BEIJING, Nov. 5, 2018 /PRNewswire/ --
/U P D A T E --
Sohu.com Ltd./
In the news release, "Sohu.com
Reports Third Quarter 2018 Unaudited Financial Results", issued on
November 5, 2018 by Sohu.com
Ltd. over PR Newswire, two additional highlights (the fifth
and sixth bullet points) should have been added in the section of
Third Quarter Highlights. Complete, updated
release follows:
Sohu.com Limited (NASDAQ: SOHU), China's leading online media, video, search
and gaming business group, today reported unaudited financial
results for the third quarter ended September 30, 2018.
Third Quarter Highlights
- 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."
[1] The Company has
adopted ASU No. 2014-09, ''Revenue from Contracts with Customers"
beginning January 1, 2018. The only major impact of the standard is
that revenues and expenses related to advertising barter
transactions will be recognized beginning January 1, 2018. The
impact for the third quarter of 2018 was approximately US$7 million
for both revenues and cost of revenues and expenses, most of which
were generated from Sogou.
|
[2] On a constant
currency (non-GAAP) basis, if the exchange rate in the third
quarter of 2018 had been the same as it was in the third quarter of
2017, or RMB6.67=US$1.00, US$ total revenues in the third quarter
of 2018 would have been US$469 million, or US$9 million more than
GAAP total revenues, and down 9% year-over-year.
|
[3] Search and Search
related advertising revenues exclude intra-Group
transactions.
|
Third Quarter Financial Results
Revenues
Total revenues for the third quarter of 2018 were US$460 million, down 11% year-over-year and 5%
quarter-over-quarter.
Total online advertising revenues, which include revenues from
the brand advertising and search and search-related advertising
businesses, for the third quarter of 2018 were US$312 million, up 4% year-over-year and down 6%
quarter-over-quarter.
Brand advertising revenues for the third quarter of 2018 totaled
US$57 million, down 24%
year-over-year and 7% quarter-over-quarter. The decrease was mainly
due to decreases in portal and video advertising revenues.
Search and search-related advertising revenues for the third
quarter of 2018 were US$255 million,
up 13% year-over-year and down 6% quarter-over-quarter. In the
third quarter of 2018, while mobile search traffic and monetization
maintained growth, the search advertising business was adversely
affected by a one-off 10-day suspension of a portion of Sogou's
advertising services implemented to ensure compliance with
government regulations.
Online game revenues for the third quarter of 2018 were
US$96 million, down 28%
year-over-year and up 2% quarter-over-quarter. The year-over-year
decrease was due to the natural decline in revenue of Changyou's
older games, including Legacy TLBB Mobile.
Gross Margin
Both GAAP and non-GAAP[4] gross margin for the third quarter of
2018 was 43%, compared with 49% in the third quarter of 2017 and
44% in the second quarter of 2018.
Both GAAP and non-GAAP gross margin for the online advertising
business for the third quarter of 2018 was 32%, compared with 36%
in the third quarter of 2017 and 35% in the second quarter of
2018.
Both GAAP and non-GAAP gross margin for the brand advertising
business in the third quarter of 2018 was 23%, compared with
negative 1% in the third quarter of 2017 and 23% in the second
quarter of 2018. The year-over-year increase was mainly due to
decreased video content cost.
Both GAAP and non-GAAP gross margin for the search and
search-related advertising business in the third quarter of 2018
was 34%, compared with 49% in the third quarter of 2017 and 38% in
the second quarter of 2018. The year-over-year decrease primarily
resulted from traffic acquisition cost outgrowing revenues and the
one-time adverse impact. The quarter-over-quarter decrease was
primarily due to the one-time adverse impact.
Both GAAP and non-GAAP gross margin for online games business in
the third quarter of 2018 was 84%, compared with 87% in the third
quarter of 2017 and 85% in the second quarter of 2018.
