Sohu's third-quarter net revenue was 430 million dollars, slightly below analysts ' expectations

Summary: Check the latest quotes Beijing time November 3 afternoon news, Sohu (Nasdaq:sohu) today released the unaudited results for the third quarter of 2014 as at September 30, 2014. Earnings showed that Sohu's third quarter total revenue of 430 million U.S. dollars, an increase of 17%;

Beijing time November 3 afternoon news, Sohu (Nasdaq:sohu) today released the unaudited results for the third quarter of 2014 as at September 30, 2014. Earnings showed that Sohu's third quarter total revenue of 430 million U.S. dollars, an increase of 17%, the third quarter attributable to Sohu net loss of 28 million U.S. dollars, a year earlier net profit of 41 million U.S. dollars. Not according to the United States General Accounting Standards (NON-GAAP), the third quarter of the net loss attributable to Sohu 23 million U.S. dollars, the same period last year net profit of 44 million U.S. dollars.

According to Yahoo's financial data, 11 of Wall Street analysts on average estimate that Sohu's third-quarter U.S. depository Receipts (ADS) diluted a net loss of $1.14 per share in the US GAAP. The results showed that Sohu's third-quarter ads diluted a net loss of 0.74 U.S. dollars, better than analysts expected.

In addition, on average, 12 Wall Street analysts expect Sohu's third-quarter total revenue to reach $437.42 million trillion. Earnings showed Sohu's third-quarter net revenue was $430 million trillion, slightly below analysts ' expectations.

Important results in the third quarter

• Total revenue of 430 million U.S. dollars, up 17% from the same period in 2013, up 8% from the previous quarter.

• Brand advertising revenue of 149 million U.S. dollars, a 19% increase from the same period in 2013, up 12% from the previous quarter.

• Sogou revenue is 106 million U.S. dollars, up 86% from the same period in 2013, up 17% from the previous quarter.

• Online gaming revenues of $150 million, down 7% from the same period in 2013, down 2% from the previous quarter.

• The U.S. general accounting standards attributable to Sohu net loss of 28 million U.S. dollars, the United States General accounting standards per share diluted net loss of 0.74 U.S. dollars; for Sohu's non-US general accounting standards Net loss of 23 million U.S. dollars, non-US general accounting standards per share diluted net loss of 0.61 U.S. dollars.

Sohu Chairman and CEO Charles Zhang said: "Sohu performance in this quarter sound, the financial performance is basically in line with expectations." Several major lines of business continue to show strong growth momentum. Sohu Video maintains healthy user growth, mobile end traffic has achieved a very good 40% quarter-on-quarter growth. Sogou single quarter revenue for the first time breakthrough 100 million U.S. dollars, an increase of 86%. In September, when Apple IOS8 system began to support Third-party input method software, Sogou mobile phone Input method successfully occupied the iOS App store in China's top ranking. ”

"In terms of swimming, the user activity of the PC-side MMO game bounced back, but what was even more exciting was the launch of several popular mobile games, especially the eight 3D version of Tianlong," Zhang said. Last Wednesday, we began to test the game, which is reported to be the most popular hand tour of the iphone's Chinese store. This marks a swim in the field of hand travel out of a solid step. At the same time, the tour continued its platform strategy, the third quarter of the monthly active total number of users reached 275 million, an increase of 178%. ”

Sogou CEO Wang Xiaoquan said: "The third quarter, sogou in search and input method both made important progress, further consolidating the mobile Internet in the field of leading position." In the search field, positive marketing promotion Sogou brand influence continues to improve, coupled with the unique advantages of differentiated search services to promote continued growth in search traffic, especially mobile search traffic increased by nearly 20%. In the Input Method field, Sogou mobile phone Input method successfully landed on the iphone, will significantly expand Sogou Mobile user size. Sogou mobile phone input on the day the success of the top app store in China free Application rankings, after two consecutive weeks ranked first. On the financial side, Sogou's quarterly income topped 100 million dollars and was profitable for the third consecutive quarter. The increased financial strength will support our continued investment in the mobile sector in order to gain greater opportunities and increase market share. ”

Third quarter group performance

Income

Total revenue in the third quarter of 2014 was $430 million, up 17% from the same period in 2013, and 8% per cent in the previous quarter.

