SOHU - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. [Operator Instructions] I'd now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead.

Pu Huang

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

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

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

that to of actual statements. statements could cause materially factors differ a number in Forward-looking risks caution inherent involve any results important those and from contained uncertainties. forward-looking you We

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

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

Charles Zhang

thank both everyone, revenues our Thanks, high and revenue bottom of performance the In guidance XXXX, brand you, quarter game Pu, for advertising met call. joining end previous exceeded expectations. our the our Huang online third while our of line and

and we Media Sohu campaigns. improvements, resources refinements to continued Video, unique marketing experience and Sohu user integrate events For host in product addition continued and to and various

we our monetization efforts, these to opportunities. stimulate more brand strengthen With able secure users, effectively and interactions social were influence among

business robust as updates delivered game game a online As result a of and game, result better-than-expected performance. content -- operations, for high-quality

let performance. business give each first overview a unit Before of you me our going more quick in detail, financial through

$XXX revenues, quarter-over-quarter. of and the revenues, million, up revenues, quarter-over-quarter. $XX up quarter-over-quarter. XXXX, down advertising Brand X% X% year-over-year For Online down million, year-over-year game XX% XX% and million, X% year-over-year down XX% and quarter $XXX third total

to with $XX loss compared this last of million $XX second attributable net Limited of the $XX quarter loss in last of million compared Sohu.com to of a GAAP in of quarter net the second a million was was Non-GAAP with year million net a net third $XX Limited net a of million loss and quarter and year. quarter in million last third loss the quarter, loss loss attributable net year XXXX. $XX of the $XX Sohu.com

go businesses I'll in detail. key through our more Now

First, and Sohu Sohu Media Video.

this the influential stars carry of quarter, September, consolidated increasing built During social meet and autumn engagement their events kept between and where interaction. of and hosted influencers, recognition Sohu their pop up network further we event users the thoughts out various share features, greatly needs, platform unique Sohu their and This covering improved verticals. distribution convention broadcasters to among XXXX influence met enhanced brand the and Video users, promoting successfully Video and In users social connections the and through person to our broadcasters platform. our significantly build in user we

idols, October, led X of based Concert, top attracted initiated to XXXX Korea contestants, the chance We influential groundbreaking provide event collaboration together This lots South well-known months who competition and And K-pop dance fans and discussions hot out various generated different social event, nationwide. enhanced In a on we world media Korea, to in clubs hosted a to K-pop interest of their South also Dream stood we our go team groups them proactively overseas areas. events the super, XXX where with after platforms. idols. gathered across online to diversified in with

a and the enthusiasts them for large realize stage dreams. leading China, fans in platform a of with their Sohu to and Video has number fans drawing become K-pop providing

regarded highly in position Together Class, dissemination leading Physics that streaming, various third celebrated our field. Physics Class, has class, third book, core native competitiveness dynamic physics year multi-international Moreover, we our further through its a and has reinforced physics anniversary consistently other and forms. live published Charles' knowledge just we strengthened which with live in English also formed our relative this content Charles' Class have and science Charles'

large to We and our offerings monetization opportunities. high-value us and combine content recognition continue to innovate for from audiences brand helped with gain us innovative provided advertisers. advertisers, it marketing solutions customized This of a number

Now let game the me to business. turn online

series to our on of was due Changyou's sequential guidance a mobile games the office of expected a a we of XXXX, also skill Festival, Meanwhile, than the Westward the decreased of We around regular to Qixi drew TLBB both regular Besides, the revamped for exceeded during by as players natural revenue PC, launched the sequential basis. gameplays, the effectively launched performed TLBB our increased online Vintage, game During crossover maps [ New and sets basis. theme PC ] a decline third the and events major Chinese PC featuring former received game. better on Festival, which PC which prior were TLBB of second well which players. the revenues quarter around revenues TLBB game Journey, client Valentine's back quarter, and

new a corresponding on introduced were players For and client and TLBB Mobile, upgraded a which skill Legacy player we based the storyline activities, with. of happy sets feedback

TLBB to and launch to the to TLBB will series, players the for and we -- engaged. Journey titles, for the quarter, players update titles expansion to Journey updates to Westward continue New Westward series, other keep packs keep other content New Next and

process, game international presence. are confident philosophy. remain ahead continuously with and market As top optimize a We'll we the can becomes our games to we more market. expand more enhance demand doing By bring intensifies, competition user-centric will R&D execution user and so, committed to the that high-quality we diversified, strategy forge our

RPGs, et games, going games the In are which types pipeline, card-based sports also MMORPGs of casual we while possibilities on including core our games, maintain exploring competitiveness multiple terms also game in -- and will forward, of cetera.

