SOHU.COM LIMITED SOHU.COM LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Revenues: | |
Online advertising | |
Brand advertising | $ |
Search and search-related advertising | |
Subtotal | |
Online games | |
Others | |
Total revenues | |
Cost of revenues: | |
Online advertising | |
Brand advertising (includes stock-based | |
compensation expense of $36, $-40, and $-22, | |
respectively) | |
Search and search-related advertising (includes | |
stock-based compensation expense of $45, $77, and | |
$127, respectively) | |
Subtotal | |
Online games (includes stock-based compensation | |
expense of $152, $161, and $-17, respectively) | |
Others | |
Total cost of revenues | |
Gross profit | |
Operating expenses: | |
Product development (includes stock-based | |
compensation expense of $4,169, $2,429, and $3,587, | |
respectively) | |
Sales and marketing (includes stock-based | |
compensation expense of $795, $-415, and $1,355, | |
respectively) | |
General and administrative (includes stock-based | |
compensation expense of $1,678, $1,561, and $-572, | |
respectively) | |
Total operating expenses | |
Operating loss | |
Other income1, net | |
Interest income | |
Interest expense | |
Exchange difference | |
Income/(loss) before income tax expense | |
Income tax expense2 | |
Net loss from continuing operations | |
Net loss from discontinued operations, net of tax | |
Net loss | |
Less: Net income/(loss) from continuing operations | |
attributable to the noncontrolling interest shareholders | |
Less: Net loss from discontinued operations | |
attributable to the noncontrolling interest shareholders | |
Net loss from continuing operations attributable to | |
Sohu.com Limited | |
Net loss from discontinued operations attributable to | |
Sohu.com Limited | |
Net loss attributable to Sohu.com Limited | |
Basic net loss from continuing operations per ADS | |
attributable to Sohu.com Limited | |
Basic net loss from discontinued operations per ADS | |
attributable to Sohu.com Limited | |
Basic net loss per ADS attributable to Sohu.com Limited | $ |
ADS used in computing basic net loss per ADS attributable | |
to Sohu.com Limited | |
Diluted net loss from continuing operations per ADS | |
attributable to Sohu.com Limited |
Three Months Ended
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | ||
37,969 | $ | 25,580 | $ | 43,958 |
240,579 | 237,589 | 275,942 | ||
278,548 | 263,169 | 319,900 | ||
105,937 | 133,360 | 102,147 | ||
36,579 | 39,471 | 40,199 | ||
421,064 | 436,000 | 462,246 | ||
22,790 | 25,519 | 31,432 | ||
191,150 | 212,210 | 182,593 | ||
213,940 | 237,729 | 214,025 | ||
23,959 | 28,389 | 18,163 | ||
12,133 | 8,568 | 19,624 | ||
250,032 | 274,686 | 251,812 | ||
171,032 | 161,314 | 210,434 | ||
105,022 | 103,412 | 109,048 | ||
64,579 | 62,841 | 90,580 | ||
24,097 | 19,296 | 21,987 | ||
193,698 | 185,549 | 221,615 | ||
(22,666) | (24,235) | (11,181) | ||
24,094 | 10,645 | 5,684 | ||
2,196 | 2,126 | 3,286 | ||
(1,431) | (2,275) | (3,737) | ||
(259) | 2,225 | 3,551 | ||
1,934 | (11,514) | (2,397) | ||
85,023 | 13,600 | 3,941 | ||
(83,089) | (25,114) | (6,338) | ||
- | - | (27,037) | ||
(83,089) | (25,114) | (33,375) | ||
(3,159) | (5,008) | 28,467 | ||
- | - | (8,949) | ||
(79,930) | (20,106) | (34,805) | ||
- | - | (18,088) | ||
(79,930) | (20,106) | (52,893) | ||
(2.04) | (0.51) | (0.89) | ||
- | - | (0.46) | ||
(2.04) | $ | (0.51) | $ | (1.35) |
39,271 | 39,270 | 39,244 | ||
(2.04) | (0.52) | (0.89) |
- For the second quarter of 2020, other income included a tax refund that was received by Sogou as part of the Chinese government's initiatives taken in response to COVID-19.
