Latest news with #CharlesZhang
Yahoo
20-05-2025
- Business
- Yahoo
Q1 2025 Sohu.com Ltd Earnings Call
Huang Pu; Investor Relations Officer; Ltd Charles Zhang; Chairman of the Board, Chief Executive Officer; Ltd Joanna Lv; Chief Financial Officer; Ltd Unidentified Company Representative Thomas Chong; Analyst; Jefferies Alicia Yap; Analyst; Citi Operator Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's first quarter 2025 earnings conference call. (Operator Instructions)Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead. Huang Pu Thanks, operator. Thank you for joining us to discuss Sohu's first quarter 2025 results. On the call are Chairman and Chief Executive Officer, Dr. Charles Zhang; CFO, Joanna Lv; and Vice President of Finance, James Deng. Also with us are Changyou's CEO, Dewen Chen; and CFO of Yaobin management begins their prepared remarks, I would like to remind you of the company's safe harbor statement in connection with today's conference call. Except for the historical information contained herein, the matters discussed on the call may contain forward-looking statements are based on the 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 more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission, including the most recent Annual Report on Form that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed. Charles Zhang Thanks, Huang Pu, and thank you, everyone, for joining our call. In the first quarter of 2025, both our marketing services revenues, this is formerly known as the brand advertising revenue, and non-GAAP bottom line performance reached the high end of our previous guidance, while our online game revenues were well above our the Sohu Media platform, in addition to devoting efforts in product refinements and technology improvements, we continued to concentrate on strengthening the distinctive social features, social network features of our platform. Through various unique events, we were able to engage with more users, while promoting vigorous social interactions and distributions on our platform and generating massive premium content at the same our competitive advantage as a mainstream media platform and our unique IPs, we proactively explored greater monetization opportunities. Online games business also achieved a satisfactory performance, thanks to the high-quality content updates and continual improvements to our going into each business unit in more detail, let me first give you a quick overview of our financial performance. For the first quarter of 2025, total revenues $136 million, down 3% year-over-year and up 1% quarter-over-quarter. Marketing services revenues were $14 million, down 15% year-over-year and 27% quarter-over-quarter. Online game revenues, $117 million, flat year-over-year and up 7% net income attributable to Limited was $182 million compared with a net loss of $25 million in the first quarter of 2024 and a net loss of $21 million in the fourth quarter of 2024. In this quarter, the company reversed a tax expense that had been previously recognized as an uncertain tax position and its related accrued interest expense at approximately $199 million. Excluding this, non-GAAP net loss attributable to Limited was $16 million compared with a net loss of $22 million in the first quarter of 2024 and a net loss of $15 million in the fourth quarter of I will go through our key businesses in more detail. First, Sohu Media platform. We continuously optimized our products and with cutting-edge technologies while further strengthening the social features -- social network strategically integrating resources across our platforms and leveraging the synergies created by our unique offline events, we successfully attracted a wide range of broadcasters, who are also our users from diverse fields and greatly increased their helped to generate more high-quality content, further promote online social interaction and distribution and ultimately build a vibrant and dynamic social community on our platform. In April, we successfully hosted the 2025 Spring Convention of the Sohu Video influencers (spoken in foreign language) in Beijing, where we gathered hundreds of pop stars, KOLs and broadcasters and users in diverse verticals such as K-pop and Chinese customers among event offered a chance not only for enthusiastic participants with similar interest to connect and share in person, but also for them to get to know and interact with those in different fields and thus further boosted the vitality of our platform. This quarter, we also hosted our traditional flagship event, the 17th Sohu News Marathon, Sohu News Marathon in Weihai an influential cross-border marathon in China, this season's event continued to be presented through immersive live broadcasting, attracting both online and offline participants -- participation. This event not only generated a large amount of content from real-time updates posted by runners during the marathon and other derivative content after the race, they also promoted continuous social disseminations of related content and supported by the active social atmosphere on our we also -- we continue to attract users and audiences as well as advertisers with a distinctive physics class, Charles Physics class IP. In April, I was invited to give a physical physics lecture at Beijing Planetarium, (spoken in foreign language), reflecting a wide recognition of the class of the physics class brand and Sohu's leading position in popularization of physics the same time, we continue to explore the monetization potential of this IP and its derivatives such as everything has physics physical principles along [maturity] in various scenarios. For example, we combined the physics class with famous exhibitions such as the 2025 China AWE, the Appliance and Electronics World Expo in Shanghai and also 2025 Shanghai International Auto Industry Exhibition -- Automobile Industry Exhibition Shanghai (inaudible). In these exhibitions, we provided audiences with live explanations of the physics principles involved in integrating the exhibited products and which effectively build up connections between advertisers and these efforts, we were able to provide advertisers with customized marketing solutions and further demonstrated our unique monetization value. Besides the content generated from the above events, we also proactively expanded our content the quarter, we released several original dramas and American TV series, while introducing a large number of short dramas, among which Mystic Tales, Bu Si Yi, Zhi Gua and other American TV episodes like Mandalorian were well received by our turning to our online game business. During the quarter, our online game business performed well with revenues exceeding our prior guidance. In our PC game business, we rolled out various holiday events around Chinese New Year and Valentine's Day as well as promotional events for regular TLBB PC. In addition to holiday events, we upgraded a character development system for TLBB Vintage to give players a whole new gaming legacy TLBB Mobile, we launched an expansion pack to celebrate the Chinese New Year, featuring a variety of festival theme the gameplay and rich benefit for players. Thanks to these efforts, both player engagement and revenue for this game remained stable on a sequential quarter, we will continue to launch expansion packs and content updates for the TLBB series and other titles to further keep players engaged. As market competition intensifies and user demand for quality and innovation