Sohu.com, Inc. (SOHU) Tops Q3 EPS by 30c, Revenues Beat; Provides Q4 EPS Guidance Above Consensus
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Sohu.com, Inc. (NASDAQ: SOHU) reported Q3 EPS of ($0.59), $0.30 better than the analyst estimate of ($0.89). Revenue for the quarter came in at $482 million versus the consensus estimate of $451.72 million.
Third Quarter Highlights
- Total revenues were US$482 million, up 9% year-over-year and 4% quarter-over-quarter.
- Brand advertising revenues were US$46 million, down 19% year-over-year and up 5% quarter-over-quarter.
- Search and search related advertising revenues were US$288 million, up 13% year-over-year and 4% quarter-over-quarter.
- Online game revenues were US$108 million, up 13% year-over-year and 6% quarter-over-quarter.
- GAAP net loss attributable to Sohu.com Limited was US$21 million, compared with a net loss of US$26 million in the third quarter of 2018.
- Non-GAAP net loss attributable to Sohu.com Limited was US$17 million, compared with a net loss of US$23 million in the third quarter of 2018 and a net loss of US$32 million in the second quarter of 2019.
- Excluding the profit/loss generated by Sogou and Changyou, the Non-GAAP net loss attributable to Sohu.com Limited was US$53 million, compared with a net loss of US$77 million in the third quarter of 2018 and a net loss of US$68 million in the second quarter of 2019.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "For the third quarter of 2019, though there is still much uncertainty in the macroeconomic environment, both of our total revenue and our bottom line exceeded our prior guidance, mainly driven by our online gaming and search businesses, as well as the continued cost saving initiatives that we are pushing through in our Sohu Media and Sohu Video segments. Sohu Media is making a comeback as a mainstream media platform with an enormous amount of high-quality original content and various events. These premium features further enhanced the reputation of Sohu Media and its sub-brands, and further strengthened our overall competitiveness. For Sohu Video, we continued to deliver unique and high-quality dramas and other shows to our users. We have been integrating various social functionality into our products to help users build and find their own unique social communities. We also strictly kept our budget under control and are actively exploring new ways to diversify our revenue streams in cooperation with advertisers. In the third quarter of 2019, Sogou experienced healthy growth and its search revenue continued to grow faster than the industry average. Besides, Sogou consistently focused on integrating its language-centric AI capabilities to fully support innovations in its search, mobile keyboard and smart hardware businesses. Lastly, Changyou's overall performance continued to be stable. In addition to the solid results delivered by TLBB PC and Legacy TLBB Mobile, TLBB Honor, a new mobile game launched during the quarter, also performed well."
Sohu.com, Inc. sees Q4 2019 EPS of ($0.55)-($0.30), versus the consensus of ($0.73). Sohu.com, Inc. sees Q4 2019 revenue of $435-470 million, versus the consensus of $453.33 million.
For the fourth quarter of 2019, Sohu estimates:
- Total revenues to be between US$435 million and US$470 million.
- Brand advertising revenues to be between US$40 million and US$45 million; this implies an annual decrease of 21% to 30% and a sequential decrease of 3% to 14%.
- Sogou revenues to be between US$290 million and US$310 million; this implies an annual decrease of 3% to an annual increase of 4% and a sequential decrease of 2 to 8%.
- Online game revenues to be between US$95 million and US$105 million; this implies an annual increase of 1% to 12% and a sequential decrease of 3% to 12%.
- Non-GAAP net loss attributable to Sohu.com Limited. to be between US$12 million and US$22 million, and non-GAAP loss per fully-diluted ADS to be between US$0.30 and US$0.55. GAAP net loss attributable to Sohu.com Limited to be between US$17 million and US$27 million, and GAAP loss per fully-diluted ADS to be between US$0.45 and US$0.70.
- Excluding the profit/loss generated by Sogou and Changyou, Non-GAAP net loss attributable to Sohu.com Limited. to be between US$45 million and US$50 million, GAAP net loss attributable to Sohu.com Limited to be between US$48 million and US$53 million.
For earnings history and earnings-related data on Sohu.com, Inc. (SOHU) click here.
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