SOHU - Earnings call 3 2023 | Sohu.com Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded.

If you have any objections, you may disconnect at this time.

I would now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. ahead. go Please

Pu Huang

you quarter Thank us discuss to Thanks, results. for third XXXX Sohu's operator. joining

On Chairman of call Dewen Joanna Also the are us Chen; Lv; Zhang; Officer, with Yaobin and CFO, and Charles it's Vice Wang. Changyou's President are Finance, CFO, Deng. and James CEO, Chief Executive

discussed Except I herein, Before harbor reliance with connection projections, on statements them. remarks, to this not for historical should you contained would on call. information the management place matters contain therefore, and on begins These their of may remind the in are today's like undue you statements and prepared current forward-looking the safe call conference company's estimates plans, statements. based

a differ important results number cause actual For from forward-looking materially could of uncertainties, these statements involving that risks factors to inherent contained and statements. in those any you we caution

and information XX-F. including filings and the about Securities potential more annual For on please recent risks company's the refer with most report Commission, to Exchange uncertainties, the Form

With that, turn to over please call Zhang. the Charles, Charles proceed. I will now

Charles Zhang

delivered Thanks bottom In expectations. these and with offering Pu, call. joining and our our XXXX, third operational prior to quarter everyone, line of enhance performance efficiency. for in Huang thank we we product and you, efforts, continue Thanks, both our the top improve to line

Media Portal, upgraded and experience. Sohu As user we further products refined the our

content short-form campaigns. well Engine" social from our as further "Twin and unique and focused compelling and user us on of we efforts engagement time, with interactions. strategy, Video, Sohu As marketing benefiting live content boost broadcast. helped our generation distribution Same as These the

that advantages. explore a diverse opportunities leverage differentiated our competitive to We range of continue monetization

revenues operational of updates and remained with new consistent release efforts, For Online stable. Games, content game

related for key cinema is into go of quarter. detail continuing proceeding business reminded be I operations Before that This advertising concluded the release bankruptcy to the only. financial results, during Changyou's our please more

business. cinema's from includes underlying Changyou's So -- disposal cinema -- the gain disposable the this

the in advertising a loss of third year-over-year of second the X% net with total $XX this quarter the year-over-year million $XX loss loss net loss in $XXX Limited for quarter-over-quarter. in to Brand net quarter in net a a were compared down down million quarter, of this $XXX net was revenues Online quarter-over-quarter. quarter a XXXX quarter million XX% of loss million Non-GAAP down XXXX was XXXX. and XXXX, third were revenue million, revenues Sohu.com for GAAP X% and the So second and quarter-over-quarter. XX% to attributable year. of million, and XX% million, of Sohu.com $XX million attributable was X% $XX $XX loss quarter $XX third net game of million $XX with the of and Limited of the year-over-year compared

detail. me our let now So more in key go businesses through

in content a First, Media of Most Video. engagement strengthen Sohu the and Media products audiences operational we better distribution content efficiency. user In social upgrade in Portal providers. integrated products resulting generation actively our experience and Portal, technologies both and and the Sohu our enhanced cutting-edge continue interaction. We through for promoted and user high-quality to

means, and And distinctive considerable topics formed broadcasting, offline broadcasting, Physics live IP, IP across traffic the which the and and establishing class. through on this books At a our multidimensional focus a library content. "Twin our position other live content short science-related seminars, engagement and field We continuously our long-form executing short-form driven has strategy. knowledge our further live our leveraging unique various diversified to committed on Sohu of We're Charles' the and videos, has dissemination Video, Engine" long-term platforms. streaming promoted streaming remains leading live in and

users and various video as broadcasters fields K-Pop events organizing events attracting on engagement across Sohu broadcasting on Broadcasters Video with proactively so centered Sohu platform. These the we to Sohu the such XXXX broadcaster conference. online and and XXXX and users user live basically Dancing Conference, and ecosystem Festival as also a each were topics hot interact enhance vitality offline our other, social platform, further addition, by enabled their In refining and

-- On the We live efforts our the remain product despite monetization monetization market marketing and the unique advertising totally enable unlock cautious. campaigns technology. trends high-value Sohu's matrix execute developing synergies opportunities. and new These to budgets and we're allow us side, advanced follow between monetization new broadcasting

disseminated millions social our dialogue. influence of quarter, been but also the traditional we talk generating not attracting Sky, audiences mainstream as innovative and events effectively the advertisers. and that hosted significant the exposure Under for These platforms high-end various a media and media events has During Language] BOSSX+X, across have Starry demonstrating [Foreign only platform

