Cheetah Mobile Announces First Quarter 2024 Unaudited Consolidated Financial Results

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$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$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$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].