SOHU.COM REPORTS FIRST QUARTER 2024 UNAUDITED FINANCIAL RESULTS

Core Viewpoint - Sohu.com Limited reported a decline in total revenues and an increase in net loss for the first quarter of 2024, indicating challenges in brand advertising while online game revenues showed slight improvement [2][3][4]. Financial Performance - Total revenues for Q1 2024 were US$139 million, down 14% year-over-year and 1% quarter-over-quarter [2][4]. - Brand advertising revenues were US$16 million, a decrease of 29% year-over-year and 20% quarter-over-quarter [2][4]. - Online game revenues reached US$118 million, down 9% year-over-year but up 3% quarter-over-quarter [2][4]. - GAAP net loss attributable to Sohu.com Limited was US$25 million, compared to a net loss of US$18 million in Q1 2023 and US$13 million in Q4 2023 [2][7]. - Non-GAAP net loss was US$22 million, compared to a net loss of US$13 million in Q1 2023 and US$11 million in Q4 2023 [2][7]. Operating Metrics - GAAP operating loss was US$27 million, compared to an operating loss of US$18 million in Q1 2023 and US$25 million in Q4 2023 [5]. - Both GAAP and non-GAAP gross margin were 77%, an improvement from 75% in Q1 2023 and 76% in Q4 2023 [4]. - Operating expenses were US$134 million, down 4% year-over-year and up 1% quarter-over-quarter [4]. User Engagement - For PC games, average monthly active user accounts were 2.3 million, a 5% increase year-over-year but a 1% decrease quarter-over-quarter [8]. - Mobile games saw average monthly active users increase to 2.8 million, a 71% rise year-over-year and 63% quarter-over-quarter, driven by the launch of "Haikyu!!FLY HIGH" in Japan and South Korea [8]. Business Outlook - For Q2 2024, Sohu estimates brand advertising revenues between US$18 million and US$20 million, indicating a year-over-year decrease of 16% to 25% [12]. - Online game revenues are expected to be between US$133 million and US$143 million, suggesting a year-over-year increase of 12% to 21% [12]. - Non-GAAP net loss is projected to be between US$27 million and US$37 million, while GAAP net loss is expected to be between US$30 million and US$40 million [12]. Recent Developments - As of May 16, 2024, Sohu had repurchased 1,726,718 ADSs for approximately US$17 million under its share repurchase program [11].