the program. on purchase give like an I'd Now to ongoing share update

it Board extend of our year an that authorized has for to X-year program announced Previously, XXXX. November was X a today period Directors of the the XX, of program Sohu to XXXX. additional

So as year, approximately this million. million repurchased for ADS of X.X an November $XX XXXX, of Sohu aggregate X, cost had

total buyback $XXX is the program So million.

it's total. of about the So than less X/X

years, we So X need right? that's why

now With over the turn Joanna? that, to Joanna. I'll call

Joanna Lv

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

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

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

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

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

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

Operator

first our Alicia question of [Operator Yap now from Instructions] We the Citigroup. take from will line

Alicis a Yap

few I have questions. a

implying First advertiser actually year? of as entering think could growth ad guidance, have ad seen any overall is And then fourth is spend sentiment improved enter for remaining the by you of heading you of advertising the that you into quarter? an and that terms Do narrowing if trend in in budget your is advertiser is resume has also revenue improvement terms the slightly given possible the year-over-year outlook, you we also seeing decline positive your XXXX? are what improving guidance

Second versus revenue. question gaming your is guidance reported your on

yet And like third So in conservative. conservatively XQ very again you XQ, a guided beat and million. guided quarter, then you in delivered you $XXX then very massive

performance So just for to conservatively? game you Which not guide reasons have you factored XQ? the that main what are for guidance the into

it like takes liquidity. question seems bit execute a your it is then to the last given little slow And trading buyback,

if speed up? in management to you return more any think wondering way there up enhance to shorter-term period? you Is way buyback shares better speed to to Just in consider Or could shareholder. the the the consider of would any

Charles Zhang

growth right, rate, is -- well, it's of but advertising, little economy terms a gradually right? bit In the losing, steady

Joanna Lv

slowed The down. has GDP growth

Charles Zhang

Yes.

our the advertising robust strong, unprecedented that higher overall, the advertising market events very provided and QX, kind advertisers opportunity on unique unique amount advertising online of not because very achieved some our spend of events in a marketing not is on because events is we offline end designed a to large. money the the soft, still projects, that and and for But So market. forecast

better thought the a situation percentage related because to macroeconomic -- very it's So not it's small the than so total. we of we did because much that

the I then sometime think recover the -- and package the the we'll and recently, will on kind there's market see in stimulus there's of that a side year. some effects, policy probably next

Unknown Executive

Language] [Foreign

Dewen Chen

Language] [Foreign

Unknown Executive

new content than beat in is regular are and quarter the PC. servers launched that the performance reason Their the The during [Interpreted] TLBB revenue new TLBB are the expected. for because third quarter mainly for Vintage and both we better

Dewen Chen

Language] [Foreign

Unknown Executive

quarter during for quarter benefits to fourth is stability to PC reason [Interpreted] for is the maintain revenue. increasing guided the the of fourth more The them we offer conservatively user strategy the instead the TLBB quite because mainly

conservative. a it So looks bit

Charles Zhang

daily Yes, limit, much. impact want up of daily it's Yes, price or limit. because buyback don't shake the to the We the too volume program. right,

That's buy. So buy the We can years not million a probably. extend can X a finish to can need That's -- enough. shares we probably to there's why number why of $XX we XXXX. year limitation is of

Operator

follow-up have question, you any Do Alicia?

Alicis a Yap

it. that's thank No, you,

Operator

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

Thomas Chong

I [Interpreted] have questions. two

question expect few games expect First, my how should should operating the online And second trend the the how we years? margin next that we XXXX is in outlook?

Charles Zhang

question Your is Language] or [Foreign in game game XXXX? Changyou's industry the industry, about the the

Thomas Chong

Changyou. About

Dewen Chen

Language] [Foreign

Unknown Executive

maintain [Interpreted] our games, For them we to older stability of the is will to grow. strive make goal and XXXX, our

with called them approval, license Language]. some development [Foreign XX Hero: games one Superstar, Absolute of We the now other having Three around NBA Language], including and a obtained game [Foreign under called Kingdoms, have one

have besides, of We monetization we And to the a recently. will version new start PC going game a test also TLBB testing we're that have recently. the

Okay, the a PC start we of game. new TLBB will our for test version have

Operator

you. Thank

you that, call end questions. our your for the the much very with today. reached now participation. have conference for We Thank And you of conclude all session. question-and-answer your Thank we

disconnect. now may You

Charles Zhang

are an that transcript this marked [Interpreted] of by you. [Portions on the were present live Thank call.] spoken interpreter

Sohu.com Limited (SOHU) 12 Nov 242024 Q3 Earnings call transcript