continues to rise, we will forge ahead with our top game strategy, staying true to our user-centric continue to optimize our R&D process and enhance execution to improve efficiency and product success rate. With these efforts, we look to bring more high-quality games to the market. Specifically, in terms of product development, we are actively exploring opportunities to unlock the potential of our TLBB as we maintain our core competitiveness in MMORPGs, we will diversify our portfolio with multiple types of games, including card-based RPGs, sports games and casual games and expand our portfolio for global let me give an update on the ongoing share repurchase program. As of May 15 this year, 2025, Sohu had repurchased 5.5 million ADS for an aggregate cost of approximately $67 that, I will now turn to our CFO, Joanna. Joanna, please. Joanna Lv Thank you, Charles. I will now walk you through the key financials of our major segments for the first quarter of 2025. All numbers are on a non-GAAP basis. You may find a reconciliation of non-GAAP to GAAP measures on our IR Sohu Media platform, quarterly revenues were $70 million compared with $20 million in the same quarter last year. Quarterly operating loss was $70 million compared with an operating loss of $74 million in the same quarter last year. For Changyou, quarterly revenues, $180 million compared with $190 million in the same quarter last operating profit, $55 million, flat with the same quarter last year. For the second quarter of 2025, we expect marketing services revenues to be between $60 million and $70 million. This implies annual decrease of 14% to 19% and a sequential increase of 17% to 24%. Online game revenues to be between $96 million and $106 million. This implies an annual decrease of 28% to 35% and a sequential decrease of 10% to 18%.Both non-GAAP and GAAP net loss attributable to Limited to be between $20 million and $30 million. This forecast reflects Sohu's management's current and preliminary view, which is subject to substantial concludes our prepared remarks. Operator, we would now like to open the call to questions. Joanna Lv (Operator Instructions) Thomas Chong, Jefferies. Thomas Chong My first question is about our marketing services. Can management comment about the recent trend in advertising sentiments? And how is it across different categories such as FMCG, IT, auto, food and electronics? And what should -- how should we think about the second half advertising outlook? Should we expect a recovery trend in advertising momentum in the second half?And my second question is about AI. Can management comment about how AI benefit our advertising and online games operations? Are we seeing our eCPM or traffic benefits from better recommendation? And also, for gaming, we are seeing efficiencies or productivity increase in our gaming business? Charles Zhang Okay. The first question is about the marketing services, which is formerly called advertising. And in this quarter, the sector-wise, auto is doing better and yeah, 26%. So auto is doing better, and IT services stay stable and FMCG is stable, but luxury goods and alcohol is not -- is that the spending is dropping a little bit. So that's the overall yeah, so we have auto advertising or marketing services 26% and IT services 17% and FMCG 16%. For the second half, I think, well, probably similar, right? The economy is still not doing well, and so we will only expect -- look forward to talk to our -- the social network platform to have an accelerated growth so that we have a much larger platform so that we can get a larger market share of the advertising second question is about the AI impact, right? So first of all, AI and DeepSeek development. So first of all, the -- since our platform -- media platform now take the social network as our center strategy, and social network is really people-to-people interaction, it has relatively less exposure to AI and large model or DeepSeek -- large language model and DeepSeek unlike those information retrieval services like search engines or the we do have the recommendations on our Sohu News app and the Sohu Video. But now we -- those video and news app, the strategy is centered around the social network. So it has less exposure or less impact by of course, we can take advantage of the AI development or the advent of AI to improve some efficiency, but it's kind of like generation of content or some abstracts of the articles and also for the live streaming and video tools to do live streaming and the subtitles or the digital image or all those kind of things to help our users to -- with better tools. That's kind of beneficial, but it's not that big. So what I'm saying is that the AI development pose as kind of a threat or kind of impact to certain companies that mainly depend on information retrieval -- providing retrieval. But for us, now with the social network strategy, we have less exposure to this kind of threat. Yeah. On online game, I think AI impact, it's beneficial, right?It's better, right? It helps. Unidentified Company Representative (interpreted) We have largely applied AI technology in terms of art design, art production, UI design, the audio effect design and the material for marketing. It has greatly improved our efficiency. We've also achieved some progress in terms of the planning in terms -- through the ways to make AI to learn by themselves. Operator Alicia Yap, Citigroup. Alicia Yap I have two, three questions. First is that I wanted to follow up on the AI. Just wondering which AI model Sohu is currently integrating or incorporate into your gaming? Are you using DeepSeek or other comparable AI large language models?And then I understand you mentioned about social network on your media, which is less impacted. But if you were to incorporate that into your search and recommended functions within your Sohu portal, which -- again, which AI models or tools that you will be using? I assume you're not going to develop your own large language model. So this is the first question. Charles Zhang Yes, both in our Sohu Video app and the Sohu News app, both now are social network centered application, but it also has this recommendation channels and also search engine search box. Both of them are integrating some DeepSeek and also some open -- we actually developed -- based on some open source language model -- we developed ourselves based on some open source language model. Unidentified Company Representative (interpreted) For online gaming business, we've employed different kinds of AI tools, a lot of different AI large language models to be used in the production of different aspects, for example, for the art design, for the audio or music, for video production. We also developed our own AI agent that can vary conveniently based on our own needs and demand to integrate different AI tools to automatically finish the job. Alicia Yap Okay. My second question (technical difficulty) my second question is, I actually not quite understand the tax reversal. So can you elaborate again what is -- which business is that is related to that tax reversal that you have to gain this quarter? Charles Zhang Tax reversal. Alicia Yap The tax gain that you actually have. Charles Zhang Okay. Tax. It's -- I think it's accounting issue. So let me let Joanna to expand. Joanna Lv This is mainly accounting treatment. The nature is on certain tax method, which is calculated by weighted average basis according to different possibilities. Now the uncertainty is gone. So in this quarter, we