BEIJING, Feb. 1, 2019 /PRNewswire/ -- Sohu.com Limited
(NASDAQ: SOHU), China's leading
online media, video, search and gaming business group, today
reported unaudited financial results for the fourth quarter and
fiscal year ended December 31, 2018.
Fourth Quarter Highlights
- Total revenues[1] were US$482 million[2], down 5%
year-over-year and up 5% quarter-over-quarter.
- Brand advertising revenues were US$57
million, down 20% year-over-year and flat
quarter-over-quarter.
- Search and search related
advertising revenues[3] were US$277 million, up 12% year-over-year and 8%
quarter-over-quarter.
- Online game revenues were US$94
million, down 14% year-over-year and 2%
quarter-over-quarter.
- Operating loss for Sohu Video was US$30
million, compared with a loss of US$69 million in the fourth quarter 2017.
- GAAP net income attributable to Sohu.com Limited was
US$15 million, compared with a net
loss of US$295 million in the
fourth quarter of 2017.
- Non-GAAP net loss attributable to Sohu.com Limited was
US$59 million, compared with a net
loss of US$78 million in the
fourth quarter of 2017.
- In the fourth quarter of 2018, Changyou recognized a
US$16 million charge
for goodwill impairment. Excluding the effect of this goodwill
impairment charge, non-GAAP net loss attributable to Sohu.com
Limited would have been US$48
million.
[1] The
Company has adopted ASU No. 2014-09, ''Revenue from Contracts with
Customers" beginning January 1, 2018. The only significant 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 fourth quarter of 2018 was
approximately US$6 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
fourth quarter of 2018 had been the same as it was in the fourth
quarter of 2017, or RMB6.61=US$1.00, US$ total revenues in the
fourth quarter of 2018 would have been US$504 million, or US$22
million more than GAAP total revenues, and down 1%
year-over-year.
|
[3] Search
and Search related advertising revenues exclude intra-Group
transactions.
|
Fiscal Year 2018 Highlights
- Total revenues were US$1.88
billion, up 1% compared with 2017.
- Brand advertising revenues were US$232
million, down 26% compared with 2017.
- Search and search related advertising revenues were
US$1.02 billion, up 28% compared with
2017.
- Online game revenues were US$390
million, down 13% compared with 2017.
- Operating loss for Sohu Video was US$140
million, compared with a loss of US$302 million in 2017.
- GAAP net loss attributable to Sohu.com Limited was US$161 million, compared with a net loss of
US$556 million in 2017. Non-GAAP net
loss attributable to Sohu.com Limited was US$237 million, compared with a net loss of
US$310 million in 2017.
Dr. Charles Zhang, Chairman and
CEO of Sohu.com Limited, commented, "During 2018, as we faced a
challenging macroeconomic environment, we focused our resources on
key mobile products and worked hard to improve operating
efficiencies. While annual revenues were largely flat compared with
2017, our bottom line performance was meaningfully improved thanks
to a variety of cost saving efforts. For Sohu Media Portal, daily
active users of Sohu News App, our flagship mobile product,
outpaced the industry's growth, benefitting from superior content
and continued upgrades of the recommendation engine. For Sohu
Video, we focused on original program production, providing users
unique and high quality dramas and shows. In the meantime, we
significantly cut spending on traditional TV programs and
successfully lowered the segment loss over 50% from 2017. In 2018,
Sogou's mobile search and mobile keyboard continued to gain user
traction while its leading AI capabilities have been not only
recognized in international contests, but also applied to new
commercial use cases. Lastly, Changyou delivered in-line financial
results supported by solid performance of TLBB PC and mobile games.
For 2019, Changyou will strengthen its R&D capabilities to
launch more hit games."
Fourth Quarter Financial Results
Revenues
Total revenues for the fourth quarter of 2018 were US$482 million, down 5% year-over-year and up 5%
quarter-over-quarter.
Total online advertising revenues, which include revenues from
the brand advertising and search and search-related
advertising businesses, for the fourth quarter of 2018 were
US$334 million, up 5% year-over-year
and 7% quarter-over-quarter.
Brand advertising revenues for the fourth quarter of 2018
totaled US$57 million, down 20%
year-over-year and flat quarter-over-quarter. The year-over-year
decrease was mainly due to decreases in video and real estate
advertising revenues.
Search and search-related advertising revenues for the
fourth quarter of 2018 were US$277
million, up 12% year-over-year and 8%
quarter-over-quarter.
Online game revenues for the fourth quarter of 2018 were
US$94 million, down 14%
year-over-year and 2% quarter-over-quarter. The year-over-year
decrease was due to the natural decline in revenue of the Company's
older games, including Legacy TLBB Mobile.
