Financial Performance - In Q4 2024, total revenues were $135 million, down 5% year-over-year and 11% quarter-over-quarter [8] - Brand advertising revenues were $19 million, down 7% year-over-year and 1% quarter-over-quarter [8] - Online game revenues were $110 million, down 4% year-over-year and 14% quarter-over-quarter [8] - GAAP net loss attributable to Sohu was $21 million, compared to a net loss of $13 million in Q4 2023 [9] - For the full year 2024, total revenues were $598 million, flat compared to 2023 [10] - GAAP net loss for the full year was $100 million, compared to a net loss of $66 million in 2023 [11] Business Segment Performance - Sohu Media platform revenues for Q4 were $24 million, compared to $25 million in the same quarter last year, with an operating loss of $69 million [24] - For Changyou's online game business, Q4 revenues were $111 million, compared to $116 million in the same quarter last year, with an operating profit of $48 million [25] - For the full year 2024, Changyou's revenues were $506 million, up from $485 million in 2023 [25] Market Insights - The advertising market is experiencing a decline due to macroeconomic conditions, leading to reduced spending by advertisers [38][63] - FMCG has become the top sector for advertising spend, surpassing the automotive sector [70] Company Strategy and Industry Competition - The company is focusing on enhancing user experience and content generation through technology and events [7][12] - There is an emphasis on producing high-quality games and expanding the game portfolio to include diverse types [21] - The integration of AI technologies, such as DeepSeek, is being explored to improve content generation and user interaction [45][66] Management Commentary on Operating Environment and Future Outlook - Management noted that the overall economic situation is affecting consumer spending, which in turn impacts advertising budgets [63] - There is cautious optimism regarding the application of AI technologies, although immediate benefits in marketing are not expected [66] Other Important Information - As of February 13, 2025, the company had repurchased 4.2 million ADS for approximately $52 million, with $100 million remaining in the buyback program [22][61] Q&A Session Summary Question: Insights on brand advertising business and gaming performance - Management attributed the decline in advertising to the macroeconomic situation, with advertisers spending less due to reduced consumer spending [38][63] - For gaming, management expects Q1 performance to be flat quarter-over-quarter [43] Question: Overall macro sentiment and advertising budget - Management indicated that FMCG is currently the strongest sector for advertising, with a notable decline in automotive advertising budgets [70]
Sohu.com(SOHU) - 2024 Q4 - Earnings Call Transcript