Tencent Securities News Beijing time in the early morning news, Monday Sohu.com Ltd shares rose 11.76% to close at 56.83 U.S. dollars, a year and a half high. Earlier, the company reported better-than-expected second-quarter and third-quarter revenue forecasts. In addition, Sogou, a subsidiary of Sohu.com Ltd, filed a draft registration with the US Securities and Exchange Commission (SEC) for the potential IPO.
The results showed second-quarter revenue of $461 million, beating analysts' expectations of $432 million. Sohu.com Ltd expects third-quarter revenue of $4.8 billion to $510 million, while analysts expect $465 million.
Highlights of second quarter results:
Total revenue was $461 million, up 10% year-on-year and 23% month-on-month.
Brand advertising revenue was $86 million, down 24 per cent from a year earlier and up 6 per cent from a month earlier.
Sogou's revenue was $211 million, up 20 per cent year-on-year and 30 per cent month-on-month.
Online game revenue was $122 million, up 23 per cent year-on-year and 43 per cent month-on-month.
The net loss attributable to Sohu.com Ltd was $89 million, or $2.28 per fully diluted share.
The non-GAAP net loss was $72 million, or a fully diluted loss of $1.85 per share.
Zhang Chaoyang, Chairman and CEO of Sohu.com Ltd Company, said, "I am gratified that Sohu.com Ltd achieved higher-than-expected revenue growth in the second quarter." this achievement is mainly due to the good performance of Changyou and Sogou. "the biggest highlight of the second quarter is our new classic version, Demi-Gods and Semi-Devils Mobile, which has been one of the most popular mobile games in China from its launch in mid-May to the end of the second quarter. Sogou's financial performance exceeded expectations, and its mobile search traffic maintained strong growth. "
The number and amount of IPO that Sogou plans to issue in the United States have not yet been determined.
Sohu.com Ltd announced that Sogou, its controlling subsidiary of Internet search services, plans to file a draft registration with the Securities and Exchange Commission (SEC) for a potential initial public offering (IPO). The number and amount of American depositary shares (ADS) Sogou plans to issue have not yet been determined.
Sogou's IPO may begin if market conditions permit and require a registration statement on form Fmuri 1 to be filed in accordance with the amended US Securities Act of 1933 and determined by SEC to be valid.
Wang Xiaochuan, CEO of Sogou, said that Sogou's mobile search traffic grew by more than 50 per cent in the second quarter of this year, pushing Sogou's overall search traffic up 24 per cent from a year ago. As a result, Sogou achieved a total income of 1.45 billion yuan in this quarter, an increase of 26% over the same period last year, of which the contribution of mobile search revenue to the overall search revenue increased to 76% from 49% in the same period last year. "We have successfully completed the transition to mobile."
He also said that in the future, Sogou will continue to take language as the core, continue to explore on the "natural interaction + knowledge computing" technology roadmap, improve the human-computer interface, develop a new form of the future interactive question-and-answer type of next-generation search engines, and become an innovator and leader in the field of artificial intelligence in China.