totally reversed the expense. Alicia Yap I see. Is that related to the Sohu Media business or it's the gaming business? Joanna Lv Sohu -- Charles Zhang Sohu company. Sohu Company. Alicia Yap Okay. I see. Charles Zhang It's (multiple speakers) yeah, it's accounting issue. So it's not -- just the uncertainty now become a certainty. So there's no actually cash flow or real money flowing. So it's just accounting. Alicia Yap I see. Okay. And then last question. I know -- I mean, maybe now we have less risk, but obviously, this whole ADR delisting risk is on and off, right, as the headwinds or the noises. Just in the event is that risks go up again, it's -- the management or are we thinking about any of the alternatives like, for example, coming back to Hong Kong for the secondary listing? I appreciate any comment on that. Charles Zhang Well, it's still up in the air, basically, it's not -- it's -- we will just -- when anything happens, we will have -- now we don't have any -- because it's not happening, right? It's just a kind of speculation. So -- Alicia Yap I see. But if there's really coming, then you obviously have an alternative plan that you actually are already thinking about it. Charles Zhang Not thinking about it. So when it happens, we'll start thinking about it. Alicia Yap Okay. Alright. Great. Thank you. Charles Zhang We always have time, right? We don't -- we are not in -- we are not a company that has to be listed, right? We can have a period of time that is not listed, right? So we always have time to think about those things, right? Operator (Operator Instructions) There are currently no further questions at this time. That concludes today's conference call. Thank you all for participating. You may now disconnect your lines. 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Yahoo
19-05-2025
- Business
- Yahoo
SOHU.COM REPORTS FIRST QUARTER 2025 UNAUDITED FINANCIAL RESULTS
BEIJING, May 19, 2025 /PRNewswire/ -- Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), a leading Chinese online media platform and game business group, today reported unaudited financial results for the first quarter ended March 31, 2025. First Quarter Highlights Total revenues were US$136 million, down 3% year-over-year and up 1% quarter-over-quarter. Marketing services[1] revenues were US$14 million, down 15% year-over-year and 27% quarter-over-quarter. Online game revenues were US$117 million, flat year-over-year and up 7% quarter-over-quarter. GAAP net income[2] attributable to Limited was US$182 million, compared with a net loss of US$25 million in the first quarter of 2024 and a net loss of US$21 million in the fourth quarter of 2024. Non-GAAP[3] net loss attributable to Limited was US$16 million, compared with a net loss of US$22 million in the first quarter of 2024 and a net loss of US$15 million in the fourth quarter of 2024. Dr. Charles Zhang, Chairman and CEO of Limited, commented, "In the first quarter of 2025, both our marketing services revenues and non-GAAP bottom line performance reached the high end of our previous guidance, while our online game revenues were well above our expectations. For the Sohu media platform, in addition to devoting efforts in product refinements and technology improvements, we continued to concentrate on strengthening the distinctive social features of our platform. Through various unique events, we were able to engage with more users, while promoting vigorous social interactions and distributions on our platform and generating massive premium content at the same time. Leveraging our competitive advantage as a mainstream media platform and our unique IPs, we proactively explored greater monetization opportunities. Our online games business also achieved a satisfactory performance, thanks to the high-quality content updates and continual improvements to our games." [1] Starting in the first quarter of 2025, the Company has changed the name of its "brand advertising business," as described in its previous annual and other reports with the U.S. Securities and Exchange Commission (the "SEC"), to the "marketing services business." This change is intended to more accurately reflect the nature of the business, which consists primarily of advertising and other marketing-related services. The Company will also update the names of related financial measures and disclosures to align with this updated terminology. [2] In the first quarter of 2025, due to the expiration during the quarter of the statutory period for the U.S. Internal Revenue Service to conduct an examination of the Company's filing in connection with a one-time transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and Jobs Act, the Company fully reversed a tax expense that it had recognized as an uncertain tax position in the fourth quarter of 2018 upon the Company's re-evaluation and adjustment of a tax expense initially recognized in the fourth quarter of 2017 with respect to the Toll Charge. This reversal resulted in recognition during the first quarter of 2025 of a previously unrecognized income tax benefit and reversal of related accrued interest in a total amount of approximately $199 million. [3] 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 the income tax benefit in connection with the Toll Charge and related accrued interest expense. 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." First Quarter Financial Results Revenues Total revenues were US$136 million, down 3% year-over-year and up 1% quarter-over-quarter. Marketing services revenues were US$14 million, down 15% year-over-year and 27% quarter-over-quarter. Online game revenues were US$117 million, flat year-over-year and up 7% quarter-over-quarter. Gross Margin Both GAAP and non-GAAP gross margin were 76%, compared with 77% in the first quarter of 2024 and 73% in the fourth quarter of 2024. Both GAAP and non-GAAP gross margin for the marketing services business were 10%, compared with 1% in the first quarter of 2024 and 6% in the fourth quarter of 2024. Both GAAP and non-GAAP gross margin for online games were 85%, compared with 88% in the first quarter of 2024 and 83% in the fourth quarter of 2024. Operating Expenses GAAP operating expenses were US$122 million, down 9% year-over-year and 1% quarter-over-quarter. Non-GAAP operating expenses were US$121 million, down 9% year-over-year and 1% quarter-over-quarter. Operating Loss Both GAAP and non-GAAP operating loss were US$19 million, compared with an operating loss of US$27 million in the first quarter of 2024 and an operating loss of US$25 million in the fourth quarter of 2024. Income Tax Expense/(Benefit) GAAP income tax benefit was US$189 million, compared with income tax expense of US$14 million in the first quarter of 2024 and income tax expense of US$14 million in the fourth quarter of 2024. In the first quarter of 2025, the Company reversed a tax expense that had been recognized as an uncertain tax position in previous years, and related accrued interest expense, in a total amount of approximately $199 million. Non-GAAP income tax expense was US$10 million, compared with income tax expense of US$10 million in the first quarter of 2024 and income tax expense of US$10 million in the fourth quarter of 2024. Net Income/(Loss) GAAP net income attributable to Limited was US$182 million, or net income of US$6.07 per fully-diluted American depositary share ("ADS," each ADS representing one Sohu ordinary share), compared with a net loss of US$25 million in the first quarter of 2024 and a net loss of US$21 