Sohucom Limited Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Sohu.com Limited Reports Q2 2024 Financial Results
Sohu.com Limited (NASDAQ: SOHU) has released its financial results for the second quarter of 2024, providing a detailed overview of its performance across key financial and operational metrics.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | $172M | $152M | $139M | +13% | +24% |
| Earnings Per Share (EPS) | -$0.98 | -$0.54 | -$0.66 | -80.37% | -48.48% |
| Non-GAAP Net Loss | -$34M | -$80M | -$22M | +57.5% | -54.5% |
Interpretation: Sohu.com Limited experienced growth in revenue both year-over-year (YoY) and quarter-over-quarter (QoQ). However, the net loss widened, and the earnings per share (EPS) were significantly lower compared to the previous year and quarter.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | QoQ Change | Previous Guidance | Deviation from Guidance |
|---|---|---|---|---|---|
| Brand Advertising | $20M | $24.1M | +24% | Close to guidance | Met |
| Online Games | $147M | $118.5M | +25% | Exceeded guidance | Exceeded |
| Sohu Media and Sohu Video | $24M | $32M | -25% | N/A | N/A |
Interpretation: The online games segment exceeded prior guidance with strong QoQ performance, demonstrating resilience and adaptability in Sohu's core gaming business. Conversely, the brand advertising and media segments encountered softer performance, consistent with general macroeconomic challenges impacting ad spending.
Management Comments
Charles Zhang, CEO: "In the second quarter of 2024, we hit the high end of our prior guidance in brand advertising revenues, while our online game revenues came in well above expectations. We continually strengthen our brand influence through innovative marketing campaigns and diverse monetization opportunities."
Joanna Lv, CFO: "Our gaming business displayed strong quarterly revenues, driven by the stable performance of the TLBB series and the successful launch of the new Westward Journey game. We will continue to focus on optimizing our user experience to foster growth."
Share Repurchase Program
Sohu has repurchased $2.3 million American Depositary Shares (ADS) at an aggregate cost of approximately $26 million as of August 1, 2024, continuing the share repurchase program.
Forward Guidance
For Q3 2024, Sohu.com expects: - Brand advertising revenues to range between $70 million and $90 million. - Online game revenues to range between $104 million and $114 million. - Non-GAAP net loss attributable to Sohu.com Limited to be between $30 million and $40 million. - GAAP net loss attributable to Sohu.com Limited to be between $34 million and $40 million.
Stock Price Movement
Following the earnings release, Sohu’s stock saw a post-event price increment of approximately 1.31%.
Summary: Sohu.com Limited displayed robust revenue growth in its gaming segment, despite broader challenges in advertising revenue. The company remains committed to optimizing user experiences and investing in high-quality content and gaming products. Forward guidance suggests a cautious yet optimistic outlook.
The report has been organized into a clear and concise format suitable for investors.
