Cheetah Mobile ( (CMCM) ) has released its Q3 earnings. Here is a breakdown of the information Cheetah Mobile presented to its investors.
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Cheetah Mobile is a China-based IT company known for its AI innovations and diverse range of internet products and services, focusing on advertising and service robots. The company reported its unaudited financial results for the third quarter of 2024, showcasing a notable improvement in revenue and a reduction in net losses. Total revenues increased by 16.6% year-over-year, reaching RMB192.1 million, driven by the strong performance of its internet business and a steady demand for service robots. The company also made progress in reducing its operating losses, with net loss attributable to shareholders improving significantly from the previous quarter.
Key financial metrics revealed that revenues from the internet business rose by 25.8% year-over-year, while the AI and other segments remained stable. Despite a year-over-year increase in costs, particularly in hardware for service robots, gross profit grew by 13.9%. Operating expenses saw a rise due to the acquisition of Beijing OrionStar, leading to higher R&D and marketing costs. However, the operating margin for the internet business improved to 10.3%, reflecting enhanced operational efficiency.
The company continues to maintain strong liquidity with cash and cash equivalents amounting to RMB1,530.5 million as of September 30, 2024. The strategic focus on integrating large language models for enhancing robotic intelligence is expected to open new growth avenues. Cheetah Mobile remains committed to leveraging AI technologies to capitalize on the potential of the robotics market.
Looking ahead, Cheetah Mobile’s management remains optimistic about their strategic direction and focus on innovation, positioning the company to tap into the trillion-dollar robotics market. This positive outlook, coupled with ongoing efforts to improve operational efficiency, suggests a promising future for Cheetah Mobile in the tech and robotics sectors.
