BEIJING, March 9, 2020 / PRNewswire / – Sohu.com Limited (NASDAQ: SOHU), China Leader in online media, video, research and games, today announced its unaudited financial results for the fourth quarter and the year ended December 31, 2019.
Fourth Quarter Highlights[1]
- Total revenues were $ 490 million[2], up 5% over one year and 2% over a quarter.
- Brand advertising revenue $ 42 million, down 27% year-on-year and 10% quarter-on-quarter.
- Research and advertising revenue related to research[3] were $ 275 million, down 1% over one year and 5% over a quarter.
- Online gaming revenues were $ 132 million, up 40% over one year and 22% over a quarter.
- Including an impairment $ 23 million recognized for the quarter for an investment not related to the main activities of the company, the GAAP net loss attributable to Sohu.com Limited was $ 18 million, compared to the net result of $ 23 million in the fourth quarter of 2018.
- Excluding the impairment charge, non-GAAP net income attributable to Sohu.com Limited was $ 7 million, compared to a net loss of $ 51 million in the fourth quarter of 2018 and a net loss of $ 17 million in the third quarter of 2019.
- Excluding the income generated by Sogou and Changyou, and also excluding the impairment, the non-GAAP net loss attributable to Sohu.com Limited was $ 46 million, compared to a net loss of $ 75 million in the fourth quarter of 2018 and a net loss of $ 53 million in the third quarter of 2019.
[1] As Changyou’s motion picture advertising activity ceased operations in the third quarter of 2019, its operating results have been excluded from the results of the Company’s continuing operations in the condensed consolidated statements of earnings and are presented in separate positions as discontinued operations. Retrospective adjustments have been made to historical statements to provide a consistent basis for comparison. Unless otherwise indicated, the results presented in this press release relate only to continuing operations and exclude the results of cinematographic advertising activities. |
[2] On a constant currency (non-GAAP) basis, if the exchange rate in the fourth quarter of 2019 had been the same as in the fourth quarter of 2018, i.e. RMB 6.91 = US $ 1.00, total revenues in US $ in the fourth quarter the quarter 2019 would have been US $ 498 million, up US $ 8 million from total GAAP revenue, and up 7% year-over-year. |
[3] Advertising revenues related to research and research exclude intra-group transactions. |
Fiscal year 2019 Strong points
- Total revenues were $ 1.85 billion, up 2% compared to 2018.
- Brand advertising revenue $ 175 million, down 25% from 2018.
- Advertising revenue from research and research $ 1.07 billion, up 5% compared to 2018.
- Online gaming revenues were $ 441 million, up 13% compared to 2018.
- The GAAP net loss attributable to Sohu.com Limited was $ 128 million, compared to a net loss of $ 131 million in 2018.
- The non-GAAP net loss attributable to Sohu.com Limited was $ 93 million, compared to a net loss of $ 207 million in 2018.
- Excluding the result generated by Sogou and Changyou, the non-GAAP net loss attributable to Sohu.com Limited was $ 246 million, compared to a net loss of $ 326 million in 2018.
Dr. Charles Zhang, President and CEO of Sohu.com Limited, said: “In 2019, China the economy continued to slow and competition intensified. However, these challenges have not stopped us from exploring new opportunities and improving operational efficiency. As a result, our operating results have further improved due to our solid business performance and effective cost reduction initiatives. For the fourth quarter of 2019, excluding an impairment charge recognized for an investment not related to our core businesses, non-GAAP net income attributable to Sohu.com Limited was $ 7 million. For Sohu Media Portal, we have strengthened our position as a mainstream media platform with high quality original content and various events. For Sohu Video, with dramas and other unique, high-quality shows, we have actively sought out diverse sources of monetization. With improved monetization capabilities and tight budget control, Sohu video was able to further reduce its losses in 2019. For Sogou, search revenues grew faster than the industry average, and revenues from Sogou’s recommendation service, which the mobile keyboard continued to experience robust growth. In 2019, Changyou’s online games performed well and it took a number of steps to improve her ability to create new, high-quality games. “
Fourth quarter financial results
Income
Total fourth quarter 2019 revenue was $ 490 million, up 5% over one year and 2% over a quarter.
Total online advertising revenue, which includes revenue from brand advertising and research and search-related advertising, for the fourth quarter of 2019 was $ 316 million, down 5% year over year and quarter to quarter.
Brand advertising revenue for the fourth quarter of 2019 totaled $ 42 million, down 27% year-on-year and 10% quarter-on-quarter. This decrease is mainly due to the drop in advertising revenues on portals and videos.
Research and research advertising revenue for the fourth quarter of 2019 was $ 275 million, down 1% over one year and 5% over a quarter.
Online gaming revenues for the fourth quarter of 2019 were $ 132 million, up 40% over one year and 22% over a quarter. The year-over-year and quarter-over-quarter increases are mainly due to the contribution of TLBB Honor, as well as the improved performance of some of Changyou’s older games, including TLBB PC and Legacy TLBB Mobile, following content updates and some promotional activities during the quarter.
Gross margin
Both GAAP and non-GAAP[4] gross margin was 52% in the fourth quarter of 2019, compared to 46% in the fourth quarter of 2018 and 48% in the third quarter of 2019.
The GAAP and non-GAAP gross margin for online advertising activity for the fourth quarter of 2019 was 39%, compared to 32% in the fourth quarter of 2018 and 37% in the third quarter of 2019.
The GAAP and non-GAAP gross margin for brand advertising activity in the fourth quarter of 2019 was 31%, compared to 26% in the fourth quarter of 2018 and 31% in the third quarter of 2019. The twelve-month margin improvement is mainly due lower cost of video content.
