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.
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.
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.
Gross Margin
Both GAAP and non-GAAP gross margin were 74%, compared with
76% in the third quarter of 2023 and 67% in the
second quarter of 2024.
Both GAAP and non-GAAP gross margin for the brand advertising
business were 9%, compared with 15% in the third quarter
of 2023 and 20% in the second quarter of 2024.
Both GAAP and non-GAAP gross margin for online games were 84%,
compared with 87% in the third quarter of 2023 and 76% in the
second quarter of 2024. The quarter-over-quarter increase was
mainly due to a lower percentage revenue contribution from mobile
games, which require higher revenue-sharing payments.
Operating Expenses
GAAP operating expenses were US$125 million, down 5%
year-over-year and 22% quarter-over-quarter. Non-GAAP operating
expenses were US$125 million, down 4% year-over-year and 22%
quarter-over-quarter. The quarter-over-quarter decrease was
mainly due to a decrease in Changyou's marketing and promotional
spending for online games.
Operating Loss
GAAP operating loss was US$13
million, compared with an operating loss of US$21 million in the third quarter of 2023 and an
operating loss of US$44 million in the second quarter of
2024.
Non-GAAP operating loss was US$13 million, compared
with an operating loss of US$20
million in the third quarter of 2023 and an
operating loss of US$45 million in the
second quarter of 2024.
Income Tax Expense
GAAP income tax expense was US$15 million, compared
with income tax expense of US$15
million in the third quarter of 2023 and income tax
expense of US$9 million in the second quarter of 2024.
Non-GAAP income tax expense was US$11
million, compared with income tax expense of US$12 million in the third quarter of 2023
and income tax expense of US$5
million in the second quarter of 2024.
Net Loss
GAAP net loss attributable to Sohu.com Limited was US$16 million, or a net loss of US$0.52 per fully-diluted American
depositary share ("ADS," each ADS representing one Sohu ordinary
share), 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 net loss attributable to Sohu.com Limited was
US$12 million, or a net loss of
US$0.39 per fully-diluted ADS,
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.
Liquidity and Capital Resources
As of September 30, 2024, cash and
cash equivalents, short-term investments and long-term time
deposits totaled approximately US$1.3
billion.
Supplementary Information for Changyou
Results[3]
Third Quarter 2024 Operating Results
- For PC games, total average monthly active user
accounts[4] (MAU) were 2.2 million, a decrease of
2% year-over-year and 3% quarter-over-quarter. Total quarterly
aggregate active paying accounts[5] (APA) were 0.9
million, a decrease of 13% year-over-year and flat
quarter-over-quarter. The year-over-year decrease in APA was mainly
due to the natural decline of our older games, including TLBB
PC.
- For mobile games, total average MAU were 3.2 million, an
increase of 41% year-over-year and a decrease of 34%
quarter-over-quarter. Total quarterly APA were 1.1 million, an
increase of 142% year-over-year and a decrease of 3%
quarter-over-quarter. The year-over-year increases in MAU and
APA were mainly from New Westward Journey, which was
launched during the second quarter of 2024. The
quarter-over-quarter decrease in MAU was mainly due to the natural
decline of New Westward Journey.
|
[3]
"Changyou Results" consist of the results of Changyou's online game
business and its 17173.com Website.
|
|
[4] Monthly active user accounts
refers to the number of registered accounts that are logged in to
these games at least once during the month.
|
|
[5] Quarterly aggregate active paying
accounts refers to the number of accounts from which game points
are utilized at least once during the quarter.
|
Third Quarter 2024 Unaudited Financial Results
Total revenues were US$129
million, an increase of 9% year-over-year and a decrease of
13% quarter-over-quarter. Online game revenues were US$128 million, an increase of 9% year-over-year
and a decrease of 13% quarter-over-quarter. Online advertising
revenues were US$1 million, a
decrease of 22% year-over-year and 13% quarter-over-quarter.
Both GAAP and non-GAAP gross profit were US$108 million, compared with US$103 million for the third quarter of 2023 and
US$112 million for the second quarter
of 2024.
GAAP operating expenses were US$45 million, a decrease of 12% year-over-year
and 43% quarter-over-quarter. The year-over-year decrease was
mainly due to a decrease in outsourcing and licensing fees related
to product development. The quarter-over-quarter decrease was
mainly due to a decrease in marketing and promotional spending for
online games.
