Expanding Horizons: Cheetah Mobile Registers Impressive 41% Topline Growth With Margin Expansion

Author: Anusuya Lahiri | April 11, 2023 07:18am

• Cheetah Mobile Inc (NYSE:CMCM) reported second-half FY22 revenue growth of 40.7% year-on-year to RMB527.0 million ($76.4 million).
• Revenues from the company's internet business increased by 41.6% Y/Y to RMB421.9 million ($61.2 million).
• Revenues from the AI and others were RMB105.1 million ($15.2 million), up by 37.5% Y/Y.
• Non-GAAP gross margin was 75.5%, up from 60.7% a year ago, as the profit increased by 75.2% Y/Y.
• Non-GAAP operating loss was RMB(95.6) million ($(13.9) million) in the second half of 2022, compared to RMB(107.8) million a year ago.
• Non-GAAP EPADS loss was RMB(15.3) or ($2.2).
• Cheetah Mobile held RMB1.67 billion ($242.5 million) in cash and equivalents.
• Mr. Sheng Fu, Cheetah Mobile's Chairman and CEO stated, "While there are some challenges such as Covid-19 in 2022, we managed to increase our total revenue year over year by around 13% to RMB884.1 million (USD128.2 million) in 2022. Driven by elevated products, services, and user experience, both the revenues from our membership business and number of subscribers have increased for more than ten quarters consecutively. Our global cloud service business and overseas advertising agency business also maintained good momentum and contributed to our revenue growth in 2022."
• Outlook: For the first half of 2023, Cheetah Mobile expects revenue of RMB310 million ($44.9 million) - RMB360 million ($52.2 million).
• Price Action: CMCM shares closed lower by 2.36% at $2.48 on Monday.

Posted In: CMCM