BEIJING, Oct. 24, 2016 /PRNewswire/ -- Sohu.com Inc. (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, 2016.
Third Quarter Highlights
- Total revenues were US$411 million[1], down 21% year-over-year and 2%
quarter-over-quarter.
- Brand advertising revenues were US$111 million, down 27% year-over-year and 2%
quarter-over-quarter.
- Sogou[2] revenues were US$166 million, up 2% year-over-year and down 6%
quarter-over-quarter.
- Online game revenues were US$99 million, down 35% year-over-year and largely flat
quarter-over-quarter.
- GAAP net loss attributable to Sohu.com Inc. was US$75 million, or US$1.94 loss per fully-diluted share.
- Non-GAAP[3] net loss attributable to Sohu.com Inc. was US$65 million, or
US$1.68 loss per fully-diluted share.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc., commented, "In the third quarter, the
Group total revenues reached our prior guidance amid challenging operating climate that mainly affected our online advertising
businesses. By business unit, for Sohu Media Portal, we strived to bring users high quality and enriched content while continued
to optimize Sohu News App design. Sohu Video accelerated investment in self-developed content that would benefit our subscription
business and help improve the cost structure. For Sogou, it continued to enhance its vertical search capability while the mobile
search traffic maintained strong momentum. Changyou delivered better-than-expected results as its existing games performed
steadily while the development of new mobile games was well on track."
Mr. Xiaochuan Wang, CEO of Sogou, commented, "In the third quarter, Sogou continued its efforts
in product differentiation and focused on AI-powered technology innovation. Traffic share and revenue were trending higher.
Mobile search traffic more than doubled from a year ago and grew 16% sequentially. Financially, quarterly total revenues reached
US$166 million, or RMB1.11 billion, up 9% year-over-year in RMB
terms."
[1] For the third quarter of 2016, on yearly basis, depreciation
of the RMB against the U.S. dollar impacted our reported financial results. Should the exchange rate of RMB6.26=US$1.00
be used as the same of the third quarter of 2015, total revenues in the third quarter of 2016 would have been US$437
million, or US$26 million higher than the GAAP total revenue, or down 16% year-over-year.
|
[2] Sogou operates the search and search-related business and
offers Internet value-added services ("IVAS") with respect to Web games developed by third-party developers. In the
statements of operations, revenues from search and search-related services are recorded as "Search and search-related"
revenue, and revenues from IVAS are recorded as "Others" revenue.
|
[3] Non-GAAP results exclude 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 of Sogou. 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."
|
Third Quarter Financial Results
Revenues
Total revenues for the third quarter of 2016 were US$411 million, down 21% year-over-year and 2%
quarter-over-quarter.
Total online advertising revenues, which include revenues from the brand advertising and search and search-related businesses,
for the third quarter of 2016 were US$262 million, down 13% year-over-year and 4%
quarter-over-quarter.
Brand advertising revenues for the third quarter of 2016 totaled US$111 million, down 27%
year-over-year and 2% quarter-over-quarter. The year-over-year decrease was mainly attributable to the decrease in the video
advertising businesses. Revenues of Sohu Media Portal, or Sohu.com excluding Sohu Video, were US$48
million, down 6% year-over-year and up 2% quarter-over-quarter. Revenues of Sohu Video were US$25
million, down 54% year-over-year and 20% quarter-over-quarter.
Search and search-related revenues for the third quarter of 2016 were US$151 million, up 2%
year-over-year and down 6% quarter-over-quarter. The quarter-over-quarter decrease was largely due to a negative impact from new
regulations with respect to search advertising.
Online game revenues for the third quarter of 2016 were US$99 million, down 35% year-over-year
and largely flat quarter-over-quarter. The year-over-year decrease was mainly due to the natural decline in revenues of
older games, such as TLBB and TLBB 3D, and a decrease in Web game revenues upon the completion of the sale of the 7Road business
during the third quarter of 2015.
Gross Margin
Both GAAP and non-GAAP gross margin was 46% for the third quarter of 2016, compared with 59% in the third quarter of 2015 and
49% in the second quarter of 2016.