Gross Margin
Both GAAP and non-GAAP[4] gross margin
was 43% for the fourth quarter of 2018, compared
with 46% in the fourth quarter of 2017 and 43% in the third quarter
of 2018.
Both GAAP and non-GAAP gross margin for the online
advertising business for the fourth quarter of
2018 was 32%, compared with 37% in
the fourth quarter of 2017 and 32% in the
third quarter of 2018.
GAAP gross margin for the brand advertising business in the
fourth quarter of 2018 was 26%, compared with negative 16% in
the fourth quarter of 2017 and 23% in the
third quarter of 2018. Non-GAAP gross margin for the
brand advertising business was 26%, compared with negative 17%
in the fourth quarter of 2017 and 23% in the
third quarter of 2018. The year-over-year margin
improvement was mainly due to decreased video content cost and
impairment charges for video content cost recognized in the fourth
quarter of 2017.
Both GAAP and non-GAAP gross margin for the search and
search-related advertising business in the fourth quarter of
2018 was 34%, compared with 52% in the fourth quarter of 2017 and
34% in the third quarter of 2018. The year-over-year decrease
primarily resulted from increases in traffic acquisition costs
outpacing revenue growth.
Both GAAP and non-GAAP gross margin for online games in the
fourth quarter of 2018 was 85%, compared with 84% in the fourth
quarter of 2017 and 84% in the third 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; a one-time income tax expense
recognized in the fourth quarter of 2017 as a result of the
one-time transition tax (the "Toll Charge") imposed by the U.S. Tax
Cuts and Jobs Act signed into law on December 22, 2017 (the
"TCJA"); the subsequent re-evaluation for the fourth quarter of
2018 and adjustment of the tax expense previously recognized for
the Toll Charge; the resulting recognition of a previously
unrecognized tax benefit and recording of an uncertain tax position
related to the balance of the Toll Charge; and interest accrued in
relation to the previously unrecognized tax benefit. 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 fourth quarter of 2018, GAAP operating
expenses totaled US$254 million, down
8% year-over-year and up 2% quarter-over-quarter. Non-GAAP
operating expenses were US$252
million, down 1% year-over-year and up 2%
quarter-over-quarter. The year-over-year decrease in GAAP
operating expenses was mainly due to decreases in salary and
benefit expenses. Operating expenses for the fourth quarter of 2018
included an approximately US$16
million impairment charge recognized by Changyou related to
its 17173.com website business.
Operating Loss
GAAP operating loss for the fourth quarter of
2018 was US$48 million, compared
with an operating loss of US$41 million in the fourth quarter
of 2017 and an operating loss of US$49
million in the third quarter of 2018.
Non-GAAP operating loss for the fourth quarter of
2018 was US$46 million, compared with an operating loss
of US$22 million in the fourth quarter of 2017 and
an operating loss of US$47
million in the third quarter of 2018.
Other Income
Other income for the fourth quarter of 2018 was US$13 million, compared with other income of
US$4 million in the fourth quarter of
2017 and other income of US$29
million in the third quarter of 2018. The year-over-year
increase was mainly attributable to an increase in gain from
Sogou's short-term investments in the fourth quarter of 2018. The
quarter-over-quarter decrease was mainly attributable to Sogou's
US$18 million gain from one of its
equity investments in the third quarter of 2018.
Income Tax Expense
GAAP income tax benefit was US$70
million for the fourth quarter of 2018, compared with income
tax expense of US$234 million in the
fourth quarter of 2017 and income tax benefit of US$13 million in the third quarter of 2018.
Non-GAAP income tax expense was US$5
million for the fourth quarter of 2018, compared with income
tax expense of US$19 million in the
fourth quarter of 2017 and income tax benefit of US$12 million in the third quarter of 2018.
The change from GAAP income tax expense to income tax benefit
for the fourth quarter of 2018 from the fourth quarter of 2017 and
the increase in income tax benefit from the third quarter of 2018
mainly resulted from a one-time income tax expense recognized
in the fourth quarter of 2017 as a result of the one-time
transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and
Jobs Act signed into law on December 22, 2017 (the "TCJA");
the subsequent re-evaluation for the fourth quarter of 2018 and
adjustment of the tax expense previously recognized for the Toll
Charge; the resulting recognition of a previously unrecognized tax
benefit and recording of an uncertain tax position related to the
balance of the Toll Charge; and interest accrued in relation to the
previously unrecognized tax benefit[5].
