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SOHU.COM REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 UNAUDITED FINANCIAL RESULTS

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Sohu.com reported Q4 2024 financial results with total revenues of US$135 million, down 5% year-over-year and 11% quarter-over-quarter. Brand advertising revenues were US$19 million (-7% YoY, +1% QoQ), while online game revenues reached US$110 million (-4% YoY, -14% QoQ).

For fiscal year 2024, total revenues remained flat at US$598 million compared to 2023. Brand advertising revenues declined 17% to US$73 million, while online game revenues grew 5% to US$502 million. The company reported a GAAP net loss of US$100 million for 2024, compared to US$66 million in 2023.

The company maintains a strong liquidity position with approximately US$1.2 billion in cash and investments. Under its share repurchase program, Sohu has repurchased 4,180,158 ADSs for approximately US$52 million as of February 13, 2025.

Sohu.com ha riportato i risultati finanziari del quarto trimestre del 2024 con ricavi totali di 135 milioni di dollari, in calo del 5% rispetto all'anno precedente e dell'11% rispetto al trimestre precedente. I ricavi pubblicitari del marchio sono stati di 19 milioni di dollari (-7% su base annua, +1% su base trimestrale), mentre i ricavi dei giochi online hanno raggiunto i 110 milioni di dollari (-4% su base annua, -14% su base trimestrale).

Per l'anno fiscale 2024, i ricavi totali sono rimasti stabili a 598 milioni di dollari rispetto al 2023. I ricavi pubblicitari del marchio sono diminuiti del 17% a 73 milioni di dollari, mentre i ricavi dei giochi online sono cresciuti del 5% a 502 milioni di dollari. L'azienda ha riportato una perdita netta GAAP di 100 milioni di dollari per il 2024, rispetto ai 66 milioni di dollari del 2023.

L'azienda mantiene una solida posizione di liquidità con circa 1,2 miliardi di dollari in contante e investimenti. Nell'ambito del suo programma di riacquisto di azioni, Sohu ha riacquistato 4.180.158 ADS per circa 52 milioni di dollari al 13 febbraio 2025.

Sohu.com informó sobre los resultados financieros del cuarto trimestre de 2024 con ingresos totales de 135 millones de dólares, una disminución del 5% en comparación con el año anterior y del 11% en comparación con el trimestre anterior. Los ingresos por publicidad de marca fueron de 19 millones de dólares (-7% interanual, +1% trimestral), mientras que los ingresos por juegos en línea alcanzaron los 110 millones de dólares (-4% interanual, -14% trimestral).

Para el año fiscal 2024, los ingresos totales se mantuvieron estables en 598 millones de dólares en comparación con 2023. Los ingresos por publicidad de marca cayeron un 17% a 73 millones de dólares, mientras que los ingresos por juegos en línea crecieron un 5% a 502 millones de dólares. La empresa reportó una pérdida neta GAAP de 100 millones de dólares para 2024, en comparación con los 66 millones de dólares de 2023.

La empresa mantiene una sólida posición de liquidez con aproximadamente 1.2 mil millones de dólares en efectivo e inversiones. En el marco de su programa de recompra de acciones, Sohu ha recomprado 4,180,158 ADS por aproximadamente 52 millones de dólares hasta el 13 de febrero de 2025.

Sohu.com는 2024년 4분기 재무 결과를 보고하며 총 수익이 1억 3천5백만 달러로, 전년 대비 5% 감소하고, 전 분기 대비 11% 감소했다고 발표했습니다. 브랜드 광고 수익은 1천9백만 달러(-7% 전년 대비, +1% 전 분기 대비)였으며, 온라인 게임 수익은 1억 1천만 달러(-4% 전년 대비, -14% 전 분기 대비)에 달했습니다.

2024 회계연도 동안 총 수익은 2023년과 비교해 5억 9천8백만 달러로 유지되었습니다. 브랜드 광고 수익은 17% 감소하여 7천3백만 달러에 달했고, 온라인 게임 수익은 5% 증가하여 5억 2천만 달러에 이르렀습니다. 회사는 2024년 GAAP 기준으로 1억 달러의 순손실을 기록했으며, 이는 2023년의 6천6백만 달러와 비교됩니다.

회사는 약 12억 달러의 현금 및 투자로 강력한 유동성 위치를 유지하고 있습니다. 자사주 매입 프로그램에 따라, Sohu는 2025년 2월 13일 기준으로 약 5천2백만 달러에 해당하는 4,180,158 ADS를 재매입했습니다.

Sohu.com a rapporté les résultats financiers du quatrième trimestre 2024 avec des revenus totaux de 135 millions de dollars, en baisse de 5 % par rapport à l'année précédente et de 11 % par rapport au trimestre précédent. Les revenus publicitaires de marque s'élevaient à 19 millions de dollars (-7 % en glissement annuel, +1 % en glissement trimestriel), tandis que les revenus des jeux en ligne ont atteint 110 millions de dollars (-4 % en glissement annuel, -14 % en glissement trimestriel).