The GAAP gross margin for research and research-related advertising activities in the fourth quarter of 2019 was 40%, compared to 34% in the fourth quarter of 2018 and 38% in the third quarter of 2019. Non-GAAP gross margin for research and the activities of search advertising in the fourth quarter of 2019 was 41%, compared to 34% in the fourth quarter of 2018 and 38% in the third quarter of 2019. Year-over-year and quarter-over-quarter increases were mainly due to the decrease in the cost of acquiring traffic as a percentage of search and advertising revenue linked to research.
The GAAP and non-GAAP gross margin for online games in the fourth quarter of 2019 was 75%, compared to 85% in the fourth quarter of 2018 and 78% in the third quarter of 2019. The decrease in gross margins is mainly due to an increase of the contribution to the revenues of new mobile games, mainly TLBB Honor, which generally require larger revenue sharing payments than PC games and Legacy TLBB Mobile, and therefore lower the gross margin.
[4] Non-GAAP results exclude stock-based compensation expense; non-monetary tax benefits of excess tax deductions related to share-based awards; changes in fair value recognized in the consolidated statements of income of the Company with regard to investments in shares with fair values that can be easily determined; a single impairment charge recognized for an investment not related to the main activities of the Company; the income / expenses from the adjustment of the contingent consideration previously recognized for acquisitions; dividends and dividends deemed to be privileged shareholders without control of Sogou; a single income tax expense recognized in the fourth quarter of 2017 due to the single transition tax (“toll charges”) imposed by the United States Tax Cuts and Jobs Act promulgated on December 22, 2017 (the “TCJA “); the subsequent reassessment for the fourth quarter of 2018 and the adjustment of the tax charge previously recognized for toll charges; the resulting recognition of a previously unrecognized tax advantage and the recording of an uncertain tax situation linked to the balance of toll charges; and interest accrued in relation to the previously unrecognized tax benefit. An explanation of the Company’s non-GAAP financial measures and related reconciliations with GAAP financial measures is included in “Non-GAAP Information” and “Reconciliations of Results of Non-GAAP Operating Measures” in the nearest comparable GAAP measures. |
Operating Expenses
For the fourth quarter of 2019, GAAP operating expenses totaled $ 211 million, down 15% year-on-year and 4% quarterly. Non-GAAP operating expenses were US $ 204 million, down 17% over one year and 5% over a quarter. The year-over-year decrease in operating expenses is mainly due to lower marketing costs and $ 16 million an impairment loss recognized by Changyou related to its website activity 17173.com in the fourth quarter of 2018. The decrease from quarter to quarter is mainly due to the drop in marketing costs.
OProfating / (Loss) perating
GAAP operating income for the fourth quarter of 2019 was $ 42 million, compared to an operating loss of US $ 36 million in the fourth quarter of 2018 and an operating profit of $ 12 million in the third quarter of 2019.
Non-GAAP operating profit for the fourth quarter of 2019 was US $ 49 million, compared to an operating loss of US $ 34 million in the fourth quarter 2018 and operating profit of $ 16 million in the third quarter of 2019.
Income tax expense
Tax reduction $ 1 million for the fourth quarter of 2019, compared to the tax savings of $ 70 million in the fourth quarter of 2018 and the income tax expense of $ 17 million in the third quarter of 2019. A non-profit tax saving $ 4 million for the fourth quarter of 2019, compared to the tax expense $ 5 million in the fourth quarter of 2018 and the income tax expense of $ 15 million in the third quarter of 2019.
Income tax savings in the fourth quarter of 2019 included a one-time tax savings of $ 19 million which has been recognized for the fact that some of Changyou’s subsidiaries have been granted preferential tax rates upon receipt of their status as Key National Software Enterprise 2018 or their status as Software Enterprise 2018. Tax savings on profit recognized by GAAP in the fourth quarter of 2018 results from the reassessment and adjustment by management of the tax charge previously recognized in the fourth quarter of 2017 for the single transition tax (“toll charges”) imposed by the US Tax Law on Job Reductions and Jobs (the “TCJA”) and accrued interest in relation to the unrecognized tax benefit.[5].
[5] The recognized tax advantage and the unrecognized tax advantage in relation to toll charges may be subject to additional adjustment in subsequent periods depending on future circumstances and on the judgment and estimates of management. |
Net profit / (loss)
GAAP net loss attributable to Sohu.com Limited for the fourth quarter of 2019 was US $ 18 million, or US $ 0.45 loss by fully diluted ADS, compared to the net result of $ 23 million in the fourth quarter of 2018 and a net loss of $ 21 million in the third quarter of 2019. Non-GAAP net income attributable to Sohu.com Limited for the fourth quarter of 2019 was US $ 7 million, or US $ 0.17 fully diluted ADS earnings, compared to a net loss of US $ 51 million in the fourth quarter of 2018 and a net loss of $ 17 million in the third quarter of 2019.
Liquidity
At December 31, 2019, cash and cash equivalents and short-term investments held by the Sohu group, less short-term bank loans, $ 1.51 billion, compared to $ 1.73 billion at December 31, 2018.
Exercise 2019 Financial results
Income
Total revenue for 2019 was $ 1.85 billion, up 2% compared to 2018.
Total online advertising revenue, which includes revenue from brand advertising and research and search-related advertising, for 2019 was $ 1.25 billion, down 1% from 2018.
Brand advertising revenue for 2019 was $ 175 million, down 25% compared to 2018. The decline is mainly due to the drop in advertising revenues on portals and videos.
Search and research advertising revenue for 2019 was $ 1.07 billion, up 5% compared to 2018.
Online gaming revenue for 2019 was $ 441 million, up 13% from 2018. This increase is mainly due to the contribution to revenues of TLBB Honor, which was launched in the third quarter of 2019, as well as to the improvement of the performance of some of the oldest games. de Changyou in 2019, including TLBB PC.
Gross margin
The GAAP and non-GAAP gross margin was 47% for 2019, compared to 46% in 2018.
