SOHU.COM REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 UNAUDITED FINANCIAL RESULTS

, /PRNewswire/ -- Sohu.com Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), a leading Chinese online media platform and game business group, today reported unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024. Fourth Quarter Highlights Total revenues were US$135 million, down 5% year-over-year and 11% quarter-over-quarter. Brand advertising revenues were US$19 million, down 7% year-over-year and up 1% quarter-over-quarter. Online game revenues were US$110 million, down 4% year-over-year and 14% quarter-over-quarter. GAAP net loss attributable to Sohu.com Limited was US$21 million, compared with a net loss of US$13 million in the fourth quarter of 2023 and a net loss of US$16 million in the third quarter of 2024. Non-GAAP[1] net loss attributable to Sohu.com Limited was US$15 million, compared with a net loss of US$11 million in the fourth quarter of 2023 and a net loss of US$12 million in the third quarter of 2024. Fiscal Year 2024 Highlights[2] Total revenues were US$598 million, flat compared with 2023. Brand advertising revenues were US$73 million, down 17% compared with 2023. Online game revenues were US$502 million, up 5% compared with 2023. GAAP net loss attributable to Sohu.com Limited was US$100 million, compared with a net loss of US$66 million in 2023. Non-GAAP net loss attributable to Sohu.com Limited was US$83 million, compared with a net loss of US$51 million in 2023. Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the fourth quarter of 2024, our brand advertising revenues hit the high end of our previous guidance, while both our online game revenues and bottom line performance were much better than expected. For Sohu media platform, we continued to refine our products, optimized algorithms, and strictly controlled budgets. By integrating the advantages of the Sohu product matrix with our unique IPs and high energy events, we were able to promote the generation and social distribution of premium content, effectively enhance user experience to attract more users, and further unlock monetization potential. The online games business delivered solid performance, thanks to relentless efforts to produce high-quality new games and revitalize legacy games." Fourth Quarter Financial Results Revenues Total revenues were US$135 million, down 5% year-over-year and 11% quarter-over-quarter. Brand advertising revenues were US$19 million, down 7% year-over-year and up 1% quarter-over-quarter. Online game revenues were US$110 million, down 4% year-over-year and 14% quarter-over-quarter. Gross Margin Both GAAP and non-GAAP gross margin were 73%, compared with 76% in the fourth quarter of 2023 and 74% in the third quarter of 2024. Both GAAP and non-GAAP gross margin for the brand advertising business were 6%, compared with 16% in the fourth quarter of 2023 and 9% in the third quarter of 2024. Both GAAP and non-GAAP gross margin for online games were 83%, compared with 87% in the fourth quarter of 2023 and 84% in the third quarter of 2024. Operating Expenses Both GAAP and non-GAAP operating expenses were US$123 million, down 8% year-over-year and 2% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in Changyou's product development expenses. Operating Loss GAAP operating loss was US$25 million, compared with an operating loss of US$25 million in the fourth quarter of 2023 and an operating loss of US$13 million in the third quarter of 2024. Non-GAAP operating loss was US$25 million, compared with an operating loss of US$26 million in the fourth quarter of 2023 and an operating loss of US$13 million in the third quarter of 2024. Income Tax Expense GAAP income tax expense was US$14 million, compared with income tax expense of US$14 million in the fourth quarter of 2023 and income tax expense of US$15 million in the third quarter of 2024. Non-GAAP income tax expense was US$10 million, compared with income tax expense of US$10 million in the fourth quarter of 2023 and income tax expense of US$11 million in the third quarter of 2024. Net Loss GAAP net loss attributable to Sohu.com Limited was US$21 million, or a net loss of US$0.69 per fully-diluted American depositary share ("ADS," each ADS representing one Sohu ordinary share), compared with a net loss of US$13 million in the fourth quarter of 2023 and a net loss of US$16 million in the third quarter of 2024. Non-GAAP net loss attributable to Sohu.com Limited