million in the fourth quarter of 2024. Non-GAAP net loss attributable to Limited was US$16 million, or a net loss of US$0.55 per fully-diluted ADS, compared with a net loss of US$22 million in the first quarter of 2024 and a net loss of US$15 million in the fourth quarter of 2024. Liquidity and Capital Resources As of March 31, 2025, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.2 billion. Supplementary Information for Changyou Results[4] First Quarter 2025 Operating Results For PC games, total average monthly active user accounts[5] (MAU) were 2.3 million, an increase of 3% year-over-year and flat quarter-over-quarter. Total quarterly aggregate active paying accounts[6] (APA) were 1.0 million, an increase of 2% year-over-year and a decrease of 3% quarter-over-quarter. For mobile games, total average MAU were 2.1 million, a decrease of 22% year-over-year and 17% quarter-over-quarter. Total quarterly APA were 0.4 million, an increase of 6% year-over-year and a decrease of 16% quarter-over-quarter. The year-over-year decrease in MAU was mainly due to the natural decline of Haikyu!!FLY HIGH, which was launched in Japan and South Korea during the first quarter of 2024. The year-over-year increase in APA was mainly from New Westward Journey and its international version Journey Renewed: Fate Fantasy, which were launched during recent quarters. The quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of Journey Renewed: Fate Fantasy. [4] "Changyou Results" consist of the results of Changyou's online games business and its Website. [5] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month. [6] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter. First Quarter 2025 Unaudited Financial Results Total revenues were US$118 million, a decrease of 1% year-over-year and an increase of 7% quarter-over-quarter. Online game revenues were US$117 million, flat year-over-year and an increase of 7% quarter-over-quarter. Both GAAP and non-GAAP gross profit were US$99 million, compared with US$104 million for the first quarter of 2024 and US$92 million for the fourth quarter of 2024. GAAP operating expenses were US$45 million, a decrease of 8% year-over-year and an increase of 1% quarter-over-quarter. Non-GAAP operating expenses were US$45 million, a decrease of 9% year-over-year and an increase of 1% quarter-over-quarter. GAAP operating profit was US$54 million, compared with US$55 million for the first quarter of 2024 and US$48 million for the fourth quarter of 2024. Non-GAAP operating profit was US$55 million, compared with US$55 million for the first quarter of 2024 and US$48 million for the fourth quarter of 2024. Recent Development Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs, Sohu had repurchased 5,484,160 ADSs for an aggregate cost of approximately US$67 million as of May 15, 2025. Business Outlook For the second quarter of 2025, Sohu estimates: Marketing services revenues to be between US$16 million and US$17 million; this implies an annual decrease of 14% to 19%, and a sequential increase of 17% to 24%. Online game revenues to be between US$96 million and US$106 million; this implies an annual decrease of 28% to 35%, and a sequential decrease of 10% to 18%. Both non-GAAP and GAAP net loss attributable to Limited to be between US$20 million and US$30 million. For the second quarter 2025 guidance, the Company has adopted a presumed exchange rate of RMB7.20=US$1.00, as compared with the actual exchange rate of approximately RMB7.11=US$1.00 for the second quarter of 2024, and RMB7.18=US$1.00 for the first quarter of 2025. 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/(loss), net income/(loss), net income/(loss) attributable to Limited and diluted net income/(loss) attributable to 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 the income tax benefit in connection with the Toll Charge and related accrued interest expense. 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 the income tax benefit in connection with the Toll Charge and related accrued interest expense from the Company's non-GAAP financial measures 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 the income tax benefit in connection with the Toll Charge and related accrued interest expense could not 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 and changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, and also exclude the income tax benefit in connection with the Toll Charge and related accrued interest expense. 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/(loss), net income/(loss), net income/(loss) attributable to Limited, and diluted net income/(loss) attributable to Limited per ADS excluding share-based compensation expense is that this expense has been and can be expected to continue to recur 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 content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; and Sohu's reliance on marketing services and online games for its revenues. Further information regarding these and other risks is included in Sohu's annual report on Form 20-F for the year ended December 31, 2024, and other filings with and information furnished to the SEC. Conference Call and Webcast Sohu's management team will host a conference call at 7:30 a.m. U.S. Eastern Time, May 19, 2025 (7:30 p.m. Beijing/Hong Kong time, May 19, 2025) 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 About Sohu Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China's internet pioneers, in the 1990s. Sohu operates one of the leading Chinese online media platforms and also engages in the online games business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of Sohu News App, Sohu Video App, the mobile portal the PC portal and the online games platform As a mainstream media platform with social features, Sohu is indispensable to the daily life of millions of Chinese, providing to a vast number of users a network of web properties and community based products, which offer a broad array of content such as news, information, text, picture, video, and live broadcasting. Sohu also attracts users to be highly engaged in content generation and distribution, and actively interact with each other on the platform. Sohu's online games business is conducted by its subsidiary Changyou which 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. Pu LimitedTel: +86 (10) 6272-6645E-mail: ir@ In the United States: Ms. Linda BergkampChristensenTel: +1 (480) 614-3004E-mail: LIMITEDCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Revenues: Marketing services[7] $ 13,725 $ 18,865 $ 16,070 Online games117,347109,859117,812 Others4,5735,9605,508Total revenues135,645134,684139,390Cost of revenues:Marketing services12,34117,78715,848Online games18,13618,13314,482Others 2,6691,1132,389Total cost of revenues33,14637,03332,719Gross profit102,49997,651106,671Operating expenses:Product development (includes share-based compensation expense of nil, nil, and $3, respectively) 62,97261,58466,209Sales and marketing (includes share-based compensation expense of $1, $-1, and $4, respectively) 45,58648,58854,806General and administrative (includes share-based compensation expense of $391, $243, and $77, respectively)12,96912,67212,534Total operating expenses121,527122,844133,549Operating loss(19,028)(25,193)(26,878)Other income, net4,1998,4484,489Interest income7,7088,63211,358Exchange difference(119)1,240(19)Loss before income tax expense(7,240)(6,873)(11,050)Income tax expense/(benefit)[8](189,391)14,38713,924Net income/(loss)182,151(21,260)(24,974)Less: Net income/(loss) attributable to the noncontrolling interest shareholders(9)31-Net income/(loss) attributable to Limited182,160(21,291)(24,974)Basic net income/(loss) per share/ADS attributable to Limited $ 6.07 $ (0.69) $ (0.76)Shares/ADSs used in computing basic net income/(loss) per share/ADS attributable to Limited[9]30,00830,79933,033Diluted net income/(loss) per share/ADS attributable to Limited $ 6.07 $ (0.69) $ (0.76)Shares/ADSs used in computing diluted net income/(loss) per share/ADS attributable to Limited30,00830,79933,033[7] See footnote 1.