The GAAP and non-GAAP gross margin for online advertising activities for 2019 was 34%, compared to 32% in 2018.
The GAAP and non-GAAP gross margin for brand advertising activities for 2019 was 28%, compared to 20% in 2018. The increase is mainly due to a decrease in the cost of video content.
GAAP gross margin for research-related research and advertising activities for 2019 was 34%, compared to 35% in 2018. Non-GAAP gross margin for research-related research and advertising activities for 2019 was 35% , compared to 35% in 2018.
The GAAP and non-GAAP gross margin for online games for 2019 was 80%, compared to 84% in 2018.
Operating Expenses
GAAP operating expenses for 2019 totaled $ 863 million, down 9% from 2018. Non-GAAP operating expenses were $ 845 million, down 10% from compared to 2018. The decrease is mainly due to the decrease in marketing and promotion expenses.
OProfating / (Loss) perating
GAAP operating profit for 2019 was $ 0.4 million, compared to an operating loss of US $ 116 million in 2018.
Non-GAAP operating profit for 2019 was US $ 19 million, compared to an operating loss of US $ 114 million in 2018.
Income tax expense
GAAP income tax expense for 2019 was $ 31 millioncompared to a tax savings of US $ 13 million in 2018. The non-profit tax expense $ 23 millioncompared to a US $ 62 million income tax expense in 2018. The 2019 income tax expense included a one-time tax benefit of $ 19 million which has been recognized for the fact that some of Changyou’s subsidiaries have been granted preferential tax rates upon receipt of their status as Key National Software Enterprise 2018 or their status as Software Enterprise 2018. Tax savings on GAAP earnings in 2018 included management’s reassessment and adjustment to the tax expense previously recognized for long distance charges in the fourth quarter of 2017.
Net loss
GAAP net loss attributable to Sohu.com Limited for 2019 was US $ 128 million, or US $ 3.25 loss by fully diluted ADS, compared to a net loss of $ 131 million in 2018. The non-GAAP net loss attributable to Sohu.com Limited for 2019 was $ 93 million, I.e. a loss of US $ 2.38 per fully diluted ADS, compared to a net loss of US $ 207 million in 2018.
Business prospects
For the first quarter of 2020, Sohu estimates:
- Total revenues will be between $ 400 million and $ 435 million.
- Brand advertising revenue will be between $ 25 million and $ 30 million; this implies an annual decrease from 30% to 42% and a sequential decrease from 28% to 40%.
- Sogou’s revenues will be between $ 240 million and $ 260 million; this implies an annual decrease of 5% to an annual increase of 3% and a sequential decrease of 14 to 20%.
- Online gaming revenues will be between $ 120 million and $ 130 million; this implies an annual increase from 21% to 31% and a sequential decrease from 1% to 9%.
- Non-GAAP net loss attributable to Sohu.com Limited. between 25 million dollars and $ 35 millionand the non-GAAP loss by fully diluted ADS will be between $ 0.65 and US $ 0.90. GAAP net loss attributable to Sohu.com Limited will be between $ 28 million and $ 38 millionand the loss under GAAP by fully diluted ADS would be between US $ 0.70 and US $ 0.95.
- Excluding profit / loss generated by Sogou and Changyou, non-GAAP net loss attributable to Sohu.com Limited. to be between $ 43 million and $ 48 million, GAAP net loss attributable to Sohu.com Limited will be between $ 45 million and $ 50 million.
For the first quarter of 2020 forecasts, the Company adopted an assumed exchange rate of 7.00 RMB=US $ 1.00, relative to the real exchange rate of around RMB6.74=US $ 1.00 for the first quarter of 2019, and RMB7.03=US $ 1.00 for the fourth quarter of 2019.
These forecasts reflect the current and preliminary views of Sohu management, which is currently subject to considerable uncertainty, in particular due to the potential impact of the COVID-19 virus, the effects of which are difficult to analyze and predict. .
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with generally accepted accounting principles The United States of America (“GAAP”), Sohu 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 by ADS, which are adjusted based on GAAP earnings to exclude the impact of stock-based awards, which mainly consist of stock-based compensation costs and non-cash tax benefits from Excess tax deductions related to share-based awards; changes in fair value recognized in the consolidated statements of income of the Company with regard to investments in shares with fair values that can be easily determined; a single impairment charge recognized for an investment not related to the main activities of the Company; the income / expenses from the adjustment of the contingent consideration previously recognized for acquisitions; dividend and deemed dividend to non-controlling preferred shareholders; the single income tax expense recognized in the fourth quarter of 2017 due to the toll charges imposed by the TCJA and the subsequent revaluation for the fourth quarter of 2018 and the adjustment to the tax expense previously recognized for toll charges; the resulting recognition of a previously unrecognized tax advantage and the recording of an uncertain tax situation linked to the balance of toll charges; and interest expense recorded as part of long distance charges. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered as a substitute for or superior to results of GAAP.