[5] The
revised treatment of the Toll Charge is based on management's
estimate of the tax benefit and related uncertain tax position as
of December 31, 2018, which is management's estimate pursuant to
SEC Staff Accounting Bulletin No. 118, and the uncertain tax
position related to the Toll Charge may be subject to further
adjustment in subsequent periods based on future circumstances,
such as final IRS Toll Charge regulations published in January
2019, and on management's judgment and estimates.
|
Net Income/(Loss)
GAAP net income attributable to Sohu.com Limited for the
fourth quarter of 2018 was US$15 million, or
US$0.37 income per
fully-diluted ADS, compared with a net loss of
US$295 million in the fourth
quarter of 2017 and a net loss of US$35
million in the third quarter of 2018. Non-GAAP
net loss attributable to Sohu.com Limited for the fourth
quarter of 2018 was US$59 million, or US$1.50 loss per fully-diluted ADS, compared
with a net loss of US$78 million in the fourth
quarter of 2017 and a net loss of US$32 million in the third quarter of
2018.
Liquidity
As of December 31, 2018, cash and
cash equivalents and short-term investments held by the Sohu Group,
minus short-term bank loans, were US$1.73
billion, compared with US$2.12
billion as of December 31,
2017.
Fiscal Year 2018 Financial Results
Revenues
Total revenues for 2018 were US$1.88
billion, up 1% compared with 2017.
Total online advertising revenues, which include revenues from
the brand advertising and search and search-related
advertising businesses, for 2018 were US$1.25 billion, up 12% compared with 2017.
Brand advertising revenues for 2018 were US$232 million, down 26% compared with 2017. The
decrease was mainly due to declines in portal, video and real
estate advertising revenues.
Search and search-related advertising revenues for
2018 were US$1.02 billion,
up 28% compared with 2017.
Online game revenues for 2018 were US$390
million, down 13% compared with 2017. The year-over-year
decrease was mainly from Legacy TLBB Mobile, which was launched in
the second quarter of 2017, and TLBB 3D.
Gross Margin
Both GAAP and non-GAAP gross margin was 43% for 2018, compared
with 44% in 2017.
Both GAAP and non-GAAP gross margin for the online
advertising business for 2018 was 32%, compared
with 30% in 2017.
Both GAAP and non-GAAP gross margin for the brand advertising
business for 2018 was 20%, compared
with negative 16% in 2017. The increase was mainly
attributable to a decrease in video content cost and impairment
charges recognized in 2017.
GAAP gross margin for the search and search-related
advertising business for 2018 was 35%, compared with
48% in 2017. Non-GAAP gross margin for the search and
search-related advertising business
for 2018 was 35%, compared with 49% in 2017.
The year-over-year decrease primarily resulted from increases in
traffic acquisition costs outpacing revenue growth.
Both GAAP and non-GAAP gross margin for online games for 2018
was 84%, compared with 86% in 2017.
Operating Expenses
For 2018, GAAP operating expenses totaled US$972 million,
down 6% compared with 2017. Non-GAAP operating expenses were
US$970 million, down 2% compared with 2017. The change
was primarily attributable to impairment charges of approximately
US$87 million recognized by Changyou
in 2017 related to the MoboTap business, offset by increased
product and development expenses.
Operating Loss
GAAP operating loss for 2018 was US$161 million, compared with an operating loss
of US$209 million in 2017.
Non-GAAP operating loss for 2018 was US$158 million,
compared with an operating loss of US$164 million in
2017.
Income Tax Expense
GAAP income tax benefit for 2018 was US$13 million, compared with income tax expense
of US$273 million in 2017. Non-GAAP income tax
expense for 2018 was US$62 million,
compared with income tax expense of US$58 million in
2017. The change from GAAP income tax expense to income tax benefit
for 2018 from 2017 resulted from management's re-evaluation and
adjustment of the tax expense previously recognized for the Toll
Charge in the fourth quarter of 2017.
Net Loss
GAAP net loss attributable to Sohu.com Limited for
2018 was US$161 million, or US$4.13 loss per fully-diluted ADS, compared
with a net loss of US$556
million in 2017. Non-GAAP net loss attributable to
Sohu.com Limited for 2018 was US$237
million, or US$6.08 loss per fully-diluted ADS,
compared with a net loss of US$310 million in
2017.
Business Outlook
For the first quarter of 2019, Sohu estimates:
- Total revenues to be between US$390
million and US$415
million.
- Brand advertising revenues to be between US$45 million and
US$50 million; this implies an annual decrease of 11%
to 20% and a sequential decrease of 13% to 21%.
- Sogou revenues to be between US$231
million and US$241 million;
this implies an annual decrease of 3% to 7% and a
sequential decrease of 19% to 22%.
