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]

Core Insights - Cheetah Mobile reported a solid revenue growth of 12.3% year-over-year in Q2 2024, reaching RMB 187.4 million (US$ 25.8 million), driven by the service robotics business and AI contributions [2][3] - The company is focusing on long-term growth through investments in AI and service robotics, aiming to enhance product innovation and expand its global presence [2][3] - Despite operating losses, Cheetah Mobile generated over RMB 218 million in cash from operating activities, indicating strong cash management capabilities [2][3] Financial Performance - Total revenues for Q2 2024 were RMB 187.4 million (US$ 25.8 million), a 12.3% increase from the previous year, with AI and others contributing approximately 39.3% of total revenues [3] - Revenues from the internet business were relatively flat at RMB 113.7 million (US$ 15.7 million), accounting for 60.7% of total revenues, down from 69.1% year-over-year [3] - AI and others revenues increased by 42.8% year-over-year to RMB 73.7 million (US$ 10.1 million), driven by service robot deliveries following the acquisition of Beijing OrionStar [3] Operating Loss and Expenses - Operating loss for Q2 2024 was RMB 77.5 million (US$ 10.7 million), compared to RMB 65.6 million in the same period last year [3] - Non-GAAP operating loss was RMB 62.5 million (US$ 8.6 million), an increase from RMB 48.3 million year-over-year, attributed to investments in AI and increased costs [3] - Cost of revenues rose by 15.2% year-over-year to RMB 65.9 million (US$ 9.1 million), primarily due to higher hardware-related costs for service robots [3] Research and Development - Research and development expenses increased by 14.5% year-over-year to RMB 54.3 million (US$ 7.5 million), driven by amortization of intangible assets from the acquisition and higher personnel-related expenses [3] - Selling and marketing expenses rose by 17.3% year-over-year to RMB 73.4 million (US$ 10.1 million), reflecting increased marketing efforts and personnel costs [3] Cash and Investments - As of June 30, 2024, Cheetah Mobile had cash and cash equivalents and short-term investments totaling RMB 1,973.0 million (US$ 271.5 million) [3] - Long-term investments amounted to RMB 866.9 million (US$ 119.3 million) [3]

Core Points - Cheetah Mobile Inc. will report its financial results for Q2 2024 on September 13, 2024, before U.S. market opens [1] - The earnings conference call is scheduled for 7:00 AM U.S. Eastern Time on the same day [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 [2] - The company engages in independent research and development of AI technologies, including LLM technologies [2] - Cheetah Mobile provides advertising services, value-added services like premium memberships, multi-cloud management platforms, and service robots to international clients [2] - The company has been listed on the New York Stock Exchange since May 2014 [2]

Financial Data and Key Metrics Changes - In Q1 2024, total revenue increased by 12% year-over-year and 14% quarter-over-quarter to RMB190 million [13] - Revenue from AI and others increased by 62% year-over-year and 36% quarter-over-quarter to RMB81 million, accounting for 43% of total revenue [5][13] - Non-GAAP operating loss was RMB66 million, up from RMB42 million in the same period last year and RMB49 million in the previous quarter [14] Business Line Data and Key Metrics Changes - The acquisition of Beijing OrionStar has significantly contributed to the AI and others segment, enhancing service robots' capabilities and revenue generation [12][13] - The internet business's operating profit margin improved to 7.9%, up from 3.1% in the same quarter last year, excluding the impact of LLM investments [15] Market Data and Key Metrics Changes - Overseas revenue has surpassed domestic revenue and continues to grow steadily, particularly in Japan and South Korea [8] - The focus on LLM-based applications is driven by increasing demand from enterprises for data security and efficiency improvements [6][9] Company Strategy and Development Direction - The company is shifting its focus from consumer (2C) to business (2B) markets, aiming for LLM-based applications to become a significant revenue driver [5][11] - The strategy includes leveraging the acquisition of OrionStar to enhance capabilities in AI and service robots, targeting the enterprise sector [6][12] Management Comments on Operating Environment and Future Outlook - Management emphasized the importance of patience in establishing a new growth engine through LLMs and customer satisfaction [11] - The company does not plan to set short-term revenue growth targets but aims for sustainable long-term growth in both revenue and margins [11][16] Other Important Information - As of March 31, 2024, the company had cash and cash equivalents and short-term investments of about US$250 million, indicating a healthy balance sheet [16] - The company has decided not to provide revenue guidance going forward [16] Q&A Session Summary - The Q&A session included multiple questions from analysts, but specific details of the questions and answers were not disclosed in the provided content [17][18][19][20][21][22]

Core Viewpoint - Cheetah Mobile is transitioning from a consumer-focused company to an enterprise-oriented business, emphasizing the development of customized large language model (LLM)-based applications for enterprises following its acquisition of Beijing OrionStar Technology [2][12]. Financial Performance - Total revenues for the first quarter of 2024 increased by 11.6% year over year and 13.7% quarter over quarter, reaching RMB190.3 million (US$26.4 million) [3]. - Revenues from the AI and others segment surged by 62.1% year over year and 36.3% quarter over quarter to RMB81.3 million (US$11.3 million), driven by the delivery of service robots post-acquisition [4]. - Internet business revenues decreased by 9.4% year over year but increased by 1.2% quarter over quarter to RMB109.0 million (US$15.1 million), reflecting a strategic shift towards enterprise solutions [4]. Cost and Expenses - Cost of revenues rose by 37.0% year over year and 12.8% quarter over quarter to RMB77.0 million (US$10.7 million), primarily due to increased hardware costs for service robots [5]. - Total operating expenses increased by 23.9% year over year and 21.2% quarter over quarter to RMB193.9 million (US$26.9 million), largely due to the acquisition of Beijing OrionStar [5]. - Research and development expenses increased by 26.2% year over year and 44.8% quarter over quarter to RMB57.3 million (US$7.9 million), reflecting the expansion of the R&D team [6]. Profitability Metrics - The operating loss widened to RMB80.6 million (US$11.2 million) in Q1 2024, compared to RMB42.3 million in the same period last year [7]. - Net loss attributable to Cheetah Mobile shareholders was RMB80.0 million (US$11.1 million) in Q1 2024, compared to RMB18.6 million in the same period last year [9]. - Diluted loss per ADS was RMB2.8 (US$0.4) in Q1 2024, compared to RMB0.6 in the same period last year [9]. Balance Sheet Highlights - As of March 31, 2024, the company had cash and cash equivalents and short-term investments totaling RMB1,793.2 million (US$248.4 million) [9].

Core Viewpoint - Cheetah Mobile Inc. is set to report its financial results for Q1 2024 on June 7, 2024, and will hold an earnings conference call to discuss these results [1]. Group 1: Financial Reporting - Cheetah Mobile will announce its financial results for the first quarter ended March 31, 2024, before the U.S. market opens on June 7, 2024 [1]. - An earnings conference call is scheduled for 7:00 AM U.S. Eastern Time on June 7, 2024, which will also be available in Beijing and Hong Kong time [1]. - The earnings release will be accessible on the Company's investor relations website [1]. Group 2: 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 [2]. - The company engages in independent research and development of AI technologies, including LLM technologies, and provides advertising services globally [2]. - Cheetah Mobile has been listed on the New York Stock Exchange since May 2014 [2].

BEIJING, April 18, 2024 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a China-based IT company, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2023, with the Securities and Exchange Commission on April 18, 2024. 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 w ...