BEIJING, July 31, 2017 /PRNewswire/ -- Sohu.com Inc.
(NASDAQ: SOHU), China's leading
online media, video, search and gaming business group, today
reported unaudited financial results for the second quarter ended
June 30, 2017.
Second Quarter Highlights
- Total revenues were US$461
million1, up 10% year-over-year and 23%
quarter-over-quarter.
- Brand advertising revenues were US$86
million, down 24% year-over-year and up 6%
quarter-over-quarter.
- Sogou2 revenues were US$211
million, up 20% year-over-year and 30%
quarter-over-quarter.
- Online game revenues were US$122
million, up 23% year-over-year and 43%
quarter-over-quarter.
- GAAP net loss attributable to Sohu.com Inc. was US$89 million, or US$2.28 loss per fully-diluted share.
- Non-GAAP3 net loss attributable to Sohu.com Inc. was
US$72 million, or US$1.85 loss per fully-diluted share.
Dr. Charles Zhang, Chairman and
CEO of Sohu.com Inc., commented, "I am pleased that Sohu delivered
better-than-expected revenue growth in the second quarter, driven
by solid performance from Changyou and Sogou. Group revenues
totaled US$461 million, up 10%
year-over-year and 23% quarter-over-quarter. The highlight of the
quarter was Legacy TLBB, our new mobile game that is a big hit and
ranked as one of the top grossing games in China between its launch in mid-May and the
end of the quarter. Sogou's financial results exceeded our prior
guidance as its mobile search growth maintained strong momentum.
Our brand advertising business performance was relatively soft,
largely due to lackluster video ad sales. Nonetheless, for Sohu
Video, we have been shifting our content focus to self-developed
dramas. We expect the move to generate substantial cost savings and
improve our bottom-line results in 2018."
Mr. Xiaochuan Wang, CEO of Sogou,
commented, "In the second quarter, Sogou Search continued to gain
market share as aggregate search traffic grew 24% from a year ago,
driven by over 50% growth in mobile traffic. Benefiting from strong
traffic growth, quarterly revenues reached US$211 million, up 20% year-over-year,
continuously outpacing the industry. We also solidified the No. 1
position for our Chinese input application Sogou Mobile Keyboard as
its user base expanded 70% in a year. In the meantime, we continued
to promote AI-empowered technology and product innovations by
integrating our proprietary technologies, like question &
answer and voice and machine translation, into our core products,
including Sogou Search and Sogou Mobile Keyboard. These new
capabilities also lay a solid foundation for our new products in
the future."
|
[1] On a constant
currency (non-GAAP) basis, if the exchange rate in the second
quarter of 2017 had been the same as it was in the second quarter
of 2016, or RMB6.53=US$1.00, US$ total revenues in the second
quarter of 2017 would have been US$484 million, or US$23 million
higher than GAAP total revenues, and up 15%
year-over-year.
|
|
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[2] Sogou operates
the search and search-related business and also offers Web and
mobile games developed by third-party developers and other products
and services to users. In the statements of operations, revenues
from Sogou's search and search-related services are recorded as
"Search and search-related advertising" revenue, and Sogou's
revenues from such third-party games and other products and
services offered to users are recorded as "Others"
revenue.
|
|
|
[3] Non-GAAP results
exclude share-based compensation expense. 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."
|
Second Quarter Financial Results
Revenues
Total revenues for the second quarter of 2017 were US$461 million, up 10% year-over-year and 23%
quarter-over-quarter.
Total online advertising revenues, which include revenues from
the brand advertising and search and search-related advertising
businesses, for the second quarter of 2017 were US$273 million, flat year-over-year and up 22%
quarter-over-quarter.
Brand advertising revenues for the second quarter of 2017
totaled US$86 million, down 24%
year-over-year and up 6% quarter-over-quarter. The year-over-year
decrease was mainly attributable to decreases in revenues from the
video and real estate advertising businesses. The
quarter-over-quarter increase was mainly attributable to the
seasonality increase in revenues from the media
portal.
Search and search-related advertising revenues for the second
quarter of 2017 were US$187 million,
up 17% year-over-year and 31% quarter-over-quarter. The increases
were mainly driven by healthy growth in mobile traffic and
monetization.
