1. Sohu's Q1 2025 revenue of $136 million fell 3% year-over-year. 2. Marketing services dropped 15% year-over-year but online game revenue remained stable. 3. Sohu reported a significant GAAP net income of $182 million this quarter. 4. Non-GAAP net loss of $16 million improved from previous year's losses. 5. The company has engaged in a substantial share repurchase program.
Sohu's drastic turnaround from net loss to significant net income enhances investor confidence. Historically, similar recoveries have prompted stock price increases, indicating effective management and operational improvements.
The strong quarterly performance, particularly in transitioning from losses to profits, is critical for investor sentiment, contributing to more stable stock evaluation and future growth prospects.
The positive financial results could lead to immediate investor reactions, impacting stock prices in the short term. However, ongoing challenges may temper long-term optimism.
("Sohu" or the "Company"), a leading Chinese online media platform and game business group, today reported unaudited financial results for the first quarter ended March 31, 2025.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the first quarter of 2025, both our marketing services revenues and non-GAAP bottom line performance reached the high end of our previous guidance, while our online game revenues were well above our expectations...
Starting in the first quarter of 2025, the Company has changed the name of its "brand advertising business," as described in its previous annual and other reports with the U.S. Securities and Exchange Commission, to the "marketing services business..."
Total revenues were US$136 million, down 3% year-over-year and up 1% quarter-over-quarter...
Both GAAP and non-GAAP gross margin were 76%, compared with 77% in the first quarter of 2024 and 73% in the fourth quarter of 2024...
GAAP operating expenses were US$122 million, down 9% year-over-year and 1% quarter-over-quarter...
GAAP income tax benefit was US$189 million, compared with income tax expense of US$14 million in the first quarter of 2024...
As of March 31, 2025, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.2 billion...
Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs, Sohu had repurchased 5,484,160 ADSs for an aggregate cost of approximately US$67 million as of May 15, 2025...
For the second quarter of 2025, Sohu estimates:...
Sohu's management team will host a conference call at 7:30 a.m. U.S. Eastern Time, May 19, 2025...
Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang in the 1990s. Sohu operates one of the leading Chinese online media platforms...
In China:
Ms. Pu Huang
Sohu.com Limited
Tel: +86 (10) 6272-6645
E-mail: [email protected]
In the United States:
Ms. Linda Bergkamp
Christensen
Tel: +1 (480) 614-3004
E-mail: [email protected]