SOHU.COM REPORTS SECOND QUARTER 2024 UNAUDITED FINANCIAL RESULTS

BEIJING, Aug. 5, 2024 /PRNewswire/ — Sohu.com Restricted (NASDAQ: SOHU) (“Sohu” or the “Company”), a prominent Chinese language on-line media, video, and match industry crew, these days reported unaudited monetary effects for the second one quarter ended June 30, 2024.

2d Quarter Highlights

• General revenues have been US$172 million, up 13% year-over-year and 24% quarter-over-quarter.
• Logo promoting revenues have been US$20 million, unwell 17% year-over-year and up 24% quarter-over-quarter.
• On-line match revenues have been US$147 million, up 24% year-over-year and 25% quarter-over-quarter.
• GAAP internet loss due to Sohu.com Restricted was once US$38 million, when compared with a internet lack of US$21 million in the second one quarter of 2023 and a internet lack of US$25 million within the first quarter of 2024.
• Non-GAAP^[1] internet loss due to Sohu.com Restricted was once US$34 million, when compared with a internet lack of US$18 million in the second one quarter of 2023 and a internet lack of US$22 million within the first quarter of 2024.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Restricted, commented, “In the second quarter of 2024, we hit the high end of our prior guidance in brand advertising revenues while our online game revenues came in well above expectations. Our bottom-line performance was in line with our prior guidance. For Sohu Media and Sohu Video, leveraged by our increasingly integrated and sophisticated product matrix, we further promoted the generation and consumption of premium content, and vigorously boosted social interactions among users. Benefiting from our differentiated events and marketing campaigns, we were able to continually strengthen our brand influence and explore a diverse range of monetization opportunities. Online games performed well, with revenues exceeding our expectations.”

2d Quarter Monetary Effects 

Revenues

General revenues have been US$172 million, up 13% year-over-year and 24% quarter-over-quarter.

Logo promoting revenues have been US$20 million, unwell 17% year-over-year and up 24% quarter-over-quarter.

On-line match revenues have been US$147 million, up 24% year-over-year and 25% quarter-over-quarter.

Improper Margin

Each GAAP and non-GAAP improper margin have been 67%, when compared with 76% in the second one quarter of 2023 and 77% within the first quarter of 2024.

Each GAAP and non-GAAP improper margin for the emblem promoting industry have been 20%, when compared with 30% in the second one quarter of 2023 and 1% within the first quarter of 2024.

Each GAAP and non-GAAP improper margin for on-line video games have been 76%, when compared with 87% in the second one quarter of 2023 and 88% within the first quarter of 2024. The decreases have been principally because of the next share profit contribution from cellular video games, which require upper revenue-sharing bills.

Running Bills 

GAAP working bills have been US$160 million, up 16% year-over-year and 20% quarter-over-quarter. Non-GAAP working bills have been US$161 million, up 17% year-over-year and 20% quarter-over-quarter. The will increase have been principally because of an build up in Changyou’s advertising and marketing and promotional spending for its on-line video games.

Operating Loss

GAAP working loss was once US$44 million, when compared with an working lack of US$23 million in the second one quarter of 2023 and an working lack of US$27 million within the first quarter of 2024.

Non-GAAP working loss was once US$45 million, when compared with an working lack of US$23 million in the second one quarter of 2023 and an working lack of US$27 million within the first quarter of 2024.

Source of revenue Tax Expense

GAAP source of revenue tax expense was once US$9 million, when compared with source of revenue tax expense of US$18 million in the second one quarter of 2023 and source of revenue tax expense of US$14 million within the first quarter of 2024. Non-GAAP source of revenue tax expense was once US$5 million, when compared with source of revenue tax expense of US$15 million in the second one quarter of 2023 and source of revenue tax expense of US$10 million within the first quarter of 2024.

Web Loss

GAAP internet loss due to Sohu.com Restricted was once US$38 million, or a internet lack of US$1.16 consistent with fully-diluted American depositary percentage (“ADS,” every ADS representing one Sohu common percentage), when compared with a internet lack of US$21 million in the second one quarter of 2023 and a internet lack of US$25 million within the first quarter of 2024.

Non-GAAP internet loss due to Sohu.com Restricted was once US$34 million, or a internet lack of US$1.05 consistent with fully-diluted ADS, when compared with a internet lack of US$18 million in the second one quarter of 2023 and a internet lack of US$22 million within the first quarter of 2024.

Liquidity and Capital Sources

As of June 30, 2024, money and money equivalents, non permanent investments and long-term day deposits totaled roughly US$1.3 billion.

