BEIJING, March 4,
2024 /PRNewswire/ -- Sohu.com Limited (NASDAQ:
SOHU) ("Sohu" or the "Company"), a leading Chinese online
media, video, and game business group, today reported unaudited
financial results for the fourth quarter and fiscal year ended
December 31, 2023.
Fourth Quarter
Highlights[1]
- Total revenues were US$141
million, down 12% year-over-year and 3%
quarter-over-quarter.
- Brand advertising revenues were US$20 million, down 30%
year-over-year and 9% quarter-over-quarter.
- Online game revenues were US$115 million, down 5%
year-over-year and 2% quarter-over-quarter.
- GAAP net loss attributable to Sohu.com Limited was US$13 million, compared with a net loss of
US$7 million in the fourth quarter of
2022 and a net loss of US$14
million in the third quarter of 2023.
- Non-GAAP[2] net loss attributable to Sohu.com
Limited was US$11 million, compared
with a net loss of US$2 million in
the fourth quarter of 2022 and a net loss of US$10 million in the third quarter of 2023.
Fiscal Year 2023 Highlights
- Total revenues were US$601
million, down 18% compared with 2022.
- Brand advertising revenues were US$89
million, down 14% compared with 2022.
- Online game revenues were US$480
million, down 18% compared with 2022.
- GAAP net loss attributable to Sohu.com Limited was US$66 million, compared with a net loss of
US$17 million in 2022.
- Non-GAAP net loss attributable to Sohu.com Limited was
US$51 million, compared with net
income of US$2 million in
2022.
Dr. Charles Zhang, Chairman and
CEO of Sohu.com Limited, commented, "In the fourth quarter and full
year of 2023, we continued to optimize operating efficiency with
strict budget control, despite the external economic environment
and cautious budgeting by advertisers. Thanks to these efforts, our
bottom-line performance hit the high end of our guidance for the
fourth quarter of 2023. At Sohu Media Portal, we further refined
our products, upgraded technology and expanded premium content
offerings, resulting in an enhanced user experience. At Sohu Video,
we continued to execute our 'Twin Engine' strategy by developing
engaging long and short-form content. In addition to the social
distribution of short-form content, we also worked hard on
science-based live broadcasting and other live broadcasting events,
which further boosted user interactions and engagement on our
platforms. We also proactively explored diversified monetization
opportunities by integrating our advantageous resources and hosting
various content marketing campaigns with our unique IPs. Lastly,
our online game business remained stable, delivering revenues in
line with our expectations."
|
[1] The
bankruptcy proceedings of Changyou's wholly-owned subsidiary
Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai
Jingmao"), which operated Changyou's cinema advertising business,
were concluded by a Chinese mainland bankruptcy court in the third
quarter of 2023. The Company recognized a US$35 million disposal
gain within discontinued operations in the condensed consolidated
statements of operations for the third quarter of 2023. Unless
indicated otherwise, results presented in this press release are
related to continuing operations only, and exclude the
disposal gain mentioned above.
|
|
[2] Non-GAAP
results exclude share-based compensation expense; changes in fair
value recognized in the Company's consolidated statements of
operations with respect to the Company's investments; the impact of
income tax related to changes in the fair value of the Company's
investments; and interest expense recognized in connection with the
one-time transition tax (the "Toll Charge") imposed by the U.S. Tax
Cuts and Jobs Act signed into law on December 22, 2017 (the
"U.S. TCJA"). Explanation of the Company's non-GAAP financial
measures and related reconciliations to GAAP financial measures are
included in the accompanying "Non-GAAP Disclosure" and
"Reconciliations of Non-GAAP Results of Operation Measures to the
Nearest Comparable GAAP Measures."
|
Fourth Quarter Financial Results
Revenues
Total revenues were US$141
million, down 12% year-over-year and 3%
quarter-over-quarter.
Brand advertising revenues were US$20 million,
down 30% year-over-year and 9% quarter-over-quarter.
Online game revenues were US$115 million, down 5%
year-over-year and 2% quarter-over-quarter.
Gross Margin
Both GAAP and non-GAAP gross margin were 76%, compared with
78% in the fourth quarter of 2022 and 76% in the
third quarter of 2023.
Both GAAP and non-GAAP gross margin for the brand advertising
business were 16%, compared with 51% in the
fourth quarter of 2022 and 15% in the third quarter of
2023. The year-over-year margin decrease was mainly due to a
waiver of unpaid long-term accounts payable of approximately
US$10 million recognized in the
fourth quarter of 2022.
Both GAAP and non-GAAP gross margin for online games were 87%,
compared with 84% in the fourth quarter of 2022 and 87% in the
third quarter of 2023.
Operating Expenses
GAAP operating expenses were US$133 million, up 2%
year-over-year and 1% quarter-over-quarter. Non-GAAP operating
expenses were US$134 million, up 3% year-over-year and 2%
quarter-over-quarter.
Operating Loss
GAAP operating loss was US$25
million, compared with an operating loss of US$6 million in the fourth quarter of 2022 and an
operating loss of US$21 million in the third quarter of
2023.
