BEIJING, Feb. 18,
2025 /PRNewswire/ -- Sohu.com 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 Sohu.com 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 Sohu.com
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 Sohu.com Limited was US$100 million, compared with a net loss of
US$66 million in 2023.
- Non-GAAP net loss attributable to Sohu.com Limited was
US$83 million, compared with a
net loss of US$51 million in
2023.
Dr. Charles Zhang, Chairman and
CEO of Sohu.com 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 Sohu.com 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 Sohu.com 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 Sohu.com 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 Sohu.com 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 Sohu.com Limited to be
between US$16 million and US$26 million; and GAAP
net loss attributable to Sohu.com 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 Sohu.com Limited and diluted net
income/(loss) attributable to Sohu.com Limited per ADS, which are
adjusted from results based on GAAP to exclude the impact of
share-based compensation expense; changes in fair value recognized
in the Company's consolidated statements of operations with respect
to the Company's investments; 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 Sohu.com Limited, and diluted net
income/(loss) attributable to Sohu.com Limited per ADS excluding
share-based compensation expense and interest expense recognized in
connection with the Toll Charge is that share-based compensation
expense and interest expense recognized in connection with the Toll
Charge have been and can be expected to continue to be significant
recurring expenses in Sohu's business. It is also possible that
changes in fair value recognized in the Company's consolidated
statements of operations with respect to the Company's investments,
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
https://investors.sohu.com/
About Sohu
Sohu.com Limited (NASDAQ: SOHU) was established by Dr.
Charles Zhang, one of China's internet pioneers, in the 1990s. 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 m.sohu.com, the PC
portal www.sohu.com, and the online games platform
www.changyou.com/en/.
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
Sohu.com Limited
Tel: +86 (10) 6272-6645
E-mail: ir@contact.sohu.com
In the United
States:
Ms. Bergkamp, Linda
Christensen
Tel: +1 (480) 614-3004
E-mail: linda.bergkamp@christensencomms.com
|
[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 17173.com Website.
|
|
[4] Monthly active user accounts
refers to the number of registered accounts that are logged in to
these games at least once during the month.
|
|
[5] Quarterly aggregate active paying
accounts refers to the number of accounts from which game points
are utilized at least once during the quarter.
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
2024
|
|
Sep. 30,
2024
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2024
|
|
Dec. 31,
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand advertising
|
$
|
18,865
|
$
|
18,677
|
$
|
20,195
|
|
$
|
73,465
|
$
|
88,689
|
|
Online games
|
|
109,859
|
|
127,721
|
|
114,759
|
|
|
502,389
|
|
479,697
|
|
Others
|
|
5,960
|
|
5,594
|
|
6,405
|
|
|
22,545
|
|
32,286
|
|
Total
revenues
|
|
134,684
|
|
151,992
|
|
141,359
|
|
|
598,399
|
|
600,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand advertising
(includes share-based compensation
expense of nil, nil, nil, $1, and $7, respectively)
|
|
17,787
|
|
17,040
|
|
16,966
|
|
|
66,579
|
|
71,103
|
|
Online games (includes
share-based compensation
expense of nil, nil, $-44, nil, and $10, respectively)
|
|
18,133
|
|
20,292
|
|
15,123
|
|
|
88,495
|
|
65,029
|
|
Others
|
|
1,113
|
|
2,283
|
|
1,733
|
|
|
10,759
|
|
9,625
|
|
Total cost of
revenues
|
|
37,033
|
|
39,615
|
|
33,822
|
|
|
165,833
|
|
145,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
97,651
|
|
112,377
|
|
107,537
|
|
|
432,566
|
|
