BEIJING, April 15, 2025 /PRNewswire/ -- Cheetah Mobile Inc. ("Cheetah Mobile" or the "Company") (NYSE: CMCM), a China-based IT company, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission on April 15, 2025. The annual report can be accessed on the Company's investor relations website at http://ir.cmcm.com or the SEC's website at www.sec.gov.  About Cheetah Mobile Inc. Cheetah Mobile is a China-based IT company ...

Financial Performance - For the year ended December 31, 2024, total revenues amounted to RMB 806.9 million, a decrease from RMB 884.1 million in 2022[53]. - The net loss for the year ended December 31, 2024, was RMB 601.6 million, compared to a net loss of RMB 520.7 million in 2022[53]. - Total revenue decreased from RMB 884.1 million in 2022 to RMB 669.5 million in 2023, but increased to RMB 806.9 million (US$110.5 million) in 2024[133]. - The company reported service fee revenue from VIEs and their subsidiaries of RMB 183.5 million for the year ended December 31, 2024[53]. - Cheetah Mobile's five largest customers contributed approximately 30.3% of revenues in 2024, down from 29.2% in 2023 and 46.3% in 2022[76]. - The company has experienced revenue fluctuations due to seasonality in advertising spending, affecting quarterly results[134]. Investments and Financing - Capital contributions and loans to subsidiaries in China were RMB 92.3 million, RMB 109.9 million, and RMB 260.3 million (US$ 35.7 million) for the years ended December 31, 2022, 2023, and 2024, respectively[46]. - The subsidiaries repaid loans amounting to RMB 0, RMB 397.7 million, and RMB 74.6 million (US$ 10.2 million) for the years ended December 31, 2022, 2023, and 2024, respectively[46]. - Consolidated variable interest entities received debt financing of RMB 128.4 million, RMB 33.6 million, and RMB 78.7 million (US$ 10.8 million) from Cayman and subsidiaries for the years ended December 31, 2022, 2023, and 2024, respectively[47]. - The net cash provided by financing activities for 2024 was RMB 69,113 thousand, compared to a net cash used of RMB (6,778) thousand in 2023[57]. - In 2022, 2023, and 2024, the company made capital investments and acquisitions totaling RMB69.6 million, RMB292.4 million, and RMB37.0 million (US$5.1 million) respectively[128]. Regulatory Environment - The company is subject to complex and evolving PRC laws and regulations, which may impact its ability to conduct certain businesses and accept foreign investments[32]. - The PRC government has significant restrictions on foreign investment in internet businesses, which could impact the company's operations[176]. - The company is subject to regulatory scrutiny and must comply with various laws and regulations, which could impact operations and financial results[140]. - The complexity of PRC regulations on internet businesses creates risks of non-compliance, which could lead to severe penalties and operational disruptions[212]. - The company must comply with the General Data Protection Regulation (GDPR) in the EU, which imposes strict data protection requirements and could lead to significant penalties for non-compliance[161]. Operational Challenges - The company has observed marginal user growth recently, but the recovery remains uncertain and subject to volatility, which could adversely affect financial performance[60]. - The company faces risks related to maintaining user engagement and addressing user complaints regarding privacy settings and third-party promotions[68]. - The company has experienced challenges in international markets, including local competition and compliance with foreign laws, which may adversely affect its financial condition[83]. - The company has faced significant revenue impacts due to the disabling of its Google Play Store accounts, which affected user acquisition and revenue generation[95]. - The company has limited experience in scaling the commercialization of its service robots, which may hinder efficient market expansion[108]. Data Protection and Privacy - The Personal Information Protection Law, effective from November 1, 2021, imposes strict requirements on the processing of personal information, including potential fines of up to RMB1 million for violations[149]. - The company has implemented privacy policies to govern the collection, use, and disclosure of personal data, but faces ongoing risks related to data security and privacy[148]. - Security breaches or hacking incidents could materially harm the company's reputation and business prospects, exposing it to lawsuits and regulatory sanctions[165]. - The company is obligated to monitor advertising content on its platforms to ensure compliance with PRC laws, with potential penalties for violations[216]. Strategic Initiatives - Cheetah Mobile is expanding into service robots and AI-powered business applications to diversify revenue streams and capture new market opportunities[71]. - The expansion strategy requires substantial investment in research and development, marketing, and personnel, with risks of not achieving successful commercialization[72]. - The company aims to enhance its internet platform and monetize it effectively, focusing on innovative products and services to attract a larger user base[16]. - The company may pursue additional acquisitions and partnerships, but faces risks related to integration and management of these new entities[129]. Corporate Governance - The effectiveness of the company's internal control over financial reporting was concluded as effective as of December 31, 2024[173]. - Kingsoft Corporation and Mr. Sheng Fu collectively own 52.5% of the total outstanding shares and 71.9% of the voting power, which may discourage changes in control[197]. - The chief executive officer, Mr. Sheng Fu, is involved in a lawsuit that may affect the company's reputation and operations[123]. Market Conditions - A prolonged downturn in the global economy could adversely affect the company's business and financial condition, with significant uncertainties regarding trade policies between the US and China[207]. - The introduction of new tariffs and trade restrictions by the U.S. government could adversely affect both domestic and global economies, potentially impacting the company's results of operations[222]. - Uncertainty surrounding international trade policies could negatively impact consumer confidence and spending, affecting the company's overseas online advertising business and global B2B services[225].