Backup Knowledge for Changyou Effects^[2]

2d Quarter 2024 Running Effects

• For PC video games, general reasonable per thirty days energetic consumer accounts^[3] (MAU) have been 2.2 million, an build up of two% year-over-year and a snip of two% quarter-over-quarter. General quarterly mixture energetic paying accounts^[4] (APA) have been 0.9 million, a snip of three% year-over-year and eight% quarter-over-quarter. The quarter-over-quarter snip in APA was once principally a results of fewer in-game promotional actions having been introduced for TLBB PC right through the second one quarter.
• For cellular video games, general reasonable MAU have been 4.9 million, an build up of 273% year-over-year and 77% quarter-over-quarter. General quarterly APA have been 1.1 million, an build up of 299% year-over-year and 240% quarter-over-quarter. The year-over-year and quarter-over-quarter will increase in MAU and APA have been principally from Unutilized Westward Advance, which was once introduced right through the second one quarter.

2d Quarter 2024 Unaudited Monetary Effects

General revenues have been US$148 million, an build up of 24% year-over-year and 25% quarter-over-quarter. On-line match revenues have been US$147 million, an build up of 24% year-over-year and 25% quarter-over-quarter. Web advertising revenues have been US$1 million, a snip of 14% year-over-year and an build up of one% quarter-over-quarter.

Each GAAP and non-GAAP improper benefit have been US$112 million, when compared with US$103 million for the second one quarter of 2023 and US$104 million for the primary quarter of 2024.

GAAP working bills have been US$80 million, an build up of 46% year-over-year and 62% quarter-over-quarter. The year-over-year and quarter-over-quarter will increase have been principally because of an build up in advertising and marketing and promotional spending for on-line video games.

Non-GAAP working bills have been US$80 million, an build up of 49% year-over-year and 63% quarter-over-quarter.

Each GAAP and non-GAAP working benefit have been US$32 million, when compared with US$49 million for the second one quarter of 2023 and US$55 million for the primary quarter of 2024.

Fresh Construction

Below the previously-announced percentage repurchase program of as much as US$150 million of the exceptional ADSs, Sohu had repurchased 2,347,332 ADSs for an mixture price of roughly US$26 million as of August 1, 2024.

Trade Outlook

For the 3rd quarter of 2024, Sohu estimates:

• Logo promoting revenues to be between US$17 million and US$19 million; this means an annual snip of 14% to 23%, and a sequential snip of four% to fourteen%.
• On-line match revenues to be between US$104 million and US$114 million; this means an annual snip of three% to 11%, and a sequential snip of twenty-two% to 29%. 
• Non-GAAP internet loss due to Sohu.com Restricted to be between US$30 million and US$40 million; and GAAP internet loss due to Sohu.com Restricted to be between US$34 million and US$44 million.

For the 3rd quarter 2024 steering, the Corporate has followed a presumed alternate fee of RMB7.10=US$1.00, as when compared with the original alternate fee of roughly RMB7.17=US$1.00 for the 3rd quarter of 2023, and RMB7.11=US$1.00 for the second one quarter of 2024.

This forecast displays Sohu’s control’s flow and initial view, which is matter to really extensive unsureness.

Non-GAAP Disclosure 

To complement the unaudited consolidated monetary statements introduced based on accounting rules normally authorised in america of The usa (“GAAP”), Sohu’s control makes use of non-GAAP measures of improper benefit, working benefit, internet source of revenue, internet source of revenue due to Sohu.com Restricted and diluted internet source of revenue due to Sohu.com Restricted consistent with ADS, which can be adjusted from effects in line with GAAP to exclude the affect of share-based repayment expense; adjustments in honest worth known within the Corporate’s consolidated statements of operations with appreciate to the Corporate’s investments; and pastime expense known in reference to the Toll Rate imposed by means of the U.S. TCJA. Those measures must be thought to be along with effects ready based on GAAP, however must now not be thought to be an alternative to, or superb to, GAAP effects.

Sohu’s control believes with the exception of share-based repayment expense; adjustments in honest worth known within the Corporate’s consolidated statements of operations with appreciate to the Corporate’s investments; and pastime expense known in reference to the Toll Rate from its non-GAAP monetary measure turns out to be useful for itself and traders. Additional, the affect of share-based repayment expense; adjustments in honest worth known within the Corporate’s consolidated statements of operations with appreciate to the Corporate’s investments; and pastime expense known in reference to the Toll Rate can’t be expected by means of control and industry order leaders and those bills weren’t constructed into the yearly budgets and quarterly forecasts which were the foundation for info Sohu supplies to analysts and traders as steering for moment working efficiency. As share-based repayment expense and adjustments in honest worth known within the Corporate’s consolidated statements of operations with appreciate to the Corporate’s investments don’t contain next money outflow or are mirrored within the money flows on the fairness transaction stage, Sohu does now not issue of their affect when comparing and approving expenditures or when figuring out the allocation of its assets to its industry areas. In consequence, usually, the per thirty days monetary effects for interior reporting and any efficiency measures for commissions and bonuses are in line with non-GAAP monetary measures that exclude share-based repayment expense, adjustments in honest worth known within the Corporate’s consolidated statements of operations with appreciate to the Corporate’s investments, and pastime expense known in reference to the Toll Rate.

