Shulou(Shulou.com)11/24 Report--

CTOnews.com February 21, CTOnews.com learned from Sohu that Sohu today released its unaudited financial results for the fourth quarter of 2022 and 2022 as of December 31, 2022.

Important results for the fourth quarter: total revenue was $160 million, down 17% from the same period in 2021 and 13% from the previous quarter.

Brand advertising revenue was $29 million, down 14% from the same period in 2021 and up 12% from the previous quarter.

Online game revenue was $121 million, down 16% from the same period in 2021 and 18% from the previous quarter.

The net loss of American General Accounting Standards attributed to Sohu is $7 million. Net profit for the same period in 2021 was $4 million, compared with a net loss of $22 million in the previous quarter.

The non-American GAAP net loss attributed to Sohu was $2 million. Net profit for the same period in 2021 was $200000, compared with a net loss of $17 million in the previous quarter.

Key achievements in 2022: total revenue was $734 million, down 12% from 2021.

Brand advertising revenue was $103 million, down 24% from 2021.

Online game revenue was $585 million, down 8 per cent from 2021.

General Accounting Standards (GAAP), attributed to Sohu, posted a net loss of $17 million and a 2021 net profit of $69 million.

Non-American General Accounting Standards (Non-GAAP) net profit attributed to Sohu was $2 million. Net profit in 2021 was $79 million.

Dr. Zhang Chaoyang, Chairman and CEO of Sohu, commented: "in the fourth quarter and the whole year of 2022, despite the adverse effects of the epidemic and macroeconomic, we continue to optimize our products, improve operational efficiency and strictly control costs. Thanks to these efforts, brand advertising revenue and net loss in the quarter were better than expected. Sohu media, we continue to optimize the user experience, provide a large number of high-quality content, and continue to improve products and technology. Sohu video, we are based on the 'dual-engine' strategy, continue to develop self-made content, and rely on advanced video live technology to cultivate scientific live streaming. At the same time, we make use of differentiated content marketing activities to actively explore a variety of commercial opportunities. The performance of online games is solid, and its revenue is in line with previous expectations. "

Group results in the fourth quarter: revenue

Total revenue was $160 million, down 17% from the same period in 2021 and 13% from the previous quarter.

Brand advertising revenue was $29 million, down 14% from the same period in 2021 and up 12% from the previous quarter.

Online game revenue was $121 million, down 16% from the same period in 2021 and 18% from the previous quarter. The year-on-year decline is mainly due to the natural decline of old games such as the Legend of Little Coon and Tianlong PC. The month-on-month decline was mainly due to fewer promotions launched this quarter than in the previous quarter for Tianlong PC games, as well as a natural decline in Dawn Sea, which was launched in the third quarter of 2022.

Gross profit margin

The gross profit margins of both American and non-American accounting standards were 78%, 73% in the same period in 2021 and 71% in the previous quarter.

In brand advertising, both GAAP and non-GAAP gross margins were 51% and 28% respectively in the same period in 2021, compared with 2% in the previous quarter. The increase in gross profit margin is mainly due to the recognition of a reduction in accounts payable of approximately $10 million in the fourth quarter of 2022.

Both GAAP and non-GAAP gross margins in online games were 84%, 84% in the same period in 2021 and 84% in the previous quarter.

Operating expenses

Us GAAP operating expenses were $130 million, down 10 per cent from the same period in 2021 and 13 per cent from the previous quarter. Non-GAAP operating expenses were $130 million, down 10% from the same period in 2021 and 13% from the previous quarter. The decline in operating expenses is mainly due to the reduction in marketing fees for Changyou online games.

Operating loss

The operating loss of GAAP was $6 million, compared with an operating loss of $3 million in the same period in 2021 and $18 million in the previous quarter. Non-GAAP operating loss was $5 million, compared with an operating loss of $3 million in the same period in 2021 and $17 million in the previous quarter. Income tax expense

GAAP income tax expenses were $7 million, compared with $9 million in the same period in 2021 and $16 million in the previous quarter. Non-GAAP income tax expenses were $5 million, compared with $6 million for the same period in 2021 and $14 million in the previous quarter. Income tax charges for the fourth quarter of 2022 included an one-time income tax income of US $7 million recognized by Changyou, mainly due to Changyou's pre-adjustment of its 2022 settlement payments. and some of Changyou's subsidiaries are found to be qualified as national software enterprises in 2021 and enjoy preferential income tax rates.

Net profit / (loss)

The net loss of American general accounting standard attributed to Sohu is 7 million US dollars, and the diluted net loss per share of American general accounting standard is 0.21 US dollars. Net profit for the same period in 2021 was $4 million, compared with a net loss of $22 million in the previous quarter.

The net loss of non-American accounting standards attributed to Sohu was $2 million and the net diluted loss per share of non-American accounting standards was $0.06. Net profit for the same period in 2021 was $200000, compared with a net loss of $17 million in the previous quarter.