Sohu’s management believes that, excluding the stock-based compensation expense, the changes in fair value recognized in the Company’s consolidated statements of earnings with respect to equity investments with fair values that can be easily determined; the single impairment charge recognized for an investment not related to the main activities of the Company; non-monetary tax benefits of excess tax deductions related to share-based awards; the income / expenses from the adjustment of the contingent consideration previously recognized for acquisitions; dividend and deemed dividend to non-controlling preferred shareholders; and the income tax expense, the tax benefits, the uncertain tax situation and the interest recognized in connection with the toll costs of his non-GAAP financial measure are useful for himself and for investors. In addition, the impact of stock-based compensation expense and changes in fair value recognized in the Company’s consolidated statements of earnings with respect to equity investments with readily determinable fair values; the single impairment charge recognized for an investment not related to the main activities of the Company; non-monetary tax benefits of excess tax deductions related to share-based awards; the income / expenses from the adjustment of the contingent consideration previously recognized for acquisitions; dividend and deemed dividend to non-controlling preferred shareholders; the single income tax expense recognized in the fourth quarter of 2017 due to the toll charges imposed by the TCJA and the subsequent revaluation for the fourth quarter of 2018 and the adjustment to the tax expense previously recognized for toll charges; the resulting recognition of a previously unrecognized tax advantage and the recording of an uncertain tax situation linked to the balance of toll charges; and interest expense recorded as part of the toll charges cannot be anticipated by management and industry leaders and these expenses have not been included in the annual budgets and quarterly forecasts used background to the information Sohu provides to analysts and investors as guidance for future operations. performance. Given the impact of the stock-based compensation expense and changes in fair value recognized in the Company’s consolidated statements of earnings with respect to equity investments with readily determinable fair values, the expense of one-off impairment recognized for an investment not related to the main activities of the Company, non-cash tax benefits related to excess tax deductions related to share-based awards, to income / expenses from the adjustment of the contingent consideration previously recognized for acquisitions and dividends and deemed dividends paid to non-controlling preferred shareholders do not result in subsequent cash outflows or in cash flows at the level of equity transactions, Sohu does not take this impact into account in the valuation and expenditure approval or in determining the allocation of its resources to its business sectors. Consequently, in general, the monthly financial results for internal reporting and any measure of commission and bonus performance are based on non-GAAP financial measures which exclude stock-based compensation expense and the changes in fair value recognized. in the consolidated statements of income of the Company. with regard to investments in shares with easily determinable fair values, the single impairment charge recognized for an investment not linked to the main activities of the company, the non-cash tax benefits of excess tax deductions linked to share-based allocations , the income / expense from the adjustment of the contingent consideration previously recognized for acquisitions and the dividend and deemed dividend to non-controlling preferred shareholders, and also excluded the single tax charge recorded in the fourth quarter of 2017 due to the toll charges imposed by the TCJA and subsequent reassessment for the fourth quarter of 2018 and adjustment of the previous tax charge is recognized for the toll charges, the resulting recognition of a previously unrecognized tax benefit and recording a location on uncertain tax linked to the balance of toll charges, and debit interest recognized in relation to toll charges.
Non-GAAP financial measures are provided to allow investors to better understand Sohu’s current financial performance and its prospects for the future. A limitation on the use of non-GAAP gross profit, operating profit, net profit, net profit attributable to Sohu.com Limited and diluted net profit attributable to Sohu.com Limited by ADS, excluding the expense of stock-based compensation, tax benefits, excess tax deductions linked to share-based allocations, income / expenses from the adjustment of the contingent consideration previously recognized for acquisitions, the dividend and the deemed dividend to preferred shareholders not controlling are that the impact of stock-based awards and non-cash tax benefits of excess tax deductions related to stock-based awards have been and will continue to be a significant recurring expense in Sohu’s businesses in the foreseeable future, the income / expense from the adjustment of the contingent consideration p Recently recognized for acquisitions may recur in the future, and the dividend and deemed dividend to non-controlling preferred shareholders may recur when Sohu and its affiliates enter into equity transactions. In order to mitigate these limitations, Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The attached tables provide details on the reconciliation of GAAP financial measures which are most directly comparable to the non-GAAP financial measures that have been presented.
Notes to financial information
The financial information contained in this press release other than the information indicated as non-GAAP is derived from the unaudited financial statements of Sohu prepared in accordance with GAAP.
Safe Harbor Declaration
This announcement contains forward-looking statements. It is currently expected that the business outlook will not be updated until the next announcement of Sohu’s next quarterly results; however, Sohu reserves the 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. Ces déclarations sont basées sur les plans, estimations et projections actuels, et vous ne devez donc pas vous y fier indûment. Les déclarations prospectives impliquent des risques et des incertitudes inhérents. Nous vous avertissons qu’un certain nombre de facteurs importants pourraient faire en sorte que les résultats réels diffèrent considérablement de ceux contenus dans tout énoncé prospectif. Les risques et incertitudes potentiels comprennent, mais sans s’y limiter, l’instabilité des marchés financiers et du crédit mondiaux et son impact potentiel sur l’économie chinoise; les fluctuations des taux de change, y compris leur impact potentiel sur l’économie chinoise et sur les résultats déclarés de Sohu en dollars américains; ralentissements récents de la croissance de l’économie chinoise; le paysage réglementaire incertain la République populaire de Chine; les fluctuations des résultats d’exploitation trimestriels de Sohu; les possibilités que Sohu ne soit pas en mesure de récupérer son investissement dans le contenu vidéo et que Changyou ne soit pas en mesure de développer une série de jeux à succès pour les plates-formes mobiles ou de monétiser avec succès les jeux mobiles qu’elle développe ou acquiert; La dépendance de Sohu à l’égard des ventes de publicité en ligne, des jeux en ligne et des services mobiles pour ses revenus; l’impact de la TCJA américaine; et les effets du virus COVID-19 sur l’économie de China en général et sur les affaires de Sohu en particulier. De plus amples informations concernant ces risques et d’autres sont incluses dans le rapport annuel de Sohu sur formulaire 20-F pour l’exercice clos December 31, 2018et autres dépôts auprès de la Securities and Exchange Commission.
Conférence téléphonique et webdiffusion
L’équipe de direction de Sohu tiendra une conférence téléphonique à 8 h 30 Heure de l’Est des États-Unis, March 9, 2020 (20h30. Pékin/Hong Kong temps, March 9, 2020) suite à l’annonce des résultats trimestriels.
