Financial Performance - Total revenues for Q2 2021 were $204 million, representing a 28% increase year-over-year but an 8% decrease quarter-over-quarter[3]. - GAAP net income from continuing operations was $22 million, compared to $11 million in Q2 2020 and $32 million in Q1 2021[13]. - Non-GAAP net income from continuing operations was $25 million, compared to $12 million in Q2 2020 and $37 million in Q1 2021[13]. - Operating profit decreased to $24.8 million in Q2 2021 from $50.8 million in Q1 2021, while net income attributable to Sohu.com Limited was $40.7 million, down from $49.2 million in Q1 2021[30]. - Basic net income per share attributable to Sohu.com Limited was $1.03 for Q2 2021, compared to $1.25 in Q1 2021 and a loss of $2.04 in Q2 2020[30]. - The company reported a net income from discontinued operations of $55.9 million in Q2 2021, compared to $52.3 million in Q1 2021[30]. - The company reported a net income of $21,851 for the quarter, compared to a net loss of $74,397 in the same quarter last year[33]. Revenue Breakdown - Online game revenues reached $151 million, up 43% year-over-year, driven by the success of TLBB Vintage, but down 14% quarter-over-quarter[7]. - Brand advertising revenues totaled $37 million, down 3% year-over-year but up 20% quarter-over-quarter, attributed to seasonal increases[7]. - Online games revenue was $151.3 million, down 14% from $176.5 million in Q1 2021, and up 43% from $105.9 million in Q2 2020[30]. - For Q3 2021, brand advertising revenues are expected to be between $35 million and $39 million, indicating a potential annual decrease of 5% to 15%[18]. - Online game revenues for Q3 2021 are projected to be between $145 million and $155 million, suggesting an annual increase of 43% to 53%[18]. Operating Expenses and Margins - Operating expenses for Q2 2021 were $130 million, a 23% increase year-over-year and a 5% increase quarter-over-quarter[10]. - GAAP gross margin was 76%, up from 67% in Q2 2020 but down from 79% in Q1 2021[8]. - Total operating expenses for Q2 2021 were $130.3 million, an increase from $124.4 million in Q1 2021[30]. - Gross profit for Q2 2021 was $155.1 million, compared to $175.2 million in Q1 2021 and $106.9 million in Q2 2020[30]. - Online games gross profit was $134,246, maintaining a gross margin of 89%[33]. - Brand advertising gross profit was $10,070, with a gross margin of 27%[33]. Assets and Liabilities - As of June 30, 2021, cash and cash equivalents and short-term investments totaled $349 million[14]. - Total assets increased to $3,063,721, up from $2,822,121, representing a growth of 8.5%[32]. - Current assets rose to $2,496,592, compared to $2,254,872, reflecting an increase of 10.7%[32]. - Total liabilities increased to $1,854,343 from $1,790,140, marking a rise of 3.6%[32]. - Shareholders' equity grew to $1,209,378, up from $1,031,981, an increase of 16.2%[32]. Market Position and Future Outlook - Sohu's reliance on online advertising sales, online games, and mobile services continues to be a significant revenue driver[30]. - The company is facing risks including instability in global financial markets and regulatory uncertainties in China[24]. - Sohu's online search subsidiary Sogou has become the second largest search engine by mobile queries in China[27]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32].

