{"id":21313,"date":"2023-08-18T08:00:00","date_gmt":"2023-08-18T08:00:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/4187096_CN87096_0"},"modified":"2023-08-18T08:00:00","modified_gmt":"2023-08-18T08:00:00","slug":"cheetah-mobile-announces-first-half-2023-unaudited-consolidated-financial-results","status":"publish","type":"post","link":"https:\/\/transmediavictoria.net.au\/?p=21313","title":{"rendered":"Cheetah Mobile Announces First Half 2023 Unaudited Consolidated Financial Results"},"content":{"rendered":"

BEIJING<\/span><\/span>, Aug. 18, 2023<\/span><\/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 first half 2023 ended June 30, 2023<\/span>.<\/p>\n

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

Mr. Sheng Fu<\/span>, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “In the first half of 2023, Cheetah Mobile’s total revenue was RMB337.4 million<\/span> (USD46.5 million<\/span>), aligning with our guidance. Despite operating challenges, we maintain strong confidence in the growth potential of our membership and subscription business. Throughout this period, we launched several innovative AI-powered products that have yielded favorable outcomes. Moving forward, we remain committed to optimizing our revenue structure by strategically streamlining unprofitable operations. At the same time, we anticipate ramping up investments in AI technology and products to empower our valued customers and enable them to thrive in the new era of AI. We are steadfastly dedicated to navigating the current challenging landscape while capitalizing on the opportunities that lie ahead.”<\/p>\n

Mr. Thomas Ren<\/span>, Cheetah Mobile’s Chief Financial Officer, commented, “In the first half of 2023, we continued prudent cost management practices that resulted in a reduction of our non-GAAP operating loss. Furthermore, as of June 30, 2023<\/span>, we maintained a robust cash position of RMB2,071.1 million<\/span>. This strong liquidity position holds immense strategic importance as it provides us with the necessary capacity to make investments that support our long-term growth and sustainable development objectives. Through diligent cost management and the preservation of a solid cash foundation, we are well-positioned to seize opportunities and allocate resources effectively, ensuring a prosperous future for our company.”<\/p>\n

First Half 2023 Consolidated Financial Results<\/u><\/b><\/p>\n

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

Total revenues were RMB337.4 million<\/span> (US$46.5 million<\/span>) in the first half of 2023, representing a decrease of 5.5% year over year.<\/p>\n

Revenues from the Company’s internet business<\/b> decreased by 14.5% year over year to RMB235.6 million<\/span> (US$32.5 million<\/span>) in the first half of 2023. The year-over-year decrease was due to the strategic downsizing of our advertising business, coupled with external market headwinds.<\/p>\n

Revenues from the AI and others <\/b>were RMB101.7 million<\/span> (US$14.0 million<\/span>) in the first half of 2023, representing a 24.8% year-over-year increase. The year-over-year increase was primarily attributable to the growth of our advertising agency services as well as our global cloud service business.<\/p>\n

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

Cost of revenues <\/b>decreased by 8.0% year over year to RMB113.3 million<\/span> (US$15.6 million<\/span>) in the first half of 2023. The year-over-year decrease was mainly attributable to a decline in traffic acquisition costs and channel costs associated with our advertising business. Non-GAAP cost of revenues<\/b> decreased by 7.9% year over year to RMB113.1 million<\/span> (US$15.6 million<\/span>) in the first half of 2023.<\/p>\n

Gross profit <\/b>decreased by 4.2% year over year to RMB224.0 million<\/span> (US$30.9 million<\/span>) in the first half of 2023. Non-GAAP gross profit <\/b>decreased by 4.2% year over year to RMB224.3 million<\/span> (US$30.9 million<\/span>) in the first half of 2023.<\/p>\n

Gross margin <\/b>was 66.4% in the first half of 2023, compared to 65.5% in the first half of 2022. Non-GAAP gross margin <\/b>was 66.5% in the first half of 2023, compared to 65.6% in the first half of 2022.<\/p>\n

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

Total operating expenses<\/b> decreased by 7.8% year over year to RMB331.9 million<\/span> (US$45.8 million<\/span>) in the first half of 2023. Total non-GAAP operating expenses<\/b> decreased by 11.9% year over year to RMB314.0 million<\/span> (US$43.3 million<\/span>) in the first half of 2023.<\/p>\n