454,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
(includes share-based
compensation expense of nil, $6, $-572, $19, and $156,
respectively)
|
|
61,584
|
|
62,231
|
|
69,553
|
|
|
255,233
|
|
279,842
|
|
Sales and marketing
(includes share-based
compensation expense of $-1, $9, $4, $22, and $26,
respectively)
|
|
48,588
|
|
48,494
|
|
50,813
|
|
|
235,824
|
|
213,449
|
|
General and
administrative (includes share-based
compensation expense of $243, $29, $-393, $-72, and
$509, respectively)
|
|
12,672
|
|
14,692
|
|
12,450
|
|
|
50,910
|
|
48,934
|
|
Total operating
expenses
|
|
122,844
|
|
125,417
|
|
132,816
|
|
|
541,967
|
|
542,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(25,193)
|
|
(13,040)
|
|
(25,279)
|
|
|
(109,401)
|
|
(87,310)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
8,448
|
|
3,635
|
|
15,949
|
|
|
22,144
|
|
35,746
|
|
Interest
income
|
|
8,632
|
|
9,074
|
|
11,578
|
|
|
38,625
|
|
45,222
|
|
Exchange
difference
|
|
1,240
|
|
(988)
|
|
(823)
|
|
|
464
|
|
692
|
|
Income/(loss) before
income tax expense
|
|
(6,873)
|
|
(1,319)
|
|
1,425
|
|
|
(48,168)
|
|
(5,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
14,387
|
|
15,028
|
|
14,044
|
|
|
52,070
|
|
60,420
|
|
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 shareholders
|
|
31
|
|
-
|
|
(1)
|
|
|
31
|
|
(265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to
Sohu.com Limited
|
|
(21,291)
|
|
(16,347)
|
|
(12,618)
|
|
|
(100,269)
|
|
(65,805)
|
|
Net income from
discontinued operations attributable to
Sohu.com Limited
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
35,426
|
|
Net loss attributable
to Sohu.com Limited
|
|
(21,291)
|
|
(16,347)
|
|
(12,618)
|
|
|
(100,269)
|
|
(30,379)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss from
continuing operations per share/ADS
attributable to Sohu.com Limited [7]
|
$
|
(0.69)
|
$
|
(0.52)
|
$
|
(0.37)
|
|
|
(3.13)
|
$
|
(1.93)
|
|
Basic net income from
discontinued operations per
share/ADS attributable to Sohu.com Limited
|
$
|
-
|
$
|
-
|
$
|
-
|
|
|
-
|
$
|
1.04
|
|
Basic net loss per
share/ADS attributable to Sohu.com
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 Sohu.com Limited
|
|
30,799
|
|
31,729
|
|
34,061
|
|
|
32,009
|
|
34,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss from
continuing operations per share/ADS
attributable to Sohu.com Limited
|
$
|
(0.69)
|
$
|
(0.52)
|
$
|
(0.37)
|
|
|
(3.13)
|
$
|
(1.93)
|
|
Diluted net income from
discontinued operations per
share/ADS attributable to Sohu.com Limited
|
$
|
-
|
$
|
-
|
$
|
-
|
|
|
-
|
$
|
1.04
|
|
Diluted net loss per
share/ADS attributable to Sohu.com
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 Sohu.com Limited
|
|
30,799
|
|
31,729
|
|
34,061
|
|
|
32,009
|
|
34,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[6] See
Footnote 2.
|
|
|
|
|
|
[7] Each ADS
represents one ordinary share.
|
|
|
|
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
|
|
|
|
As of Dec. 31,
2024
|
|
As of Dec. 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
159,927
|
$
|
362,504
|
|
Restricted cash
|
|
-
|
|
3,184
|
|
Short-term investments
|
|
744,498
|
|
597,770
|
|
Accounts receivable, net
|
|
53,762
|
|
71,618
|
|
Prepaid and other current assets
|
|
83,575
|
|
81,971
|
|
Total current
assets
|
|
1,041,762
|
|
1,117,047
|
|
Fixed assets,
net
|
|
252,860
|
|
269,058
|
|
Goodwill
|
|
46,944
|
|
47,163
|
|
Long-term investments,
net
|
|
43,120
|
|
45,198
|
|
Intangible assets,
net
|
|
7,695
|
|
2,226
|
|
Long-term time
deposits
|
|
331,290
|
|
388,613
|
|
Other assets
|
|
10,995
|
|
12,793
|
|
Total assets
|
$
|
1,734,666
|
$
|
1,882,098
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
36,043
|
$
|
44,609
|
|
Accrued liabilities
|
|
97,138
|
|
103,779
|
|
Receipts in advance and deferred revenue
|
|
51,007
|
|
50,829
|
|
Accrued salary and benefits
|
|
47,232
|
|
50,330
|
|
Taxes payables
|
|
14,225
|
|
11,363
|
|
Other short-term liabilities
|
|
76,322
|
|
81,482
|
|
Total current
liabilities
|
$
|
321,967
|
$
|
342,392
|
|
|
