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Cheetah Mobile Announces First Quarter 2025 Unaudited Consolidated Financial Results

1. CMCM revenue grew 36.1% year-over-year in Q1 2025. 2. Internet business revenue increased 46.0%, margins improved to 15.5%. 3. AI segment revenue grew 22.9% year-over-year, boosting overall growth. 4. Operating losses greatly reduced to RMB26.5 million, enhancing investor confidence. 5. Company emphasized future growth in AI ventures and robotics innovations.

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$4.109906/19 05:49 AM EDTEvent Start
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Why Bullish?

The significant revenue growth and reduced operating losses indicate improving financial health. Historical examples show that such positive earnings reports lead to upward price movements in similar tech stocks.

How important is it?

The positive financial results and the CEO's optimistic outlook on AI signify a potential shift in market perception, especially for a firm heavily invested in tech.

Why Short Term?

Investors will likely react quickly to the positive earnings, impacting stock prices short-term, as seen in other tech earnings reports that exhibit strong growth.

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, /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 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: 1-412-317-6061United States Toll Free: 1-888-317-6003Mainland China Toll Free: 4001-206115Hong Kong Toll Free: 800-963976Conference ID: 8588778 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: 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 ZhuCheetah Mobile Inc.Tel: +86 10 6292 7779Email: [email protected]  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, 2024 December 31, 2024 March 31, 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, 2024 December 31, 2024 March 31, 2025 March 31, 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 Result Compensation intangible 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 GAAP Share-based Amortization of Impairment Non-GAAP Result Compensation intangible 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, 2024 December 31, 2024 March 31, 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) SOURCE Cheetah Mobile WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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