Online game revenues for the second quarter of 2017 were
US$122 million, up 23% year-over-year
and 43% quarter-over-quarter. The year-over-year and
quarter-over-quarter increases were mainly due to the successful
launch of a new mobile game, Legacy TLBB, in the second
quarter.
Gross Margin
GAAP gross margin for the second quarter of 2017 was 40%,
compared with 49% in the second quarter of 2016 and 41% in the
first quarter of 2017. Non-GAAP gross margin for the second quarter
of 2017 was 40%, compared with 49% in the second quarter of 2016
and 42% in the first quarter of 2017.
Both GAAP and non-GAAP gross margin for the online advertising
business for the second quarter of 2017 was 19%, compared with 39%
in the second quarter of 2016 and 27% in the first quarter of
2017.
GAAP gross margin for the brand advertising business in the
second quarter of 2017 was -45%, compared with 17% in the second
quarter of 2016 and 1% in the first quarter of 2017. Non-GAAP gross
margin for the brand advertising business was -45%, compared with
17% in the second quarter of 2016 and 2% in the first quarter of
2017. In the second quarter of 2017, the Company recognized
impairment charges of approximately US$45
million in video content cost as the result of
softer-than-expected video advertising sales.
Both GAAP and non-GAAP gross margin for the search and
search-related advertising business in the second quarter of 2017
was 48%, compared with 55% in the second quarter of 2016 and 42% in
the first quarter of 2017. The year-over-year decrease was mainly
due to higher traffic acquisition cost as a percentage of search
and search-related advertising revenues. The quarter-over-quarter
increase was due to normal seasonal fluctuation.
Both GAAP and non-GAAP gross margin for online games in the
second quarter of 2017 was 91%, compared with 74% in the second
quarter of 2016 and 81% in the first quarter of 2017. The
year-over-year and quarter-over-quarter increases in gross margin
were due to the successful second quarter launch of Legacy TLBB,
which has a relatively high gross margin as its revenue is
recognized on a net basis after revenue-sharing payments to the
third party licensee operator.
Operating
Expenses
For the second quarter of 2017, GAAP operating expenses totaled
US$223 million, down 6%
year-over-year and up 10% quarter-over-quarter. Non-GAAP operating
expenses were US$210 million, down
10% year-over-year and up 8% quarter-over-quarter. The
year-over-year decrease was mainly due to decreased expenses for
marketing and promotion activities. The quarter-over-quarter
increase was mainly due to increased product development costs
associated with new games of Changyou.
Operating Loss
GAAP operating loss for the second quarter of 2017 was
US$40 million, compared with an
operating loss of US$29 million in
the second quarter of 2016 and an operating loss of US$47 million in the first quarter of 2017.
Non-GAAP operating loss for the second quarter of 2017 was
US$27 million, compared with an
operating loss of US$26 million in
the second quarter of 2016 and an operating loss of US$40 million in the first quarter of 2017.
Income Tax Expense
Both GAAP and non-GAAP income tax expense was US$13 million for the second quarter of 2017,
compared with income tax expense of US$2
million in the second quarter of 2016 and income tax expense
of US$11 million in the first quarter
of 2017.
Net Loss
Before deducting the share of net income pertaining to
non-controlling interest, GAAP net loss for the second quarter of
2017 was US$48 million, compared with
a net loss of US$47 million in the
second quarter of 2016 and net loss of US$50
million in the first quarter of 2017. Before deducting the
share of net income pertaining to non-controlling interest,
non-GAAP net loss for the second quarter of 2017 was US$35 million, compared with a net loss of
US$44 million in the second quarter
of 2016 and net loss of US$43 million
in the first quarter of 2017.
GAAP net loss attributable to Sohu.com Inc. for the second
quarter of 2017 was US$89 million, or
US$2.28 loss per fully-diluted share,
compared with a net loss of US$63
million in the second quarter of 2016 and a net loss of
US$69 million in the first quarter of
2017. Non-GAAP net loss attributable to Sohu.com Inc. for the
second quarter of 2017 was US$72
million, or US$1.85 loss per
fully-diluted share, compared with a net loss of US$63 million in the second quarter of 2016 and a
net loss of US$68 million in the
first quarter of 2017.