[4] Non-GAAP results
exclude share-based compensation expense, non-cash tax benefits
from excess tax deductions related to share-based awards, changes
in fair value recognized in the Company's consolidated statements
of operations with respect to equity investments with readily
determinable fair values, income/expense from the adjustment of
contingent consideration previously recorded for acquisitions,
dividends and deemed dividends to non-controlling preferred
shareholders of Sogou, and a one-time income tax expense, offset by
a one-time reduction in liability for deferred U.S. income tax, as
a result of the U.S. Tax Reform. 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."
|
Operating Expenses
For the third quarter of 2018, GAAP operating expenses totaled
US$248 million, down 26%
year-over-year and up 2% quarter-over-quarter. Non-GAAP operating
expenses were US$247 million, down
25% year-over-year and up 2% quarter-over-quarter. The
year-over-year decrease was mainly due to Changyou having
recognized a one-off impairment charge of US$87 million in relation to the MoboTap business
in the third quarter of 2017.
Operating Loss
GAAP operating loss for the third quarter of 2018 was
US$49 million, compared with an
operating loss of US$81 million in
the third quarter of 2017 and an operating loss of US$32 million in the second quarter of 2018.
Non-GAAP operating loss for the third quarter of 2018 was
US$47 million, compared with an
operating loss of US$75 million in
the third quarter of 2017 and an operating loss of US$31 million in the second quarter of 2018.
Other Income
Other income for the third quarter of 2018 was US$29 million, compared with other expense of
US$5 million in the third quarter of
2017 and other income of US$10
million in the second quarter of 2018. The change was mainly
attributable to other income of US$24
million from Sogou. In the third quarter of 2018, upon the
adoption of a new accounting standard, Sogou recognized a
US$18 million gain from one of its
equity investments.
Income Tax Expense
GAAP income tax benefit was US$13
million for the third quarter of 2018, compared with income
tax expense of US$16 million in the
third quarter of 2017 and income tax expense of US$6 million in the second quarter of 2018.
Non-GAAP income tax benefit was US$12
million for the third quarter of 2018, compared with income
tax expense of US$16 million in the
third quarter of 2017 and income tax expense of US$6 million in the second quarter of 2018. The
income tax benefit in the third quarter of 2018 was mainly due to
recognition of a tax benefit for preferential tax rates enjoyed by
some of Changyou's subsidiaries upon their receipt of 2017 Key
National Software Enterprise status or 2017 Software Enterprise
status.
Net Income/(Loss)
Before deducting the share of net income pertaining to
non-controlling interest, GAAP net loss for the third quarter of
2018 was US$0.4 million, compared
with a net loss of US$102 million in
the third quarter of 2017 and net loss of US$15 million in the second quarter of 2018.
Before deducting the share of net income pertaining to
non-controlling interest, non-GAAP net income for the third quarter
of 2018 was US$5 million, compared
with a net loss of US$90 million in
the third quarter of 2017 and net loss of US$14 million in the second quarter of 2018.
GAAP net loss[5] attributable to Sohu.com Limited for the third
quarter of 2018 was US$35 million, or
a loss of US$0.89 per fully-diluted
ADS, compared with a net loss of US$104
million in the third quarter of 2017 and a net loss of
US$48 million in the second quarter
of 2018. Non-GAAP net loss attributable to Sohu.com Limited for the
third quarter of 2018 was US$32
million, or a loss of US$0.81
per fully-diluted ADS, compared with a net loss of US$93 million in the third quarter of 2017 and a
net loss of US$49 million in the
second quarter of 2018.
[5] Excluding the
impact of Changyou's tax benefit on the 2018 third quarter results,
GAAP and non-GAAP net loss attributable to Sohu.com Limited would
have been US$51 million and US$47 million, respectively.
|
Liquidity
As of September 30, 2018, cash and
cash equivalents and short-term investments held by the Sohu Group,
minus short-term bank loans, were US$1.88
billion, compared with US$2.12
billion as of December 31,
2017.
Business Outlook
For the fourth quarter of 2018, Sohu estimates:
- Total revenues to be between US$465
million and US$495
million.
- Brand advertising revenues to be between US$55 million and US$60
million; this implies an annual decrease of 16% to 23% and a
sequential decrease of 3% to a sequential increase of 5%.
- Sogou revenues to be between US$292
million and US$307 million;
this implies an annual increase of 5% to 11% and a sequential
increase of 6% to 11%.
- Online game revenues to be between US$85
million and US$95 million;
this implies an annual decrease of 13% to 22% and a sequential
decrease of 1% to 11%.
