Group 1 - Sohu.com Limited filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission [1] - The Annual Report is accessible on the Company's investor relations website and hard copies are available upon request [1] - Sohu is a leading Chinese online media platform and game business group, established in the 1990s by Dr. Charles Zhang [2] Group 2 - Sohu operates a comprehensive matrix of Chinese language web properties, including Sohu News App, Sohu Video App, and an online games platform [2] - The platform provides a wide array of content such as news, information, text, pictures, videos, and live broadcasting, engaging millions of users [3] - Sohu's online game business is managed by its subsidiary Changyou, which develops and operates a diverse portfolio of PC and mobile games [3]

Financial Performance - Total revenues for 2024 were approximately $598.4 million, stable compared to 2023, with a gross margin decrease from 76% to 72%[699] - Net loss from continuing operations for 2024 was $100.2 million, compared to $66.1 million in 2023, with diluted net loss per share increasing from $1.93 to $3.13[699] - Revenues from Sohu were $69.7 million for 2024, down from $83.7 million in 2023, with the number of advertisers decreasing to 1,059[718] - Revenues from Changyou's 17173.com website were $3.8 million for 2024, down from $5.0 million in 2023, with the average spend per advertiser decreasing to approximately $61,000[719] - Revenues from other services decreased to $22.5 million in 2024, down $9.8 million from 2023, mainly due to a decline in paid subscription services[727] - Operating loss for 2024 was $109.4 million, compared to a loss of $87.3 million in 2023[749] - Interest income for 2024 was $38.6 million, down from $45.2 million in 2023[751] - Brand advertising gross margin decreased to 9% in 2024, down from 20% in 2023[732] - Net loss from continuing operations attributable to Sohu.com Limited for 2024 was $100.3 million, an increase from a net loss of $65.8 million in 2023 and $17.3 million in 2022[757] Revenue Breakdown - Brand advertising revenues decreased by 17% year-over-year to $73.5 million, representing 12% of total revenues[717] - Online game revenues increased by 5% year-over-year to $502.4 million, accounting for 84% of total revenues[699] - Revenues from PC games were $359.3 million for 2024, representing 72% of Changyou's online game revenues, with TLBB PC generating $309.2 million, accounting for approximately 52% of the Sohu Group's total revenues[722] - Mobile game revenues for 2024 were $143.1 million, a year-on-year increase of $32.1 million from 2023, primarily driven by new game contributions[723] - Legacy TLBB Mobile generated $44.4 million in 2024, accounting for approximately 9% of Changyou's total revenues[723] Advertising and Market Conditions - Sales to the five largest advertising agencies comprised approximately 24% of total brand advertising revenues for 2024, down from 28% in 2023[720] - The advertising market continues to face uncertainties, which may adversely impact revenues and results of operations[702] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were approximately $159.9 million, down from $365.7 million in 2023[761] - Net cash used in continuing operating activities for 2024 was $48.0 million, primarily due to a net loss of $100.2 million[765] - Net cash used in continuing investing activities for 2024 was $113.4 million, with $1.94 billion spent on short-term investments and time deposits[768] - Cash flows from continuing operations showed a net decrease of $205.8 million in cash, cash equivalents, and restricted cash for 2024[764] - The company may require additional cash resources due to changes in business conditions and general economic conditions[762] Capital Expenditures and Obligations - Capital expenditures for 2024 were $19.9 million, compared to $18.4 million in 2023 and $23.8 million in 2022[781] - Total payments required for contractual obligations as of December 31, 2024, amounted to $34.5 million[782] - Long-term tax liabilities recorded were $211.8 million, primarily related to unrecognized tax benefits and previous business transactions[783] Accounting Standards and Disclosures - The company expects to adopt ASU No. 2023-09 for income tax disclosures, effective after December 15, 2024, and is currently evaluating its impact[788] - The adoption of ASU No. 2023-07 on segment reporting will enhance disclosures of significant segment expenses, effective for fiscal years beginning after December 15, 2023[786] - Other accounting standards adopted from January 1, 2024, did not significantly impact the consolidated financial statements[787] - ASU No. 2023-09 on income taxes will require disaggregated information about effective tax rate reconciliation, effective for annual periods beginning after December 15, 2024[788] - ASU No. 2024-03 on comprehensive income will require disclosure of specified components of costs and expenses, effective for annual reporting periods beginning after December 15, 2026[789]