Non-GAAP operating loss was US$26 million, compared
with an operating loss of US$5
million in the fourth quarter of 2022 and an
operating loss of US$20 million in the
third quarter of 2023.
Income Tax Expense
GAAP income tax expense was US$14 million, compared
with income tax expense of US$7
million in the fourth quarter of 2022 and income tax
expense of US$15 million in the third quarter of 2023.
Non-GAAP income tax expense was US$10
million, compared with income tax expense of
US$5 million in the fourth quarter of 2022 and income tax
expense of US$12 million in the
third quarter of 2023. The year-over-year income tax expense
increase was mainly due to a one-time tax benefit recognized by
Changyou in the fourth quarter of 2022 as result of certain of its
subsidiaries having been entitled to preferential tax rates upon
being granted Software Enterprise status for 2021.
Net Loss
GAAP net loss attributable to Sohu.com Limited was US$13 million, or a net loss of US$0.37 per fully-diluted American
depositary share ("ADS," each ADS representing one Sohu ordinary
share), compared with a net loss of US$7 million in the fourth quarter of 2022 and a
net loss of US$14 million in the third quarter of
2023.
Non-GAAP net loss attributable to Sohu.com Limited was
US$11 million, or a net loss of
US$0.32 per fully-diluted ADS,
compared with a net loss of US$2
million in the fourth quarter of 2022 and a net
loss of US$10 million in the third quarter of 2023.
Liquidity and Capital Resources
As of December 31, 2023, cash and
cash equivalents, short-term investments and long-term time
deposits totaled approximately US$1.3
billion.
Fiscal Year 2023 Financial Results
Revenues
Total revenues were US$601
million, down 18% compared with 2022.
Brand advertising revenues were US$89
million, down 14% compared with 2022.
Online game revenues were US$480
million, down 18% compared with 2022.
Gross Margin
Both GAAP and non-GAAP gross margin was 76%, compared with 74%
in 2022.
Both GAAP and non-GAAP gross margin for the brand advertising
business was 20%, compared with 16% in 2022.
Both GAAP and non-GAAP gross margin for online games was 86%,
compared with 84% in 2022.
Operating Expenses
For 2023, GAAP operating expenses totaled US$542 million, flat compared with 2022. Non-GAAP
operating expenses were US$542
million, up 1% compared with 2022.
Operating Profit/(Loss)
GAAP operating loss was US$87
million, compared with an operating loss of US$1
million in 2022.
Non-GAAP operating loss was US$87 million, compared with an
operating profit of US$4 million in 2022.
Income Tax Expense
GAAP income tax expense was US$60
million, compared with income tax expense of US$58 million in 2022. Non-GAAP income tax
expense was US$48 million, compared
with income tax expense of US$53
million in 2022.
Net Income/(Loss)
GAAP net loss attributable to Sohu.com Limited was US$66 million, or a net loss of US$1.93 per fully-diluted ADS, compared with a
net loss of US$17 million in
2022.
Non-GAAP net loss attributable to Sohu.com Limited was
US$51 million, or a net loss of
US$1.51 per fully-diluted ADS,
compared with net income of US$2
million in 2022.
Supplementary Information for Changyou
Results[3]
Fourth Quarter 2023 Operating Results
- For PC games, total average monthly active user
accounts[4] (MAU) were 2.3 million, an
increase of 2% year-over-year and 4% quarter-over-quarter. Total
quarterly aggregate active paying accounts[5]
(APA) were 0.9 million, a decrease of 4% year-over-year and 9%
quarter-over-quarter. The quarter-over-quarter decrease in APA was
mainly a result of fewer in-game promotional activities having been
launched for TLBB PC during the quarter.
- For mobile games, total average MAU were 1.7 million, a
decrease of 4% year-over-year and 26% quarter-over-quarter. Total
quarterly APA were 0.3 million, a decrease of 14% year-over-year
and 25% quarter-over-quarter. The year-over-year decreases in MAU
and APA were mainly due to the natural decline of our older games,
partially offset by the launch of New TLBB Mobile during the third
quarter of 2023. The quarter-over-quarter decreases in MAU and APA
were mainly due to the natural decline of New TLBB Mobile.
Fourth Quarter 2023 Unaudited Financial
Results
Total revenues were US$116
million, a decrease of 6% year-over-year and 2%
quarter-over-quarter. Online game revenues were US$115 million, a decrease of 5% year-over-year
and 2% quarter-over-quarter. Online advertising revenues were
US$1 million, a decrease of 18%
year-over-year and an increase of 1% quarter-over-quarter.
GAAP and non-GAAP gross profit were both US$100 million, a decrease of 3% year-over-year
and 2% quarter-over-quarter.
GAAP operating expenses were US$53 million, an increase of 5% year-over-year
and 2% quarter-over-quarter. The year-over-year increase was
mainly due to an increase in salary and benefits expenses.
Non-GAAP operating expenses were US$54 million, an increase of 8% year-over-year
and 5% quarter-over-quarter.