Cheetah Mobile Inc. (NYSE:CMCM) Q4 2024 Earnings Conference Call March 26, 2025 7:00 AM ET Company Participants Helen Jing Zhu - IR Fu Sheng - Chairman and CEO Thomas Ren - Director and CFO Operator Good day, and welcome to the Cheetah Mobile Fourth Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today's event is being recorded. I would ...

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 LLM ...

BEIJING, March 19, 2025 /PRNewswire/ -- Cheetah Mobile Inc. ("Cheetah Mobile" or the "Company") (NYSE: CMCM), a China-based IT company, today announced that it will report its financial results for the fourth quarter and fiscal year 2024 before the U.S. market opens on Wednesday, March 26, 2025.  The earnings release will be available on the Company's investor relations website at http://ir.cmcm.com. Cheetah Mobile's management will hold an earnings conference call at 7:00 AM on Wednesday, March 26, 2025, U ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of $6.40, which represents a potential upside of 43.8% from the current price of $4.45 [6][9]. Core Insights - The company is positioned as a leading enterprise in artificial intelligence and internet technology, aiming to become a global provider of productivity tools in the AGI era. It focuses on human-machine collaboration and the development of diverse intelligent robot products [2][14]. - The company has a strong advantage in the service robot sector, leveraging self-developed large models and robots to enhance multi-task execution capabilities, significantly improving human-robot interaction efficiency and accuracy [3][41]. - The company has a rich array of product deployment scenarios across multiple industries, showcasing significant advantages in its diversified layout [5][45]. Summary by Sections Company Overview - The company, Cheetah Mobile, is engaged in AI and internet business, with a focus on becoming a leading productivity tool provider in the AGI era. Its main business segments include traditional internet services and AI-related services [14][15]. - The company has transitioned from a consumer-focused model to a business-oriented strategy, leveraging AI and robotics as core drivers for growth [15][19]. Industry Analysis - The global market for intelligent service robots is rapidly growing, driven by increasing demand across various sectors such as healthcare, logistics, and hospitality. The market is expected to reach $62.8 billion by 2028, with a compound annual growth rate (CAGR) of 17.8% from 2022 to 2028 [34][39]. - In China, the demand for intelligent service robots is particularly high due to labor shortages and rising labor costs, with the market projected to reach RMB 183.2 billion by 2028, growing at a CAGR of 23.5% [38][39]. Company Highlights and Competitive Advantages - The company has established a solid competitive moat through its extensive experience in internet operations and AI technology accumulation, enabling it to deliver superior user experiences in the intelligent robot sector [41][45]. - The self-developed large model, with 14 billion parameters, demonstrates exceptional performance in semantic processing, making it a leader among models with fewer than 70 billion parameters [41][42]. - The company’s robots are well-received in overseas markets, particularly in regions facing labor shortages, where the integration of large models has resolved language and adaptation challenges [47][48]. Financial Forecast and Investment Recommendations - The company is expected to achieve significant revenue growth, with projected revenues of RMB 7.5 billion, RMB 9.0 billion, and RMB 12.6 billion for the fiscal years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 11.6%, 20.9%, and 39.3% [58][60]. - The report emphasizes the company's potential for high growth in AI and other business segments, suggesting a high valuation premium due to its asset-light operating model and scale effects [7][59].