Les détails de connexion pour la conférence téléphonique en direct sont les suivants:
États-Unis sans frais: |
+ 1-866-519-4004 |
International: |
+ 65-6713-5090 |
Hong Kong: |
+ 852-3018-6771 |
Chine (continentale |
+ 86-800-819-0121 / + 86-400-620-8038 |
Code d’accès: |
SOHU |
Veuillez composer 10 minutes avant le début de l’appel et fournir le mot de passe pour rejoindre l’appel.
Une rediffusion téléphonique de l’appel sera disponible après la fin de la conférence téléphonique à 11 h 30, heure de l’Est sure 9 mars au 16 mars 2020. Les détails de connexion pour la rediffusion téléphonique sont les suivants:
International: |
+ 1-646-254-3697 |
Code d’accès: |
4797261 |
La diffusion Web en direct et les archives de la conférence téléphonique seront disponibles dans la section Relations avec les investisseurs du site Web de Sohu à l’adresse suivante: http://investors.sohu.com/.
À propos de Sohu.com
Sohu.com Limited (NASDAQ: SOHU) est China première marque en ligne et indispensable à la vie quotidienne de millions de Chinois, fournissant un réseau de propriétés Web et de produits communautaires / Web 2.0 qui offrent à la vaste communauté d’utilisateurs Sohu un large éventail de choix en matière d’information, de divertissement et de communication. Sohu a construit l’une des matrices les plus complètes de propriétés Web et de moteurs de recherche propriétaires en chinois, comprenant le portail de masse et la principale destination des médias en ligne www.sohu.com; moteur de recherche interactif www.sogou.com; développeur et exploitant de jeux en ligne www.changyou.com/en/ et site de vidéos en ligne tv.sohu.com.
Les services d’entreprise de Sohu comprennent la publicité de marque en ligne sur la matrice de sites Web de Sohu ainsi que la liste des offres et la page d’accueil sur son annuaire et moteur de recherche développés en interne. Sohu fournit également plusieurs services d’actualités et d’informations sur les plates-formes mobiles, notamment l’application Sohu News et le portail d’actualités mobile m.sohu.com. La filiale de jeux en ligne de Sohu, Changyou.com (NASDAQ: CYOU) développe et exploite un portefeuille diversifié de jeux PC et mobiles, tels que Tian Long Ba Bu (“TLBB”), l’un des jeux PC les plus populaires China. Changyou possède et exploite également le site Web 17173.com, un portail d’informations sur les jeux China. La filiale de recherche en ligne de Sohu Sogou (NYSE: SOGO) est devenue le deuxième plus grand moteur de recherche par requêtes mobiles en China. Elle possède et exploite également Sogou Input Method, le plus grand logiciel d’entrée en chinois. Sohu.com, créé par le Dr Charles Zhang, un des China pionniers de l’internet, en est à sa vingt-quatrième année de fonctionnement.
Pour les demandes des investisseurs et des médias, veuillez contacter:
In China:
In United States:
SOHU.COM LIMITED ÉTATS D’EXPLOITATION CONSOLIDÉS CONDENSÉS (NON AUDITÉ, EN MILLIERS SAUF PAR MONTANT PAR ACTION) |
|||||||||||
Trois mois terminés |
Douze mois terminés |
||||||||||
31 décembre, 2019 |
30 septembre, 2019 |
31 décembre, 2018 |
déc. 31, 2019 |
déc. 31, 2018 |
|||||||
Revenus: |
|||||||||||
Publicité en ligne |
|||||||||||
Publicité de marque |
$ |
41 599 |
$ |
46 323 |
$ |
57,222 |
$ |
174 861 |
$ |
231 945 |
|
Recherche et publicité liée à la recherche |
274 590 |
288 198 |
276,666 |
1 072 860 |
1 022 456 |
||||||
Total |
316 189 |
334,521 |
333 888 |
1 247 721 |
1254401 |
||||||
Jeux en ligne |
131 689 |
108,012 |
94 106 |
440 902 |
389 788 |
||||||
Other |
41 769 |
39 750 |
36,287 |
156 824 |
168 638 |
||||||
Revenus totaux |
489,647 |
482,283 |
464,281 |
1 845 447 |
1 812 827 |
||||||
Coût des revenus: |
|||||||||||
Publicité en ligne |
|||||||||||
Publicité de marque (y compris à base d’actions |
28,677 |
31 992 |
42 485 |
126 406 |
184 473 |
||||||
Recherche et recherche (y compris sur la base des actions |
163,384 |
178 343 |
183 678 |
703 144 |
664 164 |
||||||
Total |
192,061 |
210,335 |
226 163 |
829 550 |
848,637 |
||||||
Jeux en ligne (comprend une rémunération à base d’actions |
33.181 |
23,286 |
14,499 |
88 992 |
60 981 |
||||||
Other |
12 198 |
17 680 |
12 113 |
63 553 |
72 868 |
||||||
Coût total des revenus |
237 440 |
251 301 |
252,775 |
982,095 |
982,486 |
||||||
Bénéfice brut |
252 207 |
230 982 |
211,506 |
863 352 |
830,341 |
||||||
Dépenses d’exploitation: |
|||||||||||