[8] See footnote 2.[9] Each ADS represents one ordinary share. LIMITEDCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED, IN THOUSANDS) As of Mar. 31, 2025 As of Dec. 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 130,026 $ 159,927 Restricted cash79- Short-term investments745,696744,498 Accounts receivable, net49,40253,762 Prepaid and other current assets 87,25883,575 Total current assets1,012,4611,041,762 Fixed assets, net250,148252,860 Goodwill 46,96546,944 Long-term investments, net43,10543,120 Intangible assets, net6,4727,695 Long-term time deposits333,836331,290 Other assets10,49410,995 Total assets $ 1,703,481 $ 1,734,666 LIABILITIES Current liabilities: Accounts payable $ 37,678 $ 36,043 Accrued liabilities94,83897,138 Receipts in advance and deferred revenue50,11151,007 Accrued salary and benefits35,62747,232 Taxes payables17,18914,225 Other short-term liabilities79,00976,322 Total current liabilities $ 314,452 $ 321,967Long-term other payables2,8632,807 Long-term tax liabilities290,707485,545 Other long-term liabilities1,2891,659 Total long-term liabilities $ 294,859 $ 490,011 Total liabilities $ 609,311 $ 811,978 SHAREHOLDERS' EQUITY: Limited shareholders' equity1,093,826922,335 Noncontrolling interest344353 Total shareholders' equity $ 1,094,170 $ 922,688Total liabilities and shareholders' equity $ 1,703,481 $ 1,734,666 LIMITEDRECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Mar. 31, 2025Three Months Ended Dec. 31, 2024Three Months Ended Mar. 31, 2024 GAAPNon-GAAP AdjustmentNon-GAAPGAAPNon-GAAP AdjustmentNon-GAAPGAAPNon-GAAP AdjustmentNon-GAAP- (a) - (a) 0 (a)Marketing services gross profit $ 1,384 $ - $ 1,384 $ 1,078 $ - $ 1,078 $ 222 $ 0 $ 222 Marketing services gross margin10 %10 %6 %6 %1 %1 %- (a) - (a) 0 (a)Online games gross profit $ 99,211 $ - $ 99,211 $ 91,726 $ - $ 91,726 $ 103,330 $ 0 $ 103,330 Online games gross margin85 %85 %83 %83 %88 %88 %- (a) - (a) - (a)Others gross profit $ 1,904 $ - $ 1,904 $ 4,847 $ - $ 4,847 $ 3,119 $ - $ 3,119 Others gross margin42 %42 %81 %81 %57 %57 %- (a) - (a) 0 (a)Gross profit $ 102,499 $ - $ 102,499 $ 97,651 $ - $ 97,651 $ 106,671 $ 0 $ 106,671 Gross margin76 %76 %73 %73 %77 %77 % Operating expenses $ 121,527 $ (392) (a) $ 121,135 $ 122,844 $ (242) (a) $ 122,602 $ 133,549 $ (84) (a) $ 133,465392 (a) 242 (a) 84 (a)Operating loss $ (19,028) $ 392 $ (18,636) $ (25,193) $ 242 $ (24,951) $ (26,878) $ 84 $ (26,794) Operating margin-14 %-14 %-19 %-19 %-19 %-19 %Income tax expense/(benefit) $ (189,391) $ 199,018 (c)$ 9,627 $ 14,387 $ (3,961) (c)$ 10,426 $ 13,924 $ (3,691) (c)$ 10,233392 (a) 242 (a) 84 (a)-2,087 (b) (398) (b)(199,018) (c) 3,961 (c) 3,691 (c)Net income/(loss) before non-controlling interest $ 182,151 $ (198,626) $ (16,475) $ (21,260) $ 6,290 $ (14,970) $ (24,974) $ 3,377 $ (21,597)392 (a) 242 (a) 84 (a)-2,087 (b) (398) (b)(199,018) (c) 3,961 (c) 3,691 (c)Net income/( loss) attributable Limited for diluted net loss per share/ADS $ 182,160 $ (198,626) $ (16,466) $ (21,291)6,290(15,001) $ (24,974)3,377(21,597) Diluted net income/( loss) per share/ADS attributable to Limited $ 6.07(0.55) $ (0.69)(0.49) $ (0.76)(0.65) Shares/ADSs used in computing diluted net income/( loss) per share/ADS attributable to Limited30,00830,00830,79930,79933,03333,033Note:(a) Share-based compensation expense(b) Change in the fair value of the Company's investments(c) Reversal of the tax expense in connection with the Toll Charge and related accrued interest expense View original content to download multimedia: SOURCE Limited Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
13-03-2025
- Business
- Associated Press
Sohu.com Limited Announces its 2024 Annual Report on Form 20-F is Available on the Company's Website
BEIJING, March 13, 2025 /PRNewswire/ -- Limited (NASDAQ: SOHU) ('Sohu' or the 'Company'), a leading Chinese online media platform and game business group, announced that the Company today filed with the Securities and Exchange Commission its Annual Report on Form 20-F for the fiscal year ended December 31, 2024. The Annual Report is available on the Company's investor relations website at The Company will provide a hard copy of the Annual Report containing the audited consolidated financial statements of the Company, free of charge, to a shareholder or holder of the Company's American depositary shares upon written request. About Sohu Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China's internet pioneers, in the 1990s. Sohu operates one of the leading Chinese online media platforms and also engages in the online game business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of Sohu News App, Sohu Video App, the mobile portal the PC portal and the online games platform As a mainstream media platform with social features, Sohu is indispensable to the daily life of millions of Chinese, providing to a vast number of users a network of web properties and community based products, which offer a broad array of content such as news, information, text, picture, video and live broadcasting. Sohu also attracts users to be highly engaged in content generation and distribution, and actively interact with each other on the platform. Sohu's online game business is conducted by its subsidiary Changyou which 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 Limited Tel: +86 (10) 6272-6645 In the United States: Ms. Bergkamp, Linda Christensen
Yahoo
18-02-2025
- Business
- Yahoo
America's #1 Independent Financial Advisor* Opens Office in Chicago
CHICAGO, Feb. 18, 2025 /PRNewswire/ -- Zhang Financial, a leading fee-only wealth management firm, is pleased to announce the opening of its new office in Chicago. Located in the renowned John Hancock Building at 875 North Michigan Avenue, this expansion marks a significant milestone in the firm's commitment to serving clients in the Chicago metro area. Zhang Financial is nationally recognized for its fee-only financial solutions and top-level rankings. The firm adheres to the demanding practice requirements set by the National Association of Personal Financial Advisors (NAPFA), which include fee-only compensation, professional designations, continuing education, comprehensive planning, and fiduciary commitments. Charles Zhang, Founder and President of Zhang Financial, was ranked #1 in the nation on Barron's list of America's Top 100 Independent Wealth Advisors for 2024. Charles was also ranked #4 on Forbes' list of America's Top Wealth Advisors for 2024 and was the highest-ranking NAPFA-registered fee-only advisor on the list.* When asked about the new office, Charles Zhang, CFP®, MBA, ChFC stated, "We are thrilled to bring Zhang Financial's fee-only, fiduciary approach to the Chicago community. Our commitment to providing unbiased financial guidance has always been the foundation of our firm, and we look forward to delivering the same level of excellence to our clients in Chicago." The Chicago office will be led by Brandon Mull, Senior Vice President at Zhang Financial. Brandon is a Chartered Financial Analyst (CFA®) and Certified Financial Planner (CFP®) with over 15 years of experience in the financial services industry. "We have a powerful and attractive business model to serve our clients," said Mull. "We serve clients nationally, Chicago is the next natural market for us, close to our home base in Portage, MI. We are excited to bring our fee-only approach to the Chicago metro area." Zhang Financial looks forward to building lasting relationships and delivering trusted financial solutions to the Chicago community. Zhang Financial offers no proprietary products, investment banking business, or any other conflicts that can get in the way of providing independent, objective, and unbiased investment research. To learn more about Zhang Financial, please visit *Please see for full ranking criteria. Elizabeth EdgertonZhang Financial269-385-5888 View original content to download multimedia: SOURCE Zhang Financial Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
