Cheetah Mobile Announces Second Quarter 2024 Unaudited Consolidated Financial Results

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]