With Valentine's our plan promotional The PC a In further system. the and player and new stable consistent we turning to game -- new character gameplay a mobile business. Vintage, development strategic Game online a mode by of revenues content updates month-long robust the during events Mobile. Chinese Day. Now helped TLBB regular Within new engagement. for optimized we business, TLBB event game out driven TLBB the game remained PC stabilize release strategic for our PC business, quarter, roll its games which legacy during plan cooperations. launched introduced war festival, we

and and launch the quarter, the titles content other for players will TLBB series expansion keep updates packs to Next engaged. we

to demand top and gaming becomes stick technology more game going advances diversified. as the will strategy forward market rapidly our and deeper We

order games will meet content innovation needs, players' talent the We more to professional new resources in invest more technology high-quality in the market. better to and bring to explore allocate to ideas and development

maintain we strategy also producing casual will MMORPGs RPGs In board or games and pipeline, core while card-based in our competitiveness terms of game. in

prospects our are results The pleased ago, Before to have Board a on I our authorized of repurchase underscores XXXX, program Lv as increasing XX, to pass November shareholder as continued to X-year X we up confidence value. Joanna call well the to commitment we a go our ongoing growth period. to program announce detail, our in of share Directors to over repurchase that financial long-term $XX days the million in

the I call that, over with turn will Joanna, please? So to now

Joanna Lv

I Thank now the XXXX. non-GAAP of you walk the quarter financials segments on major basis. you, All third for through a our will numbers key of Charles.

non-GAAP measures a You of IR on reconciliation to website. our may GAAP find

For in quarterly Sohu operating last compared Media $XX same an Portal, $XX quarterly revenues year. the million million were compared loss $XX of same million, $XX The revenue was of quarter with last loss million the in year. with quarter operating

loss Video, in last the year. was an loss year. Quarterly were For $XX same with quarter revenue revenues last the million $XX of compared same million Sohu quarter $XX operating compared with quarterly operating in $XX million of million

Quarterly For online compared profit same an of same $XXX quarterly quarter with XXXXX, million business game Changyou's in and revenues, million the last million year. in quarter last compared with year. operating $XX was of operating the profit $XX $XXX revenues million

advertising be to million This XX% loss million decrease forecast and quarter decrease expect we attributable to between to a $XX which current $XX increase game Brand $XXX and the a uncertainty. and a substantial of debt be XX% to of and impacts sequential million. $XX fourth between and between revenues the XXXX, million attributable $XX million Sohu's of million. and Online GAAP of This to Non-GAAP preliminary to X% subject annual Sohu.com $XX between For and X% X%. to decrease $XXX This and sequential to reflects loss Limited Limited million, to decrease XX% net to management's X% view, to million. sequential be Sohu.com of revenues $XX be annual of is impacts X%.

questions. This concludes our like remarks. prepared the call we would now Operator, to to open

Operator

question first from Thomas Our comes line Instructions] [Operator from Jefferies. of Chong the

Thomas Chong

is at sequential X% the My first guidance high relating X% growth advertising to our business. revenue I end. question QX brand for to the advertising down saw

it what color be performance So October situation so if some want I expect about may I that from November? know down X%? just a to should in conservative we is the get and far by guidance? Charles, to Or the Under

question second my And to relating is AIGC.

to how think everyone the talks the about content creation. conversion, AI I can help drive that Given

perspective Just want color Sohu to coming get quarters? from our in strategies some

quick is ask may also advertising more finally, to I relating And sorry, online XXXX a and outlook? follow-up

Charles Zhang

All right.

QX have to that kind the activities is events just QX attract it's all some equal about in situation a there's advertisers innovative the and so the like And others and -- Dancing macroeconomic we nothing So it's Festival, is -- we national to and we're few forecast the QX, also campaigns marketing and similar like content And of the we ceremony think bad, a we have conference. or things. also, contest is really these I right? -- that -- of range. And Fashion events the -- finance QX, K-Pop have Sohu still quite number providing are trying

QX, we're to So QX range. I providing the similar is think just a

kind the positive to impact think and only business some content not it's efficiency incremental The incremental not content our creation, have any now it's of AIGC, improve AIGC getting I side far, on it's with have -- major improvement our but of and And -- a AIGC and technology, the the words. better write the abstracts words to to also of generation of so only -- its on application business impact have have the AI -- translations titles using summarize voice to the to With yet. we of -- video the have articles, side basically, like articles. we for with we content, better summarize have

a not big it's So yet. deal

Thomas Chong

we should the very a is Do discussion think question Are have about the in advertising quick preliminary ask any how also XXXX? I we May about -- year's advertisers it. yet preliminary next to follow-up spending? any relating Got yes, XXXX. discussions market with

Charles Zhang

Yes.