Financial Data and Key Metrics Changes - In Q3 2024, total revenues increased by 16.6% year-over-year, marking the second consecutive quarter of accelerating revenue growth compared to 11.6% in Q1 and 12.3% in Q2 [26] - Non-GAAP gross profit rose by 14% year-over-year and 7% quarter-over-quarter to RMB131 million, with non-GAAP gross margin expanding to 68% in Q3 from 65% in Q2 and 63% in Q1 [28] - Non-GAAP operating loss was RMB61 million in Q3, reduced from RMB63 million in Q2 and RMB66 million in Q1 [28] - Cash and cash equivalents stood at RMB1,831 million (approximately US$218 million) as of September 30, 2024 [31] Business Line Data and Key Metrics Changes - The service robotics segment continued to be a key driver of growth, while the legacy Internet business achieved solid revenue growth and margin expansion, growing by 26% year-over-year and 18% quarter-over-quarter [30] - Non-GAAP R&D expenses increased by 25% quarter-over-quarter in Q3, with about 60% of revenues being invested in R&D [29] Market Data and Key Metrics Changes - The penetration of robots in restaurants and hotels is currently around 5% for hotels, indicating significant growth potential in these markets [129] - The overall market for service robots is still in the early stages, particularly in overseas markets, which are seen as having substantial growth opportunities [130] Company Strategy and Development Direction - The company aims to expand its service robotics and Internet businesses, focusing on overseas markets and building a strong local distribution network [6][7] - Cheetah Mobile is investing in AI and large language models (LLMs) to enhance its service robotics business, with a goal to tap into the growing market for service robots and LLM-based applications [22] - The company is focused on a long-term strategy for its robot business, aiming to increase the proportion of revenue from this segment over the next few years [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to reduce losses and drive efficiency in AI operations, while also acknowledging the need for flexibility in investments due to market changes [65] - The CEO highlighted the importance of continuous feedback from local partners to optimize product offerings for overseas markets [10] Other Important Information - The company has consolidated teams to streamline operations and reduce costs, including bandwidth and cloud costs [29] - Cheetah Mobile has launched an AI-based data service platform, AirDS, to assist enterprises in data and building prompts for their LLM-based applications [21] Q&A Session Summary Question: What specific goals have been set for the robot business in 2025? - The company is still formulating specific goals but anticipates an increase in base income and revenue proportion from the robot business over the next 2.5 years [35][36] Question: How should we predict the revenue and profit margin trends of the Internet business in 2025? - The management indicated that the Internet business is expected to show steady growth, but specific predictions were not disclosed [40] Question: How do we overcome the problem of scarce data in robot training? - The company believes that the deployment of many robots globally provides sufficient data for training, and they are working on improving indoor navigation capabilities [44][47] Question: What is the plan for reducing losses and achieving profitability? - The company has a loss reduction plan and aims for profitability, but specific timelines were not disclosed due to market uncertainties [61][65] Question: How do you view Agentic AI or AI agents? - The management sees AI agents as a significant opportunity but emphasizes the need for stability and satisfaction in traditional systems [66][72] Question: How willing are enterprise customers to pay for large model applications? - The willingness of enterprise customers to pay depends on the input-output ratio of the applications, which must be high for adoption [78] Question: What are the impacts of the slowdown of the scaling law on the large model application industry? - The management believes that the slowdown may benefit startups by allowing them to focus on practical applications rather than competing on model capabilities [85][92] Question: How do you view the changes in the robot industry trend over the past three months? - The management noted that while the concept of large models is gaining popularity, practical implementation remains challenging, and they are focused on pragmatic solutions [97][102]

Core Viewpoint - Cheetah Mobile Inc. reported strong revenue growth in Q3 2024, driven by its service robotics and internet businesses, with a focus on innovation and operational efficiency to capitalize on the growing robotics market [2][3]. Financial Performance - Total revenues increased by 16.6% year-over-year to RMB192.1 million (US$27.4 million) in Q3 2024 [3]. - Gross profit rose by 13.9% year-over-year to RMB130.4 million (US$18.6 million) [3]. - Operating loss narrowed to RMB72.0 million (US$10.3 million), an improvement from RMB77.5 million in the previous quarter [3]. - Net loss attributable to shareholders was RMB46.9 million (US$6.7 million), significantly improved from RMB123.8 million in the previous quarter [3]. Business Segments - Revenues from the internet business grew by 25.8% year-over-year to RMB134.3 million (US$19.1 million) [3]. - Revenue from AI and others remained stable at RMB57.8 million (US$8.2 million), despite a 68% decline in overseas advertising revenue [3]. - The operating margin for the internet business improved to 10.3%, up from 6.2% in the same period last year [3]. Cost Structure - Cost of revenues increased by 22.6% year-over-year to RMB61.7 million (US$8.8 million), primarily due to higher hardware-related costs for service robots [3]. - Total operating expenses rose by 30.2% year-over-year to RMB202.4 million (US$28.8 million) [3]. - Research and development expenses surged by 44.8% year-over-year to RMB66.3 million (US$9.4 million) due to increased amortization and personnel costs following the acquisition of Beijing OrionStar [3]. Liquidity and Investments - As of September 30, 2024, the company had cash and cash equivalents of RMB1,530.5 million (US$218.1 million), indicating strong liquidity [3]. - Long-term investments amounted to RMB885.9 million (US$126.2 million) [3].