Both GAAP and non-GAAP gross margin for the online advertising business for the third quarter of 2016 was 32%, compared with
49% in the third quarter of 2015 and 39% in the second quarter of 2016.
Both GAAP and non-GAAP gross margin for the brand advertising business in the third quarter of 2016 was 8%, compared with 40%
in the third quarter of 2015 and 17% in the second quarter of 2016. The year-over-year decrease was mainly due to decreased video
revenues. The quarter-over-quarter decrease was mainly due to an increase in video content costs.
Both GAAP and non-GAAP gross margin for the search and search-related business in the third quarter of 2016 was 49%, compared
with 58% in the third quarter of 2015 and 55% in the second quarter of 2016. The decreases were mainly due to higher traffic
acquisition cost as a percentage of search and search-related revenues.
Both GAAP and non-GAAP gross margin for online games in the third quarter of 2016 was 76%, compared with 77% in the third
quarter of 2015 and 74% in the second quarter of 2016. The quarter-over-quarter increase was due to a smaller revenue
contribution from mobile games, which typically require additional revenue-sharing payments.
Operating Expenses
For the third quarter of 2016, GAAP operating expenses totaled US$239 million, down 10%
year-over-year and up 1% quarter-over-quarter. Non-GAAP operating expenses were US$226 million,
down 15% year-over-year and 3% quarter-over-quarter. The year-over-year decrease was mainly due to US$40
million of impairments to goodwill and intangibles via acquisitions of businesses the Company recognized in the third
quarter of 2015.
Operating Loss
GAAP operating loss for the third quarter of 2016 was US$52 million, compared with an operating
profit of US$43 million in the third quarter of 2015 and an operating loss of US$29 million in the second quarter of 2016.
Non-GAAP operating loss for the third quarter of 2016 was US$38 million, compared with an
operating profit of US$41 million in the third quarter of 2015 and an operating loss of
US$26 million in the second quarter of 2016.
Other Income
Other income for the third quarter of 2016 was US$4 million, compared with other income of
US$70 million which included gain recognized from the divestment of 7Road in the third quarter of
2015 and other expense of US$25 million in the second quarter of 2016, which was mainly related to
a donation by Sogou to Tsinghua University.
Income Tax Expense
Both GAAP and non-GAAP income tax expense was US$1 million for the third quarter of 2016,
compared with income tax expense of US$29 million in the third quarter of 2015 and income tax
expense of US$2 million in the second quarter of 2016.
Net Loss
Before deducting the share of net income pertaining to non-controlling interest, GAAP net loss for the third quarter of 2016
was US$42 million, compared with a net income of US$93 million in the
third quarter of 2015 and net loss of US$47 million in the second quarter of 2016. Before deducting
the share of net income pertaining to non-controlling interest, non-GAAP net loss for the third quarter of 2016 was US$29 million, compared with a net income of US$91 million in the third quarter
of 2015 and net loss of US$44 million in the second quarter of 2016.
GAAP net loss attributable to Sohu.com Inc. for the third quarter of 2016 was US$75 million, or
US$1.94 loss per fully-diluted share, compared with a net income of US$39
million in the third quarter of 2015 and net loss of US$63 million in the second quarter of
2016. Non-GAAP net loss attributable to Sohu.com Inc. for the third quarter of 2016 was US$65
million, or US$1.68 loss per fully-diluted share, compared with a net income of US$49 million in the third quarter of 2015 and net loss of US$63 million in the
second quarter of 2016.
Liquidity
As of September 30, 2016, the Sohu Group had cash and cash equivalents and short-term
investments of US$1.36 billion compared with US$1.42 billion as of
December 31, 2015.