- Online game revenues to be between US$80
million and US$90 million; this implies an annual
decrease of 15% to 24% and a sequential decrease of 4%
to 15%.
- Non-GAAP net loss attributable to Sohu.com
Limited. to be between US$50 million and
US$60 million, and non-GAAP loss per fully-diluted ADS to be
between US$1.30 and US$1.55.
GAAP net loss attributable to Sohu.com Limited to be
between US$55 million and US$65
million, and GAAP loss per fully-diluted ADS to be
between US$1.40 and US$1.65.
For the first quarter 2019 guidance, the Company has
adopted a presumed exchange rate of RMB6.90=US$1.00, as
compared with the actual exchange rate of approximately
RMB6.36=US$1.00 for the first quarter of 2018, and
RMB6.91=US$1.00 for the fourth 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; the one-time income tax
expense recognized in the fourth quarter of 2017 as a result of the
Toll Charge imposed by the TCJA and the subsequent re-evaluation
for the fourth quarter of 2018 and adjustment of the tax expense
previously recognized for the Toll Charge; the resulting
recognition of a previously unrecognized tax benefit and recording
of an uncertain tax position related to the balance of the Toll
Charge; and interest expense recognize in connection with the Toll
Charge. 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 income tax expense,
income tax benefit, uncertain tax position, and interest recognized
in relation to the Toll Charge 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; the one-time income tax expense recognized in the
fourth quarter of 2017 as a result of the Toll Charge imposed by
the TCJA and the subsequent re-evaluation for the fourth quarter of
2018 and adjustment of the tax expense previously recognized for
the Toll Charge; the resulting recognition of a previously
unrecognized tax benefit and recording of an uncertain tax position
related to the balance of the Toll Charge; and interest expense
recognized in connection with the Toll Charge 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 one-time income tax expense recognized in the fourth
quarter of 2017 as a result of the Toll Charge imposed by the TCJA
and the subsequent re-evaluation for the fourth quarter of 2018 and
adjustment of the tax expense previously recognized for the Toll
Charge, the resulting recognition of a previously unrecognized tax
benefit and recording of an uncertain tax position related to the
balance of the Toll Charge, and interest expense recognized in
connection with the Toll Charge.
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. TCJA. 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,
February 1, 2019 (9:30 p.m. Beijing/Hong
Kong time, February 1, 2019)
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 February 1
through February 8, 2019. The dial-in details for the
telephone replay are:
International:
|
+1-646-254-3697
|
Passcode:
|
9187839
|
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-third 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 SHARE AMOUNTS)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
Dec. 31,
2018
|
|
Sep. 30,
2018
|
|
Dec. 31,
2017
|
|
Dec.
31, 2018
|
|
Dec.
31, 2017
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Online
advertising
|
|
|
|
|
|
|
|
|
|
|
|
Brand
advertising
|
$
|
57,222
|
$
|
56,958
|
$
|
71,751
|
$
|
231,945
|
$
|
314,066
|
|
Search and
search-related advertising
|
|
276,666
|
|
255,130
|
|
247,054
|
|
1,022,456
|
|
801,199
|
|
Subtotal
|
|
333,888
|
|
312,088
|
|
318,805
|
|
1,254,401
|
|
1,115,265
|
|
Online
games
|
|
94,106
|
|
95,971
|
|
109,383
|
|
389,788
|
|
449,533
|
|
Others
|
|
54,204
|
|
51,763
|
|
81,442
|
|
238,840
|
|
296,164
|
|
Total revenues
|
|
482,198
|
|
459,822
|
|
509,630
|
|
1,883,029
|
|
1,860,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Online