- Before deducting the share of non-GAAP net income pertaining to
non-controlling interest, non-GAAP net loss to be between
US$23 million and US$33 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$3
million. Including the impact of these share-based awards,
GAAP net loss before non-controlling interest to be between
US$26 million and US$36 million.
- Non-GAAP net loss attributable to Sohu.com Limited to be
between US$45 million and
US$55 million, and non-GAAP loss per
fully-diluted ADS to be between US$1.15 and US$1.40. Including the impact of the
aforementioned share-based awards, and netting off approximately
US$2 million of Sohu's economic
interests in Changyou and Sogou, GAAP net loss attributable to
Sohu.com Limited to be between US$46
million and US$56 million, and
GAAP loss per fully-diluted ADS to be between US$1.20 and US$1.45.
For the fourth quarter 2018 guidance, the Company has adopted a
presumed exchange rate of RMB7.00=US$1.00, as
compared with the actual exchange rate of approximately
RMB6.61=US$1.00 for the fourth quarter of 2017, and
RMB6.80=US$1.00 for the third quarter of 2018.
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 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, changes in fair value recognized in the
Company's consolidated statements of operations with respect to
equity investments with readily determinable fair values,
income/expense from the adjustment of contingent consideration
previously recorded for acquisitions, dividend and deemed dividend
to non-controlling preferred shareholders, and a one-time income
tax expense, offset by a one-time reduction in liability for
deferred U.S. income tax, as a result of the U.S. Tax Reform. 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 equity
investments with readily determinable fair values, 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, dividend and deemed dividend
to non-controlling preferred shareholders, and net one-time tax
expense as a result of the U.S. Tax Reform from its non-GAAP
financial measure is useful for itself and investors. Further, the
impact of share-based compensation expense and changes in
fair value recognized in the Company's consolidated statements of
operations with respect to equity investments with readily
determinable fair values, 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, dividend and deemed dividend to non-controlling
preferred shareholders, and net one-time tax expense as a result of
the U.S. Tax Reform 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 the impact of share-based
compensation expense and changes in fair value recognized in the
Company's consolidated statements of operations with respect to
equity investments with readily determinable fair values, 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
share-based compensation expense and changes in fair value
recognized in the Company's consolidated statements of operations
with respect to equity investments with readily determinable fair
values, 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, and also excluded the net one-time tax expense as a
result of U.S. Tax Reform.
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 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, 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; Sohu's reliance on online advertising sales, online
games and mobile services for its revenues; and the impact of the
U.S. Tax Reform. Further information regarding these and other
risks is included in Sohu's annual report on Form 10-K for the year
ended December 31, 2017, 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,
November 5, 2018 (9:30 p.m. Beijing/Hong
Kong time, November 5, 2018)
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 November 5
through November 12, 2018. The dial-in details for the
telephone replay are:
International:
|
+1-646-254-3697
|
Passcode:
|
9646667
|
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 Limited (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; interactive search
engine www.sogou.com; developer and operator of online games
www.changyou.com/en/ and leading online video
website tv.sohu.com.
Sohu's corporate services consist of online brand advertising on
Sohu's 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 services on mobile
platforms, including Sohu News App and the 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's online search
subsidiary Sogou (NYSE: SOGO) has grown to become the second
largest search engine by mobile queries in China. It also owns and operates Sogou Input
Method, the largest Chinese language input software. Sohu.com,
established by Dr. Charles Zhang,
one of China's internet pioneers,
is in its twenty-second year of operation.
