Cheetah Mobile Inc (NYSE:CMCM), a China-based IT company, stock rose 0.24% (As on June 19, 8:00:00 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY25 has reported the growth of 36.1% year-over-year and 9.2% quarter-over-quarter in the total revenues, accelerating to RMB259.0 million (US$35.7 million) in the first quarter of 2025. Non-GAAP net loss attributable to Cheetah Mobile Shareholders was RMB21.1 million (US$2.9 million), compared to RMB65.8 million in the same period of last year and RMB202.1 million in the previous quarter. As of March 31, 2025, the Company had cash and cash equivalents of RMB1,699.2 million (US$234.2 million), ensuring strong liquidity. As of March 31, 2025, the Company had long-term investments of RMB813.1million (US$112.1 million). Non-GAAP gross profit rose by 67.1% year-over-year and 10.0% quarter-over-quarter to RMB189.5 million (US$26.1 million). Non-GAAP operating loss in the first quarter of 2025 improved to RMB14.3 million (US$2.0 million) from RMB66.4 million in the same period of last year and RMB42.5 million in the previous quarter.

Meanwhile, the company made significant progress in narrowing the losses in Q1 2025, supported by disciplined execution, cost optimization, and steady topline growth. In particular, the Internet business posted a notable improvement in operating margin, reaching 15.5% in the quarter, up from 7.9% a year ago. The company also continued to improve efficiency in our AI and Others segment by focusing on scalable use cases, leveraging open-source models and AI tools and streamlining product development. While the company continue to invest in the significant opportunity that LLM technology represents, the company remains focused on consistent margin expansion and loss reduction, while maintaining a strong balance sheet.

Moreover, the Internet business continued to perform robustly, with revenue increasing 46.0% year-over-year. Meanwhile, revenue from the AI and Others segment grew by 22.9% year-over-year and accelerated to 29.8% quarter-over-quarter. The company has narrowed the operating losses this quarter while maintaining strong investment in AI and robotics. Looking ahead, the company see agentic AI as a true game-changer. AI models are moving beyond conversation and into real-world action, and Cheetah Mobile’s long track record of productizing cutting-edge technology positions the company to capture this shift. By doubling down on R&D and infusing AI Agents into both the consumer applications and robotics portfolio, the company is helping usher China’s LLM industry from infrastructure build-out to application-driven innovation.