Non-GAAP operating expenses were US$45 million, a decrease of 11% year-over-year
and 43% quarter-over-quarter.
GAAP operating profit was US$62 million, compared with US$51 million for the third quarter of 2023 and
US$32 million for the second quarter
of 2024.
Non-GAAP operating profit was US$62 million, compared with US$52 million for the third quarter of 2023 and
US$32 million for the second quarter
of 2024.
Recent Development
Sohu today announced that on November 9,
2024 its board of directors authorized an additional one
year to the period of Sohu's previously-announced share repurchase
program, from the previous end date of November 10, 2025 to November 10, 2026. As previously announced,
Sohu may purchase up to US$150
million of the outstanding ADSs of Sohu from time to time
under the program at Sohu's management's discretion at prevailing
market prices in accordance with Rule 10b-18 and Rule 10b5-1 under the Securities
Exchange Act of 1934. Sohu's management will continue to determine
the timing and amount of any purchases of ADSs based on their
evaluation of market conditions, the trading price of ADSs and
other factors. The share repurchase program may be suspended or
discontinued at any time. Sohu plans to continue to fund
repurchases from its existing cash balance. As of November 7, 2024, Sohu had repurchased 3,380,361
ADSs under the share repurchase program for an aggregate cost of
approximately US$42 million.
Business Outlook
For the fourth quarter of 2024, Sohu estimates:
- Brand advertising revenues to be between US$17 million and US$19
million; this implies an annual decrease of 6% to
16%, and a sequential decrease of 9% to a sequential
increase of 2%.
- Online game revenues to be between US$97 million and
US$107 million; this implies an annual decrease of 7% to
15%, and a sequential decrease of
16% to 24%.
- Non-GAAP net loss attributable to Sohu.com Limited to be
between US$26 million and US$36 million; and GAAP
net loss attributable to Sohu.com Limited to be between
US$30 million and US$40 million.
For the fourth quarter 2024 guidance, the Company has
adopted a presumed exchange rate of RMB7.10=US$1.00, as
compared with the actual exchange rate of approximately
RMB7.15=US$1.00 for the fourth quarter of 2023, and
RMB7.12=US$1.00 for the third quarter of 2024.
This forecast reflects Sohu's management's current and
preliminary view, which is subject to substantial uncertainty.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements
presented in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"), Sohu's management uses non-GAAP measures
of gross profit, operating profit, net income, net income
attributable to Sohu.com Limited and diluted net income
attributable to Sohu.com Limited per ADS, which are adjusted from
results based on GAAP to exclude the impact of 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 Toll Charge imposed by the U.S. TCJA. These
measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute
for, or superior to, GAAP results.
Sohu's management believes excluding 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
Toll Charge from its non-GAAP financial measure is useful for
itself and investors. Further, the impact of 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 Toll Charge cannot be anticipated by management
and business line leaders and these expenses were not built into
the annual budgets and quarterly forecasts that have been the basis
for information Sohu provides to analysts and investors as guidance
for future operating performance. As share-based compensation
expense and changes in fair value recognized in the Company's
consolidated statements of operations with respect to the Company's
investments do not involve subsequent cash outflow or are reflected
in the cash flows at the equity transaction level, Sohu does not
factor in their impact when evaluating and approving expenditures
or when determining the allocation of its resources to its business
segments. As a result, in general, the monthly financial results
for internal reporting and any performance measures for commissions
and bonuses are based on non-GAAP financial measures that 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 Toll Charge.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Sohu's current financial
performance and prospects for the future. A limitation of using
non-GAAP gross profit, operating profit, net income, net income
attributable to Sohu.com Limited, and diluted net income
attributable to Sohu.com Limited per ADS excluding share-based
compensation expense and interest expense recognized in connection
with the Toll Charge is that share-based compensation expense and
interest expense recognized in connection with the Toll Charge have
been and can be expected to continue to be significant recurring
expenses in Sohu's business. It is also possible that changes in
fair value recognized in the Company's consolidated statements of
operations with respect to the Company's investments will recur in
the future. In order to mitigate these limitations Sohu has
provided specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables include details
on the reconciliation between the GAAP financial measures that are
most directly comparable to the non-GAAP financial measures that
have been presented.