Recent Development
Loan Agreement and Share Pledge Agreement with Changyou
On October 24, 2016, Sohu entered into a loan agreement with Changyou pursuant to which a PRC
subsidiary of Sohu may borrow up to RMB1 billion (or approximately US$148.64
million) from a PRC subsidiary of Changyou from time to time, with the first advance request to occur prior to
December 31, 2016 and Sohu's right to request advances continuing for one year after the first
advance, subject to extension for an additional year with Changyou's consent. Principal amounts outstanding under the loan
agreement will bear interest at an annual rate of 6%, accruing and payable on each one-year anniversary of each advance. The
outstanding principal of each advance will be due one year from the date of the advance, subject to extension for an additional
year with Changyou's consent. Advances under the loan agreement will be secured by a pledge to Changyou under a share pledge
agreement of an agreed-upon number of Changyou Class B ordinary shares of Changyou held by Sohu. The share pledge agreement will
give Changyou the right to apply the outstanding principal and accrued interest on the loan to the repurchase of Changyou Class B
ordinary shares from Sohu in the event such principal and interest are not paid when due. Sohu intends to use amounts drawn
down under the loan agreement to finance Sohu's operations, excluding the operations of Changyou and of Sogou.
Business Outlook
For the fourth quarter of 2016, Sohu estimates:
- Total revenues to be between US$370 million and US$400 million.
- Brand advertising revenues to be between US$95 million and US$105 million; this implies an
annual decrease of 25% to 33% and a sequential decrease of 5% to 14%. Sohu Media Portal revenues to be between US$42 million and US$45 million. Sohu Video revenues to be between US$25 million and
US$28 million.
- Sogou revenues to be between US$155 million and US$165 million; this implies annual and
sequential decreases of 1% to 7%.
- Online game revenues to be between US$85 million and US$95 million; this implies an annual
decrease of 25% to 33% and a sequential decrease of 4% to14%.
- Before deducting the share of non-GAAP net income pertaining to non-controlling interest, non-GAAP net loss to be
between US$75 million and US$85 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$12 million. Considering the impact of these share-based awards, GAAP net loss before non-controlling interest
to be between US$87 million and US$97 million.
- Non-GAAP net loss attributable to Sohu.com Inc. to be between US$85 million and US$95
million, and non-GAAP loss per fully-diluted share to be between US$2.20 and US$2.45.
Considering the impact of the aforementioned share-based awards, and netting off approximately US$5 million of Sohu's
economic interests in Changyou and Sogou, GAAP net loss attributable to Sohu.com Inc. to be between US$92
million and US$102 million, and GAAP loss per fully-diluted share to be between US$2.38 and
US$2.63.
For the fourth quarter 2016 guidance, the Company has adopted a presumed exchange rate of RMB6.7=US$1.00, as compared with the actual exchange rate of approximately
RMB6.39=US$1.00 for the fourth quarter of 2015, and RMB6.66=US$1.00 for the third quarter of 2016.
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, 2015, 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, October 24, 2016 (8:30 p.m. Beijing/Hong Kong time, October 24, 2016) 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 October 24 through October 31, 2016. The dial-in details for the
telephone replay are:
International:
|
+1-646-254-3697
|
Passcode:
|
92227550
|
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) has a
diverse portfolio of popular online games, such as Tian Long Ba Bu ("TLBB"), one of the most
popular PC games in China, as well as a number of mobile games. 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
twentieth year of operation.