was US$15 million, or a net loss of US$0.49 per fully-diluted ADS, compared with a net loss of US$11 million in the fourth quarter of 2023 and a net loss of US$12 million in the third quarter of 2024. Liquidity and Capital Resources As of December 31, 2024, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.2 billion. Fiscal Year 2024 Financial Results Revenues Total revenues were US$598 million, flat compared with 2023. Brand advertising revenues were US$73 million, down 17% compared with 2023. Online game revenues were US$502 million, up 5% compared with 2023. Gross Margin Both GAAP and non-GAAP gross margin were 72%, compared with 76% in 2023. Both GAAP and non-GAAP gross margin for the brand advertising business were 9%, compared with 20% in 2023. Both GAAP and non-GAAP gross margin for online games were 82%, compared with 86% in 2023. Operating Expenses For 2024, both GAAP and non-GAAP operating expenses totaled US$542 million, flat compared with 2023. Operating Loss Both GAAP and non-GAAP operating loss were US$109 million, compared with an operating loss of US$87 million in 2023. Income Tax Expense GAAP income tax expense was US$52 million, compared with income tax expense of US$60 million in 2023. Non-GAAP income tax expense was US$37 million, compared with income tax expense of US$48 million in 2023. Net Loss GAAP net loss attributable to Sohu.com Limited was US$100 million, or a net loss of US$3.13 per fully-diluted ADS, compared with a net loss of US$66 million in 2023. Non-GAAP net loss attributable to Sohu.com Limited was US$83 million, or a net loss of US$2.60 per fully-diluted ADS, compared with a net loss of US$51 million in 2023. Supplementary Information for Changyou Results[3] Fourth Quarter 2024 Operating Results For PC games, total average monthly active user accounts[4] (MAU) were 2.3 million, an increase of 2% year-over-year and 9% quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 1.0 million, an increase of 9% year-over-year and 14% quarter-over-quarter. The quarter-over-quarter increase in MAU, and the year-over-year and quarter-over-quarter increases in APA were mainly because the content updates that Changyou launched for TLBB PC during the quarter were well received by players. For mobile games, total average MAU were 2.6 million, an increase of 53% year-over-year and a decrease of 20% quarter-over-quarter. Total quarterly APA were 0.4 million, an increase of 25% year-over-year and a decrease of 61% quarter-over-quarter. The year-over-year increases in MAU and APA were mainly from new games launched during recent quarters, including Journey Renewed: Fate Fantasy, which is the international version of New Westward Journey and was launched in Southeast Asia during the fourth quarter of 2024. The quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of New Westward Journey in the Chinese mainland market. Fourth Quarter 2024 Unaudited Financial Results Total revenues were US$111 million, a decrease of 5% year-over-year and 14% quarter-over-quarter. Online game revenues were US$110 million, a decrease of 4% year-over-year and 14% quarter-over-quarter. Online advertising revenues were US$1 million, a decrease of 29% year-over-year and 8% quarter-over-quarter. Both GAAP and non-GAAP gross profit were US$92 million, compared with US$100 million for the fourth quarter of 2023 and US$108 million for the third quarter of 2024. GAAP operating expenses were US$45 million, a decrease of 15% year-over-year and 2% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in outsourcing and licensing fees related to product development. Non-GAAP operating expenses were US$44 million, a decrease of 17% year-over-year and 2% quarter-over-quarter. GAAP operating profit was US$48 million, compared with US$48 million for the fourth quarter of 2023 and US$62 million for the third quarter of 2024. Non-GAAP operating profit was US$48 million, compared with US$47 million for the fourth quarter of 2023 and US$62 million for the third quarter of 2024. Fiscal Year 2024 Unaudited Financial Results Total revenues were US$506 million, an increase of 4% year-over-year. Online game revenues were US$502 million, an increase of 5% year-over-year. Online advertising revenues were US$4 million, a decrease of 25% year-over-year. Both GAAP and non-GAAP gross profit were US$415 million, compared with US$418 million for 2023. GAAP operating expenses were US$219 million, an increase of 1% year-over-year. Non-GAAP operating