|
|
|
|
Long-term other
payables
|
|
2,807
|
|
3,924
|
|
Long-term tax
liabilities
|
|
485,545
|
|
474,374
|
|
Other long-term
liabilities
|
|
1,659
|
|
2,130
|
|
Total long-term
liabilities
|
$
|
490,011
|
$
|
480,428
|
|
Total liabilities
|
$
|
811,978
|
$
|
822,820
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Sohu.com Limited shareholders' equity
|
|
922,335
|
|
1,058,956
|
|
Noncontrolling interest
|
|
353
|
|
322
|
|
Total shareholders' equity
|
$
|
922,688
|
$
|
1,059,278
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity
|
$
|
1,734,666
|
$
|
1,882,098
|
|
SOHU.COM
LIMITED
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST
COMPARABLE GAAP MEASURES
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec. 31, 2024
|
|
Three Months Ended
Sep. 30, 2024
|
|
Three Months Ended
Dec. 31, 2023
|
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
Brand advertising gross
profit
|
$
|
1,078
|
$
|
-
|
$
|
1,078
|
$
|
1,637
|
$
|
-
|
$
|
1,637
|
$
|
3,229
|
$
|
-
|
$
|
3,229
|
|
Brand advertising gross
margin
|
|
6 %
|
|
|
|
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
margin
|
|
83 %
|
|
|
|
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
margin
|
|
81 %
|
|
|
|
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 margin
|
|
73 %
|
|
|
|
73 %
|
|
74 %
|
|
|
|
74 %
|
|
76 %
|
|
|
|
76 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
122,844
|
$
|
(242)
|
(a) $
|
122,602
|
$
|
125,417
|
$
|
(44)
|
(a) $
|
125,373
|
$
|
132,816
|
$
|
961
|
(a) $
|
133,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
242
|
(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)$
|
10,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
242
|
(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 Sohu.com
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 Sohu.com 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 Sohu.com Limited
|
|
30,799
|
|
|
|
30,799
|
|
31,729
|
|
|
|
31,729
|
|
34,061
|
|
|
|
34,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOHU.COM
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, 2024
|
|
Twelve Months Ended
Dec. 31, 2023
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
(a)
|
|
|
|
|
7
|
(a)
|
|
|
Brand advertising gross
profit
|
$
|
6,886
|
$
|
1
|
$
|
6,887
|
$
|
17,586
|
$
|
7
|
$
|
17,593
|
|
Brand advertising gross
margin
|
|
9 %
|
|
|
|
9 %
|
|
20 %
|
|
|
|
20 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
10
|
(a)
|
|
|
Online games gross
profit
|
$
|
413,894
|
$
|
-
|
$
|
413,894
|
$
|
414,668
|
$
|
10
|
$
|
414,678
|
|
Online games gross
margin
|
|
82 %
|
|
|
|
82 %
|
|
86 %
|
|
|
|
86 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
Others gross
profit
|
$
|
11,786
|
$
|
-
|
$
|
11,786
|
$
|
22,661
|
$
|
-
|
$
|
22,661
|
|
Others gross
margin
|
|
52 %
|
|
|
|
52 %
|
|
70 %
|
|
|
|
70 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
(a)
|
|
|
|
|
17
|
(a)
|
|
|
Gross profit
|
$
|
432,566
|
$
|
1
|
$
|
432,567
|
$
|
454,915
|
$
|
17
|
$
|
454,932
|
|
Gross margin
|
|
72 %
|
|
|
|
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 Sohu.com 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 Sohu.com Limited for
diluted net income per share/ADS
[9]
|
$
|
-
|
|
-
|
|
-
|
$
|
35,426
|
|
-
|
|
35,426
|
|
Net loss attributable
to Sohu.com 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 Sohu.com
Limited
|
$
|
(3.13)
|
|
|
$
|
(2.60)
|
$
|
(1.93)
|
|
|
$
|
(1.51)
|
|
Diluted net
income from discontinued
operations per share/ADS attributable to
Sohu.com Limited
|
$
|
-
|
|
|
|
-
|
$
|
1.04
|
|
|
|
1.04
|
|
Diluted net loss
per share/ADS attributable
to Sohu.com Limited.
|
$
|
(3.13)
|
|
|
|
(2.60)
|
$
|
(0.89)
|
|
|
|
(0.47)
|
|
Share/ADS used in
computing diluted net
income/(loss) per share/ADS attributable to
Sohu.com Limited
|
|
32,009
|
|
|
|
32,009
|
|
34,109
|
|
|
|
34,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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
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SOURCE Sohu.com Limited
