Sohu.com Limited Reports Financial Results for FY 2024
Sohu.com Limited (NASDAQ: SOHU), a prominent online media platform and gaming company, has released its unaudited financial results for the fourth quarter and fiscal year that culminated recently.
Quarterly Highlights
In the fourth quarter, Sohu's total revenues reached approximately US$135 million, marking a 5% decline year-over-year and an 11% drop compared to the previous quarter. The breakdown of revenue sources revealed:
Revenue Breakdown
- Brand advertising revenues were around US$19 million, decreasing by 7% year-over-year but reflecting a modest increase of 1% from the prior quarter.
- Online game revenues accounted for US$110 million, which was down 4% compared to the same period last year and fell by 14% sequentially.
Yearly Financial Overview
Across the fiscal year of 2024, total revenues amounted to approximately US$598 million, remaining flat compared to the previous year. Details include:
- Brand advertising revenues noted a significant drop, totaling US$73 million, a 17% reduction from 2023.
- Conversely, online game revenues showed positive growth, reaching US$502 million, which is a 5% increase year-over-year.
Key Operational Metrics
Reviewing the gross margins, both GAAP and non-GAAP results reflected a margin of 73%, slightly lower than 76% in the prior year. Additionally:
Operating Expenses
- For the fourth quarter, total operating expenses were around US$123 million, down 8% from the previous year.
- This reduction was attributed mainly to lower product development costs at Changyou, a subsidiary that develops online games.
Management Insights
Dr. Charles Zhang, Chairman and CEO, stated, "Our brand advertising revenues achieved the upper end of our guidance in Q4 2024. The performance within our online game sector exceeded expectations. We continuously enhance our media platform, optimize algorithms, and manage our budgets effectively to drive user engagement and increase monetization opportunities. Our online gaming titles continue to perform well through the release of high-quality new games and updates to existing products."
Forward-Looking Statements
Looking ahead, Sohu estimates the following for the first quarter of 2025:
- Brand advertising revenues will fall between US$13 million and US$14 million, representing a potential yearly decrease of 13% to 19%.
- Online game revenues are projected to be within the range of US$105 million to US$115 million, indicating a possible decline of 2% to 11% annualized.
- Non-GAAP net loss for the quarter is expected between US$16 million and US$26 million, while GAAP loss may range from US$20 million to US$30 million.
About Sohu.com Limited
Sohu.com Limited (NASDAQ: SOHU), founded by Dr. Charles Zhang in the 1990s, stands as a leading online media and gaming platform in China. With a diverse portfolio that includes Sohu News, Sohu Video, and varying online gaming initiatives through its subsidiary Changyou, Sohu provides extensive digital content to millions of users.
Contact Information
For investor inquiries:
China:
Ms. Huang, Pu
Tel: +86 (10) 6272-6645
USA:
Ms. Bergkamp, Linda Christensen
Tel: +1 (480) 614-3004
Frequently Asked Questions
What were the total revenues for Sohu in the fourth quarter of 2024?
Total revenues were approximately US$135 million.
How much did Sohu lose in net profit during FY 2024?
For fiscal year 2024, Sohu reported a net loss of US$100 million.
What is the outlook for first quarter 2025 brand advertising revenues?
Brand advertising revenues are projected to be between US$13 million and US$14 million.
Who is the CEO of Sohu.com Limited?
The current CEO is Dr. Charles Zhang.
How has online game revenue performed in FY 2024?
Online game revenues increased to US$502 million, up 5% compared to 2023.