expenses were US$219 million, an increase of 2% year-over-year. GAAP operating profit was US$196 million, compared with US$202 million for 2023. Non-GAAP operating profit was US$196 million, compared with US$203 million for 2023. Recent Development Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs, Sohu had repurchased 4,180,158 ADSs for an aggregate cost of approximately US$52 million as of February 13, 2025. Business Outlook For the first quarter of 2025, Sohu estimates: Brand advertising revenues to be between US$13 million and US$14 million; this implies an annual decrease of 13% to 19%, and a sequential decrease of 26% to 31%. Online game revenues to be between US$105 million and US$115 million; this implies an annual decrease of 2% to 11%, and a sequential decrease of 4% to a sequential increase of 5%. Non-GAAP net loss attributable to Sohu.com Limited to be between US$16 million and US$26 million; and GAAP net loss attributable to Sohu.com Limited to be between US$20 million and US$30 million. For the first quarter 2025 guidance, the Company has adopted a presumed exchange rate of RMB7.18=US$1.00, as compared with the actual exchange rate of approximately RMB7.10=US$1.00 for the first quarter of 2024, and RMB7.15=US$1.00 for the fourth quarter of 2024. This forecast reflects Sohu's management's current and preliminary view, which is subject to substantial uncertainty. Non-GAAP Disclosure To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Sohu's management uses non-GAAP measures of gross profit, operating profit/(loss), net income/(loss), net income/(loss) attributable to Sohu.com Limited and diluted net income/(loss) attributable to Sohu.com Limited per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the Toll Charge imposed by the U.S. TCJA. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Sohu's management believes excluding share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the Toll Charge from its non-GAAP financial measure is useful for itself and investors. Further, the impact of share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the Toll Charge cannot be anticipated by management and business line leaders and these expenses were not built into the annual budgets and quarterly forecasts that have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As share-based compensation expense, changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, and the impact of income tax related to changes in the fair value of the Company's investments do not involve subsequent cash outflow or are reflected in the cash flows at the equity transaction level, Sohu does not factor in their impact when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, in general, the monthly financial results for internal reporting and any performance measures for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense, changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, the impact of income tax related to changes in the fair value of the Company's investments, and interest expense recognized in connection with the Toll Charge. The non-GAAP financial measures are provided to enhance investors' overall understanding of Sohu's current financial performance and prospects for the future. A limitation of using non-GAAP gross profit, operating profit/(loss), net income/(loss), net income/(loss) attributable to Sohu.com Limited, and diluted net income/(loss) attributable to Sohu.com Limited per ADS excluding share-based compensation expense and interest expense recognized in connection with the Toll Charge is that share-based compensation expense and interest expense recognized in connection with the Toll Charge have been and can be expected to continue to be significant recurring expenses in Sohu's business. It is also possible that changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, and the impact of income tax related to changes in the fair value of the Company's investments, will recur in the future. In order to mitigate these limitations Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between the GAAP financial measures that are most directly comparable to the non-GAAP financial measures that have been presented. Notes to Financial Information Financial information in this press release other than the information indicated as being non-GAAP is derived from Sohu's unaudited financial statements prepared in accordance with GAAP. Safe Harbor Statement This announcement contains