GAAP operating profit was US$48 million, compared with an operating profit
of US$53 million for the fourth
quarter of 2022 and US$51 million for
the third quarter of 2023.
Non-GAAP operating profit was US$47 million, compared with a non-GAAP operating
profit of US$54 million for the
fourth quarter of 2022 and US$52
million for the third quarter of 2023.
Fiscal Year 2023 Unaudited Financial Results
Total revenues were US$485
million, a decrease of 18% year-over-year. Online game
revenues were US$480 million, a
decrease of 18% year-over-year. Online advertising revenues were
US$5 million, a decrease of 27%
year-over-year.
GAAP and non-GAAP gross profit were both
US$418 million, a decrease of 16%
year-over-year.
GAAP operating expenses were US$216 million, a decrease of 3%
year-over-year.
Non-GAAP operating expenses were US$215 million, a decrease of 1%
year-over-year.
GAAP operating profit was US$202 million, compared with an operating profit
of US$277 million for 2022.
Non-GAAP operating profit was US$203 million, compared with a non-GAAP
operating profit of US$282 million
for 2022.
|
[3]
"Changyou Results" consist of the results of Changyou's online game
business and its 17173.com Website.
|
|
[4] Monthly active user accounts
refers to the number of registered accounts that are logged in to
these games at least once during the month.
|
|
[5] Quarterly aggregate active paying
accounts refers to the number of accounts from which game points
are utilized at least once during the quarter.
|
Recent Development
Sohu today announced that on March 2,
2024, its board of directors authorized an increase in
Sohu's previously-announced share repurchase from up to
US$80 million to up to US$150 million of the outstanding ADSs of
Sohu. As previously announced, the ADSs may be purchased from
time to time over a two-year period commencing November 11, 2023 at Sohu's management's
discretion at prevailing market prices in accordance with
Rule 10b‑18 and Rule 10b5-1 under the
Securities Exchange Act of 1934. Sohu's management will
continue to determine the timing and amount of any purchases of
ADSs based on their evaluation of market conditions, the trading
price of ADSs and other factors. The share repurchase program may
be suspended or discontinued at any time. Sohu plans to continue to
fund repurchases from its existing cash balance. As of
February 29, 2024, Sohu had
repurchased 1,276,457 ADSs under the share repurchase program for
an aggregate cost of approximately US$12 million.
Business Outlook
For the first quarter of 2024, Sohu estimates:
- Brand advertising revenues to be between US$15 million and US$17
million; this implies an annual decrease of 25% to
33%, and a sequential decrease of 16% to 26%.
- Online game revenues to be between US$110 million and US$120
million; this implies an annual decrease of 7% to
15%, and a sequential decrease of 4% to a sequential
increase of 5%.
- Non-GAAP net loss attributable to Sohu.com Limited to be
between US$23 million and US$33
million; and GAAP net loss attributable to Sohu.com Limited
to be between US$26
million and US$36 million.
For the first quarter 2024 guidance, the Company has
adopted a presumed exchange rate of RMB7.10=US$1.00, as
compared with the actual exchange rate of approximately
RMB6.84=US$1.00 for the first quarter of 2023, and
RMB7.15=US$1.00 for the fourth quarter of 2023.
This forecast reflects Sohu's management's current and
preliminary view, which is subject to substantial uncertainty.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements
presented in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"), Sohu's management uses non-GAAP measures
of gross profit, operating profit, net income, net income
attributable to Sohu.com Limited and diluted net income
attributable to Sohu.com Limited per ADS, which are adjusted from
results based on GAAP to exclude the impact of share-based
compensation expense; changes in fair value recognized in the
Company's consolidated statements of operations with respect to the
Company's investments; the impact of income tax related to changes
in the fair value of the Company's investments; and interest
expense recognized in connection with the Toll Charge imposed by
the U.S. TCJA. These measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for, or superior to, GAAP results.
Sohu's management believes excluding share-based compensation
expense; changes in fair value recognized in the Company's
consolidated statements of operations with respect to the Company's
investments; the impact of income tax related to changes in the
fair value of the Company's
investments; and interest expense recognized in connection with the
Toll Charge from its non-GAAP financial measure is useful for
itself and investors. Further, the impact of share-based
compensation expense; changes in fair value recognized in the
Company's consolidated statements of operations with respect to the
Company's investments; the impact of income tax related to changes
in the fair value of the Company's investments; and interest
expense recognized in connection with the Toll Charge cannot be
anticipated by management and business line leaders and these
expenses were not built into the annual budgets and quarterly
forecasts that have been the basis for information Sohu provides to
analysts and investors as guidance for future operating
performance. As share-based compensation expense and changes in
fair value recognized in the Company's consolidated statements of
operations with respect to the Company's investments, and the
impact of income tax related to changes in the fair value of the
Company's investments do not involve subsequent cash outflow
or are reflected in the cash flows at the equity transaction level,
Sohu does not factor in their impact when evaluating and approving
expenditures or when determining the allocation of its resources to
its business segments. As a result, in general, the monthly
financial results for internal reporting and any performance
measures for commissions and bonuses are based on non-GAAP
financial measures that exclude share-based compensation expense,
changes in fair value recognized in the Company's consolidated
statements of operations with respect to the Company's investments,
the impact of income tax related to changes in the fair value of
the Company's investments, and also excluded the interest expense
recognized in connection with the Toll Charge.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Sohu's current financial
performance and prospects for the future. A limitation of using
non-GAAP gross profit, operating profit, net income, net income
attributable to Sohu.com Limited, and diluted net income
attributable to Sohu.com Limited per ADS excluding share-based
compensation expense and interest expense recognized in connection
with the Toll Charge is that share-based compensation expense and
interest expense recognized in connection with the Toll Charge have
been and can be expected to continue to be significant recurring
expenses in Sohu's business. It is also possible that changes in
fair value recognized in the Company's consolidated statements of
operations with respect to the Company's investments, and the
impact of income tax related to changes in the fair value of the
Company's investments will recur in the future. In order to
mitigate these limitations Sohu has provided specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
the GAAP financial measures that are most directly comparable to
the non-GAAP financial measures that have been presented.