SOHU.COM REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 UNAUDITED FINANCIAL RESULTS
BEIJING, Feb. 18, 2025 /PRNewswire/ -- Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), a leading Chinese online media platform and game business group, today reported unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024. Fourth Quarter Highlights Total revenues were US$135 million, down 5% year-over-year and 11% quarter-over-quarter. Brand advertising revenues were US$19 million, down 7% year-over-year and up 1% quarter-over-quarter. Online game revenues were US$110 million, down 4% year-over-year and 14% quarter-over-quarter. GAAP net loss attributable to Limited was US$21 million, compared with a net loss of US$13 million in the fourth quarter of 2023 and a net loss of US$16 million in the third quarter of 2024. Non-GAAP[1] net loss attributable to Limited was US$15 million, compared with a net loss of US$11 million in the fourth quarter of 2023 and a net loss of US$12 million in the third quarter of 2024. Fiscal Year 2024 Highlights[2] Total revenues were US$598 million, flat compared with 2023. Brand advertising revenues were US$73 million, down 17% compared with 2023. Online game revenues were US$502 million, up 5% compared with 2023. GAAP net loss attributable to Limited was US$100 million, compared with a net loss of US$66 million in 2023. Non-GAAP net loss attributable to Limited was US$83 million, compared with a net loss of US$51 million in 2023. Dr. Charles Zhang, Chairman and CEO of Limited, commented, "In the fourth quarter of 2024, our brand advertising revenues hit the high end of our previous guidance, while both our online game revenues and bottom line performance were much better than expected. For Sohu media platform, we continued to refine our products, optimized algorithms, and strictly controlled budgets. By integrating the advantages of the Sohu product matrix with our unique IPs and high energy events, we were able to promote the generation and social distribution of premium content, effectively enhance user experience to attract more users, and further unlock monetization potential. The online games business delivered solid performance, thanks to relentless efforts to produce high-quality new games and revitalize legacy games." Fourth Quarter Financial Results Revenues Total revenues were US$135 million, down 5% year-over-year and 11% quarter-over-quarter. Brand advertising revenues were US$19 million, down 7% year-over-year and up 1% quarter-over-quarter. Online game revenues were US$110 million, down 4% year-over-year and 14% quarter-over-quarter. Gross Margin Both GAAP and non-GAAP gross margin were 73%, compared with 76% in the fourth quarter of 2023 and 74% in the third quarter of 2024. Both GAAP and non-GAAP gross margin for the brand advertising business were 6%, compared with 16% in the fourth quarter of 2023 and 9% in the third quarter of 2024. Both GAAP and non-GAAP gross margin for online games were 83%, compared with 87% in the fourth quarter of 2023 and 84% in the third quarter of 2024. Operating Expenses Both GAAP and non-GAAP operating expenses were US$123 million, down 8% year-over-year and 2% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in Changyou's product development expenses. Operating Loss GAAP operating loss was US$25 million, compared with an operating loss of US$25 million in the fourth quarter of 2023 and an operating loss of US$13 million in the third quarter of 2024. Non-GAAP operating loss was US$25 million, compared with an operating loss of US$26 million in the fourth quarter of 2023 and an operating loss of US$13 million in the third quarter of 2024. Income Tax Expense GAAP income tax expense was US$14 million, compared with income tax expense of US$14 million in the fourth quarter of 2023 and income tax expense of US$15 million in the third quarter of 2024. Non-GAAP income tax expense was US$10 million, compared with income tax expense of US$10 million in the fourth quarter of 2023 and income tax expense of US$11 million in the third quarter of 2024. Net Loss GAAP net loss attributable to Limited was US$21 million, or a net loss of US$0.69 per fully-diluted American depositary share ("ADS," each ADS representing one Sohu ordinary share), compared with a net loss of US$13 million in the fourth quarter of 2023 and a net loss of US$16 million in the third quarter of 2024. Non-GAAP net loss attributable to Limited was US$15 million, or a net loss of US$0.49 per fully-diluted ADS, compared with a net loss of US$11 million in the fourth quarter of 2023 and a net loss of US$12 million in the third quarter of 2024. Liquidity and Capital Resources As of December 31, 2024, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.2 billion. Fiscal Year 2024 Financial Results Revenues Total revenues were US$598 million, flat compared with 2023. Brand advertising revenues were US$73 million, down 17% compared with 2023. Online game revenues were US$502 million, up 5% compared with 2023. Gross Margin Both GAAP and non-GAAP gross margin were 72%, compared with 76% in 2023. Both GAAP and non-GAAP gross margin for the brand advertising business were 9%, compared with 20% in 2023. Both GAAP and non-GAAP gross margin for online games were 82%, compared with 86% in 2023. Operating Expenses For 2024, both GAAP and non-GAAP operating expenses totaled US$542 million, flat compared with 2023. Operating Loss Both GAAP and non-GAAP operating loss were US$109 million, compared with an operating loss of US$87 million in 2023. Income Tax Expense GAAP income tax expense was US$52 million, compared with income tax expense of US$60 million in 2023. Non-GAAP income tax expense was US$37 million, compared with income tax expense of US$48 million in 2023. Net Loss GAAP net loss attributable to Limited was US$100 million, or a net loss of US$3.13 per fully-diluted ADS, compared with a net loss of US$66 million in 2023. Non-GAAP net loss attributable to Limited was US$83 million, or a net loss of US$2.60 per fully-diluted ADS, compared with a net loss of US$51 million in 2023. Supplementary Information for Changyou Results[3] Fourth Quarter 2024 Operating Results For PC games, total average monthly active user accounts[4] (MAU) were 2.3 million, an increase of 2% year-over-year and 9% quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 1.0 million, an increase of 9% year-over-year and 14% quarter-over-quarter. The quarter-over-quarter increase in MAU, and the year-over-year