For investor and media inquiries, please contact:
In China:
Mr. Eric
Yuan
|
Sohu.com
Limited
|
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:
|
lbergkamp@christensenir.com
|
SOHU.COM
LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER ADS AMOUNTS)
|
|
|
|
Three Months
Ended
|
|
|
Sep. 30,
2018
|
|
Jun. 30,
2018
|
|
Sep. 30,
2017
|
Revenues:
|
|
|
|
|
|
|
Online
advertising
|
|
|
|
|
|
|
Brand
advertising
|
$
|
56,958
|
$
|
61,511
|
$
|
74,832
|
Search and
search-related advertising
|
|
255,130
|
|
270,359
|
|
225,363
|
Subtotal
|
|
312,088
|
|
331,870
|
|
300,195
|
Online
games
|
|
95,971
|
|
94,250
|
|
132,427
|
Others
|
|
51,763
|
|
59,894
|
|
83,439
|
Total revenues
|
|
459,822
|
|
486,014
|
|
516,061
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Online
advertising
|
|
|
|
|
|
|
Brand
advertising (includes stock-based compensation
expense of $-14, $-2, and $278, respectively)
|
|
44,059
|
|
47,319
|
|
75,733
|
Search and
search-related (includes stock-based
compensation expense of $235, $263, and $0,
respectively)
|
|
167,664
|
|
168,126
|
|
115,422
|
Subtotal
|
|
211,723
|
|
215,445
|
|
191,155
|
Online games (includes
stock-based compensation expense of
$-3, $-23, and $4, respectively)
|
|
14,902
|
|
14,461
|
|
17,560
|
Others
|
|
33,716
|
|
44,346
|
|
53,679
|
Total cost of
revenues
|
|
260,341
|
|
274,252
|
|
262,394
|
|
|
|
|
|
|
|
Gross
profit
|
|
199,481
|
|
211,762
|
|
253,667
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Product development
(includes stock-based compensation
expense of $2,362, $2,136, and $2,247,
respectively)
|
|
107,164
|
|
113,843
|
|
105,162
|
Sales and marketing
(includes stock-based compensation
expense of $201, $77, and $344, respectively)
|
|
106,056
|
|
102,138
|
|
111,935
|
General and administrative
(includes stock-based compensation
expense of $-1,062, $-1,260, and $3,682, respectively)
|
|
35,078
|
|
27,982
|
|
31,038
|
Goodwill
impairment and impairment of intangibles via
acquisitions of businesses
|
|
-
|
|
-
|
|
86,882
|
Total operating expenses
|
|
248,298
|
|
243,963
|
|
335,017
|
|
|
|
|
|
|
|
Operating
loss
|
|
(48,817)
|
|
(32,201)
|
|
(81,350)
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
28,822
|
|
9,991
|
|
(5,068)
|
Interest
income
|
|
4,658
|
|
5,156
|
|
6,497
|
Interest
expense
|
|
(6,174)
|
|
(3,004)
|
|
(1,141)
|
Exchange
difference
|
|
7,970
|
|
10,774
|
|
(5,032)
|
Loss before income
tax expense
|
|
(13,541)
|
|
(9,284)
|
|
(86,094)
|
Income tax expense
/(benefit)
|
|
(13,145)
|
|
5,891
|
|
15,927
|
Net loss
|
|
(396)
|
|
(15,175)
|
|
(102,021)
|
|
|
|
|
|
|
|
Less: Net income attributable to the noncontrolling interest
shareholders
|
|
33,870
|
|
32,463
|
|
1,939
|
Net loss attributable
to Sohu.com Limited
|
|
(34,266)
|
|
(47,638)
|
|
(103,960)
|
|
|
|
|
|
|
|
Basic net loss per
ADS attributable to Sohu.com Limited
|
$
|
(0.88)
|
$
|
(1.22)
|
$
|
(2.67)
|
ADSs used in
computing basic net loss per ADS attributable to
Sohu.com Limited
|
|
38,936
|
|
38,927
|
|
38,877
|
|
|
|
|
|
|
|
Diluted net loss per
ADS attributable to Sohu.com Limited
|
$
|
(0.89)
|
$
|