Pour l'exercice 2024, les revenus totaux sont restés stables à 598 millions de dollars par rapport à 2023. Les revenus publicitaires de marque ont chuté de 17 % à 73 millions de dollars, tandis que les revenus des jeux en ligne ont augmenté de 5 % à 502 millions de dollars. L'entreprise a enregistré une perte nette GAAP de 100 millions de dollars pour 2024, contre 66 millions de dollars en 2023.

L'entreprise maintient une solide position de liquidité avec environ 1,2 milliard de dollars en liquidités et investissements. Dans le cadre de son programme de rachat d'actions, Sohu a racheté 4 180 158 ADS pour environ 52 millions de dollars au 13 février 2025.

Sohu.com berichtete über die finanziellen Ergebnisse des vierten Quartals 2024 mit Gesamterlösen von 135 Millionen US-Dollar, was einem Rückgang von 5% im Vergleich zum Vorjahr und 11% im Vergleich zum Vorquartal entspricht. Die Erlöse aus Markenwerbung betrugen 19 Millionen US-Dollar (-7% im Jahresvergleich, +1% im Quartalsvergleich), während die Erlöse aus Online-Spielen 110 Millionen US-Dollar erreichten (-4% im Jahresvergleich, -14% im Quartalsvergleich).

Für das Geschäftsjahr 2024 blieben die Gesamterlöse mit 598 Millionen US-Dollar im Vergleich zu 2023 stabil. Die Erlöse aus Markenwerbung sanken um 17% auf 73 Millionen US-Dollar, während die Erlöse aus Online-Spielen um 5% auf 502 Millionen US-Dollar stiegen. Das Unternehmen meldete einen GAAP-Nettoverlust von 100 Millionen US-Dollar für 2024, verglichen mit 66 Millionen US-Dollar im Jahr 2023.

Das Unternehmen hält eine starke Liquiditätsposition mit etwa 1,2 Milliarden US-Dollar in Bargeld und Investitionen. Im Rahmen seines Aktienrückkaufprogramms hat Sohu bis zum 13. Februar 2025 insgesamt 4.180.158 ADS für etwa 52 Millionen US-Dollar zurückgekauft.

Positive
  • Strong liquidity position with US$1.2 billion in cash and investments
  • Online game revenues grew 5% to US$502 million in FY2024
  • Active share repurchase program with US$52 million in buybacks completed
Negative
  • Q4 total revenues declined 5% YoY to US$135 million
  • Brand advertising revenues dropped 17% in FY2024
  • GAAP net loss widened to US$100 million in FY2024 from US$66 million in 2023
  • Gross margins declined across all segments in FY2024

Insights

The Q4 2024 results reveal deepening operational challenges at Sohu.com, with concerning implications for its business model sustainability. The company's US$21M GAAP net loss represents a significant deterioration from the US$13M loss in Q4 2023, while full-year losses have nearly doubled.

The brand advertising segment's performance is particularly troubling, with margins collapsing to 6% from 16% year-over-year. This dramatic margin compression, combined with declining revenues, suggests structural challenges in the advertising business that go beyond cyclical factors. The segment's efficiency has deteriorated despite cost control efforts, indicating potential market share losses to competitors.

The online gaming division, while generating 83% gross margins, shows mixed signals. Mobile gaming metrics reveal concerning trends - while MAU increased 53% year-over-year, the 61% quarter-over-quarter decline in paying accounts suggests serious monetization challenges. The success of TLBB PC's content updates appears to be masking broader challenges in the mobile segment.

The company's substantial cash position of US$1.2B provides significant runway, but the allocation of US$52M to share repurchases amid widening operational losses raises questions about capital allocation strategy. The Q1 2025 guidance projecting accelerated revenue declines in brand advertising (13-19% YoY) suggests management sees no immediate catalysts for improvement.

The deteriorating operational metrics, combined with management's focus on share repurchases rather than business reinvestment, point to a company struggling to find sustainable growth drivers in its core markets. While the cash buffer provides time for a turnaround, the trajectory of key performance indicators suggests increasing pressure on the business model's viability.

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.













 

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/sohucom-reports-fourth-quarter-and-fiscal-year-2024-unaudited-financial-results-302378600.html

SOURCE Sohu.com Limited

FAQ

What were Sohu's (SOHU) Q4 2024 revenue and earnings results?

Sohu reported Q4 2024 total revenues of US$135 million, down 5% year-over-year, with a GAAP net loss of US$21 million or US$0.69 per ADS.

How did Sohu's (SOHU) online gaming segment perform in Q4 2024?

Online game revenues were US$110 million, down 4% year-over-year and 14% quarter-over-quarter, with a gross margin of 83%.

What is Sohu's (SOHU) financial outlook for Q1 2025?

Sohu expects Q1 2025 brand advertising revenues between US$13-14 million and online game revenues between US$105-115 million, with a projected non-GAAP net loss of US$16-26 million.

How much cash and investments does Sohu (SOHU) have as of December 31, 2024?

As of December 31, 2024, Sohu had approximately US$1.2 billion in cash, cash equivalents, short-term investments and long-term time deposits.

What is the status of Sohu's (SOHU) share repurchase program as of February 2025?

As of February 13, 2025, Sohu had repurchased 4,180,158 ADSs for approximately US$52 million under its US$150 million share repurchase program.

Sohu Com Ltd

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