Group performance in 2022: income

Total revenue was $734 million, down 12% from 2021.

Brand advertising revenue was $103 million, down 24% from 2021.

Online game revenue was $585 million, down 8 per cent from 2021.

Gross profit margin

Both American GAAP and non-American GAAP gross profit margins were 74% and 76% respectively in 2021.

Brand advertising business American General Accounting Standards and non-American General Accounting Standards gross profit margins are both 16% and 26% in 2021.

Both the American general accounting standards (GAAP) and the non-American GAAP gross margins of the online game business were 84% and 86% respectively in 2021.

Operating expenses

Us GAAP operating expenses were $543 million, an increase of 2 per cent over 2021. Non-GAAP operating expenses were $538 million, up 3 per cent from 2021.

Operating profit / (loss)

GAAP has an operating loss of $1 million and an operating profit of $97 million in 2021.

Non-GAAP operating profit was $4 million, compared with $106 million in 2021.

Income tax expense

The GAAP income tax expense is $58 million and the income tax expense for 2021 is $62 million. Non-GAAP income tax expenses are $53 million and 2021 income tax expenses are $56 million.

Net profit / (loss)

The net loss attributed to Sohu is $17 million, the diluted net loss per share is $0.50, and the net profit in 2021 is $69 million.

The non-American GAAP net profit attributed to Sohu is US $2 million, and the non-US GAAP diluted net profit per share is US $0.07. Net profit in 2021 was $79 million.

Changyou performance supplementary information in the fourth quarter of 2022, in terms of PC client games, the total average number of monthly active users was 2.3 million, an increase of 11 per cent over the same period last year and 6 per cent over the previous quarter. Year-on-year and month-on-month growth is mainly due to the content updates launched this quarter led to the improvement of the performance of some old games such as Tianlong Duanyou. The total number of active fee-paying households in the quarter was 900000, up 2 per cent from the same period last year and down 10 per cent from the previous quarter. The month-on-month decline is mainly due to a decrease in promotions launched by Tianlong PC games in this quarter compared with the previous quarter.

In mobile games, the total average number of monthly active users was 1.8 million, down 30 per cent from the same period last year and 31 per cent from the previous quarter. The total number of active fee-paying households in the quarter was 400000, down 24% from the same period last year and 29% from the previous quarter. The year-on-year decline in the number of active users and paid households was mainly due to the spread of Little Raccoon, while the month-on-month decline was mainly from the Sea of Dawn.

Total unaudited financial performance in the fourth quarter of 2022 was $122 million, down 16% from the same period last year and 18% from the previous quarter. Online game revenue was $121 million, down 16% from the same period last year and 18% from the previous quarter. Online advertising revenue was $1 million, down 27 per cent from the same period last year and 7 per cent from the previous quarter.

Gross profits of both GAAP and non-GAAP were $103 million, down 15 per cent from the same period last year and 18 per cent from the previous quarter.

Us GAAP operating expenses were $50 million, down 26 per cent from the same period last year and 27 per cent from the previous quarter. Non-GAAP operating expenses were $50 million, down 26% from the same period last year and the previous quarter. The year-on-year decline is mainly due to a reduction in game market promotion fees and bonuses. The month-on-month decline is mainly due to a reduction in game market promotion fees.

GAAP operating profit was $53 million, compared with $53 million in the same period in 2021 and $57 million in the previous quarter.

Non-GAAP operating profit was $54 million, compared with $55 million in the same period in 2021 and $58 million in the previous quarter.

Total unaudited financial performance revenue in 2022 was $592 million, down 9 per cent from 2021. Online game revenue was $585 million, down 8 per cent from 2021. Online advertising revenue was $7 million, down 36 per cent from 2021.

Both GAAP and non-GAAP gross profits were $499 million, down 11 per cent from 2021.

Us GAAP operating expenses totaled $222 million, down 13 per cent from 2021. Non-GAAP operating expenses totaled $218 million, down 13% from 2021.

Operating profit under GAAP was $277 million, compared with $302 million in 2021.

Non-GAAP operating profit was $282 million, compared with $310 million in 2021.

Business Outlook for the first quarter of 2023, Sohu expects:

Brand advertising revenue was between $20 million and $23 million, down 3 to 16 per cent from the same period in 2022 and 20 to 31 per cent from the fourth quarter of 2022.

Online game revenues range from $121 million to $131 million, down 17 to 23 per cent from the same period in 2022 and unchanged from the fourth quarter of 2022 to an increase of 8 per cent.

The net loss of non-American accounting standards attributed to Sohu is between $15 million and $25 million, while that of Sohu is between $20 million and $30 million.

The assumed exchange rate for the company's guidance expectations for the first quarter of 2023 is 6.80 RMB = 1.00 US dollars, the real exchange rate for the first quarter of 2022 is approximately 6.35 RMB = 1.00 US dollars, and the real exchange rate for the fourth quarter of 2022 is approximately 7.09 RMB = 1.00 US dollars.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.