(1.23)
|
$
|
(2.67)
|
ADSs used in
computing diluted net loss per ADS attributable to
Sohu.com Limited
|
|
38,936
|
|
38,927
|
|
38,877
|
SOHU.COM
LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
As of Sep. 30,
2018
|
|
As of Dec. 31,
2017
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
833,247
|
$
|
1,366,115
|
Restricted
cash
|
|
7,298
|
|
1,908
|
Short-term
investments
|
|
1,148,711
|
|
818,934
|
Accounts receivable, net
|
|
236,958
|
|
250,468
|
Prepaid and other current assets
|
|
200,972
|
|
192,676
|
Total current assets
|
|
2,427,186
|
|
2,630,101
|
Long-term
investments
|
|
106,201
|
|
90,145
|
Fixed assets,
net
|
|
499,007
|
|
529,717
|
Goodwill
|
|
69,595
|
|
71,565
|
Intangible assets,
net
|
|
25,634
|
|
23,060
|
Restricted time
deposits
|
|
269
|
|
271
|
Prepaid non-current
assets
|
|
3,414
|
|
4,211
|
Other
assets
|
|
33,294
|
|
40,169
|
Total assets
|
$
|
3,164,600
|
$
|
3,389,239
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
$
|
339,141
|
$
|
288,394
|
Accrued liabilities
|
|
310,611
|
|
343,106
|
Receipts in advance and deferred revenue
|
|
135,655
|
|
127,758
|
Accrued salary and benefits
|
|
99,999
|
|
102,087
|
Taxes payable
|
|
80,000
|
|
96,541
|
Short-term bank loans
|
|
100,302
|
|
61,216
|
Other short-term liabilities
|
|
133,008
|
|
136,300
|
Total current liabilities
|
$
|
1,198,716
|
$
|
1,155,402
|
|
|
|
|
|
Long-term accounts
payable
|
|
1,099
|
|
1,157
|
Long-term bank
loans
|
|
117,746
|
|
122,433
|
Long-term tax
liabilities
|
|
333,753
|
|
293,010
|
Total long-term
liabilities
|
$
|
452,598
|
$
|
416,600
|
Total liabilities
|
$
|
1,651,314
|
$
|
1,572,002
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Sohu.com Limited shareholders' equity
|
|
571,955
|
|
750,634
|
Noncontrolling Interest
|
|
941,331
|
|
1,066,603
|
Total shareholders' equity
|
$
|
1,513,286
|
$
|
1,817,237
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
3,164,600
|
$
|
3,389,239
|
SOHU.COM
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER ADS AMOUNTS)
|
|
|
|
Three Months
Ended Sep. 30, 2018
|
|
Three Months
Ended Jun. 30, 2018
|
|
Three Months
Ended Sep. 30, 2017
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14)
|
(a)
|
|
|
|
|
(2)
|
(a)
|
|
|
|
|
278
|
(a)
|
|
Brand advertising
gross profit
|
$
|
12,899
|
$
|
(14)
|
$
|
12,885
|
$
|
14,192
|
$
|
(2)
|
$
|
14,190
|
$
|
(901)
|
$
|
278
|
$
|
(623)
|
Brand advertising
gross
margin
|
|
23%
|
|
|
|
23%
|
|
23%
|
|
|
|
23%
|
|
-1%
|
|
|
|
-1%
|
|
|
|
|
235
|
(a)
|
|
|
|
|
263
|
(a)
|
|
|
|
|
-
|
(a)
|
|
Search and
search-related
advertising gross profit
|
$
|
87,466
|
$
|
235
|
$
|
87,701
|
$
|
102,233
|
$
|
263
|
$
|
102,496
|
$
|
109,941
|
$
|
-
|
$
|
109,941
|
Search and
search-related
advertising gross margin
|
|
34%
|
|
|
|
34%
|
|
38%
|
|
|
|
38%
|
|
49%
|
|
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
221
|
(a)
|
|
|
|
|
261
|
(a)
|
|
|
|
|
278
|
(a)
|
|
Online advertising
gross profit
|
$
|
100,365
|
$
|
221
|
$
|
100,586
|
$
|
116,425
|
$
|
261
|
$
|
116,686
|
$
|
109,040
|
$
|
278
|
$
|
109,318
|
Online advertising
gross margin
|
|
32%
|
|
|
|
32%