and quarter-over-quarter increases in APA were mainly because the content updates that Changyou launched for TLBB PC during the quarter were well received by players. For mobile games, total average MAU were 2.6 million, an increase of 53% year-over-year and a decrease of 20% quarter-over-quarter. Total quarterly APA were 0.4 million, an increase of 25% year-over-year and a decrease of 61% quarter-over-quarter. The year-over-year increases in MAU and APA were mainly from new games launched during recent quarters, including Journey Renewed: Fate Fantasy, which is the international version of New Westward Journey and was launched in Southeast Asia during the fourth quarter of 2024. The quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of New Westward Journey in the Chinese mainland market. Fourth Quarter 2024 Unaudited Financial Results Total revenues were US$111 million, a decrease of 5% year-over-year and 14% quarter-over-quarter. Online game revenues were US$110 million, a decrease of 4% year-over-year and 14% quarter-over-quarter. Online advertising revenues were US$1 million, a decrease of 29% year-over-year and 8% quarter-over-quarter. Both GAAP and non-GAAP gross profit were US$92 million, compared with US$100 million for the fourth quarter of 2023 and US$108 million for the third quarter of 2024. GAAP operating expenses were US$45 million, a decrease of 15% year-over-year and 2% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in outsourcing and licensing fees related to product development. Non-GAAP operating expenses were US$44 million, a decrease of 17% year-over-year and 2% quarter-over-quarter. GAAP operating profit was US$48 million, compared with US$48 million for the fourth quarter of 2023 and US$62 million for the third quarter of 2024. Non-GAAP operating profit was US$48 million, compared with US$47 million for the fourth quarter of 2023 and US$62 million for the third quarter of 2024. Fiscal Year 2024 Unaudited Financial Results Total revenues were US$506 million, an increase of 4% year-over-year. Online game revenues were US$502 million, an increase of 5% year-over-year. Online advertising revenues were US$4 million, a decrease of 25% year-over-year. Both GAAP and non-GAAP gross profit were US$415 million, compared with US$418 million for 2023. GAAP operating expenses were US$219 million, an increase of 1% year-over-year. Non-GAAP operating expenses were US$219 million, an increase of 2% year-over-year. GAAP operating profit was US$196 million, compared with US$202 million for 2023. Non-GAAP operating profit was US$196 million, compared with US$203 million for 2023. Recent Development Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs, Sohu had repurchased 4,180,158 ADSs for an aggregate cost of approximately US$52 million as of February 13, 2025. Business Outlook For the first quarter of 2025, Sohu estimates: Brand advertising revenues to be between US$13 million and US$14 million; this implies an annual decrease of 13% to 19%, and a sequential decrease of 26% to 31%. Online game revenues to be between US$105 million and US$115 million; this implies an annual decrease of 2% to 11%, and a sequential decrease of 4% to a sequential increase of 5%. Non-GAAP net loss attributable to Limited to be between US$16 million and US$26 million; and GAAP net loss attributable to Limited to be between US$20 million and US$30 million. For the first quarter 2025 guidance, the Company has adopted a presumed exchange rate of RMB7.18=US$1.00, as compared with the actual exchange rate of approximately RMB7.10=US$1.00 for the first quarter of 2024, and RMB7.15=US$1.00 for the fourth 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/(loss), net income/(loss), net income/(loss) attributable to Limited and diluted net income/(loss) attributable to 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; the impact of income tax related to changes in the fair value of 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; the impact of income tax related to changes in the fair value of 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; the impact of income tax related to changes in the fair value of 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, changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, and the impact of income tax related to changes in the fair value of 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, the impact of income tax related to changes in the fair value of 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/(loss), net income/(loss), net income/(loss) attributable to Limited, and diluted net income/(loss) attributable to 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, and the impact of income tax related to changes in the fair value of 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 4:30 a.m. U.S. Eastern Time, February 18, 2025 (5:30 p.m. Beijing/Hong Kong time, February 18, 2025) 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 About Sohu Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China's internet pioneers, in the 1990s. Sohu operates one of the leading Chinese online media platforms and also engages in the online game business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of Sohu News App, Sohu Video App, the mobile portal the PC portal and the online games platform As a mainstream media platform with social features, Sohu is indispensable to the daily life of millions of Chinese, providing to a vast number of users a network of web properties and community based products, which offer a broad array of content such as news, information, text, picture, video and live broadcasting. Sohu also attracts users to be highly engaged in content generation and distribution, and actively interact with each other on the platform. Sohu's online game business is conducted by its subsidiary Changyou which 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, LimitedTel: +86 (10) 6272-6645E-mail: ir@ In the United States: Ms. Bergkamp, LindaChristensenTel: +1 (480) 614-3004E-mail: [1] 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; the impact of income tax related to changes in the fair value of 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." [2] 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. [3] "Changyou Results" consist of the results of Changyou's online game business and its 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. LIMITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Twelve Months Ended Dec. 31, 2024Sep. 30, 2024Dec. 31, 2023 Dec. 31, 2024Dec. 31, 2023 Revenues: Brand advertising $ 18,865 $ 18,677 $ 20,195$ 73,465 $ 88,689 Online games109,859127,721114,759 502,389479,697 Others5,9605,5946,405 22,54532,286 Total revenues134,684151,992141,359 598,399600,672 Cost of revenues:Brand advertising (includes share-based compensation expense of nil, nil, nil, $1, and $7, respectively)17,78717,04016,966 66,57971,103 Online games (includes share-based compensation expense of nil, nil, $-44, nil, and $10, respectively)18,13320,29215,123 88,49565,029 Others 1,1132,2831,733 10,7599,625 Total cost of revenues37,03339,61533,822 165,833145,757 Gross profit97,651112,377107,537 432,566454,915 Operating expenses:Product development (includes share-based compensation expense of nil, $6, $-572, $19, and $156, respectively) 61,58462,23169,553 255,233279,842 Sales and marketing (includes share-based compensation expense of $-1, $9, $4, $22, and $26, respectively) 48,58848,49450,813 235,824213,449 General and administrative (includes share-based compensation expense of $243, $29, $-393, $-72, and $509, respectively)12,67214,69212,450 50,91048,934 Total operating expenses122,844125,417132,816 541,967542,225 Operating loss(25,193)(13,040)(25,279) (109,401)(87,310) Other income, net8,4483,63515,949 22,14435,746 Interest income8,6329,07411,578 38,62545,222 Exchange difference1,240(988)(823) 464692 Income/(loss) before income tax expense(6,873)(1,319)1,425 (48,168)(5,650) Income tax expense 14,38715,02814,044 52,07060,420 Net loss from continuing operations(21,260)(16,347)(12,619) (100,238)(66,070) Net income from discontinued operations, net of tax [6]--- -35,426 Net loss(21,260)(16,347)(12,619) (100,238)(30,644) Less: Net income/(loss) from continuing operations attributable to the noncontrolling interest shareholders31-(1) 31(265) Net loss from continuing operations attributable to Limited(21,291)(16,347)(12,618) (100,269)(65,805) Net income from discontinued operations attributable to Limited--- -35,426 Net loss attributable to Limited(21,291)(16,347)(12,618) (100,269)(30,379) Basic net loss from continuing operations per share/ADS attributable to Limited [7] $ (0.69) $ (0.52) $ (0.37) (3.13) $ (1.93) Basic net income from discontinued operations per share/ADS attributable to Limited $ - $ - $ - - $ 1.04 Basic net loss per share/ADS attributable to Limited $ (0.69) $ (0.52) $ (0.37) (3.13) $ (0.89) Shares/ADSs used in computing basic net income/(loss) per share/ADS attributable to Limited30,79931,72934,061 32,00934,109 Diluted net loss from continuing operations per share/ADS attributable to Limited $ (0.69) $ (0.52) $ (0.37) (3.13) $ (1.93) Diluted net income from discontinued operations per share/ADS attributable to Limited $ - $ - $ - - $ 1.04 Diluted net loss per share/ADS attributable to Limited $ (0.69) $ (0.52) $ (0.37) (3.13) $ (0.89) Shares/ADSs used in computing diluted net income/(loss) per share/ADS attributable to Limited30,79931,72934,061 32,00934,109 [6] See Footnote 2. [7] Each ADS represents one ordinary share. LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS)As of Dec. 31, 2024As of Dec. 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 159,927 $ 362,504 Restricted cash-3,184 Short-term investments744,498597,770 Accounts receivable, net53,76271,618 Prepaid and other current assets 83,57581,971 Total current assets1,041,7621,117,047 Fixed assets, net252,860269,058 Goodwill 46,94447,163 Long-term investments, net43,12045,198 Intangible assets, net7,6952,226 Long-term time deposits331,290388,613 Other assets10,99512,793 Total assets $ 1,734,666 $ 1,882,098LIABILITIES Current liabilities: Accounts payable $ 36,043 $ 44,609 Accrued liabilities97,138103,779 Receipts in advance and deferred revenue51,00750,829 Accrued salary and benefits47,23250,330 Taxes payables14,22511,363 Other short-term liabilities76,32281,482 Total current liabilities $ 321,967 $ 342,392Long-term other payables2,8073,924 Long-term tax liabilities485,545474,374 Other long-term liabilities1,6592,130 Total long-term liabilities $ 490,011 $ 480,428 Total liabilities $ 811,978 $ 822,820 SHAREHOLDERS' EQUITY: Limited shareholders' equity922,3351,058,956 Noncontrolling interest353322 Total shareholders' equity $ 922,688 $ 1,059,278 Total liabilities and shareholders' equity $ 1,734,666 $ 1,882,098 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 Dec. 31, 2024Three Months Ended Sep. 30, 2024Three Months Ended Dec. 31, 2023 GAAPNon-GAAP AdjustmentNon-GAAPGAAPNon-GAAP AdjustmentNon-GAAPGAAPNon-GAAP AdjustmentNon-GAAP- (a) - (a) - (a)Brand advertising gross profit $ 1,078 $ - $ 1,078 $ 1,637 $ - $ 1,637 $ 3,229 $ - $ 3,229 Brand advertising gross margin6 %6 %9 %9 %16 %16 %- (a) - (a) (44) (a)Online games gross profit $ 91,726 $ - $ 91,726 $ 107,429 $ - $ 107,429 $ 99,636 $ (44) $ 99,592 Online games gross margin83 %83 %84 %84 %87 %87 %- (a) - (a) - (a)Others gross profit $ 4,847 $ - $ 4,847 $ 3,311 $ - $ 3,311 $ 4,672 $ - $ 4,672 Others gross margin81 %81 %59 %59 %73 %73 %- (a) - (a) (44) (a)Gross profit $ 97,651 $ - $ 97,651 $ 112,377 $ - $ 112,377 $ 107,537 $ (44) $ 107,493 Gross margin73 %73 %74 %74 %76 %76 % Operating expenses $ 122,844 $ (242) (a) $ 122,602 $ 125,417 $ (44) (a) $ 125,373 $ 132,816 $ 961 (a) $ 133,777242 (a) 44 (a) (1,005) (a)Operating loss $ (25,193) $ 242 $ (24,951) $ (13,040) $ 44 $ (12,996) $ (25,279) $ (1,005) $ (26,284) Operating margin-19 %-19 %-9 %-9 %-18 %-19 %Income tax expense $ 14,387 $ (3,961) (c)$ 10,426 $ 15,028 $ (3,883) (c)$ 11,145 $ 14,044 $ (3,667) (c)$ 10,377242 (a) 44 (a) (1,005) (a)2,087 (b) -(827) (b)3,961 (c) 3,883 (c) 3,667 (c)Net loss before non-controlling interest $ (21,260) $ 6,290 $ (14,970) $ (16,347) $ 3,927 $ (12,420) $ (12,619) $ 1,835 $ (10,784)242 (a) 44 (a) (1,005) (a)2,087 (b) -(827) (b)3,961 (c) 3,883 (c) 3,667 (c)Net loss attributable to Limited for diluted net loss per share/ADS $ (21,291)6,290(15,001) $ (16,347)3,927(12,420) $ (12,618)1,835(10,783) Diluted net loss per share/ADS attributable to Limited $ (0.69)(0.49) $ (0.52)(0.39) $ (0.37)(0.32) Shares/ADSs used in computing diluted net loss per share/ADS attributable to Limited30,79930,79931,72931,72934,06134,061 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. LIMITED RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)Twelve Months Ended Dec. 31, 2024Twelve Months Ended Dec. 31, 2023 GAAPNon-GAAP AdjustmentsNon-GAAPGAAPNon-GAAP AdjustmentsNon-GAAP1 (a) 7 (a)Brand advertising gross profit $ 6,886 $ 1 $ 6,887 $ 17,586 $ 7 $ 17,593 Brand advertising gross margin9 %9 %20 %20 %- (a) 10 (a)Online games gross profit $ 413,894 $ - $ 413,894 $ 414,668 $ 10 $ 414,678 Online games gross margin82 %82 %86 %86 %- (a) - (a)Others gross profit $ 11,786 $ - $ 11,786 $ 22,661 $ - $ 22,661 Others gross margin52 %52 %70 %70 %1 (a) 17 (a)Gross profit $ 432,566 $ 1 $ 432,567 $ 454,915 $ 17 $ 454,932 Gross margin72 %72 %76 %76 %Operating expenses $ 541,967 $ 31 (a)$ 541,998 $ 542,225 $ (691) (a)$ 541,534(30) (a) 708 (a)Operating loss $ (109,401) $ (30) $ (109,431) $ (87,310) $ 708 $ (86,602) Operating margin-18 %-18 %-15 %-14 %Income tax expense $ 52,070 $ (15,299) (d)$ 36,771 $ 60,420 $ (12,297) (c,d)$ 48,123 (30) (a) 708 (a)1,820 (b) 1,391 (b)-(555) (c)15,299 (d) 12,852 (d)Net loss before non-controlling interest $ (100,238)17,089(83,149) $ (66,070) $ 14,396 $ (51,674) (30) (a) 708 (a)1,820 (b) 1,391 (b)-(555) (c)15,299 (d) 12,852 (d)Net loss from continuing operations attributable to Limited for diluted net loss per share/ADS $ (100,269) $ 17,089 $ (83,180) $ (65,805) $ 14,396 $ (51,409) Net income from discontinued operations attributable to Limited for diluted net income per share/ADS [9] $ --- $ 35,426-35,426 Net loss attributable to Limited for diluted net loss per share/ADS $ (100,269)17,089(83,180) $ (30,379)14,396(15,983) Diluted net loss from continuing operations per share/ADS attributable to Limited $ (3.13) $ (2.60) $ (1.93) $ (1.51) Diluted net income from discontinued operations per share/ADS attributable to Limited $ -- $ 1.041.04 Diluted net loss per share/ADS attributable to Limited. $ (3.13)(2.60) $ (0.89)(0.47) Share/ADS used in computing diluted net income/(loss) per share/ADS attributable to Limited 32,00932,00934,10934,109Note: (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 impact of income tax related to changes in the fair value of the Company's investments. (d) To adjust for the effect of the U.S. TCJA.[9] See Footnote 2. View original content to download multimedia: SOURCE Limited Sign in to access your portfolio
