BEIJING, June 16, 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 first quarter 2025 before the U.S. market opens on Thursday, June 19, 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 8:00 AM on Thursday, June 19, 2025, U.S. Eastern Time (8:00 P ...

Core Insights - Cheetah Mobile Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC on April 15, 2025 [1] - The annual report is accessible on the company's investor relations website and the SEC's website [1] Company Overview - Cheetah Mobile is a China-based IT company focused on AI innovation, attracting hundreds of millions of users through various internet products and services on PCs and mobile devices [2] - The company engages in independent research and development of AI technologies, including LLM technologies [2] - Cheetah Mobile provides advertising services globally, value-added services such as premium membership sales, a multi-cloud management platform for companies, and service robots for international clients [2] - The company has been listed on the New York Stock Exchange since May 2014 [2]

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].

Financial Data and Key Metrics Changes - In Q4 2024, total revenue grew 42% year-over-year and 23% quarter-over-quarter to RMB237 million [5][23] - For the full year 2024, total revenue increased by 21% to RMB807 million, with non-GAAP net loss attributable to shareholders narrowing year-over-year [6][22] - Non-GAAP gross profits increased by 74% year-over-year and 32% quarter-over-quarter to RMB172 million in Q4, with non-GAAP gross margins rising to 73% from 59% year-over-year [26] - Non-GAAP operating loss reduced by about RMB18 million quarter-over-quarter and about RMB7 million year-over-year to RMB42 million [26][27] - Operating cash flow generated was approximately $39 million, closing Q4 with a net cash position of about $250 million [28] Business Line Data and Key Metrics Changes - Revenues from the Internet business increased by 49% year-over-year and 19% quarter-over-quarter, accounting for 68% of total revenue [23] - Revenues from AI and other segments increased by 29% year-over-year and 33% quarter-over-quarter, with the robotics business contributing about one-third of AI and other revenues [24] Market Data and Key Metrics Changes - The company has made significant progress in Europe, becoming the largest service robot provider in Italy within 12 months [15] - The adoption of service robots in developed markets significantly lags behind China, presenting substantial opportunities, particularly in restaurants and fulfillment centers [16] Company Strategy and Development Direction - The company aims to become a top three service robot provider globally within three years, focusing on product types that can generate seasonal revenue and profits [8] - The strategy includes expanding globally by building local sales teams and distribution channels, leveraging experience from operations outside China [15] - The company plans to achieve differentiated competition centered around intelligence and interaction in the robot market [100] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in continued business improvement and expects non-GAAP operating losses to further decrease in the first quarter of 2025 [6][22] - The company believes that the robotics industry is booming, with a focus on enhancing the intelligence level of robots to expand market applications [73][105] Other Important Information - The company is launching AgentOS, a next-generation voice interaction system for service robots, which is expected to enhance product experience and market reach [10][13] - The company has established a R&D center in Shanghai to leverage AI in programming and design, reducing reliance on highly skilled personnel [58] Q&A Session Summary Question: Can these products achieve coordinated development with Cheetah's robot business? - The company believes AI agents will merge in large numbers within enterprises, enhancing efficiency and enabling coordinated development with the robot business [34][36] Question: Do you think AI already has the conditions to achieve large scale implementation at a lower cost? - The company believes conditions for large scale implementation have been met, focusing on practical problem-solving rather than just technical preconditions [42] Question: Which types of major companies do you think are likely to enter the wheeled robot market? - The company anticipates that major companies may not enter the market in the next two to three years due to its early stage and high investment requirements [47] Question: How do you think real world data feedback can be used to accelerate technological iteration? - The company emphasizes the importance of data-driven iteration in improving voice capabilities and indoor navigation for robots [78][81] Question: What are the major achievements of Cheetah's robot business in 2024? - The company expanded into overseas markets, witnessing real market-driven growth in the robot business, with a focus on differentiated competition [97][99]

Core Viewpoint - Cheetah Mobile Inc. reported strong financial results for Q4 2024, with significant revenue growth and a focus on AI and robotics, positioning itself for future opportunities in the service robot market [2][8]. Financial Highlights - Total revenues for Q4 2024 reached RMB 237.1 million (US$ 32.5 million), representing a year-over-year increase of 41.7% and a quarter-over-quarter increase of 23.4% [8]. - Gross profit for Q4 2024 was RMB 172.8 million (US$ 23.7 million), up 74.4% year-over-year and 32.5% quarter-over-quarter [8]. - The operating loss for Q4 2024 was RMB 207.1 million (US$ 28.4 million), compared to RMB 60.9 million in the same period last year [8]. - Non-GAAP operating loss improved to RMB 42.5 million (US$ 5.8 million) from RMB 49.1 million year-over-year [8]. - Cash flow from operating activities was RMB 283.0 million (US$ 38.8 million) in Q4 2024, indicating strong liquidity with cash and cash equivalents of RMB 1,833.0 million (US$ 251.1 million) as of December 31, 2024 [8]. Yearly Performance - For the fiscal year 2024, total revenues grew by 20.5% year-over-year to RMB 806.9 million (US$ 110.5 million) [8]. - Gross profit for the year rose by 24.6% to RMB 545.2 million (US$ 74.7 million) [8]. - The net loss attributable to Cheetah Mobile shareholders was RMB 617.6 million (US$ 84.6 million), slightly higher than RMB 602.9 million in 2023 [8]. Management Insights - The CEO emphasized the company's commitment to high-quality growth and the upcoming launch of AgentOS, a voice interaction system for service robots, which aims to enhance its position in the robotics market [2]. - The CFO noted the reduction in non-GAAP operating losses and strong cash flow, indicating a focus on achieving breakeven and profitability in the future [2]. Segment Performance - In Q4 2024, the Internet business generated RMB 160.2 million, while AI and other segments contributed RMB 76.9 million to total revenues [19]. - The operating profit margin for the Internet business was 16.4%, while the AI segment reported a significant operating loss margin of (296.6)% [19]. Future Outlook - The company aims to become a top 3 service robot provider globally within three years by leveraging its strong product technology and scalable robotics solutions [2].

Core Viewpoint - Cheetah Mobile Inc. is set to report its financial results for the fourth quarter and fiscal year 2024 on March 26, 2025, before the U.S. market opens [1] Financial Reporting - The earnings release will be available on the Company's investor relations website [1] - An earnings conference call will be held at 7:00 AM U.S. Eastern Time on March 26, 2025 [2] - 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 [2][3] Company Overview - Cheetah Mobile is a China-based IT company focused on AI innovation, attracting hundreds of millions of users through its internet products and services [4] - The company engages in independent research and development of AI technologies, including LLM technologies, and provides advertising services, value-added services, multi-cloud management platforms, and service robots [4] - Cheetah Mobile has been listed on the New York Stock Exchange since May 2014 [4]

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].