Sogou Business integration has been basically successful

April 28 Sogou reported the first quarter of this year's earnings, revenue 70 million U.S. dollars, year-on-year increase of 78%, the quarter-ring ping. Search revenue accounted for 90% of total revenue, and the rest were navigation and gaming. Mobile search traffic increased by 24% in the quarter, and accounted for 12% of total search traffic.

Last year's fourth-quarter report was the first transcript of the search, with revenue of 70 million dollars, and 216 million dollars a year. Four quarters is the traditional income season, while the first quarter for the income off-season, two quarters to go through Sogou and search the integration of work, income can also be in the first quarter of this year and the last quarter flat, showing the business integration work more smoothly, the combination of both the promotion effect has been beginning to emerge.

If according to the first quarter of the size of the revenue base, combined with the development of new Sogou, 2014 Sogou revenue will be between 4.5 to 520 million U.S. dollars. In terms of efficiency, the search for the past year loss of 100 million U.S. dollars, the new Sogou in the first quarter to achieve the break-even, has been successfully resolved this problem, this is Sogou the latest financial results in the biggest bright spot. The more worried about the Sogou and search for integration issues, now seems to be very good, at least at present did not show any negative effects. Can initially conclude that Sogou's business integration work has been basically successful.

Sogou is a rare in the unlisted company quarterly reporting earnings, although some key data still cannot be released, but also make the outside world of its development has a relatively understanding. In the current search market structure relatively stable situation, Sogou's financial data is unlikely to appear leapfrog growth, but to maintain a certain degree of steady growth, is already the biggest victory. China's search market is now showing a strange pattern, that is, a high degree of monopoly, competition is also high, in this environment the most frightening is the ups and downs, steady growth is a better choice.

Obtain such a result, the main reason is Sogou and search in several aspects of the integration is very good, effectively reduce costs, reduce the loss limit. The first is the integration of the technical team, followed by the server and other equipment integration, the other is the integration of business transformation system. Technology and equipment in the fusion, you can develop more in line with the user needs of product characteristics, and enhance the user's access experience, and the integration of business transformation system, will be directly implemented to the cost reduction, the output rise these two attributes up.

Sogou has its own independent, after Baidu's advertising system, in a small market share, the effectiveness of this system is not to play out, flow up, will reveal the scale effect. At present, Sogou's advertisers have 53,000, traffic on each upgrade of 1%, reflected in the commercial bargaining power is considerable, output will be corresponding upgrade.

Sogou and search after merging, a more significant benefit is that the new Sogou has its own small moat, Sogou encyclopedia and Sogou to ask. Although the scale is small, to Sogou's future has the very big significance. At least in the knowledge class and question-and-answer search requests, Sogou no longer need to index Baidu encyclopedia and know that their own products have been basically able to meet user needs, but also in a small impact on the user experience, to ensure that the flow of access costs not outflow. Encyclopedia and ask after being integrated into the new Sogou, the first quarter of the flow increased by 15%, showing a healthy upward trend.

In the mobile end, Sogou user size has been done very large, sogou input method and Tencent input method should be able to take up the number of mobile users of the top three. Input method to search for how much help, it is still unknown, the future Sogou if you can find a large input method to the user group into the search methods, will become an opportunity for its take-off.

Sogou accept Tencent's equity investment and business transfer, from the capital level is an innovation, as the following has the Beijing-east and the public comment on the follow, so can be called Sogou mode. Before the cooperation between the company model is closed, mutual suspicion between the heart is very heavy, in the development of the problem is not willing to invest resources to do, for fear of their own disadvantage. But the future is the integration of the Times, the company's sincere cooperation, create a career, will gradually become the mainstream. Sogou mode is the forerunner of this trend.

Tencent will be the technical team, servers, customers and traffic services to all the Sogou, more important is to give Sogou team to develop autonomy. Tencent is sparing no effort to inject other related resources. Sogou currently in the mobile end of the flow, from Tencent accounted for about 90%, of which 70% are from the QQ browser. The support of this kind of resources is more valuable than the real assets, is a kind of honest attitude, and those who acquired the shares of others, and then continue to develop with the acquisition of the object of the formation of the business of competing goods relationship between the pattern and the height of the difference.

Sogou and search in the business integration so smooth, not by accident, but the adoption of a new mode of cooperation and the specific results of the relationship. Sogou get Tencent support, in turn, with the steady growth of performance returns Tencent, this is a benign and healthy relationship model. Tencent's business in the past lack of a strong flow business, Sogou joined can make up for this shortcoming, at least has demonstrated the potential to improve the Tencent strategy.

From the financial point of view, all of this is not surprising, less than one billion and thanks to a billion for Tencent has no impact. But from a strategic point of view, to help the Sogou, Tencent nearly disappeared traffic business will be revitalized and regain access to the flow of the future Tencent will benefit from unlimited.

==========================

I am a micro-letter public account gejia021 independent operators, 90% of the original technology and life sentiment article, independent point of view, disdain Low-brow. In order to explain and explain the essence of Internet in China.

Micro-signal gejia021, which covers 10 million users, is one of China's largest wemedia members of the Media Alliance. Also is the 2013 top ten from the media, science and technology, one of 30 original force.

Sina Weibo, my user name is @ Gockai, Sina, Sohu Blog, Eric Column, today's headlines and other media platforms from the user name is Gockai, welcome to subscribe