Liquidity
As of June 30, 2017, the Sohu
Group had cash and cash equivalents and short-term investments of
US$1.24 billion compared with
US$1.30 billion as of December 31, 2016.
Recent development
On July 31, 2017, Changyou
announced that Jasmine Zhou has
submitted to the Changyou Board of Directors her resignation as its
Chief Financial Officer for personal reasons. Ms. Zhou has
agreed that she will remain in her current position for a suitable
period, in order to allow Changyou's management and Board to
identify a suitable replacement.
Business Outlook
For the third quarter of 2017, Sohu estimates:
- Total revenues to be between US$480
million and US$510 million.
- Brand advertising revenues to be between US$70 million and US$80 million; this implies an
annual decrease of 28% to 37% and a sequential decrease of 7% to
19%.
- Sogou revenues to be between US$230
million and US$240 million; this implies an annual increase
of 39% to 45% and a sequential increase of 9% to 14%.
- Online game revenues to be between US$120 million and US$130 million; this implies
an annual increase of 22% to 32% and a sequential decrease of 2% to
a sequential increase of 6%.
- Before deducting the share of non-GAAP net income pertaining to
non-controlling interest, non-GAAP net income/loss to be
between a net loss of US$5
million and net income of US$5
million. Assuming no new grants of share-based awards and
that the market price of our shares is unchanged, we estimate that
compensation expense relating to share-based awards will be
around US$4 million. Including the impact of these share-based
awards, GAAP net income/loss before non-controlling interest to
be between a net loss of US$9 million and net
income of US$1 million.
- Non-GAAP net loss attributable to Sohu.com Inc. to be
between US$39 million and US$49
million, and non-GAAP loss per fully-diluted share to be
between US$1.00 and US$1.25.
Including the impact of the aforementioned share-based awards, and
netting off approximately US$1 million of Sohu's economic
interests in Changyou and Sogou, GAAP net loss attributable
to Sohu.com Inc. to be
between US$42 million and US$52 million, and GAAP
loss per fully-diluted share to be between US$1.08
and US$1.34.
For the third quarter 2017 guidance, the Company has adopted a
presumed exchange rate of RMB7.00=US$1.00, as
compared with the actual exchange rate of approximately
RMB6.66=US$1.00 for the third quarter of 2016, and
RMB6.86=US$1.00 for the second quarter of
2017.
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 Inc. and diluted net income attributable
to Sohu.com Inc. per share, which are adjusted from results based
on GAAP to exclude the impact of the share-based awards, which
consist mainly of share-based compensation expenses and non-cash
tax benefits from excess tax deductions related to share-based
awards, income/expense from the adjustment of contingent
consideration previously recorded for acquisitions, and dividend
and deemed dividend to non-controlling preferred shareholders.
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 the share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards, income/expense from the
adjustment of contingent consideration previously recorded for
acquisitions and dividend and deemed dividend to non-controlling
preferred shareholders from its non-GAAP financial measure is
useful for itself and investors. Further, the impact of share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards, income/expense from the
adjustment of contingent consideration previously recorded for
acquisitions, and dividend and deemed dividend to non-controlling
preferred shareholders cannot be anticipated by management and
business line leaders and these expenses were not built into the
annual budgets and quarterly forecasts, which have been the basis
for information Sohu provides to analysts and investors as guidance
for future operating performance. As the impact of share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards, income/expense from the
adjustment of contingent consideration previously recorded for
acquisitions, and dividend and deemed dividend to non-controlling
preferred shareholders does not involve subsequent cash outflow or
is reflected in the cash flows at the equity transaction level,
Sohu does not factor this impact in 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 the share-based compensation
expense, non-cash tax benefits from excess tax deductions
related to share-based awards, income/expense from the adjustment
of contingent consideration previously recorded for acquisitions,
and dividend and deemed dividend to non-controlling preferred
shareholders.