advertising
|
|
|
|
|
|
|
|
|
|
|
|
Brand
advertising (includes stock-based
compensation expense of $-34, $-14, $-1,034, $-707 and
$-415, respectively)
|
|
42,485
|
|
44,059
|
|
82,932
|
|
184,474
|
|
363,592
|
|
Search and search-related (includes stock-based
compensation expense of $-48, $235,
$535, $669 and
$540, respectively)
|
|
183,678
|
|
167,664
|
|
118,683
|
|
664,164
|
|
412,904
|
|
Subtotal
|
|
226,163
|
|
211,723
|
|
201,615
|
|
848,638
|
|
776,496
|
|
Online games
(includes stock-based compensation
expense of $7, $-3, $1, $-31 and $73, respectively)
|
|
14,499
|
|
14,902
|
|
17,097
|
|
60,981
|
|
62,775
|
|
Others
|
|
35,633
|
|
33,716
|
|
56,987
|
|
162,102
|
|
195,895
|
|
Total cost of
revenues
|
|
276,295
|
|
260,341
|
|
275,699
|
|
1,071,721
|
|
1,035,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
205,903
|
|
199,481
|
|
233,931
|
|
811,308
|
|
825,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Product development
(includes stock-based
compensation expense of $919, $2,362, $14,048, $6,132
and $$23,547, respectively)
|
|
108,611
|
|
107,164
|
|
122,767
|
|
441,161
|
|
412,173
|
|
Sales and marketing
(includes stock-based
compensation expense of $216, $201, $3,976, $405 and
$5,915, respectively)
|
|
102,112
|
|
106,056
|
|
116,179
|
|
400,579
|
|
413,045
|
|
General and administrative
(includes stock-based
compensation expense of $470, $-1,062, $1,486, $-4,372
and $15,816, respectively)
|
|
26,828
|
|
35,078
|
|
35,829
|
|
113,724
|
|
122,874
|
|
Goodwill impairment and
impairment of intangibles via
acquisitions of businesses
|
|
16,369[6]
|
|
-
|
|
-
|
|
16,369
|
|
86,882
|
|
Total operating expenses
|
|
253,920
|
|
248,298
|
|
274,775
|
|
971,833
|
|
1,034,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(48,017)
|
|
(48,817)
|
|
(40,844)
|
|
(160,525)
|
|
(209,178)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
13,073
|
|
28,822
|
|
4,321
|
|
64,167
|
|
6,658
|
|
Interest
income
|
|
6,457
|
|
4,658
|
|
7,357
|
|
24,079
|
|
24,138
|
|
Interest
expense
|
|
(5,279)
|
|
(6,174)
|
|
(2,567)
|
|
(17,538)
|
|
(4,088)
|
|
Exchange
difference
|
|
(378)
|
|
7,970
|
|
(4,059)
|
|
9,026
|
|
(14,385)
|
|
Loss before income
tax expense
|
|
(34,144)
|
|
(13,541)
|
|
(35,792)
|
|
(80,791)
|
|
(196,855)
|
|
Income tax
expense/(benefit)
|
|
(69,557)
|
|
(13,145)
|
|
233,785
|
|
(13,432)
|
|
273,148
|
|
Net
income/(loss)
|
|
35,413
|
|
(396)
|
|
(269,577)
|
|
(67,359)
|
|
(470,003)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to the noncontrolling
interest
shareholders
|
|
20,773
|
|
33,870
|
|
24,558
|
|
92,723
|
|
84,523
|
|
Net loss attributable
to Sohu.com Limited
|
|
14,640
|
|
(34,266)
|
|
(294,135)
|
|
(160,082)
|
|
(554,526)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) per ADS attributable to Sohu.com
Limited
|
$
|
0.37
|
$
|
(0.88)
|
$
|
(7.56)
|
$
|
(4.11)
|
$
|
(14.27)
|
|
ADS used in computing
basic net loss per ADS attributable
to Sohu.com Limited
|
|
39,069
|
|
38,936
|
|
38,888
|
|
38,959
|
|
38,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income/(loss) per ADS attributable to Sohu.com
Limited
|
$
|
0.37
|
$
|
(0.89)
|
$
|
(7.57)
|
$
|
(4.13)
|
$
|
(14.30)
|
|
ADS used in computing
diluted net loss per ADS
attributable to
Sohu.com Limited
|
|
39,234
|
|
38,936
|
|
38,888
|
|
38,959
|
|
38,858
|
|
|
|
[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 fourth quarter of 2018, and the profit
outlook of the business remained uncertain. In addition, due to
more stringent regulations, there was a significant decline in the
number of new game launches in the market, so the number of games
marketed on 17173.com also fell. As a result, Changyou determined
that the future performance of 17173.com would likely fall short of
expectations, and that impairment charges were required.