And in base. to the of disposal all people which of the auto overall, people our now businesses are macroeconomic I XX% for marketers -- spending spending more because -- are less The consist example, think limited have consumers microeconomy especially, income have is the good. advertising not because -- doing cautious -- the so that spend. -- there's all quarter across industry,

So in to some top-tier platform. user center tend advertisers around top-tier base, this their budgets the situation,

are and innovative So not others to we with we have base, so events of advertisers. campaigns attract in kind and this Sohu's that have the current a top to user tier brand

rise think will really a or year, seems 'XX the And have we -- platform, and uptake major Sohu unless we the similar. Portal video have growth have our Sohu Sohu user media Portal explosive social social or I Video and and social of base. -- So be so Sohu Sohu unless media -- have News next platform News and the

I XXXX, social we hope media hope, positive think have to will But will rapidly. expand to 'XX. some definitely have yes, strategy that some XXXX be similar our in

Operator

now We'll to question. our next on move

Our next Citigroup. line Alicia question comes of from Yap the from

Alicis a Yap

have X questions. team. Charles, and Joanna I

to color the are you what Would seeing Charles, you for the First, wanted follow up XQ any as say you XQ or about improving the compared similar? in just mentioned not it you great. advertising And from Or be is to is it worse what you would outlook. macro I improvement? just XQ is on comment, situation XQ? no in in getting saw So

So that's the question. first

Charles Zhang

in the QX have kind Well, slow Internet is Internet right? I services, improvement, And contracting. been have people of but we the I the and will [Foreign and has spending QX service some not Because -- think less not robust. season budget Language], QX, car -- like for industry of the because is a because auto mean, sales competition e-commerce. the overall, as are and that

So promoting becoming or cautious more they are sales. products their in

that's small Yes. the seems typical consumer -- right, are -- items, consuming People an fast-moving drinking of -- FMCG wine, spot. they're bright So leisure It's more. right? Well, some spending more, like have some FMCG downturn, goods have right? to industries -- is economic only drinking time industry spending -- and industries

Alicis a Yap

I see. helpful. see. very I That's

second is So related gains guidance the for to question XQ.

mentioned I some think thought TLBB will content series. for update I there be expansion you

guidance also So just the to games sequential decline? wondering what's for experience the reason

Unknown Executive

not to fourth in our Mainly a quarter [Interpreted] in will due fourth quarter. most major The -- we decline the content are games, ones. the have update older of natural update

offset cannot declines the revenues. So the natural game from they

Alicis a Yap

follow that in see year, coming right, Is that the launched up when games should I to growth, XQ? have Can some -- then we beyond quarters you on sequential next assume one? you new so -- would

Unknown Executive

the of it Typically, depends performance yes, but Yes. on game launched. [Interpreted] new also the

Alicis a Yap

question last buyback. on Okay. is your My share

seeing buyback million authorized. $XX So great are we newly it this that is that

Just assuming the on we if using $XX million. are up finish

more be that wondering Just some road things will that Will down we are million? if next finish the other plan is management the thinking? be that you that what's that may have? $XX Or buyback

Charles Zhang

$XX million to And next. we'll this Well, we'll then execute buyback, what's first think right?

sure I our still think our our is make focus works. social strategy really and to really grow business network

really be grow products, And really We've So there and to to Sohu -- spending with. and refining not actually, refining to be started. -- we we've grow, our products will -- haven't been the both our battle the has the Sohu user Video News. base our been

major to to base. to need watch mention I we our right, product grow to continue launch, So mean, user the expand -- to to that products, definitely

are -- we that's So and confident, actually.

and So that's yes. why also and -- gaming

once the they grow user way it's hope user in base base So advertising Sohu because flat. and even will Sohu also and would our come. it hope that's that It social Media say, with grow, then dollar suddenly, that will network, right expansion stays hope And the then exponentially our this you will grow scale explode the or better got high and we'll game I the future. Video and And I because product grows.

Operator

today's call. there As this Thank [Operator participating. you conference questions this time, Instructions] further are concludes for no at

You Speakers, may now disconnect. by. stand please

Charles Zhang

Thank you.

Sohu.com Limited (SOHU) 13 Nov 232023 Q3 Earnings call transcript