Notes to Financial Information
Financial information in this press release other than the
information indicated as being non-GAAP is derived from Sohu's
unaudited financial statements prepared in accordance with
GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. It is
currently expected that the Business Outlook will not be updated
until release of Sohu's next quarterly earnings announcement;
however, Sohu reserves right to update its Business Outlook at any
time for any reason. Statements that are not historical facts,
including statements about Sohu's beliefs and expectations, are
forward-looking statements. These statements are based on current
plans, estimates and projections, and therefore you should not
place undue reliance on them. Forward-looking statements involve
inherent risks and uncertainties. We caution you that a number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to,
instability in global financial and credit markets and its
potential impact on the Chinese economy; exchange rate
fluctuations, including their potential impact on the Chinese
economy and on Sohu's reported U.S. dollar results; fluctuations in
Sohu's quarterly operating results; the possibilities that Sohu
will be unable to recoup its investment in video content and will
be unable to develop a series of successful games for mobile
platforms or successfully monetize mobile games it develops or
acquires; Sohu's reliance on online advertising sales and online
games for its revenues; and the impact of the U.S. TCJA. Further
information regarding these and other risks is included in Sohu's
annual report on Form 20-F for the year ended December 31, 2022, and other filings with and
information furnished to the U.S. Securities and Exchange
Commission.
Conference Call and Webcast
Sohu's management team will host a conference call at
7:30 a.m. U.S. Eastern
Time, March 4, 2024 (8:30 p.m. Beijing/Hong
Kong time, March 4, 2024)
following the quarterly results announcement. Participants can
register for the conference call by clicking here, which will
lead them to the conference registration website. Upon
registration, participants will receive details for the conference
call, including the dial-in numbers and a unique access PIN. Please
dial in 10 minutes before the call is scheduled to begin.
The live Webcast and archive of the conference call will be
available on the Investor Relations section of Sohu's website at
https://investors.sohu.com/
About Sohu
Sohu.com Limited (NASDAQ: SOHU) was established by Dr.
Charles Zhang, one of China's internet pioneers, in the 1990s. As a
mainstream media platform, Sohu is indispensable to the daily life
of millions of Chinese, providing a network of web properties and
community based products which continually offer a broad array of
choices regarding information, entertainment and communication to
the vast number of Sohu users. Sohu has built one of the most
comprehensive matrices of Chinese language web properties,
consisting of the leading online media destinations Sohu News App,
mobile news portal m.sohu.com, PC portal www.sohu.com; online video
website tv.sohu.com; and the online games platform
www.changyou.com/en/.
Sohu provides online brand advertising services as well as
multiple news, information and content services on its
matrix of websites and also on its mobile platforms. Sohu's online
game business, conducted by its subsidiary Changyou, develops and
operates a diverse portfolio of PC and mobile games, such as the
well-known Tian Long Ba Bu ("TLBB")
PC and Legacy TLBB Mobile.