|
|
SOHU.COM
LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
As of Dec. 31,
2018
|
|
As of Dec. 31,
2017
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
819,713
|
$
|
1,366,115
|
Restricted
cash
|
|
5,974
|
|
1,908
|
Short-term
investments
|
|
1,041,395
|
|
818,934
|
Accounts receivable, net
|
|
242,361
|
|
250,468
|
Prepaid and other current assets
|
|
207,117
|
|
192,676
|
Total current assets
|
|
2,316,560
|
|
2,630,101
|
Long-term
investments
|
|
108,356
|
|
90,145
|
Fixed assets,
net
|
|
504,998
|
|
529,717
|
Goodwill
|
|
53,263
|
|
71,565
|
Intangible assets,
net
|
|
24,118
|
|
23,060
|
Restricted time
deposits[7]
|
|
244,179
|
|
271
|
Prepaid non-current
assets
|
|
3,107
|
|
4,211
|
Other
assets
|
|
43,928
|
|
40,169
|
Total assets
|
$
|
3,298,509
|
$
|
3,389,239
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
$
|
295,954
|
$
|
288,394
|
Accrued liabilities
|
|
301,915
|
|
343,106
|
Receipts in advance and deferred revenue
|
|
124,782
|
|
127,758
|
Accrued salary and benefits
|
|
112,898
|
|
102,087
|
Taxes payable
|
|
93,569
|
|
96,541
|
Short-term bank loans
|
|
129,677
|
|
61,216
|
Other short-term liabilities
|
|
124,085
|
|
136,300
|
Total current liabilities
|
$
|
1,182,880
|
$
|
1,155,402
|
|
|
|
|
|
Long-term accounts
payable
|
|
752
|
|
1,157
|
Long-term Bank
Loans
|
|
302,323
|
|
122,433
|
Long-term tax
liabilities
|
|
259,603
|
|
293,010
|
Total long-term
liabilities
|
$
|
562,678
|
$
|
416,600
|
Total liabilities
|
$
|
1,745,558
|
$
|
1,572,002
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Sohu.com Limited shareholders' equity
|
|
588,840
|
|
750,634
|
Noncontrolling Interest
|
|
964,111
|
|
1,066,603
|
Total shareholders' equity
|
$
|
1,552,951
|
$
|
1,817,237
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
3,298,509
|
$
|
3,389,239
|
|
[7] In
October 2018, to roll over matured offshore financing facilities,
Changyou entered into a bank loan agreement pursuant to which it
has drawn down U.S. dollar-denominated loans in the aggregate
amount of US$220 million that are secured by restricted time
deposits of RMB1.7 billion (approximately US$244 million). All of
the loans carry a floating rate of interest based on the LIBOR. All
of the loans are due to be repaid, and accordingly the restricted
time deposits released, in 2021.
|
SOHU.COM
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
Three Months
Ended Dec. 31, 2018
|
|
Three Months
Ended Sep. 30, 2018
|
|
Three Months
Ended Dec. 31, 2017
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(34)
|
(a)
|
|
|
|
|
(14)
|
(a)
|
|
|
|
|
(1,034)
|
(a)
|
|
Brand advertising
gross profit
|
$
|
14,737
|
$
|
(34)
|
$
|
14,703
|
$
|
12,899
|
$
|
(14)
|
$
|
12,885
|
$
|
(11,181)
|
$
|
(1,034)
|
$
|
(12,215)
|
Brand advertising
gross
margin
|
|
26%
|
|
|
|
26%
|
|
23%
|
|
|
|
23%
|
|
-16%
|
|
|
|
-17%
|
|
|
|
|
(48)
|
(a)
|
|
|
|
|
235
|
(a)
|
|
|
|
|
535
|
(a)
|
|
Search and
search-related
advertising gross profit
|
$
|
92,988
|
$
|
(48)
|
$
|
92,940
|
$
|
87,466
|
$
|
235
|
$
|
87,701
|
$
|
128,371
|
$
|
535
|
$
|
128,906
|
Search and
search-related
advertising gross margin
|
|
34%
|
|
|
|
34%
|
|
34%
|
|
|
|
34%
|
|
52%
|
|
|
|
52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(82)
|
(a)
|
|
|
|
|
221
|
(a)
|
|
|
|
|
(499)
|
(a)
|
|
Online advertising
gross profit
|
$
|
107,725
|
$
|
(82)
|
$
|
107,643
|
$
|
100,365
|
$
|
221
|
$
|
