Sohu.com(US:SOHU)2020-08-10 17:24Financial Data and Key Metrics Changes - Total revenues for Q2 2020 were $421 million, down 9% year-over-year and down 3% quarter-over-quarter [8] - Brand advertising revenues were $38 million, down 14% year-over-year but up 48% quarter-over-quarter [8] - Search and search-related advertising revenues were $241 million, down 13% year-over-year and up 1% quarter-over-quarter [8] - Online game revenues were $106 million, up 4% year-over-year but down 21% quarter-over-quarter [9] - GAAP net loss attributable to Sohu.com Limited was $80 million, while non-GAAP net income was $11 million [9][18] Business Line Data and Key Metrics Changes - Sohu Media Portal revenues were $22 million, down 7% year-over-year and up 49% quarter-over-quarter, with an operating loss of $80 million [17] - Sohu Video revenues were $22 million, up 6% year-over-year and down 4% quarter-over-quarter, with an operating loss of $10 million [17] - Changyou's revenues were $109 million, up 3% year-over-year but down 20% quarter-over-quarter, with an operating profit of $37 million [17] - Sogou's revenues were $261 million, down 14% year-over-year and up 2% quarter-over-quarter, with a net loss of $6 million [18] Market Data and Key Metrics Changes - Sogou maintained a steady share of traffic and expanded its DAU base to 484 million, reinforcing its position as China's second-largest search engine [16] - The mobile keyboard business continued to grow, maintaining its status as the third-largest Chinese mobile app in terms of DAU [16] Company Strategy and Development Direction - The company is focusing on integrating its media portals with Sohu Video's live broadcast technologies to enhance content generation and distribution [6] - Changyou aims to stabilize player engagement and diversify its product portfolio, with a focus on MMORPG mobile games [15] - Sogou is upgrading its development strategy to generate more user value and focus on long-term growth [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the brand advertising business performed well, exceeding prior guidance [6] - The ongoing impact of COVID-19 remains uncertain, affecting revenue forecasts for the upcoming quarters [19] - Management expects stabilization in the gaming industry as the economy recovers [30] Other Important Information - Changyou's privatization was completed on April 17, 2020, affecting the attribution of net income and loss [6] - The company recognized an additional $88 million accrual for withholding income tax during the quarter [8] Q&A Session Summary Question: Podcasting performance and gaming industry stabilization - Management discussed the synergy from live broadcasting and the impact of returning to work on gaming engagement, indicating expectations for stabilization in Q3 [21][28] Question: Brand advertising guidance and international revenue impact - Management explained that the wide range in brand advertising guidance is influenced by the COVID-19 situation and noted an increase in advertising from international brands [33][34] Question: Future prospects for Sohu Portal and video content strategy - Management outlined plans for the Sohu News app and Sohu Video app, focusing on high-quality content and algorithm improvements, while indicating a cautious approach to spending on long-form content [39][43]