In the third quarter of 2014, the total revenue for online advertising was $247 million, up 40% from the same period in 2013, up 13% per cent from the previous quarter. Total online advertising revenue includes brand advertising and search and other business revenue.

Brand advertising revenue in the third quarter of 2014 was $149 million, up 19% from the same period in 2013, and 12% per cent in the previous quarter. Year-on-year and chain growth is mainly due to the growth of online video advertising business revenue.

Search and other business revenues were $98 million in the third quarter of 2014, up 88% from the same period in 2013 and 16% per cent in the previous quarter. Year-on-year and chain growth is mainly due to the increase in the amount of Pay-per-click and the higher average single click cost.

Online gaming revenues were $150 million in the third quarter of 2014, down 7% from the same period in 2013, down 2% from the previous quarter. Year-on-year decline is mainly due to the web game "Pinball Hall" and "Divine Comedy" in the domestic into a relatively mature, as well as a swim to reduce the "Tianlong eight" game play difficult strategy, resulting in a decline in income. The decline was mainly due to a swim to reduce the "Tianlong eight" game play difficult strategy, the player reduced pay, bringing the third quarter of 2014 game revenue decline.

Gross

U.S. General Accounting Standards (GAAP) and non-US GAAP gross profit margins were 58% in the third quarter of 2014, with 66% in the same period in 2013, and 58% in the previous quarter.

Online advertising in the third quarter of 2014 the U.S. General Accounting standards and non-US general accounting standards Gross profit margin were 48%, 2013 the same period was 49%, the previous quarter were 44%.

Brand advertising in the third quarter of 2014 U.S. General accounting standards and non-US general accounting standards Gross profit margin are 44%, 2013 the same period of 49%, the previous quarter were 38%. Gross margin year-on-year decline is mainly due to the increase in content and bandwidth costs. Gross margin growth is mainly due to income growth and the cost is basically flat.

2014 third quarter search and other operations U.S. general accounting standards Gross profit margin of 53%, 2013 the same period of 49%, the previous quarter of 52%. Search and other business non-US GAAP gross profit margin of 53%, 2013 the same period of 49%, the previous quarter of 53%. Year-on-year growth was mainly due to revenue growth and the decrease in the proportion of search and other revenue from the cost of traffic and the cost of bandwidth.

Online games in the third quarter of 2014 U.S. General accounting standards and non-US general accounting standards Gross margin were 77%, 2013 the same period of 87%, the previous quarter were 80%. Year-on-year and chain declines are mainly due to the release of a variety of agents in the third quarter of 2014 large multiplayer online games and mobile game, resulting in additional costs, as well as the increase in compensation and welfare costs.

Operating expenses

Operating costs were $289 million in the third quarter of 2014, up 52% from the same period in 2013, down 1% from the previous quarter. Non-US GAAP operating costs were $275 million, up 47% from the same period in 2013, and 3% per cent in the previous quarter. Year-on-year growth was mainly due to the increase in the cost of pay and marketing.

Operating loss

Operating loss in the third quarter of 2014 was USD 41 million, operating profit of 52 million U.S. dollars in the same period in 2013, operating loss of 62 million U.S. dollars in the previous quarter.

Non-US general accounting standards in the third quarter of 2014 operating loss of 26 million U.S. dollars, 2013 operating profit for the same period of 55 million U.S. dollars, the last quarter operating loss of 35 million U.S. dollars.

Income tax

In the third quarter of 2014, the United States General accounting standards and non-US general accounting standards Income tax income are 1 million U.S. dollars, the same period 2013 income tax cost of 19 million U.S. dollars, the previous quarter income tax income of 2 million U.S. dollars. In the third quarter of 2014, the tour confirmed the income tax cost of 300,000 U.S. dollars, partially offsetting Sohu's other business outside the tour recognized income tax income of 1.3 million U.S. dollars.