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 Inc. and diluted net income attributable
to Sohu.com Inc. per share, excluding share-based compensation
expense, non-cash tax benefits from excess tax deductions
related to share-based awards, income/expense from the adjustment
of contingent consideration previously recorded for acquisitions,
and dividend and deemed dividend to non-controlling preferred
shareholders is that the impact of share-based awards and non-cash
tax benefits from excess tax deductions related to share-based
awards has been and will continue to be a significant recurring
expense in Sohu's business for the foreseeable future,
income/expense from the adjustment of contingent consideration
previously recorded for acquisitions may recur in the future,
and 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 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 interim 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 US dollar results; recent slow-downs
in the growth of the Chinese economy; the uncertain regulatory
landscape in the People's Republic of
China; fluctuations in Sohu's quarterly operating results;
Sohu's current and projected future losses due to increased
spending by Sohu for video content; the possibilities that Sohu
will be unable to recoup its investment in video content and that
Changyou will be unable to develop a series of successful games for
mobile platforms or successfully monetize mobile games it develops
or acquires; and Sohu's reliance on online advertising sales,
online games and mobile services for its revenues. Further
information regarding these and other risks is included in Sohu's
annual report on Form 10-K for the year ended December 31, 2016, and other filings with the
Securities and Exchange Commission.
Conference Call and Webcast
Sohu's management team will host a conference call at
8:30 a.m. U.S. Eastern Time,
July 31, 2017 (8:30 p.m. Beijing/Hong
Kong time, July 31, 2017)
following the quarterly results announcement.
The dial-in details for the live conference call are:
|
US
Toll-Free:
|
+1-866-519-4004
|
|
International:
|
+65-6713-5090
|
|
Hong Kong:
|
+852-3018-6771
|
|
China
Mainland
|
+86-800-819-0121 /
+86-400-620-8038
|
|
Passcode:
|
SOHU
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call at 11:30
a.m. Eastern Time on July 31 through
August 7, 2017. The dial-in details for the telephone replay
are:
|
International:
|
+1-646-254-3697
|
|
Passcode:
|
55799675
|
The live Webcast and archive of the conference call will be
available on the Investor Relations section of Sohu's Website at
http://investors.sohu.com/.
About Sohu.com
Sohu.com Inc. (NASDAQ: SOHU) is China's premier online brand and indispensable
to the daily life of millions of Chinese, providing a network of
Web properties and community based/Web 2.0 products which offer the
vast Sohu user community a broad array of choices regarding
information, entertainment and communication. Sohu has built one of
the most comprehensive matrices of Chinese language web properties
and proprietary search engines, consisting of the mass portal and
leading online media destination www.sohu.com; the interactive
search engine www.sogou.com; the developer and operator of online
games www.changyou.com/en/ and the leading online video Website
tv.sohu.com .
Sohu corporate services consist of online brand advertising on
its matrix of websites as well as bid listing and home page on its
in-house developed search directory and engine. Sohu also provides
multiple news and information service on mobile platforms,
including Sohu News App and mobile news portal m.sohu.com. Sohu's
online game subsidiary, Changyou.com (NASDAQ: CYOU) develops and
operates a diverse portfolio of PC and mobile games, such as
Tian Long Ba Bu ("TLBB"), one of the
most popular PC games in China.
Changyou also owns and operates the 17173.com Website, a leading
game information portal in China.
Sohu.com, established by Dr. Charles
Zhang, one of China's
internet pioneers, is in its twenty-first year of operation.
|
For investor and
media inquiries, please contact:
|
|
|
In
China:
|
|
Mr. Eric
Yuan
|
|
Sohu.com
Inc.
|
|
Tel:
|
+86 (10)
6272-6593
|
|
E-mail:
|
ir@contact.sohu.com
|
|
|
|
In the United
States:
|
|
Ms. Linda
Bergkamp
|
|
Christensen
|
|
Tel:
|
+1 (480)
614-3004
|
|
E-mail:
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lbergkamp@christensenir.com
|
|
SOHU.COM
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
Three Months
Ended
|
|
|
Jun. 30,
2017
|
|
Mar. 31,
2017
|
|
Jun.