For investor and media inquiries, please contact:
In China:
In the United States:
SOHU.COM INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
Three Months Ended
|
|
|
Sep. 30, 2016
|
|
Jun. 30, 2016
|
|
Sep. 30, 2015
|
Revenues:
|
|
|
|
|
|
|
Online advertising
|
|
|
|
|
|
|
Brand
advertising
|
$
|
110,871
|
$
|
112,887
|
$
|
151,517
|
Search
and search-related
|
|
150,667
|
|
160,152
|
|
147,938
|
Subtotal
|
|
261,538
|
|
273,039
|
|
299,455
|
Online games
|
|
98,553
|
|
99,227
|
|
152,501
|
Others
|
|
50,491
|
|
47,872
|
|
70,134
|
Total revenues
|
|
410,582
|
|
420,138
|
|
522,090
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
Online advertising
|
|
|
|
|
|
|
Brand
advertising (includes stock-based
compensation expense of $265, $-73 and $184,
respectively)
|
|
102,137
|
|
93,654
|
|
91,163
|
Search
and search-related (includes stock-based
compensation expense of $4, $0 and $12, respectively)
|
|
76,457
|
|
71,998
|
|
62,365
|
Subtotal
|
|
178,594
|
|
165,652
|
|
153,528
|
Online games (includes stock-based compensation
expense of $26, $17 and $-96, respectively)
|
|
23,719
|
|
25,380
|
|
34,635
|
Others
|
|
20,571
|
|
21,226
|
|
25,996
|
Total cost of revenues
|
|
222,884
|
|
212,258
|
|
214,159
|
|
|
|
|
|
|
|
Gross profit
|
|
187,698
|
|
207,880
|
|
307,931
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Product development (includes stock-based
compensation expense of $4,105, $1,699 and $-1,332,
respectively)
|
|
90,007
|
|
88,959
|
|
92,779
|
Sales and marketing (includes stock-based
compensation
expense of $752, $161 and $466, respectively)
|
|
110,584
|
|
117,966
|
|
98,596
|
General and administrative (includes
stock-based
compensation expense of $8,018, $740 and $-1,536,
respectively)
|
|
38,670
|
|
29,650
|
|
33,330
|
Goodwill impairment and impairment of
intangibles via
acquisitions of businesses
|
|
-
|
|
-
|
|
40,324
|
Total operating expenses
|
|
239,261
|
|
236,575
|
|
265,029
|
|
|
|
|
|
|
|
Operating (loss) /profit
|
|
(51,563)
|
|
(28,695)
|
|
42,902
|
|
|
|
|
|
|
|
Other income /(expense)
|
|
3,678
|
|
(24,573)
|
|
70,219
|
Net interest income
|
|
6,118
|
|
5,040
|
|
5,192
|
Exchange difference
|
|
702
|
|
3,866
|
|
4,322
|
(Loss) /income before income tax expense
|
|
(41,065)
|
|
(44,362)
|
|
122,635
|
|
|
974
|
|
2,430
|
|
29,461
|
Income tax expense
|
Net (loss) /income
|
|
(42,039)
|
|
(46,792)
|
|
93,174
|
|
|
|
|
|
|
|
Less: Net income attributable to the
noncontrolling
interest shareholders
|
|
32,775
|
|
16,232
|
|
42,142
|
Deemed
dividend to non-controlling Sogou series
A preferred shareholders
|
|
-
|
|
-
|
|
11,911
|
|
|
(74,814)
|
|
(63,024)
|
|
39,121
|
Net (loss) /income attributable to Sohu.com Inc.
|
|
|
|
|
|
|
|
Basic net (loss) /income per share attributable to Sohu.com
Inc.
|
$
|
(1.93)
|
$
|
(1.63)
|
$
|
1.01
|
Shares used in computing basic net (loss) /income per share
attributable to Sohu.com Inc.
|
|
38,728
|
|
38,691
|
|
38,633
|
|
|
|
|
|
|
|
Diluted net (loss) /income per share attributable to
Sohu.com Inc.
|
$
|
(1.94)
|
$
|
(1.64)
|
$
|
1.00
|
Shares used in computing diluted net (loss) /income per
share attributable to Sohu.com Inc.