The non-GAAP monetary measures are equipped to reinforce traders’ total working out of Sohu’s flow monetary efficiency and possibilities for the moment. A limitation of the usage of non-GAAP improper benefit, working benefit, internet source of revenue, internet source of revenue due to Sohu.com Restricted, and diluted internet source of revenue due to Sohu.com Restricted consistent with ADS with the exception of share-based repayment expense and pastime expense known in reference to the Toll Rate is that share-based repayment expense and pastime expense known in reference to the Toll Rate were and can also be anticipated to proceed to be important routine bills in Sohu’s industry. It’s also imaginable that adjustments in honest worth known within the Corporate’s consolidated statements of operations with appreciate to the Corporate’s investments will recur going forward. To deliver to mitigate those barriers Sohu has equipped particular data in regards to the GAAP quantities excluded from every non-GAAP measure. The accompanying tables come with main points at the reconciliation between the GAAP monetary measures which might be maximum at once similar to the non-GAAP monetary measures which were introduced.

Notes to Monetary Knowledge

Monetary data on this press let fall alternative than the tips indicated as being non-GAAP is derived from Sohu’s unaudited monetary statements ready based on GAAP.

Secure Harbor Commentary 

This announcement incorporates forward-looking statements. It’s lately anticipated that the Trade Outlook is probably not up to date till let fall of Sohu’s later quarterly profits announcement; alternatively, Sohu reserves proper to replace its Trade Outlook at any day for any reason why. Statements that don’t seem to be historic info, together with statements about Sohu’s ideals and expectancies, are forward-looking statements. Those statements are in line with flow plans, estimates and projections, and subsequently you must now not park undue reliance on them. Ahead-looking statements contain inherent dangers and uncertainties. We warning you that quite a few noteceable components may just reason original effects to fluctuate materially from the ones contained in any forward-looking remark. Attainable dangers and uncertainties come with, however don’t seem to be restricted to, instability in international monetary and credit score markets and its possible affect at the Chinese language financial system; alternate fee fluctuations, together with their possible affect at the Chinese language financial system and on Sohu’s reported U.S. greenback effects; fluctuations in Sohu’s quarterly working effects; the chances that Sohu will not be able to recoup its funding in video content material and will not be able to create a form of a success video games for cellular platforms or effectively monetize cellular video games it develops or acquires; Sohu’s reliance on web advertising gross sales and on-line video games for its revenues; and the affect of the U.S. TCJA. Additional data relating to those and alternative dangers is integrated in Sohu’s annual record on Mode 20-F for the yr ended December 31, 2023, and alternative filings with and knowledge furnished to the U.S. Securities and Change Fee.

Convention Name and Webcast 

Sohu’s control workforce will host a convention name at 7:30 a.m. U.S. Jap Past, August 5, 2024 (7:30 p.m. Beijing/Hong Kong day, August 5, 2024) following the quarterly effects announcement. Members can sign in for the convention name by means of clicking here, which can supremacy them to the convention registration website online. Upon registration, members will obtain main points for the convention name, together with the dial-in numbers and a singular get entry to PIN. Please dial in 10 mins ahead of the decision is scheduled to start.

The are living Webcast and archive of the convention name will likely be to be had at the Investor Family members division of Sohu’s website online at https://investors.sohu.com/

About Sohu 

Sohu.com Restricted (NASDAQ: SOHU) was once established by means of Dr. Charles Zhang, one in every of China’s web pioneers, within the Nineteen Nineties. As a mainstream media platform, Sohu is indispensable to the day-to-day while of tens of millions of Chinese language, offering a community of internet homes and folk founded merchandise which frequently trade in a wide array of alternatives relating to data, leisure and verbal exchange to the gigantic selection of Sohu customers. Sohu has constructed one of the crucial complete matrices of Chinese language language internet homes, consisting of the prominent on-line media locations Sohu Information App, Sohu Video App, the cellular information portal m.sohu.com, the PC portal www.sohu.com, and the net video website online tv.sohu.com; and the net video games platform www.changyou.com/en/. 

Sohu supplies on-line logo promoting services and products in addition to a couple of information, data and content material services and products on its matrix of internet sites and likewise on its cellular platforms. Sohu’s on-line match industry, carried out by means of its subsidiary Changyou, develops and operates a numerous portfolio of PC and cellular video games, such because the eminent Tian Lengthy Ba Bu (“TLBB”) PC and Legacy TLBB Cell.

For investor and media inquiries, please touch:

In China:

Ms. Huang, Pu
Sohu.com Restricted
Tel: +86 (10) 6272-6645
Electronic mail: [email protected]

In america:

Ms. Bergkamp, Linda
Christensen
Tel: +1 (480) 614-3004
Electronic mail:  [email protected]

SOURCE Sohu.com Restricted