For investor and media inquiries, please contact:
In China:
|
Ms. Huang,
Pu
|
|
Sohu.com
Limited
|
|
Tel:
|
+86 (10)
6272-6645
|
|
E-mail:
|
ir@contact.sohu.com
|
In the United
States:
|
Ms. Bergkamp,
Linda
|
|
Christensen
|
|
Tel:
|
+1 (480)
614-3004
|
|
E-mail:
|
linda.bergkamp@christensencomms.com
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
2023
|
|
Sep. 30,
2023
|
|
Dec. 31,
2022
|
|
|
Dec. 31,
2023
|
|
Dec. 31,
2022
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand advertising
|
$
|
20,195
|
$
|
22,087
|
$
|
28,778
|
|
$
|
88,689
|
$
|
103,233
|
|
Online games
|
|
114,759
|
|
117,049
|
|
121,381
|
|
|
479,697
|
|
585,424
|
|
Others
|
|
6,405
|
|
6,294
|
|
10,241
|
|
|
32,286
|
|
45,215
|
|
Total
revenues
|
|
141,359
|
|
145,430
|
|
160,400
|
|
|
600,672
|
|
733,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand advertising
(includes share-based compensation
expense of $0, $15, $8, $7, and $48, respectively)
|
|
16,966
|
|
18,745
|
|
14,020
|
|
|
71,103
|
|
86,642
|
|
Online games (includes
share-based compensation expense
of $-44, $18, $18, $10, and $143, respectively)
|
|
15,123
|
|
15,039
|
|
18,888
|
|
|
65,029
|
|
91,001
|
|
Others
|
|
1,733
|
|
687
|
|
2,888
|
|
|
9,625
|
|
13,930
|
|
Total cost of
revenues
|
|
33,822
|
|
34,471
|
|
35,796
|
|
|
145,757
|
|
191,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
107,537
|
|
110,959
|
|
124,604
|
|
|
454,915
|
|
542,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
(includes share-based compensation
expense of $-572, $280, $217, $156, and $2,026,
respectively)
|
|
69,553
|
|
67,749
|
|
67,147
|
|
|
279,842
|
|
260,772
|
|
Sales and marketing
(includes share-based compensation
expense of $4, $39, $-21, $26, and $128,
respectively)
|
|
50,813
|
|
53,040
|
|
47,067
|
|
|
213,449
|
|
225,480
|
|
General and
administrative (includes share-based
compensation expense of $-393, $358, $332, $509, and $2,594,
respectively)
|
|
12,450
|
|
10,801
|
|
15,970
|
|
|
48,934
|
|
56,920
|
|
Total operating
expenses
|
|
132,816
|
|
131,590
|
|
130,184
|
|
|
542,225
|
|
543,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(25,279)
|
|
(20,631)
|
|
(5,580)
|
|
|
(87,310)
|
|
(873)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
15,949
|
|
10,869
|
|
779
|
|
|
35,746
|
|
17,643
|
|
Interest
income
|
|
11,578
|
|
11,519
|
|
6,190
|
|
|
45,222
|
|
17,311
|
|
Exchange
difference
|
|
(823)
|
|
(478)
|
|
(1,071)
|
|
|
692
|
|
6,524
|
|
Income/(loss) before
income tax expense
|
|
1,425
|
|
1,279
|
|
318
|
|
|
(5,650)
|
|
40,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
14,044
|
|
15,340
|
|
7,413
|
|
|
60,420
|
|
57,946
|
|
Net loss from
continuing operations
|
|
(12,619)
|
|
(14,061)
|
|
(7,095)
|
|
|
(66,070)
|
|
(17,341)
|
|
Net income from
discontinued operations, net of tax
[6]
|
|
-
|
|
35,426
|
|
-
|
|
|
35,426
|
|
-
|
|
Net
income/(loss)
|
|
(12,619)
|
|
21,365
|
|
(7,095)
|
|
|
(30,644)
|
|
(17,341)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income/(loss)
from continuing operations
attributable to the noncontrolling interest shareholders
|
|
(1)
|
|
(2)
|
|
(1)
|
|
|
(265)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to Sohu.com
Limited
|
|
(12,618)
|
|
(14,059)
|
|
(7,094)
|
|
|
(65,805)
|
|
(17,343)
|
|
Net income from
discontinued operations attributable to
Sohu.com Limited
|
|
-
|
|
35,426
|
|
-
|
|
|
35,426
|
|
-
|
|
Net income/(loss)
attributable to Sohu.com Limited
|
|
(12,618)
|
|
21,367
|
|
(7,094)
|
|
|
(30,379)
|
|
(17,343)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss from
continuing operations per share/ADS
attributable to Sohu.com
Limited[7]
|
$
|
(0.37)
|
$
|
(0.41)
|
$
|
(0.21)
|
|
|
(1.93)
|
$
|
(0.50)
|
|
Basic net income from
discontinued operations per share/ADS
attributable to Sohu.com Limited
|
$
|
-
|
$
|
1.04
|
$
|
-
|
|
|
1.04
|
$
|
-
|
|
Basic net income/(loss)
per share/ADS attributable to
Sohu.com Limited
|
$
|
(0.37)
|
$
|
0.63
|
$
|
(0.21)
|
|
|
(0.89)
|
$
|
(0.50)
|
|
Shares/ADSs used in
computing basic net income/(loss) per
share/ADS attributable to Sohu.com Limited
|
|
34,061
|
|
34,190
|
|
34,091
|
|
|
34,109
|
|
34,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss from
continuing operations per share/ADS
attributable to Sohu.com Limited
|
$
|
(0.37)
|
$
|
(0.41)
|
$
|
(0.21)
|
|
|
(1.93)
|
$
|
(0.50)
|
|
Diluted net income from
discontinued operations per
share/ADS attributable to Sohu.com Limited
|
$
|
-
|
$
|
1.04
|
$
|
-
|
|
|
1.04
|
$
|
-
|
|
Diluted net
income/(loss) per share/ADS attributable to
Sohu.com Limited
|
$
|
(0.37)
|
$
|
0.63
|
$
|
(0.21)
|
|
|
(0.89)
|
$
|
(0.50)
|
|
Shares/ADSs used in
computing diluted net income/(loss) per
share/ADS attributable to Sohu.com Limited
|
|
34,061
|
|
34,190
|
|
34,091
|
|
|
34,109
|
|
34,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[6] See
Footnote 1.
