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

Core Viewpoint - Sohu.com Limited reported its financial results for Q4 and fiscal year 2024, highlighting a decline in total revenues and net losses, while emphasizing improvements in brand advertising and online game revenues compared to expectations [2][3][11]. Financial Performance Summary Fourth Quarter Highlights - Total revenues for Q4 2024 were US$135 million, down 5% year-over-year and 11% quarter-over-quarter [3][12]. - Brand advertising revenues were US$19 million, down 7% year-over-year but up 1% quarter-over-quarter [3][12]. - Online game revenues were US$110 million, down 4% year-over-year and 14% quarter-over-quarter [3][12]. Fiscal Year 2024 Highlights - Total revenues for the fiscal year were US$598 million, flat compared to 2023 [11][12]. - Brand advertising revenues decreased by 17% to US$73 million compared to 2023 [11][12]. - Online game revenues increased by 5% to US$502 million compared to 2023 [13][12]. Gross Margin - Both GAAP and non-GAAP gross margin for Q4 2024 were 73%, down from 76% in Q4 2023 [4][14]. - Gross margin for brand advertising was 6%, down from 16% in Q4 2023 [4][14]. - Gross margin for online games was 83%, down from 87% in Q4 2023 [4][14]. Operating Expenses - Total operating expenses for Q4 2024 were US$123 million, down 8% year-over-year and 2% quarter-over-quarter [5][12]. - For the fiscal year 2024, operating expenses totaled US$542 million, flat compared to 2023 [15][12]. Net Loss - GAAP net loss for Q4 2024 was US$21 million, compared to a net loss of US$13 million in Q4 2023 [8][12]. - Non-GAAP net loss for Q4 2024 was US$15 million, compared to a net loss of US$11 million in Q4 2023 [9][12]. - For the fiscal year 2024, GAAP net loss was US$100 million, compared to a net loss of US$66 million in 2023 [18][12]. Liquidity and Capital Resources - As of December 31, 2024, Sohu had approximately US$1.2 billion in cash and cash equivalents, short-term investments, and long-term time deposits [10][12]. Business Outlook - For Q1 2025, Sohu estimates brand advertising revenues to be between US$13 million and US$14 million, indicating a potential annual decrease of 13% to 19% [25][37]. - Online game revenues are expected to be between US$105 million and US$115 million, implying an annual decrease of 2% to 11% [37].