SOHU.COM REPORTS THIRD QUARTER 2024 UNAUDITED FINANCIAL RESULTS

In This Article:

BEIJING, Nov. 12, 2024 /PRNewswire/ -- Sohu.com Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), a leading Chinese online media, video, and game business group, today reported unaudited financial results for the third quarter ended September 30, 2024.

Sohu logo. (PRNewsFoto/Sohu.com Inc.)
Sohu logo. (PRNewsFoto/Sohu.com Inc.)

Third Quarter Highlights[1]

  • Total revenues were US$152 million, up 5% year-over-year and down 12% quarter-over-quarter.

  • Brand advertising revenues were US$19 million, down 15% year-over-year and 6% quarter-over-quarter.

  • Online game revenues were US$128 million, up 9% year-over-year and down 13% quarter-over-quarter.

  • GAAP net loss attributable to Sohu.com Limited was US$16 million, compared with a net loss of US$14 million in the third quarter of 2023 and a net loss of US$38 million in the second quarter of 2024.

  • Non-GAAP[2] net loss attributable to Sohu.com Limited was US$12 million, compared with a net loss of US$10 million in the third quarter of 2023 and a net loss of US$34 million in the second quarter of 2024.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the third quarter of 2024, our brand advertising revenues met the high end of our previous guidance, while both our online game revenues and our bottom-line performance exceeded expectations. For Sohu Media and Sohu Video, in addition to continual product refinements and user experience improvements, we continued to integrate resources and host various unique events and marketing campaigns. With these efforts we were able to effectively stimulate social interactions among users, strengthen our brand influence, and secure more monetization opportunities. As a result of high-quality content updates and robust game operations, our online games business delivered better-than-expected performance."

[1] The bankruptcy proceedings of Changyou's wholly-owned subsidiary Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao"), which operated Changyou's cinema advertising business, were concluded by a Chinese mainland bankruptcy court in the third quarter of 2023. The Company recognized a US$35 million disposal gain within discontinued operations in the condensed consolidated statements of operations for the third quarter of 2023. Unless indicated otherwise, results presented in this press release are related to continuing operations only, and exclude the disposal gain related to Shanghai Jingmao.

[2] Non-GAAP results exclude share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; and interest expense recognized in connection with the one-time transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017 (the "U.S. TCJA"). Explanation of the Company's non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures."

Third Quarter Financial Results

Revenues

Total revenues were US$152 million, up 5% year-over-year and down 12% quarter-over-quarter.

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