Financial Performance Overview - In Q4 2024, total revenues were $135 million, down 5% year-over-year and 11% quarter-over-quarter [6] - Brand advertising revenues were $19 million, down 7% year-over-year and 1% quarter-over-quarter [6] - Online game revenues were $110 million, down 4% year-over-year and 14% quarter-over-quarter [6] - GAAP net loss attributable to Sohu was $21 million, compared to a net loss of $13 million in Q4 2023 [6] - Non-GAAP net loss attributable to Sohu was $15 million, compared to a net loss of $11 million in Q4 2023 [6] - For the full year 2024, total revenues were $598 million, flat compared to 2023 [7] Business Segment Performance Sohu Media Platform - Quarterly revenues were $24 million, compared to $25 million in the same quarter last year [15] - Quarterly operating loss was $69 million, compared to an operating loss of $68 million in the same quarter last year [15] - For the full year 2024, revenues were $91 million, down from $140 million in 2023 [16] - Full year operating loss was $287 million, compared to an operating loss of $269 million in 2023 [16] Online Games - Quarterly revenues for Changyou's online games were $111 million, compared to $115 million in the same quarter last year [16] - Quarterly operating profit was $48 million, compared to an operating profit of $47 million in the same quarter last year [16] - For the full year 2024, revenues were $506 million, down from $485 million in 2023 [16] - Full year operating profit was $196 million, compared to an operating profit of $203 million in 2023 [16] Market Trends and Strategic Direction - The company is focusing on improving technology and optimizing products to enhance user experience [8] - Sohu is integrating online and offline events to attract younger users and stimulate content generation [9][10] - The online game business is expected to maintain a user-centric approach while expanding its portfolio with diverse game types [13][14] Management Commentary on Economic Environment - Management noted that the decline in advertising revenue is attributed to a weak macroeconomic environment, leading to reduced marketing budgets from advertisers [23][34] - There is a trend of decreased spending in the automotive sector, with FMCG now becoming the top sector for advertising [36] Other Important Information - As of February 2025, Sohu had repurchased 4.2 million ADS for approximately $52 million, with $100 million remaining in the buyback program [15][33] Q&A Session Summary Question: Insights on brand advertising business and gaming expectations - Management acknowledged that the decline in advertising is due to the overall economic situation, with advertisers spending less [23] - For gaming, the performance is expected to be flat quarter-over-quarter [24] Question: Overall macro sentiment and advertising budget - Management indicated that consumer spending is down, affecting marketing budgets, particularly in the automotive sector [34] - FMCG has risen to become the top sector for advertising, with increased spending noted in smaller items like food and electronics [36]

Financial Performance - In Q4 2024, total revenues were $135 million, down 5% year-over-year and 11% quarter-over-quarter [8] - Brand advertising revenues were $19 million, down 7% year-over-year and 1% quarter-over-quarter [8] - Online game revenues were $110 million, down 4% year-over-year and 14% quarter-over-quarter [8] - GAAP net loss attributable to Sohu was $21 million, compared to a net loss of $13 million in Q4 2023 [9] - For the full year 2024, total revenues were $598 million, flat compared to 2023 [10] - GAAP net loss for the full year was $100 million, compared to a net loss of $66 million in 2023 [11] Business Segment Performance - Sohu Media platform revenues for Q4 were $24 million, compared to $25 million in the same quarter last year, with an operating loss of $69 million [24] - For Changyou's online game business, Q4 revenues were $111 million, compared to $116 million in the same quarter last year, with an operating profit of $48 million [25] - For the full year 2024, Changyou's revenues were $506 million, up from $485 million in 2023 [25] Market Insights - The advertising market is experiencing a decline due to macroeconomic conditions, leading to reduced spending by advertisers [38][63] - FMCG has become the top sector for advertising spend, surpassing the automotive sector [70] Company Strategy and Industry Competition - The company is focusing on enhancing user experience and content generation through technology and events [7][12] - There is an emphasis on producing high-quality games and expanding the game portfolio to include diverse types [21] - The integration of AI technologies, such as DeepSeek, is being explored to improve content generation and user interaction [45][66] Management Commentary on Operating Environment and Future Outlook - Management noted that the overall economic situation is affecting consumer spending, which in turn impacts advertising budgets [63] - There is cautious optimism regarding the application of AI technologies, although immediate benefits in marketing are not expected [66] Other Important Information - As of February 13, 2025, the company had repurchased 4.2 million ADS for approximately $52 million, with $100 million remaining in the buyback program [22][61] Q&A Session Summary Question: Insights on brand advertising business and gaming performance - Management attributed the decline in advertising to the macroeconomic situation, with advertisers spending less due to reduced consumer spending [38][63] - For gaming, management expects Q1 performance to be flat quarter-over-quarter [43] Question: Overall macro sentiment and advertising budget - Management indicated that FMCG is currently the strongest sector for advertising, with a notable decline in automotive advertising budgets [70]

