• Total Revenue: Increased by 42% year-over-year and 23% quarter-over-quarter to RMB237 million in Q4.
• Full-Year Revenue: Increased by 21% to RMB807 million for 2024.
• Internet Business Revenue: Increased by 49% year-over-year and 19% quarter-over-quarter, accounting for 68% of total revenue.
• AI and Other Revenues: Increased by 29% year-over-year and 33% quarter-over-quarter.
• Non-GAAP Gross Profit: Increased by 74% year-over-year and 32% quarter-over-quarter to RMB172 million in Q4.
• Non-GAAP Gross Margin: Increased to 73% in Q4, from 59% in the same period last year and 68% in the previous quarter.
• Non-GAAP Operating Loss: Reduced by about RMB18 million quarter-over-quarter and about RMB7 million year-over-year to RMB42 million.
• Operating Cash Flow: Generated about $39 million in Q4.
• Net Cash Position: Closed Q4 with about $250 million.
• Long-term Investments: Approximately $100 million held on the balance sheet.
• Employee Count: 935 employees as of December 31, 2024, up from 845 in 2023.

• Warning! GuruFocus has detected 4 Warning Signs with CMCM.

Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cheetah Mobile Inc (NYSE:CMCM) reported a robust 42% year-over-year and 23% quarter-over-quarter revenue growth in Q4 2024.
• The company successfully reduced non-GAAP operating losses quarter-over-quarter, with expectations for further reductions in the first quarter of 2025.
• Cheetah Mobile Inc (NYSE:CMCM) is experiencing strong growth in its enterprise-facing AI and robotic businesses, alongside its legacy Internet business.
• The introduction of AgentOS, a next-generation voice interaction system, is expected to expand the company's total addressable market and enhance customer experience.
• Cheetah Mobile Inc (NYSE:CMCM) achieved significant progress in international markets, becoming the largest service robot provider in Italy and planning to open a European headquarters in Germany.

Negative Points

• Despite revenue growth, Cheetah Mobile Inc (NYSE:CMCM) still reported non-GAAP net losses attributable to shareholders for the full year 2024.
• The robotics business, while growing, only contributed about 10% of total revenues, indicating a need for further expansion.
• The company faces challenges in achieving large-scale commercial application of its robotic products due to the complexity of software and hardware integration.
• Cheetah Mobile Inc (NYSE:CMCM) acknowledges that the market for service robots in developed regions lags behind China, presenting both an opportunity and a challenge.
• The company is still in the early stages of building its presence in overseas markets, which requires time and investment in developing channels and recruiting sales personnel.

Q & A Highlights

Q: How does Cheetah Mobile plan to integrate AI agents with its robot business, and what impact will this have on commercialization? A: Cheetah Mobile's CEO, Sheng Fu, explained that the integration of AI agents with their robot business is crucial for meeting user expectations and achieving large-scale commercial applications. The company is leveraging its AI and large language models (LLMs) to enhance the intelligent capabilities of its robots. The upcoming release of AgentOS, a robot operating system based on LLMs, aims to elevate the intelligence of their robots, facilitating better user interaction and task completion.

Q: With the development of large language models like DeepSeek, is AI ready for large-scale implementation at a lower cost? A: Sheng Fu believes that the emergence of DeepSeek is significant for the AI industry, not just for its low cost but for its top-tier performance. He suggests that AI is ready for large-scale implementation, as the logical capabilities of LLMs have improved, making it feasible for both software and hardware applications to achieve widespread adoption.

Q: What is Cheetah Mobile's strategy to maintain a competitive edge in the rapidly expanding market for wheeled robots? A: Sheng Fu stated that Cheetah Mobile aims to focus on intelligence and interaction as key differentiators in the wheeled robot market. The company plans to build a rapid product iteration system to maintain a competitive edge, leveraging its expertise in AI and robotics to enhance user experience and product performance.

Q: How does Cheetah Mobile view the impact of AI agents on the existing application ecosystem, and how will they integrate with super apps like WeChat? A: Sheng Fu believes AI agents will significantly impact the existing app ecosystem by replacing traditional apps with more intuitive, natural language-based interactions. The integration with super apps like WeChat will depend on how quickly these platforms adopt AI technologies. He emphasizes that AI agents will become a core framework for enhancing user experience across applications.

Q: What are Cheetah Mobile's major achievements in the robot business for 2024, and what are the plans for 2025? A: In 2024, Cheetah Mobile expanded its robot business into overseas markets, witnessing increased demand for service robots. For 2025, the company aims to achieve differentiated competition by focusing on intelligence and interaction, with a goal to become one of the top three robot companies globally within three years. They also plan to have robot revenue account for half of the company's total revenue.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.