Développement de produits (y compris basé sur les stocks |
105,425 |
104,207 |
108 611 |
419 114 |
441 161 |
||||||
Ventes et marketing (comprend les actions |
78,375 |
91,335 |
97,422 |
340 840 |
380 290 |
||||||
Général et administratif (comprend les actions |
26 901 |
23 797 |
25 119 |
95 773 |
108 764 |
||||||
Dépréciation du goodwill et dépréciation des actifs incorporels via |
– |
– |
16,369[6] |
7 245 |
16,369 |
||||||
Total des charges d’exploitation |
210 701 |
219,339 |
247,521 |
862 972 |
946,584 |
||||||
Bénéfice / (perte) d’exploitation |
41 506 |
11 643 |
(36 015) |
380 |
(116 243) |
||||||
Autres produits / (charges) |
(13,787)[7] |
15,832 |
13,073 |
21,948 |
64,724 |
||||||
Interest income |
1,508 |
1,959 |
6,455 |
10,546 |
24,074 |
||||||
Interest expense |
(2,501) |
(2,631) |
(5,279) |
(14,370) |
(17,538) |
||||||
Exchange difference |
(2,324) |
4,714 |
(378) |
3,279 |
9,026 |
||||||
Income/(Loss) before income tax expense |
24,402 |
31,517 |
(22,144) |
21,783 |
(35,957) |
||||||
Income tax expense/(benefit) |
(954) |
17,011 |
(69,557) |
31,176 |
(13,433) |
||||||
Income/(loss) from continuing operations |
25,356 |
14,506 |
47,413 |
(9,393) |
(22,524) |
||||||
Net loss from discontinued operations |
– |
(2,706) |
(12,000) |
(33,998) |
(44,835) |
||||||
Net income/(loss) |
25,356 |
11,800 |
35,413 |
(43,391) |
(67,359) |
||||||
Less: Net income from continuing operations |
42,451 |
35,615 |
24,685 |
117,177 |
107,318 |
||||||
Less: Net loss from discontinued operations |
– |
(896) |
(3,912) |
(11,232) |
(14,595) |
||||||
Net income/(loss) from continuing operations attributable to |
(17,095) |
(21,109) |
22,728 |
(126,570) |
(129,842) |
||||||
Net loss from discontinued operations attributable to |
– |
(1,810) |
(8,088) |
(22,766) |
(30,240) |
||||||
Net income/(loss) attributable to Sohu.com Limited |
(17,095) |
(22,919) |
14,640 |
(149,336) |
(160,082) |
||||||
Basic net income/(loss) from continuing operations per |
(0.44) |
(0.54) |
0.58 |
(3.22) |
(3.33) |
||||||
Basic net loss from discontinued operations per ADS |
– |
(0.04) |
(0.21) |
(0.58) |
(0.78) |
||||||
Basic net income/(loss) per ADS attributable to |
$ |
(0.44) |
$ |
(0.58) |
$ |
0.37 |
$ |
(3.80) |
$ |
(4.11) |
|
ADS used in computing basic net loss per ADS attributable |
39,263 |
39,254 |
39,069 |
39,249 |
38,959 |
||||||
Diluted net income/(loss) from continuing operations per |
(0.45) |
(0.55) |
0.57 |
(3.25) |
(3.36) |
||||||
Diluted net loss from discontinued operations per ADS |
– |
(0.04) |
(0.20) |
(0.58) |
(0.77) |
||||||
Diluted net income/(loss) per ADS attributable to |
$ |
(0.45) |
$ |
(0.59) |
$ |
0.37 |
$ |
(3.83) |
$ |
(4.13) |
|
ADS used in computing diluted net loss per ADS attributable |
39,263 |
39,254 |
39,234 |
39,249 |
38,959 |
||||||
[6] The impairment was mainly related to Changyou’s 17173.com website business. The launch of new initiatives for the 17173.com website fell behind schedule in the
[7] Other expenses in the fourth quarter of 2019 mainly included an impairment charge of approximately US$23 million recognized for the quarter for an investment |
SOHU.COM LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) |
||||
As of Dec. 31, 2019 |
As of Dec. 31, 2018 |
|||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ |
305,126 |
$ |
819,485 |
Restricted cash |
8,661 |
3,539 |
||
Short-term investments |
1,316,833 |
1,041,395 |
||
Account and financing receivable, net |
260,716 |
264,411 |
||
Prepaid and other current assets |
124,332 |
225,744 |
||
Current assets associated with discontinued operations |
– |
34,324 |
||
Total current assets |
2,015,668 |
2,388,898 |
||
Long-term investments |
94,332 |
108,356 |
||
Fixed assets, net |
447,688 |
504,647 |
||
Bonne volonté |
52,923 |
53,263 |
||
Intangible assets, net |
11,437 |
24,071 |
||
Restricted time deposits |
240 |
244,179 |
||
Prepaid non-current assets |
1,882 |
3,107 |
||
Other assets[8] |
65,620 |
43,928 |
||
Non-current assets associated with discontinued operations |
– |
398 |
||
Total assets |
$ |
2,689,790 |
$ |
3,370,847 |
LIABILITIES |
||||
Current liabilities: |
||||
Accounts payable |
$ |
253,403 |
$ |
286,745 |
Accrued liabilities |
249,810 |
292,282 |
||
Receipts in advance and deferred revenue |
118,222 |
120,404 |
||
Accrued salary and benefits |
110,833 |
108,011 |
||
Taxes payable |
102,686 |
93,073 |
||
Short-term bank loans |
114,528 |
129,677 |
