{"id":534526,"date":"2021-09-07T03:03:22","date_gmt":"2021-09-07T07:03:22","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/cheetah-mobile-announces-second-quarter-2021-unaudited-consolidated-financial-results\/"},"modified":"2021-09-07T03:03:22","modified_gmt":"2021-09-07T07:03:22","slug":"cheetah-mobile-announces-second-quarter-2021-unaudited-consolidated-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cheetah-mobile-announces-second-quarter-2021-unaudited-consolidated-financial-results\/","title":{"rendered":"Cheetah Mobile Announces Second Quarter 2021 Unaudited Consolidated Financial Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n BEIJING<\/span>, Sept. 7, 2021<\/span> \/PRNewswire\/ — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a leading internet company, today announced its unaudited consolidated financial results for the second quarter 2021 ended June 30, 2021<\/span>. <\/p>\n

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\n Management Commentary<\/u>
\n <\/b>\n <\/p>\n

Mr. Sheng Fu<\/span>, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “We delivered a healthy quarter with total revenue of RMB212 million<\/span> (USD33 million<\/span>), which is within our previous guidance. For the first time in 10 quarters, we achieved a quarter over quarter sequential revenue growth. In this quarter, our Internet membership business maintained a strong momentum in both membership number and revenue, especially the revenue from renewal. We are also happy to see more and more members choosing longer-term service now. For our AI business, the business model of shopping-mall coupon-selling robots has been working well. In this quarter, we have opened up more new use cases and GMV\uff08Gross Merchandise Volume\uff09was up by double digits. We are optimistic about the progress we are making and confident that we will continue to achieve our strategic goals steadily.”<\/p>\n

Mr. Thomas Ren<\/span>, Cheetah Mobile’s Chief Financial Officer, commented, “In the second quarter of 2021, our gross margin kept improving to 76.1%, compared to 71.2% in the same period last year and 70.1% in the first quarter 2021. This result reflects our continuous efforts in improving operational efficiency. We ended this quarter with RMB1,672 million<\/span> (US$259 million<\/span>) in cash and cash equivalents, restricted cash and short-term investments. The robust balance sheet makes it possible for us to invest across our core business to support our long-term growth plans.”<\/p>\n

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\n Second Quarter 2021 Consolidated Financial Results<\/u>
\n <\/b>\n <\/p>\n

\n REVENUES <\/b>\n <\/p>\n

Total revenues were RMB211.7 million<\/span> (US$32.8 million<\/span>) in the second quarter of 2021, representing a decrease of 46.3% year over year and an increase of 6.7% quarter over quarter. <\/p>\n

\n Revenues from the Company’s internet business<\/b>\u00a0decreased by 45.6% year over year and increased by 8.6% quarter over quarter to RMB203.8 million<\/span> (US$31.6 million<\/span>) in the second quarter of 2021.\u00a0The year-over-year decrease was due to the Company’s strategic efforts to diminish the gaming-related business in past quarters. The quarter-over-quarter increase was mainly from the growth of our membership business and the commertialization of some new utility products on mobile platform.<\/p>\n

\n Revenues from the AI and others <\/b>were RMB7.9 million<\/span> (US$1.2 million<\/span>) in the second quarter of 2021, representing a 59.2% year-over-year decrease and a 26.7% quarter-over-quarter decrease. The year-over-year decline was primarily attributable to the drop in sales of consumer-facing AI-related products. The quarter-over-quarter decrease was from the expected volatility during the transition of business model.<\/p>\n

\n COST OF REVENUES AND GROSS PROFIT <\/b>\n <\/p>\n

\n Cost of revenues <\/b>decreased by 55.5% year over year and 14.8% quarter over quarter to RMB50.6 million<\/span> (US$7.8 million<\/span>) in the second quarter of 2021. The decrease was primarily due to the Company’s ongoing efforts to streamline the business and improve operational efficiency. Non-GAAP cost of revenues<\/b> decreased by 55.7% year over year and 14.9% quarter over quarter to RMB50.2 million<\/span> (US$7.8 million<\/span>) in the second quarter of 2021. <\/p>\n

\n Gross profit <\/b>decreased by 42.6% year over year and increased 15.9% quarter over quarter to RMB161.2 million<\/span> (US$25.0 million<\/span>) in the second quarter of 2021. Non-GAAP gross profit<\/b> decreased by 42.5% year over year and increased 15.9% quarter over quarter to RMB161.5 million<\/span> (US$25.0 million<\/span>) in the second quarter of 2021. <\/p>\n

\n Gross margin <\/b>was 76.1% in the second quarter of 2021, compared to 71.2% in the second quarter of 2020 and 70.1% in the first quarter of 2021. Non-GAAP gross margin <\/b>was 76.3% in the second quarter of 2021, compared to 71.2% in the second quarter of 2020 and 70.2% in the first quarter of 2021.<\/p>\n

\n OPERATING INCOME\/LOSS AND EXPENSES <\/b>\n <\/p>\n

\n Total operating expenses<\/b>\u00a0decreased by 52.5% year over year and increased by 12.5% quarter over quarter to RMB220.0 million<\/span> (US$34.1 million<\/span>) in the second quarter of 2021. Total non-GAAP operating expenses<\/b> decreased by 47.3% year over year and increased by 10.3% quarter over quarter to RMB217.9 million<\/span> (US$33.7million<\/span>) in the second quarter of 2021. <\/p>\n