- Following completion of the Changyou privatization, Changyou changed its policy for its PRC subsidiaries with respect to distribution of cash dividends. As a result, Changyou recognized an additional accrual of withholding income tax of US$88 million for the second quarter of 2020.
1
Diluted net loss from discontinued operations per ADS | ||||||
attributable to Sohu.com Limited | - | - | (0.46) | |||
Diluted net loss per ADS attributable to Sohu.com Limited | $ | (2.04) | $ | (0.52) | $ | (1.35) |
ADS used in computing diluted net loss per ADS | ||||||
attributable to Sohu.com Limited | 39,271 | 39,270 | 39,244 |
SOHU.COM LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended Jun. 30, 2020 | Three Months Ended Mar. 31, 2020 | Three Months Ended Jun. 30, 2019 | |||||||||||||||||||
Non-GAAP | Non-GAAP | Non-GAAP | |||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||
36 | (a) | (40) | (a) | (22) | (a) | ||||||||||||||||
Brand advertising gross profit | $ | 15,179 | $ | 36 | $ | 15,215 | $ | 61 | $ | (40) | $ | 21 | $ | 12,526 | $ | (22) | $ | 12,504 | |||
Brand advertising gross | |||||||||||||||||||||
margin | 40% | 40% | 0% | 0% | 28% | 28% | |||||||||||||||
45 | (a) | 77 | (a) | 127 | (a) | ||||||||||||||||
Search and search-related | |||||||||||||||||||||
advertising gross profit | $ | 49,429 | $ | 45 | $ | 49,474 | $ | 25,379 | $ | 77 | $ | 25,456 | $ | 93,349 | $ | 127 | $ | 93,476 | |||
Search and search-related | |||||||||||||||||||||
advertising gross margin | 21% | 21% | 11% | 11% | 34% | 34% | |||||||||||||||
81 | (a) | 37 | (a) | 105 | (a) | ||||||||||||||||
Online advertising gross profit | $ | 64,608 | $ | 81 | $ | 64,689 | $ | 25,440 | $ | 37 | $ | 25,477 | $ | 105,875 | $ | 105 | $ | 105,980 | |||
Online advertising gross | |||||||||||||||||||||
margin | 23% | 23% | 10% | 10% | 33% | 33% | |||||||||||||||
152 | (a) | 161 | (a) | (17) | (a) | ||||||||||||||||
Online games gross profit | $ | 81,978 | $ | 152 | $ | 82,130 | $ | 104,971 | $ | 161 | $ | 105,132 | $ | 83,984 | $ | (17) | $ | 83,967 | |||
Online games gross margin | 77% | 78% | 79% | 79% | 82% | 82% | |||||||||||||||
Others gross profit | $ | 24,446 | $ | - | (a) $ | 24,446 | $ | 30,903 | $ | - | (a) $ | 30,903 | $ | 20,575 | $ | - | (a) $ | 20,575 | |||
Others gross margin | 67% | 67% | 78% | 78% | 51% | 51% | |||||||||||||||
233 | (a) | 198 | (a) | 88 | (a) | ||||||||||||||||
Gross profit | $ | 171,032 | $ | 233 | $ | 171,265 | $ | 161,314 | $ | 198 | $ | 161,512 | $ | 210,434 | $ | 88 | $ | 210,522 | |||
Gross margin | 41% | 41% | 37% | 37% | 46% | 46% | |||||||||||||||
Operating expenses | $ | 193,698 | $ | (6,642) | (a) $ | 187,056 | $ | 185,549 | $ | (3,575) | (a) $ | 181,974 | $ | 221,615 | $ | (4,370) | (a) $ | 217,245 | |||
6,875 | (a) | 3,773 | (a) | 4,458 | (a) | ||||||||||||||||
Operating loss | $ | (22,666) | $ | 6,875 | $ | (15,791) | $ | (24,235) | $ | 3,773 | $ | (20,462) | $ | (11,181) | $ | 4,458 | $ | (6,723) | |||
Operating margin | -5% | -4% | |||||
Income tax expense3 | |||||||
