Cheetah Mobile Inc (NYSE: CMCM) stock rose 9.60% on November 21st, 2018 (Source: Google finance) after the company in the third quarter of FY 18 has reported 19.6% growth in the net income attributable to Cheetah Mobile shareholders year over year to RMB167.0 million (US$24.3 million). Net income attributable to Cheetah Mobile shareholders increased by 19.6% year over year to RMB167.0 million (US$24.3 million) in the third quarter of 2018. The average number of global mobile monthly active users (“Mobile MAUs”) was 535 million in the third quarter of 2018. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 68% of the total number of Mobile MAUs in the third quarter of 2018. The average number of Mobile MAUs from China grew by 18% year over year and 6% quarter over quarter to 171 million as the Company’s mobile products continued to gain popularity in the domestic market.
Moreover, in the third quarter of 2018, the company has achieved the high-end of the guidance range. The total revenue grew by 16% year-over-year and 23% quarter-over-quarter to RMB 1.35 billion. The company also earned RMB 193 million in non-GAAP net income and generated RMB 326 million in free cash flow. In the third quarter the company continued to roll out the new mobile games, mobile utility products and AI-powered hardware products. As a result, revenues from mobile games increased by 78% year-over-year and 106% quarter-over-quarter. Revenues from mobile utility products in the domestic market increased by 54% year-over-year and 18% quarter-over-quarter. Mobile games made up 21% of our total revenue in the quarter and mobile utility products in the domestic market made up 28%.
In the third quarter, both revenues and profits from the mobile games business hit record highs. This was helped by more users buying in-game items, such as extra lives, boosters that enhance play performance, game version upgrades.In the third quarter, revenues from in-game purchases accounted for 31% of total mobile game revenues, up from 24% last year.
CMCM has completed the repurchase of about 1 million ADSs for $80 million. The company’s board approved a plan in September to repurchase up to $100 million of the company’s ADSs over the next 12 months.
For the fourth quarter, Cheetah Mobile said it expected to record revenue of between 1.39 billion yuan ($202 million) and 1.43 billion yuan ($208 million).