Group 1 - Sohu.com Limited will report its fourth quarter and fiscal year 2024 unaudited financial results on February 18, 2025, before U.S. market hours [1] - A conference call will be hosted by Sohu's management team on the same day at 4:30 a.m. U.S. Eastern Time [1] - Participants can preregister for the conference call and will receive details including dial-in numbers and a unique access PIN [2] Group 2 - Sohu.com Limited was established in the 1990s by Dr. Charles Zhang and is a leading online media platform in China [3] - The company provides a comprehensive matrix of Chinese language web properties, including Sohu News App, Sohu Video App, and various online gaming platforms [3][4] - Sohu offers online brand advertising services and operates a diverse portfolio of PC and mobile games through its subsidiary Changyou [4]

Financial Performance and Key Metrics - In Q3 2024, total revenues were $152 million, representing a 5% year-over-year increase but a 12% decrease quarter-over-quarter [7] - Brand advertising revenues were $19 million, down 15% year-over-year and 6% quarter-over-quarter [7] - Online game revenues reached $128 million, up 9% year-over-year but down 13% quarter-over-quarter [7] - GAAP net loss attributable to Sohu.com Limited was $16 million, compared to a net loss of $14 million in Q3 2023 and a net loss of $38 million in Q2 2024 [8] - Non-GAAP net loss attributable to Sohu.com Limited was $12 million, compared to a net loss of $10 million in Q3 2023 and a net loss of $34 million in Q2 2024 [9] Business Segment Performance - Sohu Media and Sohu Video revenues were $23 million, down from $27 million in the same quarter last year, with an operating loss of $72 million compared to a loss of $66 million in the previous year [18] - Changyou's online game business revenues were $129 million, up from $118 million in the same quarter last year, with an operating profit of $62 million compared to $52 million in the previous year [18] Market Data and Key Metrics - The advertising market remains soft, with a gradual decline in growth rates, although unique marketing events helped achieve better-than-expected results in Q3 [22][23] - The company anticipates brand advertising revenues for Q4 2024 to be between $17 million and $19 million, indicating a year-over-year decrease of 6% to 16% [19] Company Strategy and Industry Competition - The company is focusing on maintaining user stability and offering benefits rather than aggressively increasing revenue in the gaming segment [25] - The strategy includes optimizing R&D processes and expanding international presence while maintaining competitiveness in MMORPGs and exploring new game types [15] Management Commentary on Operating Environment and Future Outlook - Management noted that the advertising market is not robust, but there are signs of potential recovery due to recent policy stimulus [23] - For Q4 2024, the company expects a non-GAAP net loss between $26 million and $36 million and a GAAP net loss between $30 million and $40 million, reflecting substantial uncertainty [19] Other Important Information - The share buyback program has been extended for an additional year to November 10, 2026, with $42 million spent on repurchasing 3.4 million ADS as of November 7, 2024 [16] Q&A Session Summary Question: Advertising outlook and budget spend - Management indicated that the advertising market is steady but gradually losing growth, with unique marketing events contributing to better-than-expected results [22][23] Question: Gaming guidance and revenue performance - The revenue beat in Q3 was attributed to new content and servers for TLBB Vintage and regular TLBB PC, with conservative guidance for Q4 aimed at maintaining user stability [24][25] Question: Share buyback execution - The buyback program's slow execution is due to daily trading volume limits, necessitating the extension of the program to 2026 [26]

Core Viewpoint - Sohu.com Limited reported its third-quarter financial results for 2024, showing a mixed performance with total revenues increasing year-over-year but declining quarter-over-quarter, alongside a net loss that widened compared to the previous year and quarter [2][5]. Financial Performance - Total revenues for Q3 2024 were US$152 million, representing a 5% increase year-over-year but a 12% decrease quarter-over-quarter [2][5]. - Brand advertising revenues were US$19 million, down 15% year-over-year and 6% quarter-over-quarter [2][5]. - Online game revenues reached US$128 million, up 9% year-over-year but down 13% quarter-over-quarter [2][5]. - GAAP net loss attributable to Sohu.com Limited was US$16 million, compared to a net loss of US$14 million in Q3 2023 and US$38 million in Q2 2024 [5][4]. - Non-GAAP net loss attributable to Sohu.com Limited was US$12 million, compared to a net loss of US$10 million in Q3 2023 and US$34 million in Q2 2024 [5][4]. Gross Margin and Operating Expenses - Both GAAP and non-GAAP gross margin stood at 74%, down from 76% in Q3 2023 and up from 67% in Q2 2024 [2][5]. - Operating expenses were US$125 million, down 5% year-over-year and 22% quarter-over-quarter [2][5]. User Engagement and Game Performance - For PC games, average monthly active user accounts were 2.2 million, a decrease of 2% year-over-year and 3% quarter-over-quarter [7]. - For mobile games, average monthly active users were 3.2 million, an increase of 41% year-over-year but a decrease of 34% quarter-over-quarter [7]. Share Repurchase Program - On November 9, 2024, Sohu's board authorized an extension of its share repurchase program to November 10, 2026, allowing for the purchase of up to US$150 million of outstanding ADSs [8]. Business Outlook - For Q4 2024, Sohu estimates brand advertising revenues between US$17 million and US$19 million, and online game revenues between US$97 million and US$107 million [9]. - Non-GAAP net loss is expected to be between US$26 million and US$36 million, while GAAP net loss is projected to be between US$30 million and US$40 million [9].