forward-looking statements. It is currently expected that the Business Outlook will not be updated until release of Sohu's next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason. Statements that are not historical facts, including statements about Sohu's beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, instability in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations, including their potential impact on the Chinese economy and on Sohu's reported U.S. dollar results; fluctuations in Sohu's quarterly operating results; the possibilities that Sohu will be unable to recoup its investment in video content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; Sohu's reliance on online advertising sales and online games for its revenues; and the impact of the U.S. TCJA. Further information regarding these and other risks is included in Sohu's annual report on Form 20-F for the year ended December 31, 2023, and other filings with and information furnished to the U.S. Securities and Exchange Commission. Conference Call and Webcast Sohu's management team will host a conference call at 4:30 a.m. U.S. Eastern Time, February 18, 2025 (5:30 p.m. Beijing/Hong Kong time, February 18, 2025) following the quarterly results announcement. Participants can register for the conference call by clicking here, which will lead them to the conference registration website. Upon registration, participants will receive details for the conference call, including the dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin. The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu's website at https://investors.sohu.com/ About Sohu Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China's internet pioneers, in the 1990s. Sohu operates one of the leading Chinese online media platforms and also engages in the online game business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of Sohu News App, Sohu Video App, the mobile portal m.sohu.com, the PC portal www.sohu.com, and the online games platform www.changyou.com/en/. As a mainstream media platform with social features, Sohu is indispensable to the daily life of millions of Chinese, providing to a vast number of users a network of web properties and community based products, which offer a broad array of content such as news, information, text, picture, video and live broadcasting. Sohu also attracts users to be highly engaged in content generation and distribution, and actively interact with each other on the platform. Sohu's online game business is conducted by its subsidiary Changyou which develops and operates a diverse portfolio of PC and mobile games, such as the well-known Tian Long Ba Bu ("TLBB") PC and Legacy TLBB Mobile. For investor and media inquiries, please contact: In China: Ms. Huang, PuSohu.com LimitedTel: +86 (10) 6272-6645E-mail: [email protected] In the United States: Ms. Bergkamp, LindaChristensenTel: +1 (480) 614-3004E-mail: [email protected] [1] Non-GAAP results exclude share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the one-time transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017 (the "U.S. TCJA"). Explanation of the Company's non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures." [2] The bankruptcy proceedings of Changyou's wholly-owned subsidiary Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao"), which operated Changyou's cinema advertising business, were concluded by a Chinese mainland bankruptcy court in the third quarter of 2023. The Company recognized a US$35 million disposal gain within discontinued operations in the condensed consolidated statements of operations for the third quarter of 2023. Unless indicated otherwise, results presented in this press release are related to continuing operations only, and exclude the disposal gain related to Shanghai Jingmao. [3] "Changyou Results" consist of the results of Changyou's online game business and its 17173.com Website. [4] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month. [5] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter. SOHU.COM LIMITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Twelve Months Ended Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Revenues: Brand advertising $ 18,865 $ 18,677 $ 20,195 $ 73,465 $ 88,689 Online games 109,859 127,721 114,759 502,389 479,697 Others 5,960 5,594 6,405 22,545 32,286 Total revenues 134,684 151,992 141,359 598,399 600,672 Cost of revenues: Brand advertising (includes share-based