Sohu.com Limited (NASDAQ: SOHU) reported revenue growth of 13% year-over-year to $172 million for the fiscal second quarter of 2024, up 24% Q/Q.
The Chinese internet company’s adjusted loss per ADS was $(1.05), down from $(0.52) Y/Y.
Brand advertising revenues declined 17% Y/Y to $20 million. Online game revenues increased 24% Y/Y to $147 million.
The adjusted gross margin declined by 900 bps Y/Y to 67% and by 1,000 bps Q/Q. The adjusted gross margin for online games was 76% versus 87% last year and 88% in the prior quarter.
Sohu held $1.3 billion in cash and equivalents as of June 30, 2024.
The average monthly active user accounts for Changyou PC games increased by 2% year over year to 2.2 million, and the average MAU for Changyou mobile games grew by 273% year over year to 4.9 million.
Under the previously announced share repurchase program of up to $150 million, Sohu had repurchased ADSs worth $26 million.
Outlook: Sohu expects third-quarter brand advertising revenue of $17 million—$19 million, a decrease of 14%–23% year over year.
It projects quarterly online game revenues declining by 3%–11% to $104 million—$114 million. Sohu estimates a quarterly adjusted net loss of $(30) million—$(40) million.
Sohu.com stock gained 24% in the last 12 months.
China approved 104 new video games in June 2024 after an eight-month freeze between 2021 and 2022.
Price Action: SOHU shares closed lower by 2.35% at $14.53 on Friday.
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