Financial Performance - In Q1 2021, total revenues were $222 million, up 24% year-over-year but down 12% quarter-over-quarter [7] - Non-GAAP net income was $37 million, significantly exceeding previous guidance, attributed to strict budget control and strong online game performance [6] - GAAP net income from continuing operations was $32 million, compared to a net loss of $10 million in Q1 2020 [8] Business Segment Performance - Sohu Media Portal revenues were $80 million, up 18% year-over-year but down 26% quarter-over-quarter, with an operating loss of $31 million [14] - Sohu Video revenues were $90 million, down 17% year-over-year and 15% quarter-over-quarter, with an operating loss of $13 million [14] - Changyou's revenues, including 17173, were $180 million, up 32% year-over-year but down 10% quarter-over-quarter, with an operating profit of $101 million [14] Market Performance - Brand advertising revenues were $31 million, up 20% year-over-year but down 26% quarter-over-quarter [7] - Online game revenues were $176 million, up 32% year-over-year but down 10% quarter-over-quarter [7] Company Strategy and Industry Competition - The company is focusing on improving products and technology, enhancing content generation, and social distribution [6] - Live broadcasting technologies are being integrated into marketing campaigns to attract user attention and advertiser budgets [7] - The company aims to grow its user base organically through improved technology and distribution rather than heavy spending [26] Management Commentary on Operating Environment and Future Outlook - Management noted that the macroeconomic situation is not favorable, particularly due to a shortage of mobile chips affecting the auto industry [21] - The company expects brand advertising revenues in Q2 2021 to be between $36 million and $40 million, reflecting a cautious outlook [15] - Management emphasized the need to demonstrate growth potential to improve stock price, focusing on building a larger user base [36] Other Important Information - The company will not discuss Sogou business updates or agreements with Tencent regarding Sogou's privatization during the call [15] - Several key games are in development, with anticipated launches later this year, including "Taxi Adventure" and "Bright Star" [41] Q&A Session Summary Question: What drove the strong gaming revenue performance? - Management indicated that the better-than-expected performance was due to slower-than-anticipated decline in TLBB Vintage and increased player engagement during the spring festival [18] Question: Concerns about online advertising guidance? - Management explained that the year-over-year comparison is challenging due to a strong Q2 in 2020 and current macroeconomic conditions affecting advertising budgets [21] Question: Content strategies and user engagement? - Management highlighted the importance of growing the user base through unique content events and live streaming to drive advertising revenue [25] Question: Advertising demand from various industries? - Management noted that the auto industry is currently facing challenges, but FMCG and other sectors are showing better demand [30][33] Question: Steps to support stock price? - Management emphasized the need to demonstrate growth potential and build a larger user base to improve stock valuation [36]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Sohu.com Limited (NASDAQ:SOHU) Q4 2020 Earnings Conference Call February 4, 2021 7:30 AM ET Company Participants Huang Pu - Investor Relations Charles Zhang - Chairman and Chief Executive Officer Yanfeng Lu - Chief Financial Officer Conference Call Participants Eddie Leung - Merrill Lynch Alicia Yap - Citigroup Thomas Chong - Jefferies Operator Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's Fourth Quarter 2020 Earnings Conference Call. At this time, all parti ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2020 were $158 million, down 6% year-over-year and 1% quarter-over-quarter [9] - Brand advertising revenues reached $41 million, down 11% year-over-year but up 8% quarter-over-quarter [9] - Online game revenues were $101 million, down 6% year-over-year and 4% quarter-over-quarter [9] - GAAP net loss from continuing operations was $50 million, compared to a net loss of $33 million in Q3 2019 [10] - Non-GAAP net loss from continuing operations was $7 million, compared to a net loss of $30 million in the same quarter last year [10] Business Line Data and Key Metrics Changes - Sohu Media Portal revenues were $25 million, down 3% year-over-year and up 9% quarter-over-quarter, with an operating loss of $23 million [15] - Sohu Video revenues were $23 million, up 1% year-over-year and 2% quarter-over-quarter, with an operating loss of $12 million [15] - Changyou's revenues, including 17173, were $104 million, down 6% year-over-year and 5% quarter-over-quarter, with an operating profit of $33 million [15] Market Data and Key Metrics Changes - The brand advertising revenue growth was attributed to sectors such as the auto industry, internet services, and real estate [20][21] - In Q3, PC games accounted for 61% of online game revenue, while mobile games accounted for 39% [23] Company Strategy and Development Direction - The company is focusing on optimizing products, refining technology, and enhancing premium content distribution [7] - Sohu Video is implementing a two-engine strategy with long-form and short-form videos, and is enhancing live streaming technology [11] - Changyou is concentrating on MMORPG mobile games and developing new games across various genres [14] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but noted positive user interaction and advertiser feedback [8] - For Q4 2020, brand