• Total Revenue (Q4 2024): $135 million, down 5% year-over-year and 11% quarter-over-quarter.
• Brand Advertising Revenue (Q4 2024): $19 million, down 7% year-over-year and 1% quarter-over-quarter.
• Online Game Revenue (Q4 2024): $110 million, down 4% year-over-year and 14% quarter-over-quarter.
• GAAP Net Loss (Q4 2024): $21 million, compared to a net loss of $13 million in Q4 2023 and $16 million in Q3 2024.
• Non-GAAP Net Loss (Q4 2024): $15 million, compared to a net loss of $11 million in Q4 2023 and $12 million in Q3 2024.
• Total Revenue (Full Year 2024): $598 million, flat compared to 2023.
• Brand Advertising Revenue (Full Year 2024): $73 million, down 17% compared to 2023.
• Online Game Revenue (Full Year 2024): $502 million, up 5% compared to 2023.
• GAAP Net Loss (Full Year 2024): $100 million, compared to a net loss of $66 million in 2023.
• Non-GAAP Net Loss (Full Year 2024): $83 million, compared to a net loss of $51 million in 2023.
• Share Repurchase Program: 4.2 million ADS repurchased for approximately $52 million as of February 13, 2025.
• Revenue Forecast (Q1 2025): Brand advertising revenue expected between $30 million and $40 million; online games revenue expected between $105 million and $150 million.
• Net Loss Forecast (Q1 2025): Non-GAAP net loss expected between $16 million and $26 million; GAAP net loss expected between $20 million and $30 million.

• Warning! GuruFocus has detected 2 Warning Signs with SOHU.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Brand advertising revenues hit the high end of previous guidance.
• Online game revenues and bottom-line performance exceeded expectations.
• Efforts to refine products and optimize algorithms enhanced user experience and monetization potential.
• The online games business delivered solid performance with high-quality new games and revitalized legacy games.
• Sohu.com Ltd (NASDAQ:SOHU) successfully hosted several high-profile events, strengthening its brand influence and attracting more users.

Negative Points

• Total revenues for Q4 2024 were down 5% year-over-year and 11% quarter-over-quarter.
• Brand advertising revenues decreased by 7% year-over-year and 1% quarter-over-quarter.
• GAAP net loss attributable to Sohu.com Ltd (NASDAQ:SOHU) increased to $21 million compared to $13 million in Q4 2023.
• Non-GAAP net loss attributable to Sohu.com Ltd (NASDAQ:SOHU) was $15 million, up from $11 million in Q4 2023.
• The macroeconomic situation led to reduced advertising budgets, impacting revenue from major sectors like automobiles.

Q & A Highlights

Q: Can you explain the reasons behind the sequential and year-over-year decline in brand advertising revenue for Q1 2025? A: Charles Zhang, CEO, explained that the decline is primarily due to the macroeconomic situation, where advertisers are spending less on marketing because of the overall economic conditions. This has led to a reduction in advertising budgets.

Q: What is the expected performance trend for the online gaming business in the upcoming quarter? A: An unidentified company representative mentioned that the performance of the online gaming business is expected to be flat quarter-over-quarter.

Q: How is Sohu integrating AI technologies, specifically DeepSeek, into its operations? A: Charles Zhang, CEO, stated that Sohu has been applying AI technologies to enhance content organization, generation, and editing. This includes summarizing video content, marking sections of streaming videos, and aiding user interactions. AI is also being used in gaming development for video production and art design.

Q: What is the status of Sohu's share repurchase program? A: Charles Zhang, CEO, reported that Sohu has repurchased 4.2 million ADS for approximately $52 million, which is one-third of the $150 million approved by the Board. There is still $100 million remaining for future repurchases.

Q: Have there been any changes in advertising budget allocations across different sectors? A: Charles Zhang, CEO, noted that FMCG has become the top sector for advertising, surpassing the automobile sector. There is increased spending on smaller items like food, alcohol, and electronics, partly stimulated by trading policies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.