Notes to Financial Information
Financial information in this press release other than the
information indicated as being non-GAAP is derived from Sohu's
unaudited financial statements prepared in accordance with
GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. It is
currently expected that the Business Outlook will not be updated
until release of Sohu's next quarterly earnings announcement;
however, Sohu reserves right to update its Business Outlook at any
time for any reason. Statements that are not historical facts,
including statements about Sohu's beliefs and expectations, are
forward-looking statements. These statements are based on current
plans, estimates and projections, and therefore you should not
place undue reliance on them. Forward-looking statements involve
inherent risks and uncertainties. We caution you that a number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to,
instability in global financial and credit markets and its
potential impact on the Chinese economy; exchange rate
fluctuations, including their potential impact on the Chinese
economy and on Sohu's reported U.S. dollar results; fluctuations in
Sohu's quarterly operating results; the possibilities that Sohu
will be unable to recoup its investment in video content and will
be unable to develop a series of successful games for mobile
platforms or successfully monetize mobile games it develops or
acquires; Sohu's reliance on online advertising sales and online
games for its revenues; and the impact of the U.S. TCJA. Further
information regarding these and other risks is included in Sohu's
annual report on Form 20-F for the year ended December 31, 2023, and other filings with and
information furnished to the U.S. Securities and Exchange
Commission.
Conference Call and Webcast
Sohu's management team will host a conference call at
7:30 a.m. U.S. Eastern
Time, November 12, 2024 (8:30 p.m. Beijing/Hong
Kong time, November 12, 2024) following the
quarterly results announcement. Participants can register for
the conference call by clicking here, which will lead them to the
conference registration website. Upon registration, participants
will receive details for the conference call, including the dial-in
numbers and a unique access PIN. Please dial in 10 minutes before
the call is scheduled to begin.
The live Webcast and archive of the conference call will be
available on the Investor Relations section of Sohu's website at
https://investors.sohu.com/
About Sohu
Sohu.com Limited (NASDAQ: SOHU) was established by Dr.
Charles Zhang, one of China's internet pioneers, in the 1990s. As a
mainstream media platform, Sohu is indispensable to the daily life
of millions of Chinese, providing a network of web properties and
community based products which continually offer a broad array of
choices regarding information, entertainment and communication to
the vast number of Sohu users. Sohu has built one of the most
comprehensive matrices of Chinese language web properties,
consisting of the leading online media destinations Sohu News App,
Sohu Video App, the mobile news portal m.sohu.com, the PC portal
www.sohu.com, and the online video website tv.sohu.com; and the
online games platform www.changyou.com/en/.
Sohu provides online brand advertising services as well as
multiple news, information and content services on its
matrix of websites and also on its mobile platforms. Sohu's online
game business, conducted by its subsidiary Changyou, develops and
operates a diverse portfolio of PC and mobile games, such as the
well-known Tian Long Ba Bu ("TLBB")
PC and Legacy TLBB Mobile.
