Cheetah Mobile Posts Third Quarter 2024 Financial Results Amid Strong Sector Demand
Cheetah Mobile Inc. has unveiled its third quarter 2024 unaudited consolidated financial results, showcasing a robust performance that reflects the company’s strategic focus on innovation and market needs.
In the third quarter ending September 30, 2024, Cheetah Mobile achieved total revenues of RMB 192.1 million (approximately US$27.4 million), marking a 16.6% increase year-over-year. The company’s Chairman and CEO, Mr. Sheng Fu, emphasized that this growth is significantly fueled by the increasing demand for service robots in various industries, including hospitality, manufacturing, and logistics. With innovative solutions and refined product experiences, Cheetah Mobile is positioning itself as a leader in the service robotics sector.
Despite narrowing its operating losses, Cheetah Mobile reported an operating loss of RMB 72.0 million (US$10.3 million) for the quarter, an improvement from the previous quarter's loss of RMB 77.5 million. The improvement in operational efficiency was highlighted by the CFO, Mr. Thomas Ren, who noted the internet business's operating margin (excluding share-based compensation) improved to 10.3% from 6.2% year-over-year.
The gross profit also saw a healthy rise, increasing by 13.9%, totaling RMB 130.4 million (US$18.6 million) for Q3 2024. Notably, amidst a backdrop of fluctuating market conditions, the company was able to withstand the pressures faced by the overseas advertising agency segment, which experienced a decline of approximately 68% in revenue.
Cheetah Mobile’s strategic acquisition of Beijing OrionStar has enabled the company to bolster its service robotics offerings, contributing to a stable revenue stream from the sale of service robots.
As of September 30, 2024, Cheetah Mobile maintains a solid liquidity position with cash and cash equivalents amounting to RMB 1,530.5 million (US$218.1 million) and long-term investments of RMB 885.9 million (US$126.2 million). This healthy balance sheet allows Cheetah Mobile to navigate the competitive landscape while focusing on technological advancements and expanding its market reach.
The company, known for its extensive portfolio of internet products and AI technologies, is anticipating further growth as it exploits the integration of large language models into its service offerings. This technological advancement is expected to enhance the intelligence and efficiency of its robots, opening new avenues for development in the trillion-dollar robotics market. With a clear vision and emphasis on innovative solutions, Cheetah Mobile is poised to capitalize on emerging opportunities in the rapidly evolving tech landscape.
Cheetah Mobile plans to hold a conference call to discuss its financial results in detail, exhibiting transparency and commitment to engaging with investors. As the market dynamics shift, stakeholders will be keeping a close watch on how Cheetah Mobile adapts and innovates in response to growing demands, particularly within the service robotics sector.
Major Highlights
In the third quarter ending September 30, 2024, Cheetah Mobile achieved total revenues of RMB 192.1 million (approximately US$27.4 million), marking a 16.6% increase year-over-year. The company’s Chairman and CEO, Mr. Sheng Fu, emphasized that this growth is significantly fueled by the increasing demand for service robots in various industries, including hospitality, manufacturing, and logistics. With innovative solutions and refined product experiences, Cheetah Mobile is positioning itself as a leader in the service robotics sector.
Financial Performance
Despite narrowing its operating losses, Cheetah Mobile reported an operating loss of RMB 72.0 million (US$10.3 million) for the quarter, an improvement from the previous quarter's loss of RMB 77.5 million. The improvement in operational efficiency was highlighted by the CFO, Mr. Thomas Ren, who noted the internet business's operating margin (excluding share-based compensation) improved to 10.3% from 6.2% year-over-year.
The gross profit also saw a healthy rise, increasing by 13.9%, totaling RMB 130.4 million (US$18.6 million) for Q3 2024. Notably, amidst a backdrop of fluctuating market conditions, the company was able to withstand the pressures faced by the overseas advertising agency segment, which experienced a decline of approximately 68% in revenue.
Investment and Future Outlook
Cheetah Mobile’s strategic acquisition of Beijing OrionStar has enabled the company to bolster its service robotics offerings, contributing to a stable revenue stream from the sale of service robots.
As of September 30, 2024, Cheetah Mobile maintains a solid liquidity position with cash and cash equivalents amounting to RMB 1,530.5 million (US$218.1 million) and long-term investments of RMB 885.9 million (US$126.2 million). This healthy balance sheet allows Cheetah Mobile to navigate the competitive landscape while focusing on technological advancements and expanding its market reach.
Closing Thoughts
The company, known for its extensive portfolio of internet products and AI technologies, is anticipating further growth as it exploits the integration of large language models into its service offerings. This technological advancement is expected to enhance the intelligence and efficiency of its robots, opening new avenues for development in the trillion-dollar robotics market. With a clear vision and emphasis on innovative solutions, Cheetah Mobile is poised to capitalize on emerging opportunities in the rapidly evolving tech landscape.
Cheetah Mobile plans to hold a conference call to discuss its financial results in detail, exhibiting transparency and commitment to engaging with investors. As the market dynamics shift, stakeholders will be keeping a close watch on how Cheetah Mobile adapts and innovates in response to growing demands, particularly within the service robotics sector.
Topics Business Technology）
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