|
|
|
|
|
|
[7] Each ADS
represents one ordinary share.
|
|
|
|
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
|
|
|
|
As of Dec. 31,
2023
|
|
As of Dec. 31,
2022
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
362,504
|
$
|
697,821
|
|
Restricted cash
|
|
3,184
|
|
3,641
|
|
Short-term investments
|
|
597,770
|
|
473,624
|
|
Accounts receivable, net
|
|
71,618
|
|
67,541
|
|
Prepaid and other current assets
|
|
81,971
|
|
83,093
|
|
Total current
assets
|
|
1,117,047
|
|
1,325,720
|
|
Fixed assets,
net
|
|
269,058
|
|
288,226
|
|
Goodwill
|
|
47,163
|
|
47,415
|
|
Long-term investments,
net
|
|
45,198
|
|
26,012
|
|
Intangible assets,
net
|
|
2,226
|
|
5,394
|
|
Long-term time
deposits
|
|
388,613
|
|
265,802
|
|
Other assets
|
|
12,793
|
|
19,207
|
|
Total assets
|
$
|
1,882,098
|
$
|
1,977,776
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
44,609
|
$
|
56,449
|
|
Accrued liabilities
|
|
103,779
|
|
126,461
|
|
Receipts in advance and deferred revenue
|
|
50,829
|
|
48,080
|
|
Accrued salary and benefits
|
|
50,330
|
|
60,754
|
|
Taxes payables
|
|
11,363
|
|
10,612
|
|
Other short-term liabilities
|
|
81,482
|
|
114,532
|
|
Total current
liabilities
|
$
|
342,392
|
$
|
416,888
|
|
|
|
|
|
|
Long-term other
payables
|
|
3,924
|
|
1,795
|
|
Long-term tax
liabilities
|
|
474,374
|
|
448,043
|
|
Other long-term
liabilities
|
|
2,130
|
|
340
|
|
Total long-term
liabilities
|
$
|
480,428
|
$
|
450,178
|
|
Total liabilities
|
$
|
822,820
|
$
|
867,066
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Sohu.com Limited shareholders' equity
|
|
1,058,956
|
|
1,109,442
|
|
Noncontrolling interest
|
|
322
|
|
1,268
|
|
Total shareholders' equity
|
$
|
1,059,278
|
$
|
1,110,710
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,882,098
|
$
|
1,977,776
|
|
SOHU.COM
LIMITED
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST
COMPARABLE GAAP MEASURES
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec. 31, 2023
|
|
Three Months Ended
Sep. 30, 2023
|
|
Three Months Ended
Dec. 31, 2022
|
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
15
|
(a)
|
|
|
|
|
(8)
|
(a)
|
|
|
Brand advertising gross
profit
|
$
|
3,229
|
$
|
-
|
$
|
3,229
|
$
|
3,342
|
$
|
15
|
$
|
3,357
|
$
|
14,758
|
$
|
(8)
|
$
|
14,750
|
|
Brand advertising gross
margin
|
|
16 %
|
|
|
|
16 %
|
|
15 %
|
|
|
|
15 %
|
|
51 %
|
|
|
|
51 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(44)
|
(a)
|
|
|
|
|
18
|
(a)
|
|
|
|
|
18
|
(a)
|
|
|
Online games gross
profit
|
$
|
99,636
|
$
|
(44)
|
$
|
99,592
|
$
|
102,010
|
$
|
18
|
$
|
102,028
|
$
|
102,493
|
$
|
18
|
$
|
102,511
|
|
Online games gross
margin
|
|
87 %
|
|
|
|
87 %
|
|
87 %
|
|
|
|
87 %
|
|
84 %
|
|
|
|
84 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
Others gross
profit
|
$
|
4,672
|
$
|
-
|
$
|
4,672
|
$
|
5,607
|
$
|
-
|
$
|
5,607
|
$
|
7,353
|
$
|
-
|
$
|
7,353
|
|
Others gross
margin
|
|
73 %
|
|
|
|
73 %
|
|
89 %
|
|
|
|
89 %
|
|
72 %
|
|
|
|
72 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(44)
|
(a)
|
|
|
|
|
33
|
(a)
|
|
|
|
|
10
|
(a)
|
|
|
Gross profit
|
$
|
107,537
|
$
|
(44)
|
$
|
107,493
|
$
|
110,959
|
$
|
33
|
$
|
110,992
|
$
|
124,604
|
$
|
10
|
$
|
124,614
|
|
Gross margin
|
|
76 %
|
|
|
|
76 %
|
|
76 %
|
|
|
|