For investor and media inquiries, please contact:
In China:
Ms. Huang, Pu
Sohu.com Limited
Tel: +86 (10) 6272-6645
E-mail: ir@contact.sohu.com
In the United
States:
Ms. Bergkamp, Linda
Christensen
Tel: +1 (480) 614-3004
E-mail: linda.bergkamp@christensencomms.com
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Sep. 30,
2024
|
|
Jun. 30,
2024
|
|
Sep. 30,
2023
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Brand advertising
|
$
|
18,677
|
$
|
19,853
|
$
|
22,087
|
|
|
Online games
|
|
127,721
|
|
146,997
|
|
117,049
|
|
|
Others
|
|
5,594
|
|
5,483
|
|
6,294
|
|
|
Total
revenues
|
|
151,992
|
|
172,333
|
|
145,430
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Brand advertising
(includes share-based
compensation expense of nil, $1, and $15,
respectively)
|
|
17,040
|
|
15,904
|
|
18,745
|
|
|
Online games (includes
share-based compensation
expense of nil, nil, and $18, respectively)
|
|
20,292
|
|
35,588
|
|
15,039
|
|
|
Others
|
|
2,283
|
|
4,974
|
|
687
|
|
|
Total cost of
revenues
|
|
39,615
|
|
56,466
|
|
34,471
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
112,377
|
|
115,867
|
|
110,959
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Product development
(includes share-based
compensation expense of $6, $10, and $280,
respectively)
|
|
62,231
|
|
65,209
|
|
67,749
|
|
|
Sales and marketing
(includes share-based
compensation expense of $9, $10, and $39,
respectively)
|
|
48,494
|
|
83,936
|
|
53,040
|
|
|
General and
administrative (includes share-based
compensation expense of $29, $-421, and $358,
respectively)
|
|
14,692
|
|
11,012
|
|
10,801
|
|
|
Total operating
expenses
|
|
125,417
|
|
160,157
|
|
131,590
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(13,040)
|
|
(44,290)
|
|
(20,631)
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
3,635
|
|
5,572
|
|
10,869
|
|
|
Interest
income
|
|
9,074
|
|
9,561
|
|
11,519
|
|
|
Exchange
difference
|
|
(988)
|
|
231
|
|
(478)
|
|
|
Income/(loss) before
income tax expense
|
|
(1,319)
|
|
(28,926)
|
|
1,279
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
15,028
|
|
8,731
|
|
15,340
|
|
|
Net loss from
continuing operations
|
|
(16,347)
|
|
(37,657)
|
|
(14,061)
|
|
|
Net income from
discontinued operations, net of tax[6]
|
|
-
|
|
-
|
|
35,426
|
|
|
Net
income/(loss)
|
|
(16,347)
|
|
(37,657)
|
|
21,365
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss from
continuing operations
attributable to the noncontrolling interest
shareholders
|
|
-
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to
Sohu.com Limited
|
|
(16,347)
|
|
(37,657)
|
|
(14,059)
|
|
|
Net income from
discontinued operations attributable
to Sohu.com Limited
|
|
-
|
|
-
|
|
35,426
|
|
|
Net income/(loss)
attributable to Sohu.com Limited
|
|
(16,347)
|
|
(37,657)
|
|
21,367
|
|
|
|
|
|
|
|
|
|
|
Basic net loss from
continuing operations per
share/ADS attributable to Sohu.com Limited[7]
|
$
|
(0.52)
|
$
|
(1.16)
|
$
|
(0.41)
|
|
|
Basic net income from
discontinued operations per
share/ADS attributable to Sohu.com Limited
|
$
|
-
|
$
|
-
|
$
|
1.04
|
|
|
Basic net income/(loss)
per share/ADS attributable to
Sohu.com Limited
|
$
|
(0.52)
|
$
|
(1.16)
|
$
|
0.63
|
|
|
Shares/ADSs used in
computing basic net
income/(loss) per share/ADS attributable to Sohu.com
Limited
|
|
31,729
|
|
32,492
|
|
34,190
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss from
continuing operations per
share/ADS attributable to Sohu.com Limited
|
$
|
(0.52)
|
$
|
(1.16)
|
$
|
(0.41)
|
|
|
Diluted net income from
discontinued operations per
share/ADS attributable to Sohu.com Limited
|
$
|
-
|
$
|
-
|
$
|
1.04
|
|
|
Diluted net
income/(loss) per share/ADS attributable to
Sohu.com Limited
|
$
|
(0.52)
|
$
|
(1.16)
|
$
|
0.63
|
|
|
Shares/ADSs used in
computing diluted net
income/(loss) per share/ADS attributable to Sohu.com
Limited
|
|
31,729
|
|
32,492
|
|
34,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[6] See
Footnote 1.
|
|
[7] Each ADS
represents one ordinary share.