Net loss

In the third quarter of 2014, the US General accounting standards Net loss was USD 32 million and net profit was $41 million in 2013, with a net loss of $51 million in the previous quarter. Non-US GAAP net loss was $17 million in the third quarter of 2014, with a net profit of $44 million in 2013 and a net loss of $24 million in the previous quarter.

In the third quarter of 2014, the US GAAP net loss of 28 million U.S. dollars, the United States General accounting standards per share diluted net loss of 0.74 U.S. dollars, the same period in 2013 net loss of 65 million U.S. dollars, the last quarter net loss of 45 million U.S. dollars. In the third quarter of 2014, due to Sohu's non-US general accounting standards Net loss of 23 million U.S. dollars, non-US general accounting standards per share diluted net loss of 0.61 U.S. dollars, the same period 2013 net profit of 20 million U.S. dollars, the last quarter net loss of 34 million U.S. dollars.

Capital Liquidity

As of September 30, 2014, Sohu Group cash and cash equivalents and short-term investment total of 1.1 billion U.S. dollars, as at December 31, 2013 the balance is 1.3 billion U.S. dollars.

Sohu Company president and CFO Yuchuyan said: "I am pleased with the steady advance of Sohu's business." It is worth mentioning that our mobile products and services, including video, search and games, have maintained a strong user growth momentum. Over time, we anticipate that the scale of the move will increase dramatically as the overall market for mobile internet develops. In my new duties, I will strive to bring long-term value to Sohu and the shareholders of the tour. ”

Management personnel changes

Sohu announced that Wang Yu for personal reasons to the tour board resigned, resign his tour CEO position. The Board of Directors has appointed Sohu President and Chief financial Officer Yuchuyan and tour company president Chen Deven as the joint CEO of the tour. Ms Yu will continue to be the President and chief financial officer of Sohu Company. Wang Yu will continue to serve as a director of the tour.

"On behalf of Sohu, I would like to express my heartfelt thanks to Wang Yu for his great contribution to the tour," Zhang said. Under his leadership, the tour launched the "Tianlong Eight" and other well-known network games in the domestic network game industry has achieved remarkable results. Mr. Wang will continue to serve as a director of the company and contribute his talents to the development of the tour. After Ms Yu will work closely with German, in the Wang Yu 10 years to lay a solid foundation for further development and expansion of the swim.

Business outlook

Sohu expects the fourth quarter of 2014:

• Total income between USD 442 million and USD 462 million.

• Brand advertising revenue between 145 million to 150 million US dollars, down 3% to 1% from the third quarter of 2014, up 18% to 22% from the same period in 2013.

* Sogou income between 118 million U.S. dollars to 123 million U.S. dollars, compared with the third quarter of 2014 growth of 11% to 16%, compared with 2013 the same period increased 68% to 75%.

• Online gaming revenue between 155 million dollars and 165 million dollars. Increased by 3% to 10% in the third quarter of 2014, down 4% to 10% from the same period in 2013.

• Due to the release of the upcoming and ongoing mobile gaming, the expected costs and costs are uncertain, and the company does not provide the fourth quarter of 2014 of non-US general accounting standards Net profit, non-US general accounting standards per share of diluted net profit and equity incentive costs of the guiding expectations.

Conference

After the release of the earnings, Sohu management team will be the Eastern Time November 3 8:30 A.M. (Beijing time November 3 night 9:30) to hold a financial conference call, interpretation of earnings points, answer analyst questions.

Listen to the phone number of the conference call as follows:

United States: +1-800-742-9301

International: +61-2-8373-3610

Hong Kong, China: +852-3051-2792

Mainland China: +86-800-870-0210/+86-400-120-3170

Password: SOHU

At the end of the telephone conference, by November 11, you can dial the following number to listen to the conference call:

International: +1-855-452-5696

Password: 22394278

The Sohu Investor Network (http://investors.sohu.com/) will issue a teleconference broadcast and a recording. (Lin)