$ | (85,023) | $ | 3,141 | (c,d)$ | (81,882) | $ | |
6,875 | (a) | ||||||
(3,618) | (c) | ||||||
1,934 | (d) | ||||||
- | |||||||
Net income/(loss) before non- | |||||||
controlling interest | $ | (83,089) | 5,191 | (77,898) | $ | ||
6,875 | (a) | ||||||
(2,338) | (b) | ||||||
(3,618) | (c) | ||||||
1,934 | (d) | ||||||
Net loss from continuing | |||||||
operations attributable to | |||||||
Sohu.com Limited for diluted | |||||||
net loss per ADS | $ | (79,986) | 2,853 | (77,133) | $ | ||
Net loss from discontinued | |||||||
operations attributable to | |||||||
Sohu.com Limited for diluted | |||||||
net loss per ADS | - | - | - | ||||
Net loss attributable to | |||||||
Sohu.com Limited for diluted | |||||||
net loss per ADS | (79,986) | 2,853 | (77,133) | ||||
Diluted net loss from | |||||||
continuing operations per | |||||||
ADS attributable to Sohu.com | |||||||
Limited | $ | (2.04) | (1.96) | $ | |||
Diluted net loss from | |||||||
discontinued operations per | |||||||
ADS attributable to Sohu.com | |||||||
Limited | - | - | |||||
-6% | -5% | ||||
(13,600) | $ | 2,195 | (c,d)$ | (11,405) | $ |
3,773 | (a) | ||||
(855) | (c) | ||||
1,910 | (d) | ||||
- | |||||
(25,114) | 4,828 | (20,286) | $ | ||
3,773 | (a) | ||||
(2,761) | (b) | ||||
(855) | (c) | ||||
1,910 | (d) | ||||
(20,441) | 2,067 | (18,374) | $ | ||
- | - | - | |||
(20,441) | 2,067 | (18,374) | |||
(0.52) | (0.47) | $ | |||
- | - | ||||
-2% | -1% | |||
(3,941) | $ | 1,566 | (c,d)$ | (2,375) |
4,458 | (a) | |||
794 | (c) | |||
1,831 | (d) | |||
- | ||||
(6,338) | 7,083 | 745 | ||
4,458 | (a) | |||
(3,733) | (b) | |||
794 | (c) | |||
1,831 | (d) | |||
(34,932) | 3,350 | (31,582) | ||
(18,062) | - | (18,062) | ||
(52,994) | 3,350 | (49,644) | ||
(0.89) | (0.80) | |||
(0.46) | (0.46) | |||
3 Following completion of the Changyou privatization, Changyou changed its policy for its PRC subsidiaries with respect to distribution of cash dividends. As a result, Changyou recognized an additional accrual of withholding income tax of US$88 million for the second quarter of 2020.
Diluted net loss per ADS | |||||||||||
attributable to Sohu.com | |||||||||||
Limited | (2.04) | (1.96) | (0.52) | (0.47) | (1.35) | (1.27) | |||||
Shares used in computing | |||||||||||
diluted net loss per ADS | |||||||||||
attributable to Sohu.com | |||||||||||
Limited | 39,271 | 39,271 | 39,270 | 39,270 | 39,244 | 39,244 | |||||
Note:
- To eliminate the impact of share-based awards as measured using the fair value method. This adjustment does not have any impact on income tax expense.
- To adjust Sohu's economic interests in Changyou and Sogou attributable to the above non-GAAP adjustments. This adjustment does not have any impact on income tax expense.
- To adjust for a change in the fair value of the Company's investment in Hylink and the income tax effect.
- To adjust for the effect of the U.S. TCJA.
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Sohu.com Ltd. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2020 08:58:11 UTC