Company Overview - Sohu.com Limited (NASDAQ: SOHU) is a leading Chinese online media, video, and game business group, established in the 1990s by Dr. Charles Zhang, a pioneer in China's internet industry [3][4] - The company operates a comprehensive matrix of Chinese language web properties, including Sohu News App, Sohu Video App, and the online games platform Changyou [3][4] Financial Results Announcement - Sohu will report its third quarter 2024 unaudited financial results on November 12, 2024, before U.S. market hours [1] - A conference call hosted by Sohu's management team will take place on the same day at 7:30 a.m. U.S. Eastern Time [1] Conference Call Details - Participants can preregister for the conference call through a designated registration website, receiving dial-in numbers and a unique access PIN [2] - The live webcast and archive of the conference call will be available on Sohu's Investor Relations section of its website [2]

Company Overview - Sohu Corporation operates in the digital entertainment sector, providing online media, gaming, and search products and services across PCs and mobile devices in China [2] - The company operates through its Sohu and Changyou segments, with the Changyou segment being the major revenue contributor [2] Financial Performance - Sohu reported a revenue of $172 million, with a net loss of $37.66 million, resulting in an earnings per share (EPS) of -$1.16 [1] - The gross profit for the company was $116 million, and it had a price-to-earnings (P/E) ratio of -6.02 [1] Stock Performance - Shares of Sohu experienced significant volatility, rising by 5% to a current price of $16.27 per share, with a trading volume of 353,426 shares and a turnover rate of 1.07% [1] - The price amplitude for Sohu's stock was 4.84% [1] Industry Context - The overall increase in the digital entertainment sector was 2.48%, with notable gains from related stocks such as Blue Hat Interactive, Bilibili, and NetEase [2] - Active stocks in the sector included Bilibili, Motorsport Games Inc., and Blue Hat Interactive, with turnover rates of 7.48%, 3.22%, and 2.39% respectively [2] - Significant price amplitude in the sector was observed in Blue Hat Interactive, Trugolf Holdings, Inc., and Bilibili, with fluctuations of 26.99%, 14.95%, and 12.50% respectively [2] Institutional Ratings - Institutional ratings for Sohu were optimistic, with all participating institutions giving a buy recommendation and none suggesting a hold or sell [1]

Core Viewpoint - Sohu is experiencing some signs of improvement in its mobile gaming segment, but it continues to struggle with profitability, particularly in its brand advertising business [2][3][6]. Financial Performance - In Q2, Sohu reported total revenue of $172 million, a 13% increase year-over-year, with the online gaming segment generating $147 million, up 24% from the previous year [3]. - Despite revenue growth, Sohu recorded a non-GAAP net loss of $34 million, which is a 61.9% increase in net loss compared to the previous year [3]. - The increase in net loss was attributed to a $19 million rise in the cost of revenue and a $22 million increase in operating costs, primarily due to marketing and development expenses from subsidiary Changyou [3]. User Growth and Projections - The number of monthly active users (MAU) for mobile games surged by 273% year-over-year to 4.9 million, largely driven by updates to the Westward Journey game [4]. - However, Sohu anticipates a decline in online game revenue to $104-$114 million in Q3, representing a 22-29% decrease compared to Q2, mainly due to a natural decline in users for the Westward Journey game [4][7]. Brand Advertising Segment - Sohu's brand advertising segment has been unprofitable for years, with revenues decreasing by 46.79% over the past five years, leading to significant cash burn [6]. - The company expects brand advertising revenue to fall to $17-$19 million in Q3, a 14-23% decline year-over-year, attributed to macroeconomic factors and loss of market share [7]. Cash Position and Investments - Sohu has maintained a strong balance sheet with no net debt and approximately $1 billion in cash following the sale of Sogou to Tencent [8]. - The company plans to allocate $150 million for a share repurchase program over two years, despite ongoing losses [8]. Competitive Landscape - Among Sohu's competitors, only two out of six companies are currently profitable, with Sohu having the largest R&D expenditures in its peer group [9][10]. - Sohu's gross margin stands at 73.69%, placing it in the middle compared to its competitors [11]. Valuation Metrics - Sohu's current Price/Sales (P/S) ratio is 0.84, indicating a 9.09% overvaluation, while the Price/Book (P/B) ratio suggests a 73.91% discount, with a fair share price estimated at $20.02 [13][14].