|
|
35%
|
|
|
|
35%
|
|
36%
|
|
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
(a)
|
|
|
|
|
(23)
|
(a)
|
|
|
|
|
4
|
(a)
|
|
Online games gross
profit
|
$
|
81,069
|
$
|
(3)
|
$
|
81,066
|
$
|
79,789
|
$
|
(23)
|
$
|
79,766
|
$
|
114,867
|
$
|
4
|
$
|
114,871
|
Online games gross
margin
|
|
84%
|
|
|
|
84%
|
|
85%
|
|
|
|
85%
|
|
87%
|
|
|
|
87%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others gross
profit
|
$
|
18,047
|
$
|
-
|
(a) $
|
18,047
|
$
|
15,548
|
$
|
-
|
(a) $
|
15,548
|
$
|
29,760
|
$
|
-
|
(a) $
|
29,760
|
Others gross
margin
|
|
35%
|
|
|
|
35%
|
|
26%
|
|
|
|
26%
|
|
36%
|
|
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
218
|
(a)
|
|
|
|
|
238
|
(a)
|
|
|
|
|
282
|
(a)
|
|
Gross
profit
|
$
|
199,481
|
$
|
218
|
$
|
199,699
|
$
|
211,762
|
$
|
238
|
$
|
212,000
|
$
|
253,667
|
$
|
282
|
$
|
253,949
|
Gross
margin
|
|
43%
|
|
|
|
43%
|
|
44%
|
|
|
|
44%
|
|
49%
|
|
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
248,298
|
$
|
(1,501)
|
(a) $
|
246,797
|
$
|
243,963
|
$
|
(953)
|
(a) $
|
243,010
|
$
|
335,017
|
$
|
(6,273)
|
(a) $
|
328,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,719
|
(a)
|
|
|
|
|
1,191
|
(a)
|
|
|
|
|
6,555
|
(a)
|
|
Operating
loss
|
$
|
(48,817)
|
$
|
1,719
|
$
|
(47,098)
|
$
|
(32,201)
|
$
|
1,191
|
$
|
(31,010)
|
$
|
(81,350)
|
$
|
6,555
|
$
|
(74,795)
|
Operating
margin
|
|
-11%
|
|
|
|
-10%
|
|
-7%
|
|
|
|
-6%
|
|
-16%
|
|
|
|
-14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit/(expense)
|
$
|
13,145
|
$
|
(1,286)
|
$
|
11,859
|
$
|
(5,891)
|
$
|
165
|
$
|
(5,726)
|
$
|
(15,927)
|
$
|
-
|
(a)$
|
(15,927)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,719
|
(a)
|
|
|
|
|
1,191
|
(a)
|
|
|
|
|
12,309
|
(a)
|
|
|
|
|
|
3,861
|
(c)
|
|
|
|
|
(494)
|
(c)
|
|
|
|
|
-
|
|
|
Net (loss)/income
before non-
controlling interest
|
$
|
(396)
|
$
|
5,580
|
$
|
5,184
|
$
|
(15,175)
|
$
|
697
|
$
|
(14,478)
|
$
|
(102,021)
|
$
|
12,309
|
$
|
(89,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,719
|
(a)
|
|
|
|
|
1,191
|
(a)
|
|
|
|
|
6,555
|
(a)
|
|
|
|
|
|
(2,571)
|
(b)
|
|
|
|
|
(1,976)
|
(b)
|
|
|
|
|
(1,017)
|
(b)
|
|
|
|
|
|
3,861
|
(c)
|
|
|
|
|
(494)
|
(c)
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
5,754
|
(d)
|
|
Net loss attributable
to
Sohu.com Limited for diluted
net loss per ADS
|
$
|
(34,685)
|
$
|
3,009
|
|
(31,676)
|
$
|
(47,965)
|
$
|
(1,279)
|
|
(49,244)
|
$
|
(103,960)
|
$
|
11,292
|
$
|
(92,668)
|
Diluted net
loss per ADS
attributable to Sohu.com
Limited
|
$
|
(0.89)
|
|
|
|
(0.81)
|
$
|
(1.23)
|
|
|
|
(1.27)
|
$
|
(2.67)
|
|
|
$
|
(2.38)
|
ADSs used in
computing
diluted net loss per ADS
attributable to Sohu.com
Limited
|
|
38,936
|
|
|
|
38,936
|
|
38,927
|
|
|
|
38,927
|
|
38,877
|
|
|
|
38,877
|
|
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 an impairment loss from available-for-sale securities of an
investee that is unrelated to the Company's current business
operations.
|
View original
content:http://www.prnewswire.com/news-releases/sohucom-reports-third-quarter-2018-unaudited-financial-results-300743724.html
SOURCE Sohu.com Ltd.