||
Other short-term liabilities[8] |
149,311 |
123,921 |
||
Current liabilities associated with discontinued operations |
– |
101,105 |
||
Total current liabilities |
$ |
1,098,793 |
$ |
1,255,218 |
Long-term accounts payable |
767 |
752 |
||
Long-term Bank Loans |
– |
302,323 |
||
Long-term tax liabilities |
277,544 |
259,603 |
||
Other long-term liabilities[[[[8] |
5,769 |
– |
||
Total long-term liabilities |
$ |
284,080 |
$ |
562,678 |
Total liabilities |
$ |
1,382,873 |
$ |
1,817,896 |
SHAREHOLDERS’ EQUITY: |
||||
Sohu.com Limited shareholders’ equity |
428,454 |
588,840 |
||
Noncontrolling Interest |
878,463 |
964,111 |
||
Total shareholders’ equity |
$ |
1,306,917 |
$ |
1,552,951 |
Total liabilities and shareholders’ equity |
$ |
2,689,790 |
$ |
3,370,847 |
[8] We have adopted ASU No. 2016-02, “Leases,” beginning January 1, 2019. As a result of adoption of the standard, |
SOHU.COM LIMITED RECONCILIATIONS OF NON-GAAP RESULTS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) |
||||||||||||||||||
Three Months Ended Dec. 31, 2019 |
Three Months Ended Sep. 30, 2019 |
Trois mois terminés Dec. 31, 2018 |
||||||||||||||||
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
||||||||||
2 |
(a) |
4 |
(a) |
(34) |
(a) |
|||||||||||||
Brand advertising gross profit |
$ |
12,922 |
$ |
2 |
$ |
12,924 |
$ |
14,331 |
$ |
4 |
$ |
14,335 |
$ |
14,737 |
$ |
(34) |
$ |
14,703 |
Brand advertising gross margin |
31% |
31% |
31% |
31% |
26% |
26% |
||||||||||||
256 |
(a) |
64 |
(a) |
(48) |
(a) |
|||||||||||||
Search and search-related |
$ |
111,206 |
$ |
256 |
$ |
111,462 |
$ |
109,855 |
$ |
64 |
$ |
109,919 |
$ |
92,988 |
$ |
(48) |
$ |
92,940 |
Search and search-related |
40% |
41% |
38% |
38% |
34% |
34% |
||||||||||||
258 |
(a) |
68 |
(a) |
(82) |
(a) |
|||||||||||||
Online advertising gross profit |
$ |
124,128 |
$ |
258 |
$ |
124,386 |
$ |
124,186 |
$ |
68 |
$ |
124,254 |
$ |
107,725 |
$ |
(82) |
$ |
107,643 |
Online advertising gross margin |
39% |
39% |
37% |
37% |
32% |
32% |
||||||||||||
137 |
(a) |
– |
(a) |
sept |
(a) |
|||||||||||||
Online games gross profit |
$ |
98,508 |
$ |
137 |
$ |
98,645 |
$ |
84,726 |
$ |
– |
$ |
84,726 |
$ |
79,607 |
$ |
sept |
$ |
79,614 |
Online games gross margin |
75% |
75% |
78% |
78% |
85% |
85% |
||||||||||||
Others gross profit |
$ |
29,571 |
$ |
– |
(a) $ |
29,571 |
$ |
22,070 |
$ |
– |
(a) $ |
22,070 |
$ |
24,174 |
$ |
– |
(a) $ |
24,174 |
Others gross margin |
71% |
71% |
56% |
56% |
67% |
67% |
||||||||||||
395 |
(a) |
68 |
(a) |
(75) |
(a) |
|||||||||||||
Gross profit |
$ |
252,207 |
$ |
395 |
$ |
252,602 |
$ |
230,982 |
$ |
68 |
$ |
231,050 |
$ |
211,506 |
$ |
(75) |
$ |
211,431 |
Gross margin |
52% |
52% |
48% |
48% |
46% |
46% |
||||||||||||
Operating expenses |
$ |
210,701 |
$ |
(6,909) |
(a) $ |
203,792 |
$ |
219,339 |
$ |
(4,306) |
(a) $ |
215,033 |
$ |
247,521 |
$ |
(1,605) |
(a) $ |
245,916 |
7,304 |
(a) |
4,374 |
(a) |
1,530 |
(a) |
|||||||||||||
Operating profit/(loss) |
$ |
41,506 |
$ |
7,304 |
$ |
48,810 |
$ |
11,643 |
$ |
4,374 |
$ |
16,017 |
$ |
(36,015) |
$ |
1,530 |
$ |
(34,485) |
Operating margin |
8% |
dix% |
2% |
3% |
-8% |
-7% |
||||||||||||
Income tax expense |
$ |
954 |
$ |
2,737 |
(c,d)$ |
3,691 |
$ |
(17,011) |
$ |
2,468 |
(c,d)$ |
(14,543) |
$ |
69,557 |
$ |
(74,160) |
$ |
(4,603) |
7,304 |
(a) |
4,374 |
(a) |
1,530 |
(a) |
|||||||||||||
(2,490) |
(c) |
448 |
(c) |
267 |
(c) |
|||||||||||||
1,907 |
(d) |
2,618 |
(d) |
(74,071) |
(d) |
|||||||||||||
23,154 |
(e) |
– |
– |
|||||||||||||||
Net income/(loss) before |
$ |
25,356 |
29,875 |
55,231 |
$ |
14,506 |
7,440 |
21,946 |
$ |
47,413 |
$ |
(72,274) |
$ |
(24,861) |
||||
7,304 |
(a) |
4,374 |
(a) |
1,530 |
(a) |
|||||||||||||
(5,416) |
(b) |
(2,863) |
(b) |
(988) |
(b) |
|||||||||||||
(2,490) |
(c) |
448 |
(c) |
267 |
(c) |
|||||||||||||
1,907 |
(d) |
2,618 |
(d) |
(74,071) |
(d) |
|||||||||||||
23,154 |
(e) |
– |
– |
|||||||||||||||
Net income/(loss) from |
$ |
(17,613) |
24,459 |
6,846 |
$ |
(21,400) |
4,577 |
(16,823) |
$ |
22,539 |
$ |
(73,262) |
(50,723) |
|||||
Net loss from discontinued |
– |
– |
– |
(1,807) |
– |
(1,807) |
(8,028) |
12 |
(8,016) |
|||||||||
Net income/(loss) attributable |
(17,613) |
24,459 |
6,846 |
(23,207) |
4,577 |
(18,630) |
14,511 |
(73,250) |
(58,739) |
|||||||||
Diluted net income/(loss) from continuing operations per |
$ |
(0.45) |
0.17 |
$ |
(0.55) |
(0.43) |
$ |
0.57 |
