Sohu.com, Inc. (NASDAQ: SOHU) reported Q3 EPS of ($0.89), $0.70 better than the analyst estimate of ($1.59). Revenue for the quarter came in at $460 million versus the consensus estimate of $458.5 million.

• Total revenues[1] were US$460 million[2], down 11% year-over-year and 5% quarter-over-quarter.
• Brand advertising revenues were US$57 million, down 24% year-over-year and 7% quarter-over-quarter.
• Search and search related advertising revenues[3] were US$255 million, up 13% year-over-year and down 6% quarter-over-quarter.
• Online game revenues were US$96 million, down 28% year-over-year and up 2% quarter-over-quarter.
• Non-GAAP net loss attributable to Sohu.com Limited was US$32 million, compared with a net loss of US$93 million in the third quarter of 2017.
• Operating loss for Sohu Video was US$27 million, compared with loss of US$60 million in the third quarter 2017.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "For the third quarter, while our total revenues were largely in-line with prior guidance, the bottom line performance, excluding non-operating items, came in better than we expected, mainly driven by the cost savings of Sohu Video and solid results of our online game business. For Sohu Media Portal, we focused our efforts on upgrading the content as well as optimizing our recommendation engine algorithms. Our key mobile apps gained momentum in terms of DAU and time spent by users. For Sohu Video, we remained on track to reduce content costs while develop new original programs, which tend to generate better ROI. This helped us narrow the segment's loss by more than 50% year-over-year. Sogou continuously integrated more innovative AI features into its search and mobile keyboard products, strengthening its market competiveness. Lastly, Changyou comfortably beat expectations on both revenues and profit, supported by the healthy performance of its TLBB PC and mobile games."

GUIDANCE:

Sohu.com, Inc. sees Q4 2018 EPS of ($1.40)-($1.15), versus the consensus of ($1.62). Sohu.com, Inc. sees Q4 2018 revenue of $465-495 million, versus the consensus of $543.48 million.

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