|
|
38,728
|
|
38,691
|
|
38,665
|
SOHU.COM INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED, IN THOUSANDS)
|
|
|
As of Sep. 30, 2016
|
|
As of Dec. 31, 2015
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,092,085
|
$
|
1,245,205
|
Restricted time deposits (a)
|
|
-
|
|
227,285
|
Short-term investments
|
|
264,109
|
|
174,515
|
Accounts
receivable, net
|
|
204,748
|
|
273,617
|
Prepaid and
other current assets
|
|
274,701
|
|
158,890
|
Assets held for sale (b)
|
|
101,786
|
|
-
|
Total current assets
|
|
1,937,429
|
|
2,079,512
|
Long-term investments
|
|
68,861
|
|
62,093
|
Fixed assets, net
|
|
525,899
|
|
508,692
|
Goodwill
|
|
69,688
|
|
154,219
|
Intangible assets, net
|
|
33,593
|
|
55,415
|
Restricted time deposits (a)
|
|
9,270
|
|
136,694
|
Prepaid non-current assets
|
|
5,167
|
|
6,254
|
Other assets
|
|
25,546
|
|
39,315
|
Total assets
|
$
|
2,675,453
|
$
|
3,042,194
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
163,843
|
$
|
129,025
|
Accrued
liabilities
|
|
335,046
|
|
309,657
|
Receipts in
advance and deferred revenue
|
|
128,943
|
|
135,385
|
Accrued salary
and benefits
|
|
84,783
|
|
99,631
|
Taxes
payable
|
|
38,764
|
|
67,480
|
Deferred tax
liability
|
|
26,247
|
|
24,884
|
Short-term
bank loans (a)
|
|
-
|
|
344,500
|
Other
short-term liabilities
|
|
198,171
|
|
154,017
|
Liabilities held for sale (b)
|
|
3,236
|
|
-
|
Total current liabilities
|
$
|
979,033
|
$
|
1,264,579
|
|
|
|
|
|
Long-term accounts payable
|
|
17,272
|
|
4,600
|
Long-term tax payable
|
|
33,199
|
|
24,732
|
Deferred tax liabilities
|
|
14,037
|
|
17,531
|
Total long-term liabilities
|
$
|
64,508
|
$
|
46,863
|
Total liabilities
|
$
|
1,043,541
|
$
|
1,311,442
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
Sohu.com Inc.
shareholders' equity
|
|
1,084,273
|
|
1,241,022
|
Noncontrolling
Interest
|
|
547,639
|
|
489,730
|
Total shareholders' equity
|
$
|
1,631,912
|
$
|
1,730,752
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
|
2,675,453
|
$
|
3,042,194
|
|
Note:
|
(a) Changyou had repaid all of the remaining bank loans of $344.5 million,
and restricted time deposits of $354.7 million that secured these loans had been released during the first quarter of
2016.
|
(b) Changyou's management had an intention to divest its interest in
MoboTap during the third quarter of 2016. Therefore, the assets and liabilities of MoboTap were recognized as "Assets
held for sale" and "Liabilities held for sale," respectively, in the third quarter of 2016.
|
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 Sep. 30, 2016
|
|
Three Months Ended Jun. 30, 2016
|
|
Three Months Ended Sep. 30, 2015
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
265
|
(a)
|
|
|
|
|
(73)
|
(a)
|
|
|
|
|
184
|
(a)
|
|
Brand advertising gross profit
|
$
|
8,734
|
$
|
265
|
$
|
8,999
|
$
|
19,233
|
$
|
(73)
|
$
|
19,160
|
$
|
60,354
|
$
|
184
|
$
|
60,538
|
Brand advertising gross
margin
|
|
8%
|
|
|
|
8%
|
|
17%
|
|
|
|
17%
|
|
40%
|
|
|
|
40%
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
12
|
(a)
|
|
Search and search-related
gross profit
|
$
|
74,210
|
$
|
4
|
(a) $
|
74,214