30, 2016
|
|
Revenues:
|
|
|
|
|
|
|
|
Online
advertising
|
|
|
|
|
|
|
|
Brand
advertising
|
$
|
86,071
|
$
|
81,412
|
$
|
112,887
|
|
Search and
search-related advertising
|
|
186,747
|
|
142,035
|
|
160,152
|
|
Subtotal
|
|
272,818
|
|
223,447
|
|
273,039
|
|
Online
games
|
|
122,398
|
|
85,325
|
|
99,227
|
|
Others
|
|
65,952
|
|
65,331
|
|
47,872
|
|
Total
revenues
|
|
461,168
|
|
374,103
|
|
420,138
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Online
advertising
|
|
|
|
|
|
|
|
Brand
advertising (includes stock-based
compensation expense of $182, $159, $-73,
respectively)
|
|
124,730
|
|
80,197
|
|
93,654
|
|
Search and
search-related advertising (includes
stock-based compensation expense of
$2, $3, $0,
respectively)
|
|
96,692
|
|
82,107
|
|
71,998
|
|
Subtotal
|
|
221,422
|
|
162,304
|
|
165,652
|
|
Online games
(includes stock-based compensation
expense of $44, $24, $17,
respectively)
|
|
11,613
|
|
16,505
|
|
25,380
|
|
Others
|
|
45,159
|
|
40,070
|
|
21,226
|
|
Total
cost of revenues
|
|
278,194
|
|
218,879
|
|
212,258
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
182,974
|
|
155,224
|
|
207,880
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Product
development (includes stock-based
compensation expense of $4,925, $2,327,
$1,699, respectively)
|
|
100,146
|
|
84,098
|
|
88,959
|
|
Sales and
marketing (includes stock-based
compensation expense of $930, $665,
$161,
respectively)
|
|
94,845
|
|
90,086
|
|
117,966
|
|
General and
administrative (includes stock-based
compensation expense of $6,597, $4,051,
$740,
respectively)
|
|
27,657
|
|
28,350
|
|
29,650
|
|
Total operating expenses
|
|
222,648
|
|
202,534
|
|
236,575
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(39,674)
|
|
(47,310)
|
|
(28,695)
|
|
|
|
|
|
|
|
|
Other
income/(loss)
|
|
3,306
|
|
4,099
|
|
(24,573)
|
|
Interest
income
|
|
5,813
|
|
4,471
|
|
5,284
|
|
Interest
expense
|
|
(205)
|
|
(175)
|
|
(244)
|
|
Exchange
difference
|
|
(4,528)
|
|
(766)
|
|
3,866
|
|
Loss before income
tax expense
|
|
(35,288)
|
|
(39,681)
|
|
(44,362)
|
|
Income tax
expense
|
|
12,764
|
|
10,672
|
|
2,430
|
|
Net loss
|
|
(48,052)
|
|
(50,353)
|
|
(46,792)
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to the noncontrolling
interest shareholders
|
|
40,131
|
|
17,895
|
|
16,232
|
|
Net loss attributable
to Sohu.com Inc.
|
|
(88,183)
|
|
(68,248)
|
|
(63,024)
|
|
|
|
|
|
|
|
|
Basic net loss per
share attributable to Sohu.com Inc.
|
$
|
(2.27)
|
$
|
(1.76)
|
$
|
(1.63)
|
|
Shares used in
computing basic net loss per share
attributable to Sohu.com Inc.
|
|
38,855
|
|
38,811
|
|
38,691
|
|
|
|
|
|
|
|
|
Diluted net loss per
share attributable to Sohu.com Inc.
|
$
|
(2.28)
|
$
|
(1.77)
|
$
|
(1.64)
|
|
Shares used in
computing diluted net loss per share
attributable to Sohu.com Inc.
