Sohu.com Inc (SOHU)’s Sogou Revenues Surge 70%
Sohu.com Inc (NASDAQ:SOHU) said that revenue from its segment, Sogou, has not only witnessed a 70% jump over the last year quarter but also delivered a 12% quarter-over-quarter uptick. However, the company’s lead revenue generator, Brand Advertising, witnessed a downtick of 1% on quarter-over-quarter revenue though it recorded 20% year-over-year growth.
The strong upswing in revenue ensured that Sohu.com Inc (NASDAQ:SOHU)’s adjusted loss was narrower than estimated for the fourth quarter. Revenue came in above the Street analysts’ expectations.
The company’s Chairman and CEO, Charles Zhang, said that Sohu Media Portal witnessed the speedy shift of users to its mobile products such as the Sohu WAP portal and Sohu News App. Revenues from these represented about one third of its total revenues. He also said that Sohu Video delivered more than a 60% rise in revenues annually, and one third of this was from mobile.
Sohu.com Inc (NASDAQ:SOHU)’s CEO has said that its mobile initiatives delivered vast progress for all its business lines. Sohu WAP and Sohu News App have nearly 50 million daily, active users collectively. He indicated that over 60% of its video traffic came from mobile. Interestingly, Sogou’s mobile keyboard was an unmatched input application as far as iPhones and Android phones were concerned.
Fourth Quarter Results
The company suffered a net loss of $20 million or a loss of 52 cents a share, narrower than a loss of $27.14 million or a loss of 74 cents a share in the same quarter last year. On an adjusted basis, net loss would have been $14 million or a loss of 36 cents a share. Street predicted a loss of 49 cents a share.
Sohu’s total revenues increased 24% to $477.2 million from $430.42 million in the previous year quarter. Revenue was above the Street analysts’ estimation of $471.21 million.
The company’s gross margin dipped to 59% from 64% while it suffered an operating loss of $33.86 million in the fourth quarter.
Full Year Results
Sohu.com reported total revenue of $1.7 billion representing a growth of 19%. While net loss was $171 million, loss per share was $4.43, wider than the loss of $18 million in 2013. Adjusted net loss was $120 million or $3.11 loss a share versus a profit of $71 million in the preceding year.
Sohu.com Inc (NASDAQ:SOHU) expects to generate total revenues of $425 – $440 million for the first quarter, which was lower than the Street predictions of $445.14 million.
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