|
$
|
88,154
|
$
|
-
|
(a) $
|
88,154
|
$
|
85,573
|
$
|
12
|
$
|
85,585
|
Search and search-related
gross margin
|
|
49%
|
|
|
|
49%
|
|
55%
|
|
|
|
55%
|
|
58%
|
|
|
|
58%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
269
|
(a)
|
|
|
|
|
(73)
|
(a)
|
|
|
|
|
196
|
(a)
|
|
Online advertising gross profit
|
$
|
82,944
|
$
|
269
|
$
|
83,213
|
$
|
107,387
|
$
|
(73)
|
$
|
107,314
|
$
|
145,927
|
$
|
196
|
$
|
146,123
|
Online advertising gross
margin
|
|
32%
|
|
|
|
32%
|
|
39%
|
|
|
|
39%
|
|
49%
|
|
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
(a)
|
|
|
|
|
17
|
(a)
|
|
|
|
|
(96)
|
(a)
|
|
Online games gross profit
|
$
|
74,834
|
$
|
26
|
$
|
74,860
|
$
|
73,847
|
$
|
17
|
$
|
73,864
|
$
|
117,866
|
$
|
(96)
|
$
|
117,770
|
Online games gross margin
|
|
76%
|
|
|
|
76%
|
|
74%
|
|
|
|
74%
|
|
77%
|
|
|
|
77%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others gross profit
|
$
|
29,920
|
$
|
-
|
(a) $
|
29,920
|
$
|
26,646
|
$
|
-
|
(a) $
|
26,646
|
$
|
44,138
|
$
|
-
|
$
|
44,138
|
Others gross margin
|
|
59%
|
|
|
|
59%
|
|
56%
|
|
|
|
56%
|
|
63%
|
|
|
|
63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
295
|
(a)
|
|
|
|
|
(56)
|
(a)
|
|
|
|
|
100
|
(a)
|
|
Gross profit
|
$
|
187,698
|
$
|
295
|
$
|
187,993
|
$
|
207,880
|
$
|
(56)
|
$
|
207,824
|
$
|
307,931
|
$
|
100
|
$
|
308,031
|
Gross margin
|
|
46%
|
|
|
|
46%
|
|
49%
|
|
|
|
49%
|
|
59%
|
|
|
|
59%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,170
|
(a)
|
|
|
|
|
2,544
|
(a)
|
|
|
|
|
(2,302)
|
(a)
|
|
Operating (loss) /profit
|
$
|
(51,563)
|
$
|
13,170
|
$
|
(38,393)
|
$
|
(28,695)
|
$
|
2,544
|
$
|
(26,151)
|
$
|
42,902
|
$
|
(2,302)
|
$
|
40,600
|
Operating margin
|
|
-13%
|
|
|
|
-9%
|
|
-7%
|
|
|
|
-6%
|
|
8%
|
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,147
|
(a)
|
|
|
|
|
2,550
|
(a)
|
|
|
|
|
(2,302)
|
(a)
|
|
Net (loss) /income
before non-controlling interest
|
$
|
(42,039)
|
$
|
13,147
|
$
|
(28,892)
|
$
|
(46,792)
|
$
|
2,550
|
$
|
(44,242)
|
$
|
93,174
|
$
|
(2,302)
|
$
|
90,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,147
|
(a)
|
|
|
|
|
2,550
|
(a)
|
|
|
|
|
725
|
(b)
|
|
|
|
|
|
(2,806)
|
(b)
|
|
|
|
|
(2,001)
|
(b)
|
|
|
|
|
11,911
|
(c)
|
|
Net (loss) /income
attributable to Sohu.com Inc.
for diluted net (loss) /income
per share
|
$
|
(75,286)
|
$
|
10,341
|
$
|
(64,945)
|
$
|
(63,386)
|
$
|
549
|
$
|
(62,837)
|
$
|
38,796
|
$
|
10,334
|
$
|
49,130
|
Diluted net (loss) /income
per share attributable to
Sohu.com Inc.
|
$
|
(1.94)
|
|
|
$
|
(1.68)
|
$
|
(1.64)
|
|
|
$
|
(1.62)
|
$
|
1.00
|
|
|
$
|
1.27
|
Shares used in computing
diluted net (loss) /income
per share attributable to
Sohu.com Inc.
|
|
38,728
|
|
|
|
38,728
|
|
38,691
|
|
|
|
38,691
|
|
38,665
|
|
|
|
38,701
|
|
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 under the
treasury stock method.
|
(c) Deemed dividend to non-controlling Sogou series A preferred
shareholders.
|
Logo - http://photos.prnewswire.com/prnh/20100201/CNM013LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sohucom-reports-third-quarter-2016-unaudited-financial-results-300349604.html
SOURCE Sohu.com