|
|
38,855
|
|
38,811
|
|
38,691
|
|
SOHU.COM
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
As of Jun. 30,
2017
|
|
As of Dec. 31,
2016
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
933,711
|
$
|
1,050,957
|
|
Short-term
investments
|
|
308,928
|
|
247,926
|
|
Accounts receivable, net
|
|
252,551
|
|
189,167
|
|
Prepaid and other current assets
|
|
239,854
|
|
260,133
|
|
Assets held for sale
(a)
|
|
-
|
|
103,079
|
|
Total current assets
|
|
1,735,044
|
|
1,851,262
|
|
Long-term
investments
|
|
74,724
|
|
74,273
|
|
Fixed assets,
net
|
|
517,565
|
|
503,631
|
|
Goodwill
(a)
|
|
153,643
|
|
68,290
|
|
Intangible assets,
net
|
|
32,956
|
|
32,131
|
|
Restricted time
deposits
|
|
269
|
|
269
|
|
Prepaid non-current
assets
|
|
4,362
|
|
4,734
|
|
Other
assets
|
|
25,707
|
|
29,100
|
|
Total assets
|
$
|
2,544,270
|
$
|
2,563,690
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
246,680
|
$
|
193,209
|
|
Accrued liabilities
|
|
321,441
|
|
324,876
|
|
Receipts in advance and deferred revenue
|
|
118,016
|
|
118,951
|
|
Accrued salary and benefits
|
|
75,552
|
|
92,475
|
|
Taxes payable
|
|
57,216
|
|
40,014
|
|
Short-term bank loan
|
|
7,516
|
|
-
|
|
Other short-term liabilities
|
|
150,547
|
|
159,315
|
|
Liabilities held for
sale (a)
|
|
-
|
|
3,902
|
|
Total current liabilities
|
$
|
976,968
|
$
|
932,742
|
|
|
|
|
|
|
Long-term accounts
payable
|
|
1,060
|
|
744
|
|
Long-term tax
payable
|
|
30,601
|
|
32,625
|
|
Deferred tax
liabilities
|
|
42,054
|
|
39,784
|
|
Total long-term
liabilities
|
$
|
73,715
|
$
|
73,153
|
|
Total liabilities
|
$
|
1,050,683
|
$
|
1,005,895
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Sohu.com Inc. shareholders' equity
|
|
857,772
|
|
993,580
|
|
Noncontrolling Interest
|
|
635,815
|
|
564,215
|
|
Total shareholders' equity
|
$
|
1,493,587
|
$
|
1,557,795
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
2,544,270
|
$
|
2,563,690
|
|
|
Note:
(a) In the third
quarter of 2016, the Company's management had an intention to
divest the Company's interest in MoboTap. Therefore, the assets and
liabilities of MoboTap were recognized as assets-held-for-sale and
liabilities-held-for-sale, respectively, in the Company's financial
statements for the third and fourth quarters of 2016. In the
first quarter of 2017, the Company's management determined that the
disposal was unlikely to be completed within one year. As a result,
the assets-held-for-sale and liabilities-held-for-sale related to
MoboTap have been reclassified as assets and liabilities in the
Company's balance sheet as of June 30, 2017.
|
|
SOHU.COM
INC.
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
Three Months
Ended Jun. 30, 2017
|
|
Three Months
Ended Mar. 31, 2017
|
|
Three Months
Ended Jun. 30, 2016
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
182
|
(a)
|
|
|
|
|
159
|
(a)
|
|
|
|
|
(73)
|
(a)
|
|
|
Brand advertising
gross profit
|
$
|
(38,659)
|
$
|
182
|
$
|
(38,477)
|
$
|
1,215
|
$
|
159
|
$
|
1,374
|
$
|
19,233
|
$
|
(73)
|
$
|
19,160
|
|
Brand advertising
gross margin
|
|
-45%
|
|
|
|
-45%
|
|
1%
|
|
|
|
2%
|
|
17%
|
|
|
|
17%
|
|
|
|
|
2
|
(a)
|
|
|
|
|
3
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
Search and
search-related
advertising gross profit
|
$
|
90,055
|
$
|
2
|
$
|
90,057
|
$
|
59,928
|
$
|
3
|
$
|