100,586
|
$
|
117,190
|
$
|
(499)
|
$
|
116,691
|
Online advertising
gross
margin
|
|
32%
|
|
|
|
32%
|
|
32%
|
|
|
|
32%
|
|
37%
|
|
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
(a)
|
|
|
|
|
(3)
|
(a)
|
|
|
|
|
1
|
(a)
|
|
Online games gross
profit
|
$
|
79,607
|
$
|
7
|
$
|
79,614
|
$
|
81,069
|
$
|
(3)
|
$
|
81,066
|
$
|
92,286
|
$
|
1
|
$
|
92,287
|
Online games gross
margin
|
|
85%
|
|
|
|
85%
|
|
84%
|
|
|
|
84%
|
|
84%
|
|
|
|
84%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others gross
profit
|
$
|
18,571
|
$
|
-
|
(a) $
|
18,571
|
$
|
18,047
|
$
|
-
|
(a) $
|
18,047
|
$
|
24,455
|
$
|
-
|
(a) $
|
24,455
|
Others gross
margin
|
|
34%
|
|
|
|
34%
|
|
35%
|
|
|
|
35%
|
|
30%
|
|
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(75)
|
(a)
|
|
|
|
|
218
|
(a)
|
|
|
|
|
(498)
|
(a)
|
|
Gross
profit
|
$
|
205,903
|
$
|
(75)
|
$
|
205,828
|
$
|
199,481
|
$
|
218
|
$
|
199,699
|
$
|
233,931
|
$
|
(498)
|
$
|
233,433
|
Gross
margin
|
|
43%
|
|
|
|
43%
|
|
43%
|
|
|
|
43%
|
|
46%
|
|
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
253,920
|
$
|
(1,605)
|
(a) $
|
252,315
|
$
|
248,298
|
$
|
(1,501)
|
(a) $
|
246,797
|
$
|
274,775
|
$
|
(19,510)
|
(a) $
|
255,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,530
|
(a)
|
|
|
|
|
1,719
|
(a)
|
|
|
|
|
19,012
|
(a)
|
|
Operating
loss
|
$
|
(48,017)
|
$
|
1,530
|
$
|
(46,487)
|
$
|
(48,817)
|
$
|
1,719
|
$
|
(47,098)
|
$
|
(40,844)
|
$
|
19,012
|
$
|
(21,832)
|
Operating
margin
|
|
-10%
|
|
|
|
-10%
|
|
-11%
|
|
|
|
-10%
|
|
-8%
|
|
|
|
-4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit/(expense)
|
$
|
69,557
|
$
|
(74,160)
|
(c,d)$
|
(4,603)
|
$
|
13,145
|
$
|
(1,286)
|
(c,d)$
|
11,859
|
$
|
(233,785)
|
$
|
214,819
|
(d)$
|
(18,966)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,530
|
(a)
|
|
|
|
|
1,719
|
(a)
|
|
|
|
|
19,012
|
(a)
|
|
|
|
|
|
267
|
(c)
|
|
|
|
|
3,861
|
(c)
|
|
|
|
|
-
|
|
|
|
|
|
|
(74,071)
|
(d)
|
|
|
|
|
-
|
|
|
|
|
|
214,819
|
(d)
|
|
Net income/(loss)
before non-
controlling interest
|
$
|
35,413
|
|
(72,274)
|
|
(36,861)
|
$
|
(396)
|
$
|
5,580
|
$
|
5,184
|
$
|
(269,577)
|
$
|
233,831
|
$
|
(35,746)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,530
|
(a)
|
|
|
|
|
1,719
|
(a)
|
|
|
|
|
19,012
|
(a)
|
|
|
|
|
|
(976)
|
(b)
|
|
|
|
|
(2,571)
|
(b)
|
|
|
|
|
(17,545)
|
(b)
|
|
|
|
|
|
267
|
(c)
|
|
|
|
|
3,861
|
(c)
|
|
|
|
|
-
|
|
|
|
|
|
|
(74,071)
|
(d)
|
|
|
|
|
-
|
|
|
|
|
|
214,819
|
(d)
|
|
Net income/(loss)
attributable
to Sohu.com Limited for
diluted net loss per ADS
|
$
|
14,511
|
|
(73,250)
|
|
(58,739)
|
$
|
(34,685)
|
$
|
3,009
|
|
(31,676)
|
$
|
(294,543)
|
$
|
216,286
|
|
(78,257)
|
Diluted net income/(loss) per
ADS attributable to Sohu.com
Limited
|
$
|
0.37
|
|
|
|
(1.50)
|
$
|
(0.89)
|
|
|
|
(0.81)
|
$
|
(7.57)
|
|
|
|
(2.01)
|
Shares used in
computing
diluted net loss per ADS
attributable to Sohu.com
Limited
|
|
39,234
|
|
|
|
39,069
|
|
38,936
|
|
|
|
38,936
|
|
38,888
|
|
|
|
38,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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, 2018
|
|
Twelve Months
Ended Dec. 31, 2017
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(707)
|
(a)
|
|
|
|
|
(415)
|
(a)
|
|
Brand advertising
gross profit
|
$
|
47,471
|
$
|
(707)
|
$
|
46,764
|
$
|
(49,526)
|
$
|
(415)
|
$
|
(49,941)
|
Brand advertising
gross
margin
|
|
20%
|
|
|
|
20%
|
|
-16%
|
|
|
|