advertising revenues are expected to be between $37 million and $42 million, while online game revenues are projected to be between $140 million and $150 million [16] Other Important Information - Sogou's results have been excluded from the company's results due to its planned merger with Tencent [9] - The company is diversifying monetization strategies and exploring new opportunities in live streaming and live commerce [12][13] Q&A Session Summary Question: Trend for different key categories in brand advertising - Management highlighted the auto industry, internet services, and real estate as key sectors driving brand advertising growth [20][21] Question: Breakdown of PC versus mobile games and drivers for growth - In Q3, PC games accounted for 61% of revenue, while mobile games accounted for 39%. The growth in Q4 is driven by nostalgic content and new game launches [23][24] Question: Outlook for game pipeline next year - Management indicated that several games are in development, with specific launches dependent on licensing and testing [27] Question: Content investment strategy for Sohu Video - The company plans to maintain similar spending on long-form content while focusing on user-generated content and live streaming for cost efficiency [29]

Financial Data and Key Metrics Changes - Total revenues for Q2 2020 were $421 million, down 9% year-over-year and down 3% quarter-over-quarter [8] - Brand advertising revenues were $38 million, down 14% year-over-year but up 48% quarter-over-quarter [8] - Search and search-related advertising revenues were $241 million, down 13% year-over-year and up 1% quarter-over-quarter [8] - Online game revenues were $106 million, up 4% year-over-year but down 21% quarter-over-quarter [9] - GAAP net loss attributable to Sohu.com Limited was $80 million, while non-GAAP net income was $11 million [9][18] Business Line Data and Key Metrics Changes - Sohu Media Portal revenues were $22 million, down 7% year-over-year and up 49% quarter-over-quarter, with an operating loss of $80 million [17] - Sohu Video revenues were $22 million, up 6% year-over-year and down 4% quarter-over-quarter, with an operating loss of $10 million [17] - Changyou's revenues were $109 million, up 3% year-over-year but down 20% quarter-over-quarter, with an operating profit of $37 million [17] - Sogou's revenues were $261 million, down 14% year-over-year and up 2% quarter-over-quarter, with a net loss of $6 million [18] Market Data and Key Metrics Changes - Sogou maintained a steady share of traffic and expanded its DAU base to 484 million, reinforcing its position as China's second-largest search engine [16] - The mobile keyboard business continued to grow, maintaining its status as the third-largest Chinese mobile app in terms of DAU [16] Company Strategy and Development Direction - The company is focusing on integrating its media portals with Sohu Video's live broadcast technologies to enhance content generation and distribution [6] - Changyou aims to stabilize player engagement and diversify its product portfolio, with a focus on MMORPG mobile games [15] - Sogou is upgrading its development strategy to generate more user value and focus on long-term growth [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the brand advertising business performed well, exceeding prior guidance [6] - The ongoing impact of COVID-19 remains uncertain, affecting revenue forecasts for the upcoming quarters [19] - Management expects stabilization in the gaming industry as the economy recovers [30] Other Important Information - Changyou's privatization was completed on April 17, 2020, affecting the attribution of net income and loss [6] - The company recognized an additional $88 million accrual for withholding income tax during the quarter [8] Q&A Session Summary Question: Podcasting performance and gaming industry stabilization - Management discussed the synergy from live broadcasting and the impact of returning to work on gaming engagement, indicating expectations for stabilization in Q3 [21][28] Question: Brand advertising guidance and international revenue impact - Management explained that the wide range in brand advertising guidance is influenced by the COVID-19 situation and noted an increase in advertising from international brands [33][34] Question: Future prospects for Sohu Portal and video content strategy - Management outlined plans for the Sohu News app and Sohu Video app, focusing on high-quality content and algorithm improvements, while indicating a cautious approach to spending on long-form content [39][43]

Sohu.com Limited (NASDAQ:SOHU) Q1 2020 Earnings Conference Call May 18, 2020 7:30 AM ET Company Participants Huang Pu - Director, IR Charles Zhang - Chairman and CEO Joanna Lv - CFO Conference Call Participants Eddie Leung - Bank of America Merrill Lynch Alicia Yap - Citigroup Operator Good evening. Thank you for joining Sohu's First Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. After management prepared remarks, there will be a Q&A session. Today's conferenc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Financial Data and Key Metrics Changes - For Q4 2019, total revenues were $490 million, up 5% year-over-year and 2% quarter-over-quarter [9] - Non-GAAP net income attributable to Sohu.com Limited was $7 million, compared to a net loss of $51 million in Q4 2018 [10] - For the full year 2019, total revenues were $1.85 billion, up 2% compared to 2018 [11] - Non-GAAP net loss attributable to Sohu.com Limited was $93 million for 2019, improved from a loss of $207 million in 2018 [11] Business Line Data and Key Metrics Changes - Sohu Media Portal revenues for Q4 were $23 million with a loss of $25 million [21] - Sohu Video revenues for Q4 were $22 million with a loss of $18 million, showing a 40% improvement in operating loss compared to Q4 2018 [14][21] - Sogou's quarterly revenues were $301 million, up 1% year-over-year, with net income of $39 million [22] - Changyou's quarterly revenues were $135 million, up 35% year-over-year, with net income of $63 million [22] Market Data and Key Metrics Changes - Sogou maintained its position as China's second-largest search engine, with search revenue growing faster than the industry average [18] - The mobile keyboard user base for Sogou increased to 464 million DAUs, with a 54% increase in daily voice requests year-over-year [18] Company Strategy and Development Direction - The company aims to strengthen its brand influence through high-quality original content and various events [12] - Sohu Video is focusing on a twin-engine strategy with both long-form and short-form content to enhance user engagement [13] - The company is committed to cost-saving initiatives and improving monetization capabilities across its platforms [6][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the slowing economy and intensified competition but emphasized the exploration of new opportunities [6] - The impact of the COVID-19 outbreak is expected to negatively affect advertising revenues, but there is optimism for a rebound as the economy recovers [15][34] - Management noted that user engagement has increased during the pandemic, particularly for video content [35] Other Important Information - The company expects total revenues for Q1 2020 to be between $400 million and $435 million, with brand advertising revenues expected to decline significantly due to the pandemic [23][24] - Non-GAAP net loss for Q1 2020 is projected to be between $25 million and $35 million [24] Q&A Session Summary Question: What are the top advertising industries for your news media in Q4? - Management indicated that the top advertising industries included auto, real estate, and internet services before the coronavirus outbreak [26][27] Question: How is the video business's cash flow and capital raising needs? - Management stated that they are implementing a low-budget strategy for video production and relying on past productions for revenue [30][31] Question: What is the guidance for brand advertising revenue decline? - Management expects both portal and video advertising to be equally impacted, with a potential rebound in Q2 if the economy recovers [34] Question: How is the competition from short-form video affecting SME advertising? - Management noted that SME income represents a small part of brand advertising revenue and has remained steady [46]

Financial Data and Key Metrics Changes - For Q3 2019, total revenues were $482 million, up 9% year-over-year and 4% quarter-over-quarter [9] - Non-GAAP net loss attributable to Sohu.com Limited was $17 million, a decrease of 26% compared to the previous quarter [9] - Excluding Sogou and Changyou, the non-GAAP net loss was $53 million, an increase of 31% year-over-year [9] Business Line Data and Key Metrics Changes - Sohu Media Portal revenues were $25 million with a quarterly loss of $31 million [18] - Sohu Video revenues were $22 million with a quarterly loss of $20 million [18] - Sogou revenues were $350 million, up 14% year-over-year and 4% quarter-over-quarter, with net income of $41 million [19] - Changyou revenues were $111 million, up 9% year-over-year but down 4% quarter-over-quarter, with net income of $34 million [19] Market Data and Key Metrics Changes - Sogou maintained its position as China's second-largest search engine, with mobile keyboard DAU reaching 464 million, up 14% year-over-year [15] - Brand advertising revenues for Q4 2019 are expected to be between $40 million and $45 million, implying an annual decrease of 21% to 30% [20] Company Strategy and Development Direction - The company is focusing on cost-saving initiatives and diversifying revenue streams, particularly in Sohu Media and Sohu Video segments [6][7] - Sohu Media is enhancing its content quality and hosting events to attract advertisers [10][11] - Sogou is leveraging its AI capabilities to support innovations in search and mobile keyboard businesses [15][16] Management Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainties but indicated that total revenue and bottom line exceeded prior guidance [6] - The company expects to achieve profitability on a group level in the coming quarters, despite challenges in the media advertising business [27] Other Important Information - The company is implementing strict budget controls and improving resource utilization to enhance monetization and revenue growth potential [12] - Changyou's online game business continues to perform well, with a focus on maintaining user engagement [17] Q&A Session Summary Question: Impact of advertiser spending on SMEs vs. key accounts - Management indicated that key accounts are more affected by the macroeconomic situation, particularly in the auto industry, while SMEs are less impacted [24] Question: Regulatory environment and profitability expectations for online video - Management stated that while losses in the media business are expected to shrink, profitability is still not reached, but group-level profitability is anticipated in the coming quarters [27] Question: Content quality improvements in Sohu Media - Management highlighted the contribution of over 600,000 writers on Sohu Hub and various events to enhance content quality and attract advertisers [30] Question: Anticipation of regulatory easing for video content - Management noted that while regulations have eased slightly, the company is focusing more on short videos and social functions rather than solely on long-form content [34]