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
|
|
|
|
As of Sep. 30,
2024
|
|
As of Dec. 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
135,645
|
$
|
362,504
|
|
Restricted cash
|
|
-
|
|
3,184
|
|
Short-term investments
|
|
798,733
|
|
597,770
|
|
Accounts receivable, net
|
|
54,956
|
|
71,618
|
|
Prepaid and other current assets
|
|
84,674
|
|
81,971
|
|
Total current
assets
|
|
1,074,008
|
|
1,117,047
|
|
Fixed assets,
net
|
|
262,549
|
|
269,058
|
|
Goodwill
|
|
47,322
|
|
47,163
|
|
Long-term investments,
net
|
|
45,670
|
|
45,198
|
|
Intangible assets,
net
|
|
8,515
|
|
2,226
|
|
Long-term time
deposits
|
|
337,689
|
|
388,613
|
|
Other assets
|
|
12,374
|
|
12,793
|
|
Total assets
|
$
|
1,788,127
|
$
|
1,882,098
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
41,693
|
$
|
44,609
|
|
Accrued liabilities
|
|
102,772
|
|
103,779
|
|
Receipts in advance and deferred revenue
|
|
50,945
|
|
50,829
|
|
Accrued salary and benefits
|
|
38,056
|
|
50,330
|
|
Taxes payables
|
|
13,859
|
|
11,363
|
|
Other short-term liabilities
|
|
77,142
|
|
81,482
|
|
Total current
liabilities
|
$
|
324,467
|
$
|
342,392
|
|
|
|
|
|
|
Long-term other
payables
|
|
2,854
|
|
3,924
|
|
Long-term tax
liabilities
|
|
484,909
|
|
474,374
|
|
Other long-term
liabilities
|
|
2,022
|
|
2,130
|
|
Total long-term
liabilities
|
$
|
489,785
|
$
|
480,428
|
|
Total liabilities
|
$
|
814,252
|
$
|
822,820
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Sohu.com Limited shareholders' equity
|
|
973,553
|
|
1,058,956
|
|
Noncontrolling interest
|
|
322
|
|
322
|
|
Total shareholders' equity
|
$
|
973,875
|
$
|
1,059,278
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,788,127
|
$
|
1,882,098
|
|
SOHU.COM
LIMITED
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST
COMPARABLE GAAP MEASURES
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Sep. 30, 2024
|
|
Three Months Ended
Jun. 30, 2024
|
|
Three Months Ended
Sep. 30, 2023
|
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
1
|
(a)
|
|
|
|
|
15
|
(a)
|
|
|
Brand advertising gross
profit
|
$
|
1,637
|
$
|
-
|
$
|
1,637
|
$
|
3,949
|
$
|
1
|
$
|
3,950
|
$
|
3,342
|
$
|
15
|
$
|
3,357
|
|
Brand advertising gross
margin
|
|
9 %
|
|
|
|
9 %
|
|
20 %
|
|
|
|
20 %
|
|
15 %
|
|
|
|
15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
|
18
|
(a)
|
|
|
Online games gross
profit
|
$
|
107,429
|
$
|
-
|
$
|
107,429
|
$
|
111,409
|
$
|
-
|
$
|
111,409
|
$
|
102,010
|
$
|
18
|
$
|
102,028
|
|
Online games gross
margin
|
|
84 %
|
|
|
|
84 %
|
|
76 %
|
|
|
|
76 %
|
|
87 %
|
|
|
|
87 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
Others gross
profit
|
$
|
3,311
|
$
|
-
|
$
|
3,311
|
$
|
509
|
$
|
-
|
$
|
509
|
$
|
5,607
|
$
|
-
|
$
|
5,607
|
|
Others gross
margin
|
|
59 %
|
|
|
|
59 %
|
|
9 %
|
|
|
|
9 %
|
|
89 %
|
|
|
|
89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
1
|
(a)
|
|
|
|
|
33
|
(a)
|
|
|
Gross profit
|
$
|
112,377
|
$
|
-
|
$
|
112,377
|
$
|
115,867
|
$
|
1
|
$
|
115,868
|
$
|
110,959
|
$
|
33
|
$
|
110,992
|
|
Gross margin
|
|
74 %
|
|
|
|
74 %
|
|