59,931
|
$
|
88,154
|
$
|
-
|
$
|
88,154
|
|
Search and
search-related
advertising gross margin
|
|
48%
|
|
|
|
48%
|
|
42%
|
|
|
|
42%
|
|
55%
|
|
|
|
55%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
184
|
(a)
|
|
|
|
|
162
|
(a)
|
|
|
|
|
(73)
|
(a)
|
|
|
Online advertising
gross profit
|
$
|
51,396
|
$
|
184
|
$
|
51,580
|
$
|
61,143
|
$
|
162
|
$
|
61,305
|
$
|
107,387
|
$
|
(73)
|
$
|
107,314
|
|
Online advertising
gross margin
|
|
19%
|
|
|
|
19%
|
|
27%
|
|
|
|
27%
|
|
39%
|
|
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
|
(a)
|
|
|
|
|
24
|
(a)
|
|
|
|
|
17
|
(a)
|
|
|
Online games gross
profit
|
$
|
110,785
|
$
|
44
|
$
|
110,829
|
$
|
68,820
|
$
|
24
|
$
|
68,844
|
$
|
73,847
|
$
|
17
|
$
|
73,864
|
|
Online games gross
margin
|
|
91%
|
|
|
|
91%
|
|
81%
|
|
|
|
81%
|
|
74%
|
|
|
|
74%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others gross
profit
|
$
|
20,793
|
$
|
-
|
(a) $
|
20,793
|
$
|
25,261
|
$
|
-
|
(a) $
|
25,261
|
$
|
26,646
|
$
|
-
|
(a)$
|
26,646
|
|
Others gross
margin
|
|
32%
|
|
|
|
32%
|
|
39%
|
|
|
|
39%
|
|
56%
|
|
|
|
56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
228
|
(a)
|
|
|
|
|
186
|
(a)
|
|
|
|
|
(56)
|
(a)
|
|
|
Gross
profit
|
$
|
182,974
|
$
|
228
|
$
|
183,202
|
$
|
155,224
|
$
|
186
|
$
|
155,410
|
$
|
207,880
|
$
|
(56)
|
$
|
207,824
|
|
Gross
margin
|
|
40%
|
|
|
|
40%
|
|
41%
|
|
|
|
42%
|
|
49%
|
|
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
222,648
|
$
|
(12,452)
|
(a) $
|
210,196
|
$
|
202,534
|
$
|
(7,043)
|
(a)$
|
195,491
|
$
|
236,575
|
$
|
(2,600)
|
(a)$
|
233,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,680
|
(a)
|
|
|
|
|
7,229
|
(a)
|
|
|
|
|
2,544
|
(a)
|
|
|
Operating
loss
|
$
|
(39,674)
|
$
|
12,680
|
$
|
(26,994)
|
$
|
(47,310)
|
$
|
7,229
|
$
|
(40,081)
|
$
|
(28,695)
|
$
|
2,544
|
$
|
(26,151)
|
|
Operating
margin
|
|
-9%
|
|
|
|
-6%
|
|
-13%
|
|
|
|
-11%
|
|
-7%
|
|
|
|
-6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
12,764
|
$
|
-
|
(a)$
|
12,764
|
$
|
10,672
|
$
|
-
|
(a)$
|
10,672
|
$
|
2,430
|
$
|
-
|
(a)$
|
2,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,680
|
(a)
|
|
|
|
|
7,229
|
(a)
|
|
|
|
|
2,550
|
(a)
|
|
|
Net (loss)
/income before
non-controlling interest
|
$
|
(48,052)
|
$
|
12,680
|
$
|
(35,372)
|
$
|
(50,353)
|
$
|
7,229
|
$
|
(43,124)
|
$
|
(46,792)
|
$
|
2,550
|
$
|
(44,242)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,680
|
(a)
|
|
|
|
|
7,229
|
(a)
|
|
|
|
|
2,550
|
(a)
|
|
|
|
|
|
4,254
|
(b)
|
|
|
|
|
(6,302)
|
(b)
|
|
|
|
|
(2,001)
|
(b)
|
|
|
Net-loss attributable
to
Sohu.com Inc. for diluted net
loss per share
|
$
|
(88,698)
|
$
|
16,934
|
$
|
(71,764)
|
$
|
(68,664)
|
$
|
927
|
$
|
(67,737)
|
$
|
(63,386)
|
$
|
549
|
$
|
(62,837)
|
|
Diluted net
loss per share
attributable to Sohu.com Inc.
|
$
|
(2.28)
|
|
|
$
|
(1.85)
|
$
|
(1.77)
|
|
|
$
|
(1.75)
|
$
|
(1.64)
|
|
|
$
|
(1.62)
|
|
Shares used in
computing
diluted net loss per share
attributable to Sohu.com Inc.
|
|
38,855
|
|
|
|
38,855
|
|
38,811
|
|
|
|
38,811
|
|
38,691
|
|
|
|
38,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Logo: http://photos.prnewswire.com/prnh/20100201/CNM013LOGO
View original
content:http://www.prnewswire.com/news-releases/sohucom-reports-second-quarter-2017-unaudited-financial-results-300496406.html
SOURCE Sohu.com