Core Viewpoint - Cheetah Mobile Inc. is set to report its financial results for the third quarter of 2024 on December 17, 2024, before the U.S. market opens, indicating a focus on transparency and communication with investors [1]. Financial Reporting - The earnings release will be available on the Company's investor relations website [1]. - An earnings conference call is scheduled for 6:00 AM U.S. Eastern Time on December 17, 2024, allowing stakeholders to engage directly with management [2]. Access Information - Participants can access the call through various international and toll-free numbers, with a specific Conference ID provided for both the main call and English translation [3]. - A replay of the conference call will be available until December 24, 2024, with access codes for both the main call and English translation [3]. Company Overview - Cheetah Mobile is a China-based IT company focused on AI innovation, with a user base in the hundreds of millions across its internet products and services [4]. - The company is involved in independent research and development of AI technologies, including LLM technologies, and offers advertising services, premium memberships, multi-cloud management platforms, and service robots [4]. - Cheetah Mobile has been listed on the New York Stock Exchange since May 2014, highlighting its established presence in the market [4].

Financial Data and Key Metrics Changes - In Q2 2024, total revenue grew by 12.3% year-over-year, reaching RMB 187 million, with non-GAAP gross profit increasing by 11% to RMB 122 million, maintaining a non-GAAP gross margin of 65% [5][15][16] - Non-GAAP operating loss decreased by approximately RMB 4 million quarter-over-quarter to RMB 62 million, reflecting a strategic reallocation of resources towards AI initiatives [16][17] - Cash generation capability was highlighted, with almost RMB 220 million generated from operating activities despite ongoing losses [17][18] Business Line Data and Key Metrics Changes - The service robotics segment emerged as a key revenue driver, contributing significantly to overall revenue growth, with AI and related services accounting for about 40% of total revenue [5][15] - The Internet business showed a relatively flat revenue year-over-year, with a 4% increase quarter-over-quarter, and an operating margin increase to 12.4% from 7.9% in the previous quarter [16] Market Data and Key Metrics Changes - Overseas revenue from service robotics has surpassed domestic revenue, with successful expansions into South Korea, Japan, and Southern Europe [8][9] - The company is actively building its presence in Southeast Asia, North America, and Australia, particularly in sectors like restaurants and factories [8] Company Strategy and Development Direction - The company is focusing on broadening the use cases of its service robots through continuous product innovations, particularly in voice interaction and autonomous deliveries [6][10] - Cheetah Mobile aims to make service robots more affordable for enterprises, emphasizing the balance between performance and cost [10][11] - The company is committed to long-term growth rather than short-term gains, leveraging its extensive experience in international operations to capture market opportunities in the service robotics industry [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the service robotics industry, viewing it as a significant market opportunity for AI commercialization, although acknowledging that the industry is still in its early stages [9][14] - The management emphasized the importance of maintaining sufficient cash reserves in the current uncertain economic environment, with no immediate plans for privatization, share buybacks, or dividends [33][34] Other Important Information - The company has approximately 870 employees, reflecting growth in its workforce to support AI initiatives [17] - Cheetah Mobile has achieved ISO certifications for data security and privacy management, ensuring compliance with international standards [46] Q&A Session Summary Question: How does Cheetah view the differences between wheeled robots and humanoid robots? - Management believes that wheeled robots are more practical for most scenarios, offering cost advantages and sufficient functionality for tasks like point-to-point deliveries [20][21][22] Question: How do clients budget for large model applications? - Clients are increasingly willing to allocate budgets based on cost savings achieved through AI applications, with some willing to share a portion of saved costs as their budget [24][27][28] Question: What are the plans for using cash reserves? - Management plans to maintain a cautious financial strategy, prioritizing cash reserves for flexibility in uncertain market conditions, with no current plans for privatization or dividends [32][33][34] Question: How does Cheetah view cooperation with large model manufacturers? - The company intends to collaborate with large model manufacturers to enhance robot intelligence, while also exploring the potential for developing its own models in the future [35][36][37] Question: What are Cheetah's competitive advantages in the robot market? - Cheetah's advantages include technological accumulation, product quality stability, and a well-established distribution network, enabling quick market access and user feedback integration [38][39][40][41][42][43] Question: How is data generated from overseas robot products managed? - Data is handled according to local laws and regulations, with a focus on security and compliance, ensuring that data usage aligns with international standards [44][45][46][47] Question: What organizational innovations have occurred since the acquisition of Orion? - The company has focused on strengthening training and sales management, transitioning to a core focus on B2B business, and enhancing cooperation with key accounts [49][50][51][52] Question: How does Cheetah view the effectiveness of large model applications? - Management believes that while there is a gap in intelligence levels between Chinese and foreign models, Chinese companies excel in application development and meeting user demands [55][56][59][60]