On June 7th Beijing Time, Cheetah Mobile (code: CMCM) released its Q1 2024 financial report. In the first quarter of 2024, Cheetah Mobile achieved a total revenue of 190.3 million yuan, a year-on-year increase of 11.6% and a quarter-on-quarter increase of 13.7%. AI and other revenue were 81.3 million yuan, an increase of 62.1% year-on-year and 36.3% quarter-on-quarter, accounting for 43% of total revenue. Internet business revenue was RMB 109 million, and the operating profit margin was 7.9%, up from 3.1% in the same period last year. As of March 31, 2024, Cheetah Mobile held a total of RMB 1.793 billion in cash, cash equivalents and short-term investments, and a total of RMB 933 million in long-term investments, with sufficient reserves to continue to focus on the AI track.
Cheetah Mobile is currently in a critical period of transformation from consumer-oriented (ToC) to enterprise-oriented (ToB). At the end of last year, Cheetah Mobile formally announced the strategic acquisition of Beijing Lasso Star Technologay Co., Ltd. (hereinafter referred to as Lasso Star), which played a vital role in the transformation process, including an experienced ToB sales team, ToB sales network and soft-hard integration full-chain large-scale model capability. With the vigorous development of AI large model technology, Cheetah Mobile has brought unprecedented development opportunities.
In the first quarter of 2024, Cheetah Mobile's AI and other revenues saw a large increase in both year-on-year and quarter-on-quarter growth, mainly due to the increase in delivery volume of service robots after its acquisition of Lasso Star's controlling stake. Based on the self-developed large-scale model and full-chain AI technology, Lasso Star fully improves the service robot experience. The demand increase promoted by the experience improvement is particularly evident in overseas markets. With the blessing of large-scale model capability, sales of Lasso Star's service robots overseas have surpassed those in China, and have shown a steady and steady development trend.
Cheetah Mobile insists on improving the application ability of large models with a "product mindset". Based on actual enterprise application scenarios, it focuses on training hundreds of billions of parameter models, which can ensure data security and help enterprises complete private deployment at a lower price. Earlier this year, Lasso Star released the large-scale model Orion-14B, which was demonstrated excellent performance in multiple evaluations and has successfully passed the national "generated artificial intelligence service record" and "deep synthesis service algorithm record". It has been landed and applied in private deployment of large models of domestic first-line companies such as Chaos Academy and Ningxia Hope.
Fu Sheng, Chairman and CEO of Cheetah Mobile, emphasized that "we have a clear market positioning. Cheetah Mobile and Lasso Star team cooperate closely and are dedicated to meticulously creating private large model applications for our customers. I firmly believe that we are moving forward on the right path, and private large model enterprise-level applications will become the key to rebuilding Cheetah Mobile's growth engine and driving continuous business growth in the future."