compensation expense of nil, nil, nil, $1, and $7, respectively) 17,787 17,040 16,966 66,579 71,103 Online games (includes share-based compensation expense of nil, nil, $-44, nil, and $10, respectively) 18,133 20,292 15,123 88,495 65,029 Others 1,113 2,283 1,733 10,759 9,625 Total cost of revenues 37,033 39,615 33,822 165,833 145,757 Gross profit 97,651 112,377 107,537 432,566 454,915 Operating expenses: Product development (includes share-based compensation expense of nil, $6, $-572, $19, and $156, respectively) 61,584 62,231 69,553 255,233 279,842 Sales and marketing (includes share-based compensation expense of $-1, $9, $4, $22, and $26, respectively) 48,588 48,494 50,813 235,824 213,449 General and administrative (includes share-based compensation expense of $243, $29, $-393, $-72, and $509, respectively) 12,672 14,692 12,450 50,910 48,934 Total operating expenses 122,844 125,417 132,816 541,967 542,225 Operating loss (25,193) (13,040) (25,279) (109,401) (87,310) Other income, net 8,448 3,635 15,949 22,144 35,746 Interest income 8,632 9,074 11,578 38,625 45,222 Exchange difference 1,240 (988) (823) 464 692 Income/(loss) before income tax expense (6,873) (1,319) 1,425 (48,168) (5,650) Income tax expense 14,387 15,028 14,044 52,070 60,420 Net loss from continuing operations (21,260) (16,347) (12,619) (100,238) (66,070) Net income from discontinued operations, net of tax [6] - - - - 35,426 Net loss (21,260) (16,347) (12,619) (100,238) (30,644) Less: Net income/(loss) from continuing operations attributable to the noncontrolling interest shareholders 31 - (1) 31 (265) Net loss from continuing operations attributable to Sohu.com Limited (21,291) (16,347) (12,618) (100,269) (65,805) Net income from discontinued operations attributable to Sohu.com Limited - - - - 35,426 Net loss attributable to Sohu.com Limited (21,291) (16,347) (12,618) (100,269) (30,379) Basic net loss from continuing operations per share/ADS attributable to Sohu.com Limited [7] $ (0.69) $ (0.52) $ (0.37) (3.13) $ (1.93) Basic net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ - $ - $ - - $ 1.04 Basic net loss per share/ADS attributable to Sohu.com Limited $ (0.69) $ (0.52) $ (0.37) (3.13) $ (0.89) Shares/ADSs used in computing basic net income/(loss) per share/ADS attributable to Sohu.com Limited 30,799 31,729 34,061 32,009 34,109 Diluted net loss from continuing operations per share/ADS attributable to Sohu.com Limited $ (0.69) $ (0.52) $ (0.37) (3.13) $ (1.93) Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ - $ - $ - - $ 1.04 Diluted net loss per share/ADS attributable to Sohu.com Limited $ (0.69) $ (0.52) $ (0.37) (3.13) $ (0.89) Shares/ADSs used in computing diluted net income/(loss) per share/ADS attributable to Sohu.com Limited 30,799 31,729 34,061 32,009 34,109 [6] See Footnote 2. [7] Each ADS represents one ordinary share. SOHU.COM LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) As of Dec. 31, 2024 As of Dec. 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 159,927 $ 362,504 Restricted cash - 3,184 Short-term investments 744,498 597,770 Accounts receivable, net 53,762 71,618 Prepaid and other current assets 83,575 81,971 Total current assets 1,041,762 1,117,047 Fixed assets, net 252,860 269,058 Goodwill 46,944 47,163 Long-term investments, net 43,120 45,198 Intangible assets, net 7,695 2,226 Long-term time deposits 331,290 388,613 Other assets 10,995 12,793 Total assets $ 1,734,666 $ 1,882,098 LIABILITIES Current liabilities: Accounts payable $ 36,043 $ 44,609 Accrued liabilities 97,138 103,779 Receipts in advance and deferred revenue 51,007 50,829 Accrued salary and benefits 47,232 50,330 Taxes payables 14,225 11,363 Other short-term liabilities 76,322 81,482 Total current liabilities $ 321,967 $ 342,392 Long-term other payables 2,807 3,924 Long-term tax liabilities 485,545 474,374 Other long-term liabilities 1,659 2,130 Total long-term liabilities $ 490,011 $ 480,428 Total liabilities $ 811,978 $ 822,820 SHAREHOLDERS' EQUITY: Sohu.com Limited shareholders' equity 922,335 1,058,956 Noncontrolling interest 353 322 Total shareholders' equity $ 922,688 $ 1,059,278 Total liabilities and shareholders' equity $ 1,734,666 $ 1,882,098 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 Dec. 31, 2024 Three Months Ended Sep. 30, 2024 Three Months Ended Dec. 31, 2023 GAAP Non-GAAP Adjustment Non-GAAP GAAP Non-GAAP Adjustment Non-GAAP GAAP Non-GAAP Adjustment Non-GAAP - (a) - (a) - (a) Brand advertising gross profit $ 1,078 $ - $ 1,078 $ 1,637 $ - $ 1,637 $ 3,229 $ - $ 3,229 Brand advertising gross margin 6 % 6 % 9 % 9 % 16 % 16 % - (a) - (a) (44) (a) Online games gross profit $ 91,726 $ - $ 91,726 $ 107,429 $ - $ 107,429 $ 99,636 $ (44) $ 99,592 Online games gross margin 83 % 83 % 84 % 84 % 87 % 87 % - (a) - (a) - (a) Others gross profit $ 4,847 $ - $ 4,847 $ 3,311 $ - $ 3,311 $ 4,672 $ - $ 4,672 Others gross margin 81 % 81 % 59 % 59 % 73 % 73 % - (a) - (a) (44) (a) Gross profit $ 97,651 $ - $ 97,651 $ 112,377 $ - $ 112,377 $ 107,537 $ (44) $ 107,493 Gross margin 73 % 73 % 74 % 74 % 76 % 76 % Operating expenses $ 122,844 $ (242) (a) $ 122,602 $ 125,417 $ (44) (a) $ 125,373 $ 132,816 $ 961 (a) $ 133,777 242 (a) 44 (a) (1,005) (a) Operating loss $ (25,193) $ 242 $ (24,951) $ (13,040) $ 44 $ (12,996) $ (25,279) $ (1,005) $ (26,284) Operating margin -19 % -19 % -9 % -9 % -18 % -19 % Income tax expense $ 14,387 $ (3,961) (c)$ 10,426 $ 15,028 $ (3,883) (c)$ 11,145 $ 14,044 $ (3,667) (c)$ 10,377 242 (a) 44 (a) (1,005) (a) 2,087 (b) - (827) (b) 3,961 (c) 3,883 (c) 3,667 (c) Net loss before non-controlling interest $ (21,260) $ 6,290 $ (14,970) $ (16,347) $ 3,927 $ (12,420) $ (12,619) $ 1,835 $ (10,784) 242 (a) 44 (a) (1,005) (a) 2,087 (b) - (827) (b) 3,961 (c) 3,883 (c) 3,667 (c) Net loss attributable to Sohu.com Limited for diluted net loss per share/ADS $ (21,291) 6,290 (15,001) $ (16,347) 3,927 (12,420) $ (12,618) 1,835 (10,783) Diluted net loss per share/ADS attributable to Sohu.com Limited $ (0.69) (0.49) $ (0.52) (0.39) $ (0.37) (0.32) Shares/ADSs used in computing diluted net loss per share/ADS attributable to Sohu.com Limited 30,799 30,799 31,729 31,729 34,061 34,061 Note: (a) To eliminate the impact of share-based awards. (b) To adjust for changes in the fair value of the Company's investments. (c) To adjust for the effect of the Toll Charge. SOHU.COM LIMITED RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Twelve Months Ended Dec. 31, 2024 Twelve Months Ended Dec. 31, 2023 GAAP Non-GAAP Adjustments Non-GAAP GAAP Non-GAAP Adjustments Non-GAAP 1 (a) 7 (a) Brand advertising gross profit $ 6,886 $ 1 $ 6,887 $ 17,586 $ 7 $ 17,593 Brand advertising gross margin 9 % 9 % 20 % 20 % - (a) 10 (a) Online games gross profit $ 413,894 $ - $ 413,894 $ 414,668 $ 10 $ 414,678 Online games gross margin 82 % 82 % 86 % 86 % - (a) - (a) Others gross profit $ 11,786 $ - $ 11,786 $ 22,661 $ - $ 22,661 Others gross margin 52 % 52 % 70 % 70 % 1 (a) 17 (a) Gross profit $ 432,566 $ 1 $ 432,567 $ 454,915 $ 17 $ 454,932 Gross margin 72 % 72 % 76 % 76 % Operating expenses $ 541,967 $ 31 (a)$ 541,998 $ 542,225 $ (691) (a)$ 541,534 (30) (a) 708 (a) Operating loss $ (109,401) $ (30) $ (109,431) $ (87,310) $ 708 $ (86,602) Operating margin -18 % -18 % -15 % -14 % Income tax expense $ 52,070 $ (15,299) (d)$ 36,771 $ 60,420 $ (12,297) (c,d)$ 48,123 (30) (a) 708 (a) 1,820 (b) 1,391 (b) - (555) (c) 15,299 (d) 12,852 (d) Net loss before non-controlling interest $ (100,238) 17,089 (83,149) $ (66,070) $ 14,396 $ (51,674) (30) (a) 708 (a) 1,820 (b) 1,391 (b) - (555) (c) 15,299 (d) 12,852 (d) Net loss from continuing operations attributable to Sohu.com Limited for diluted net loss per share/ADS $ (100,269) $ 17,089 $ (83,180) $ (65,805) $ 14,396 $ (51,409) Net income from discontinued operations attributable to Sohu.com Limited for diluted net income per share/ADS [9] $ - - - $ 35,426 - 35,426 Net loss attributable to Sohu.com Limited for diluted net loss per share/ADS $ (100,269) 17,089 (83,180) $ (30,379) 14,396 (15,983) Diluted net loss from continuing operations per share/ADS attributable to Sohu.com Limited $ (3.13) $ (2.60) $ (1.93) $ (1.51) Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ - - $ 1.04 1.04 Diluted net loss per share/ADS attributable to Sohu.com Limited. $ (3.13) (2.60) $ (0.89) (0.47) Share/ADS used in computing diluted net income/(loss) per share/ADS attributable to Sohu.com Limited 32,009 32,009 34,109 34,109 Note: (a) To eliminate the impact of share-based awards. (b) To adjust for changes in the fair value of the Company's investments. (c) To adjust for the impact of income tax related to changes in the fair value of the Company's investments. (d) To adjust for the effect of the U.S. TCJA. [9] See Footnote 2. SOURCE Sohu.com Limited WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

SOHU.COM REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 UNAUDITED FINANCIAL RESULTS

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