Sohu.com(US:SOHU)2021-05-15 15:51Financial 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]