Sohu.com(US:SOHU)2021-08-08 16:00Financial 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].