Sohu.com Inc. (SOHU - Free Report) reported fourth-quarter 2018 non-GAAP loss of $1.50 per share, which was much narrower than the year-ago quarter’s loss of $2.01 per share.
The narrower loss can be attributed to the positive impact from the company’s cost saving efforts.
The Zacks Consensus Estimate was pegged at a loss of $1.03.
However, sluggish macroeconomic conditions in China negatively impacted the top-line. Sohu’s revenues of $482.2 million were down 5.4% year over year but came within the management’s guided range of $465–$495 million.
However, Sohu’s loss figure was wider than management’s expectation of a loss between $1.15 and $1.40 per share primarily due to lower year-over-year growth in revenues.
Total online advertising revenues (inclusive of revenues from brand advertising, search and search related businesses) increased 4.7% year over year to $333.9 million.
Brand advertising revenues in the reported quarter however fell 20.3% on a year-over-year basis to $57.2 million, mainly due to decrease in video and real estate advertising revenues.
Search and search-related revenues increased 12% year over year to $276.7 million driven by growth in mobile search traffic and improved monetization.
Online game revenues of $94.1 million were down 14% from the year-ago quarter, primarily due to “natural decline in revenue of Changyou's older games, including Legacy TLBB Mobile.”
Sohu Video revenues were $26 million, down 34% year over year. Quarterly loss was $13 million, narrower than a loss of $69 million in the year-ago quarter.
Sohu Media Portal revenues were down 10% on a year-over-year basis to $33 million due to budget cuts from large enterprises on the back of an economic slowdown in China. In December 2018, daily active users of Sohu News app doubled, while leading page views tripled from a year ago.
Sogou’s (SOGO - Free Report) revenues increased 7% year over year to $298 million. In fourth-quarter 2018, Sogou enhanced its search and mobile keyboard products by using artificial intelligence (AI) technology. Notably, Sohu Mobile Keyboard daily active users reached 430 million users a day, an increase of 28% year over year.
Changyou’s (CYOU - Free Report) revenues declined 18% year over year but were flat sequentially at $180 million. In the reported quarter, Changyou recognized a $60 million charge for goodwill impairment.
Sohu.com Inc. Price, Consensus and EPS Surprise