-16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
669
|
(a)
|
|
|
|
|
540
|
(a)
|
|
Search and
search-related
advertising gross profit
|
$
|
358,292
|
$
|
669
|
$
|
358,961
|
$
|
388,295
|
$
|
540
|
$
|
388,835
|
Search and
search-related
advertising gross margin
|
|
35%
|
|
|
|
35%
|
|
48%
|
|
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38)
|
(a)
|
|
|
|
|
125
|
(a)
|
|
Online advertising
gross profit
|
$
|
405,763
|
$
|
(38)
|
$
|
405,725
|
$
|
338,769
|
$
|
125
|
$
|
338,894
|
Online advertising
gross
margin
|
|
32%
|
|
|
|
32%
|
|
30%
|
|
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31)
|
(a)
|
|
|
|
|
73
|
(a)
|
|
Online games gross
profit
|
$
|
328,807
|
$
|
(31)
|
$
|
328,776
|
$
|
386,758
|
$
|
73
|
$
|
386,831
|
Online games gross
margin
|
|
84%
|
|
|
|
84%
|
|
86%
|
|
|
|
86%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others gross
profit
|
$
|
76,738
|
$
|
-
|
(a)$
|
76,738
|
$
|
100,269
|
$
|
-
|
(a)$
|
100,269
|
Others gross
margin
|
|
32%
|
|
|
|
32%
|
|
34%
|
|
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(69)
|
(a)
|
|
|
|
|
198
|
(a)
|
|
Gross
profit
|
$
|
811,308
|
$
|
(69)
|
$
|
811,239
|
$
|
825,796
|
$
|
198
|
$
|
825,994
|
Gross
margin
|
|
43%
|
|
|
|
43%
|
|
44%
|
|
|
|
44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
971,833
|
$
|
(2,165)
|
(a)$
|
969,668
|
$
|
1,034,974
|
$
|
(45,278)
|
(a)$
|
989,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,096
|
(a)
|
|
|
|
|
45,476
|
(a)
|
|
Operating
loss
|
$
|
(160,525)
|
$
|
2,096
|
$
|
(158,429)
|
$
|
(209,178)
|
$
|
45,476
|
$
|
(163,702)
|
Operating
margin
|
|
-9%
|
|
|
|
-8%
|
|
-11%
|
|
|
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit/(expense)
|
$
|
13,432
|
$
|
(75,281)
|
(d,e)$
|
(61,849)
|
$
|
(273,148)
|
$
|
214,819
|
(d)$
|
(58,329)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,096
|
(a)
|
|
|
|
|
45,476
|
(a)
|
|
|
|
|
|
-
|
|
|
|
|
|
5,754
|
(c)
|
|
|
|
|
|
(74,071)
|
(d)
|
|
|
|
|
214,819
|
(d)
|
|
|
|
|
|
3,634
|
(e)
|
|
|
|
|
-
|
|
|
Net loss before
non-
controlling interest
|
$
|
(67,359)
|
$
|
(68,341)
|
$
|
(135,700)
|
$
|
(470,003)
|
$
|
266,049
|
$
|
(203,954)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,096
|
(a)
|
|
|
|
|
45,476
|
(a)
|
|
|
|
|
|
(7,574)
|
(b)
|
|
|
|
|
(20,624)
|
(b)
|
|
|
|
|
|
-
|
|
|
|
|
|
5,754
|
(c)
|
|
|
|
|
|
(74,071)
|
(d)
|
|
|
|
|
214,819
|
(d)
|
|
|
|
|
|
3,634
|
(e)
|
|
|
|
|
|
-
|
|
Net loss
attributable to
Sohu.com Limited for diluted
net loss per ADS
|
$
|
(160,959)
|
|
(75,915)
|
|
(236,874)
|
$
|
(555,791)
|
$
|
245,425
|
$
|
(310,366)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per ADS
attributable to Sohu.com
Limited.
|
$
|
(4.13)
|
|
|
$
|
(6.08)
|
$
|
(14.30)
|
|
|
$
|
(7.99)
|
ADS used in
computing
diluted net loss per ADS
attributable to Sohu.com
Limited
|
|
38,959
|
|
|
|
38,959
|
|
38,858
|
|
|
|
38,858
|
|
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
impairment loss of available-for-sale securities of an investee
that is unrelated to the Company's current business
operations.
|
(d) To adjust for the effect
of the U.S. TCJA.
|
(e) To adjust for a
change in the fair value of the Company's investment in Hylink and
the income tax effect.
|
View original
content:http://www.prnewswire.com/news-releases/sohucom-reports-fourth-quarter-and-fiscal-year-2018-unaudited-financial-results-300788058.html
SOURCE Sohu.com Ltd.