(1.30) |
|||||||||
Diluted net loss from |
– |
– |
(0.04) |
(0.04) |
(0.20) |
(0.20) |
||||||||||||
Diluted net income/(loss) per |
(0.45) |
0.17 |
(0.59) |
(0.47) |
0.37 |
(1.50) |
||||||||||||
Shares used in computing diluted |
39,263 |
39,396 |
39,254 |
39,254 |
39,234 |
39,069 |
||||||||||||
Note: (a) To eliminate the impact of share-based awards as measured using the fair value method. This adjustment does not have an impact on income tax expense. (b) To adjust Sohu’s economic interests in Changyou and Sogou attributable to the above non-GAAP adjustments. This adjustment does not have an impact on income tax expense. (c) To adjust for a change in the fair value of the Company’s investment in Hylink and the income tax effect. (d) To adjust for the effect of the U.S. TCJA. (e) To adjust for a one-time impairment charge recognized for an investment unrelated to the Company’s core businesses |
SOHU.COM LIMITED RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) |
||||||||||||
Twelve Months Ended Dec. 31, 2019 |
Twelve Months Ended Dec. 31, 2018 |
|||||||||||
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
|||||||
22 |
(a) |
(707) |
(a) |
|||||||||
Brand advertising gross profit |
$ |
48,455 |
$ |
22 |
$ |
48,477 |
$ |
47,472 |
$ |
(707) |
$ |
46,765 |
Brand advertising gross margin |
28% |
28% |
20% |
20% |
||||||||
474 |
(a) |
669 |
(a) |
|||||||||
Search and search-related |
$ |
369,716 |
$ |
474 |
$ |
370,190 |
$ |
358,292 |
$ |
669 |
$ |
358,961 |
Search and search-related |
34% |
35% |
35% |
35% |
||||||||
496 |
(a) |
(38) |
(a) |
|||||||||
Online advertising gross profit |
$ |
418,171 |
$ |
496 |
$ |
418,667 |
$ |
405,764 |
$ |
(38) |
$ |
405,726 |
Online advertising gross margin |
34% |
34% |
32% |
32% |
||||||||
120 |
(a) |
(31) |
(a) |
|||||||||
Online games gross profit |
$ |
351,910 |
$ |
120 |
$ |
352,030 |
$ |
328,807 |
$ |
(31) |
$ |
328,776 |
Online games gross margin |
80% |
80% |
84% |
84% |
||||||||
Others gross profit |
$ |
93,271 |
$ |
– |
(a)$ |
93,271 |
$ |
95,770 |
$ |
– |
(a)$ |
95,770 |
Others gross margin |
59% |
59% |
57% |
57% |
||||||||
616 |
(a) |
(69) |
(a) |
|||||||||
Gross profit |
$ |
863,352 |
$ |
616 |
$ |
863,968 |
$ |
830,341 |
$ |
(69) |
$ |
830,272 |
Gross margin |
47% |
47% |
46% |
46% |
||||||||
Operating expenses |
$ |
862,972 |
$ |
(17,635) |
(a)$ |
845,337 |
$ |
946,584 |
$ |
(2,165) |
(a)$ |
944,419 |
18,251 |
(a) |
2,096 |
(a) |
|||||||||
Operating loss |
$ |
380 |
$ |
18,251 |
$ |
18,631 |
$ |
(116,243) |
$ |
2,096 |
$ |
(114,147) |
Operating margin |
0% |
1% |
-6% |
-6% |
||||||||
Income tax benefit/(expense) |
$ |
(31,176) |
$ |
8,549 |
(c,d)$ |
(22,627) |
$ |
13,433 |
$ |
(75,281) |
(c,d)$ |
(61,848) |
18,251 |
(a) |
2,096 |
(a) |
|||||||||
(1,992) |
(c) |
3,634 |
(c) |
|||||||||
7,887 |
(d) |
(74,071) |
(d) |
|||||||||
23,154 |
(e) |
– |
||||||||||
Net loss before |
$ |
(9,393) |
$ |
47,300 |
$ |
37,907 |
$ |
(22,524) |
$ |
(68,341) |
$ |
(90,865) |
18,251 |
(a) |
2,096 |
(a) |
|||||||||
(12,811) |
(b) |
(7,624) |
(b) |
|||||||||
(1,992) |
(c) |
3,634 |
(c) |
|||||||||
7,887 |
(d) |
(74,071) |
(d) |
|||||||||
23,154 |
(e) |
– |
||||||||||
Net loss from continuing |
(127,738) |
34,489 |
(93,249) |
(130,960) |
(75,965) |
(206,925) |
||||||
Net loss from discontinued |
(22,711) |
– |
(22,711) |
(29,999) |
50 |
(b) |
(29,949) |
|||||
Net loss attributable to |
$ |
(150,449) |
34,489 |
(115,960) |
$ |
(160,959) |
(75,915) |
(236,874) |
||||
Diluted net loss from continuing |
(3.25) |
(2.37) |
(3.36) |
(5.31) |
||||||||
Diluted net loss from discontinued |
(0.58) |
(0.58) |
(0.77) |
(0.77) |
||||||||
Diluted net loss per ADS |
$ |
(3.83) |
$ |
(2.95) |
$ |
(4.13) |
$ |
(6.08) |
||||
ADS used in computing diluted |
39,249 |
39,249 |
38,959 |
38,959 |
||||||||
Note: (a) To eliminate the impact of share-based awards as measured using the fair value method. (b) To adjust Sohu’s economic interests in Changyou and Sogou attributable to the above non-GAAP adjustments. (c) To adjust for a change in the fair value of the Company’s investment in Hylink and the income tax effect. (d) To adjust for the effect of the U.S. TCJA. (e) To adjust for the one-time impairment charge recognized for an investment unrelated to the Company’s core businesses. |
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SOURCE Sohu.com Ltd.
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