67 %
|
|
|
|
67 %
|
|
76 %
|
|
|
|
76 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
125,417
|
$
|
(44)
|
(a) $
|
125,373
|
$
|
160,157
|
$
|
401
|
(a) $
|
160,558
|
$
|
131,590
|
$
|
(677)
|
(a) $
|
130,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
|
(a)
|
|
|
|
|
(400)
|
(a)
|
|
|
|
|
710
|
(a)
|
|
|
Operating
loss
|
$
|
(13,040)
|
$
|
44
|
$
|
(12,996)
|
$
|
(44,290)
|
$
|
(400)
|
$
|
(44,690)
|
$
|
(20,631)
|
$
|
710
|
$
|
(19,921)
|
|
Operating
margin
|
|
-9 %
|
|
|
|
-9 %
|
|
-26 %
|
|
|
|
-26 %
|
|
-14 %
|
|
|
|
-14 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
15,028
|
$
|
(3,883)
|
(c)$
|
11,145
|
$
|
8,731
|
$
|
(3,764)
|
(c)$
|
4,967
|
$
|
15,340
|
$
|
(3,149)
|
(c)$
|
12,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
|
(a)
|
|
|
|
|
(400)
|
(a)
|
|
|
|
|
710
|
(a)
|
|
|
|
|
|
-
|
|
|
|
|
|
131
|
(b)
|
|
|
|
|
-
|
|
|
|
|
|
|
3,883
|
(c)
|
|
|
|
|
3,764
|
(c)
|
|
|
|
|
3,149
|
(c)
|
|
|
Net loss before
non-controlling
interest
|
$
|
(16,347)
|
$
|
3,927
|
$
|
(12,420)
|
$
|
(37,657)
|
$
|
3,495
|
$
|
(34,162)
|
$
|
(14,061)
|
|
3,859
|
|
(10,202)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
|
(a)
|
|
|
|
|
(400)
|
(a)
|
|
|
|
|
710
|
(a)
|
|
|
|
|
|
-
|
|
|
|
|
|
131
|
(b)
|
|
|
|
|
-
|
|
|
|
|
|
|
3,883
|
(c)
|
|
|
|
|
3,764
|
(c)
|
|
|
|
|
3,149
|
(c)
|
|
|
Net loss from
continuing operations
attributable to Sohu.com Limited for
diluted net loss per ADS
|
$
|
(16,347)
|
$
|
3,927
|
$
|
(12,420)
|
$
|
(37,657)
|
$
|
3,495
|
$
|
(34,162)
|
$
|
(14,059)
|
|
3,859
|
|
(10,200)
|
|
Net income from
discontinued
operations attributable to Sohu.com
Limited for diluted net loss per ADS
[8]
|
$
|
-
|
|
-
|
|
-
|
$
|
-
|
|
-
|
$
|
-
|
$
|
35,426
|
|
-
|
$
|
35,426
|
|
Net income/(loss)
attributable to
Sohu.com Limited for diluted net
income/(loss) per share/ADS
|
$
|
(16,347)
|
|
3,927
|
|
(12,420)
|
$
|
(37,657)
|
$
|
3,495
|
$
|
(34,162)
|
$
|
21,367
|
|
3,859
|
|
25,226
|
|
Diluted net loss
from continuing
operations per ADS attributable to
Sohu.com Limited
|
$
|
(0.52)
|
|
|
$
|
(0.39)
|
$
|
(1.16)
|
|
|
|
(1.05)
|
$
|
(0.41)
|
|
|
$
|
(0.30)
|
|
Diluted net
income from
discontinued operations per ADS
attributable to Sohu.com Limited
|
$
|
-
|
|
|
|
-
|
$
|
-
|
|
|
|
-
|
$
|
1.04
|
|
|
$
|
1.04
|
|
Diluted net
income/(loss) per
share/ADS attributable to Sohu.com
Limited
|
$
|
(0.52)
|
|
|
|
(0.39)
|
$
|
(1.16)
|
|
|
|
(1.05)
|
$
|
0.63
|
|
|
$
|
0.74
|
|
Shares/ADSs used in
computing
diluted net income/(loss) per
share/ADS attributable to Sohu.com
Limited
|
|
31,729
|
|
|
|
31,729
|
|
32,492
|
|
|
|
32,492
|
|
34,190
|
|
|
|
34,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To eliminate
the impact of share-based awards.
|
|
(b) To adjust for
changes in the fair value of the Company's investments.
|
|
(c) To adjust for the
effect of the Toll Charge.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[8] See
Footnote 1.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sohucom-reports-third-quarter-2024-unaudited-financial-results-302302050.html
SOURCE Sohu.com Limited