB231.8 million (US$31.8 million) in 2024, compared to RMB171.9 million in 2023.
Net loss attributable to Cheetah Mobile shareholders was RMB617.6 million (US$84.6 million), compared to RMB602.9 million in 2023. Non-GAAP net loss attributable to Cheetah Mobile shareholders improved to RMB412.1 million (US$56.5 million) in 2024 from RMB564.9 million in 2023.
Conference Call Information
The Company will hold a conference call on March 26, 2025, at 7:00 a.m. Eastern Time (or 7:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:
Main Line:International: 1-412-317-6061United States Toll Free: 1-888-317-6003Mainland China Toll Free: 4001-206115Hong Kong Toll Free: 800-963976Conference ID: 5690589
English Translation:International: 1-412-317-6061United States Toll Free: 1-888-317-6003Mainland China Toll Free: 4001-206115Hong Kong Toll Free: 800-963976Conference ID: 0936457
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 RMB7.2993 to US$1.00, the exchange rate in effect as of December 31, 2024, 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 ZhuCheetah Mobile Inc.Tel: +86 10 6292
CHEETAH MOBILE INC.
Condensed Consolidated Balance Sheets
(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
As of
December 31, 2023
December 31, 2024
RMB
RMB
USD
ASSETS
Current assets:
Cash and cash equivalents
2,020,191
1,833,031
251,124
Short-term investments
1,023
335
46
Accounts receivable, net
401,064
473,619
64,886
Prepayments and other current assets, net
973,127
1,365,761
187,108
Due from related parties, net
71,505
106,934
14,650
Total current assets
3,466,910
3,779,680
517,814
Non-current assets:
Property and equipment, net
53,884
51,564
7,064
Operating lease right-of-use assets
30,451
26,323
3,606
Intangible assets, net
218,559
190,665
26,121
Goodwill
576,989
424,099
58,101
Long-term investments
937,460
817,330
111,974
Deferred tax assets
188,503
128,581
17,616
Other non-current assets
160,428
86,059
11,790
Total non-current assets
2,166,274
1,724,621
236,272
Total assets
5,633,184
5,504,301
754,086
LIABILITIES, MEZZANINE EQUITY AND
SHAREHOLDERS' EQUITY
Current liabilities:
Bank loans
5,000
-
-
Accounts payable
170,185
219,566
30,080
Accrued expenses and other current liabilities
2,437,210
2,756,805
377,681
Due to related parties
84,147
69,606
9,536
Income tax payable
31,603
35,804
4,905
Total current liabilities
2,728,145
3,081,781
422,202
Non-current liabilities:
Deferred tax liabilities
54,540
43,046
5,897
Other non-current liabilities
189,943
172,348
23,612
Total non-current liabilities
244,483
215,394
29,509
Total liabilities
2,972,628
3,297,175
451,711
Mezzanine equity:
Redeemable noncontrolling interests
105,978
189,725
25,992
Shareholders' equity:
Ordinary shares
244
248
34
Additional paid-in capital
2,711,875
2,722,504
372,982
Accumulated deficit
(613,102)
(1,232,575)
(168,862)
Accumulated other comprehensive income
356,854
410,421
56,227
Total Cheetah Mobile Inc. shareholders' equity
2,455,871
1,900,598
260,381
Noncontrolling interests
98,707
116,803
16,002
Total shareholders' equity
2,554,578
2,017,401
276,383
Total liabilities, mezzanine equity and
shareholders' equity
5,633,184
5,504,301
754,086
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
For The Year Ended
December 31, 2023
December 31, 2024
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2024
RMB
RMB
USD
RMB
RMB
USD
Revenues
167,314
237,089
32,481
669,503
806,877
110,541
Internet business
107,711
160,152
21,941
450,134
517,188
70,854
AI and others
59,603
76,937
10,540
219,369
289,689
39,687
Cost of revenues (a)
(68,243)
(64,317)
(8,811)
(231,940)
(261,682)
(35,850)
Gross profit
99,071
172,772
23,670
437,563
545,195
74,691