76 %
|
|
78 %
|
|
|
|
78 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
132,816
|
$
|
961
|
(a) $
|
133,777
|
$
|
131,590
|
$
|
(677)
|
(a) $
|
130,913
|
$
|
130,184
|
$
|
(528)
|
(a) $
|
129,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,005)
|
(a)
|
|
|
|
|
710
|
(a)
|
|
|
|
|
538
|
(a)
|
|
|
Operating
loss
|
$
|
(25,279)
|
$
|
(1,005)
|
$
|
(26,284)
|
$
|
(20,631)
|
$
|
710
|
$
|
(19,921)
|
$
|
(5,580)
|
$
|
538
|
$
|
(5,042)
|
|
Operating
margin
|
|
-18 %
|
|
|
|
-19 %
|
|
-14 %
|
|
|
|
-14 %
|
|
-3 %
|
|
|
|
-3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
14,044
|
$
|
(3,667)
|
(d)$
|
10,377
|
$
|
15,340
|
$
|
(3,149)
|
(d)$
|
12,191
|
$
|
7,413
|
$
|
(1,954)
|
(c,d)$
|
5,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,005)
|
(a)
|
|
|
|
|
710
|
(a)
|
|
|
|
|
538
|
(a)
|
|
|
|
|
|
(827)
|
(b)
|
|
|
|
|
-
|
|
|
|
|
|
2,442
|
(b)
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(610)
|
(c)
|
|
|
|
|
|
3,667
|
(d)
|
|
|
|
|
3,149
|
(d)
|
|
|
|
|
2,564
|
(d)
|
|
|
Net loss before
non-controlling interest
|
$
|
(12,619)
|
$
|
1,835
|
$
|
(10,784)
|
$
|
(14,061)
|
|
3,859
|
|
(10,202)
|
$
|
(7,095)
|
$
|
4,934
|
$
|
(2,161)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,005)
|
(a)
|
|
|
|
|
710
|
(a)
|
|
|
|
|
538
|
(a)
|
|
|
|
|
|
(827)
|
(b)
|
|
|
|
|
-
|
|
|
|
|
|
2,442
|
(b)
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(610)
|
(c)
|
|
|
|
|
|
3,667
|
(d)
|
|
|
|
|
3,149
|
(d)
|
|
|
|
|
2,564
|
(d)
|
|
|
Net loss from
continuing operations
attributable to Sohu.com Limited for
diluted net loss per share/ADS
|
$
|
(12,618)
|
$
|
1,835
|
$
|
(10,783)
|
$
|
(14,059)
|
|
3,859
|
|
(10,200)
|
$
|
(7,094)
|
$
|
4,934
|
$
|
(2,160)
|
|
Net income from
discontinued operations
attributable to Sohu.com Limited for
diluted net loss per share/ADS [8]
|
$
|
-
|
|
-
|
|
-
|
$
|
35,426
|
|
-
|
$
|
35,426
|
$
|
-
|
|
-
|
$
|
-
|
|
Net income/(loss)
attributable to
Sohu.com Limited for diluted net
income/(loss) per share/ADS
|
$
|
(12,618)
|
|
1,835
|
|
(10,783)
|
$
|
21,367
|
|
3,859
|
|
25,226
|
$
|
(7,094)
|
$
|
4,934
|
$
|
(2,160)
|
|
Diluted
net loss from continuing
operations per share/ADS attributable to
Sohu.com Limited
|
$
|
(0.37)
|
|
|
$
|
(0.32)
|
$
|
(0.41)
|
|
|
$
|
(0.30)
|
$
|
(0.21)
|
|
|
$
|
(0.06)
|
|
Diluted
net income from discontinued
operations per share/ADS attributable to
Sohu.com Limited
|
$
|
-
|
|
|
|
-
|
$
|
1.04
|
|
|
$
|
1.04
|
$
|
-
|
|
|
$
|
-
|
|
Diluted net
income/(loss) per share/ADS
attributable to Sohu.com Limited
|
$
|
(0.37)
|
|
|
|
(0.32)
|
$
|
0.63
|
|
|
$
|
0.74
|
$
|
(0.21)
|
|
|
$
|
(0.06)
|
|
Shares/ADSs used in
computing diluted
net income/(loss) per share/ADS
attributable to Sohu.com Limited
|
|
34,061
|
|
|
|
34,061
|
|
34,190
|
|
|
|
34,190
|
|
34,091
|
|
|
|
34,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To eliminate
the impact of share-based awards.
|
|
(b) To adjust for
changes in the fair value of the Company's investments.
|
|
(c) To adjust for the
impact of income tax related to changes in the fair value of the
Company's investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) To adjust for the
effect of the Toll Charge.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[8]
See Footnote 1.
|
|
SOHU.COM
LIMITED
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
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(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
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|
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|
Twelve Months Ended
Dec. 31, 2023
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Twelve Months Ended
Dec. 31, 2022
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|
GAAP
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Non-GAAP
Adjustments
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|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
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|
Non-GAAP
|
|
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7
|
(a)
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|
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|
48
|
(a)
|
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|
Brand advertising gross
profit
|
$
|
17,586
|
$
|
7
|
$
|
17,593
|
$
|
16,591
|
$
|
48
|
$
|
16,639
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|
Brand advertising gross
margin
|
|
20 %
|
|
|
|
20 %
|
|
16 %
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|
|
16 %
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|
|
|
|
|
|
|
|
|
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|
|
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10
|
(a)
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|
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|
143
|
(a)
|
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|
Online games gross
profit
|
$
|
414,668
|
$
|
10
|
$
|
414,678
|
$
|
494,423
|
$
|
143
|
$
|
494,566
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|
Online games gross
margin
|
|
86 %
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|
|
|
86 %
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|
84 %
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84 %
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|
|
|
|
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|
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-
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(a)
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-
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(a)
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Others gross
profit
|
$
|
22,661
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$
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-
|
$
|
22,661
|
$
|
31,285
|
$
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-
|
$
|
31,285
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Others gross
margin
|
|
70 %
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|
|
|
70 %
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|
69 %
|
|
|
|
69 %
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|
|
|
|
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|
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|
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17
|
(a)
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|
|
191
|
(a)
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Gross profit
|
$
|
454,915
|
$
|
17
|
$
|
454,932
|
$
|
542,299
|
$
|
191
|
$
|
542,490
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|
Gross margin
|
|
76 %
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|
|
|
76 %
|
|
74 %
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|
|
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74 %
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|
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|
|
|
|
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Operating
expenses
|
$
|
542,225
|
$
|
(691)
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(a)$
|
541,534
|
$
|
543,172
|
$
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(4,748)
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(a)$
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538,424
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|
708
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(a)
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4,939
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(a)
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Operating
profit/(loss)
|
$
|
(87,310)
|
$
|
708
|
$
|
(86,602)
|
$
|
(873)
|
$
|
4,939
|
$
|
4,066
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Operating
margin
|
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-15 %
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-14 %
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0 %
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1 %
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|
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|
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|
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Income tax
expense
|
$
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60,420
|
$
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(12,297)
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(c,d)$
|
48,123
|
$
|
57,946
|
$
|
(5,118)
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(c,d)$
|
52,828
|
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|
|
|
|
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|
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|
|
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|
|
|
|
|
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|
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|
708
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(a)
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|
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4,939
|
(a)
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|
|
|
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|
1,391
|
(b)
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|
|
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9,659
|
(b)
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|
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(555)
|
(c)
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(2,416)
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(c)
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|
|
|
|
|
12,852
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(d)
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|
|
|
|
7,534
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(d)
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Net income/(loss)
before non-controlling
interest
|
$
|
(66,070)
|
|
14,396
|
|
(51,674)
|
$
|
(17,341)
|
$
|
19,716
|
$
|
2,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
708
|
(a)
|
|
|
|
|
4,939
|
(a)
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|
|
|
|
|
1,391
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(b)
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|
|
|
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9,659
|
(b)
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|
|
|
|
|
(555)
|
(c)
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|
|
|
|
(2,416)
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(c)
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|
|
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12,852
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(d)
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|
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7,534
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(d)
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Net income/(loss) from
continuing operations
attributable to Sohu.com Limited for diluted net
income/(loss) per share/ADS
|
$
|
(65,805)
|
$
|
14,396
|
$
|
(51,409)
|
$
|
(17,343)
|
$
|
19,716
|
$
|
2,373
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Net income from
discontinued operations
attributable to Sohu.com Limited for diluted net
income per share/ADS [9]
|
$
|
35,426
|
|
-
|
|
35,426
|
$
|
-
|
$
|
-
|
$
|
-
|
|
Net income/(loss)
attributable to Sohu.com
Limited for diluted net income/(loss) per
share/ADS
|
$
|
(30,379)
|
|
14,396
|
|
(15,983)
|
$
|
(17,343)
|
$
|
19,716
|
$
|
2,373
|
|
Diluted net
income/(loss) from continuing
operations per share/ADS attributable to
Sohu.com Limited
|
$
|
(1.93)
|
|
|
$
|
(1.51)
|
$
|
(0.50)
|
|
|
$
|
0.07
|
|
Diluted net
income from discontinued
operations per share/ADS attributable to
Sohu.com Limited
|
$
|
1.04
|
|
|
|
1.04
|
$
|
-
|
|
|
|
-
|
|
Diluted net income/(loss) per share/ADS
attributable to Sohu.com Limited
|
$
|
(0.89)
|
|
|
|
(0.47)
|
$
|
(0.50)
|
|
|
|
0.07
|
|
Share/ADS used in
computing diluted net
income/(loss) per share/ADS attributable to
Sohu.com Limited
|
|
34,109
|
|
|
|
34,109
|
|
34,945
|
|
|
|
34,945
|
|
|
|
|
|
|
|
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Note:
|
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(a) To eliminate
the impact of share-based awards.
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(b) To adjust for
changes in the fair value of the Company's investments.
|
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(c) To adjust for the
impact of income tax related to changes in the fair value of the
Company's investments.
|
|
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(d) To adjust for the
effect of the U.S. TCJA.
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[9]
See Footnote 1.
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View original content to download
multimedia:https://www.prnewswire.com/news-releases/sohucom-reports-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302078045.html
SOURCE Sohu.com Limited