Technology
SOHU.COM REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 UNAUDITED FINANCIAL RESULTS
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10 months agoon
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BEIJING, March 4, 2024 /PRNewswire/ — Sohu.com Limited (NASDAQ: SOHU) (“Sohu” or the “Company”), a leading Chinese online media, video, and game business group, today reported unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter Highlights[1]
Total revenues were US$141 million, down 12% year-over-year and 3% quarter-over-quarter.Brand advertising revenues were US$20 million, down 30% year-over-year and 9% quarter-over-quarter.Online game revenues were US$115 million, down 5% year-over-year and 2% quarter-over-quarter.GAAP net loss attributable to Sohu.com Limited was US$13 million, compared with a net loss of US$7 million in the fourth quarter of 2022 and a net loss of US$14 million in the third quarter of 2023.Non-GAAP[2] net loss attributable to Sohu.com Limited was US$11 million, compared with a net loss of US$2 million in the fourth quarter of 2022 and a net loss of US$10 million in the third quarter of 2023.
Fiscal Year 2023 Highlights
Total revenues were US$601 million, down 18% compared with 2022. Brand advertising revenues were US$89 million, down 14% compared with 2022. Online game revenues were US$480 million, down 18% compared with 2022.GAAP net loss attributable to Sohu.com Limited was US$66 million, compared with a net loss of US$17 million in 2022.Non-GAAP net loss attributable to Sohu.com Limited was US$51 million, compared with net income of US$2 million in 2022.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, “In the fourth quarter and full year of 2023, we continued to optimize operating efficiency with strict budget control, despite the external economic environment and cautious budgeting by advertisers. Thanks to these efforts, our bottom-line performance hit the high end of our guidance for the fourth quarter of 2023. At Sohu Media Portal, we further refined our products, upgraded technology and expanded premium content offerings, resulting in an enhanced user experience. At Sohu Video, we continued to execute our ‘Twin Engine’ strategy by developing engaging long and short-form content. In addition to the social distribution of short-form content, we also worked hard on science-based live broadcasting and other live broadcasting events, which further boosted user interactions and engagement on our platforms. We also proactively explored diversified monetization opportunities by integrating our advantageous resources and hosting various content marketing campaigns with our unique IPs. Lastly, our online game business remained stable, delivering revenues in line with our expectations.”
[1] The bankruptcy proceedings of Changyou’s wholly-owned subsidiary Shanghai Jingmao Culture Communication Co., Ltd. (“Shanghai Jingmao”), which operated Changyou’s cinema advertising business, were concluded by a Chinese mainland bankruptcy court in the third quarter of 2023. The Company recognized a US$35 million disposal gain within discontinued operations in the condensed consolidated statements of operations for the third quarter of 2023. Unless indicated otherwise, results presented in this press release are related to continuing operations only, and exclude the disposal gain mentioned above.
[2] Non-GAAP results exclude share-based compensation expense; changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments; the impact of income tax related to changes in the fair value of the Company’s investments; and interest expense recognized in connection with the one-time transition tax (the “Toll Charge”) imposed by the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017 (the “U.S. TCJA”). Explanation of the Company’s non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying “Non-GAAP Disclosure” and “Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures.”
Fourth Quarter Financial Results
Revenues
Total revenues were US$141 million, down 12% year-over-year and 3% quarter-over-quarter.
Brand advertising revenues were US$20 million, down 30% year-over-year and 9% quarter-over-quarter.
Online game revenues were US$115 million, down 5% year-over-year and 2% quarter-over-quarter.
Gross Margin
Both GAAP and non-GAAP gross margin were 76%, compared with 78% in the fourth quarter of 2022 and 76% in the third quarter of 2023.
Both GAAP and non-GAAP gross margin for the brand advertising business were 16%, compared with 51% in the fourth quarter of 2022 and 15% in the third quarter of 2023. The year-over-year margin decrease was mainly due to a waiver of unpaid long-term accounts payable of approximately US$10 million recognized in the fourth quarter of 2022.
Both GAAP and non-GAAP gross margin for online games were 87%, compared with 84% in the fourth quarter of 2022 and 87% in the third quarter of 2023.
Operating Expenses
GAAP operating expenses were US$133 million, up 2% year-over-year and 1% quarter-over-quarter. Non-GAAP operating expenses were US$134 million, up 3% year-over-year and 2% quarter-over-quarter.
Operating Loss
GAAP operating loss was US$25 million, compared with an operating loss of US$6 million in the fourth quarter of 2022 and an operating loss of US$21 million in the third quarter of 2023.
Non-GAAP operating loss was US$26 million, compared with an operating loss of US$5 million in the fourth quarter of 2022 and an operating loss of US$20 million in the third quarter of 2023.
Income Tax Expense
GAAP income tax expense was US$14 million, compared with income tax expense of US$7 million in the fourth quarter of 2022 and income tax expense of US$15 million in the third quarter of 2023. Non-GAAP income tax expense was US$10 million, compared with income tax expense of US$5 million in the fourth quarter of 2022 and income tax expense of US$12 million in the third quarter of 2023. The year-over-year income tax expense increase was mainly due to a one-time tax benefit recognized by Changyou in the fourth quarter of 2022 as result of certain of its subsidiaries having been entitled to preferential tax rates upon being granted Software Enterprise status for 2021.
Net Loss
GAAP net loss attributable to Sohu.com Limited was US$13 million, or a net loss of US$0.37 per fully-diluted American depositary share (“ADS,” each ADS representing one Sohu ordinary share), compared with a net loss of US$7 million in the fourth quarter of 2022 and a net loss of US$14 million in the third quarter of 2023.
Non-GAAP net loss attributable to Sohu.com Limited was US$11 million, or a net loss of US$0.32 per fully-diluted ADS, compared with a net loss of US$2 million in the fourth quarter of 2022 and a net loss of US$10 million in the third quarter of 2023.
Liquidity and Capital Resources
As of December 31, 2023, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.3 billion.
Fiscal Year 2023 Financial Results
Revenues
Total revenues were US$601 million, down 18% compared with 2022.
Brand advertising revenues were US$89 million, down 14% compared with 2022.
Online game revenues were US$480 million, down 18% compared with 2022.
Gross Margin
Both GAAP and non-GAAP gross margin was 76%, compared with 74% in 2022.
Both GAAP and non-GAAP gross margin for the brand advertising business was 20%, compared with 16% in 2022.
Both GAAP and non-GAAP gross margin for online games was 86%, compared with 84% in 2022.
Operating Expenses
For 2023, GAAP operating expenses totaled US$542 million, flat compared with 2022. Non-GAAP operating expenses were US$542 million, up 1% compared with 2022.
Operating Profit/(Loss)
GAAP operating loss was US$87 million, compared with an operating loss of US$1 million in 2022.
Non-GAAP operating loss was US$87 million, compared with an operating profit of US$4 million in 2022.
Income Tax Expense
GAAP income tax expense was US$60 million, compared with income tax expense of US$58 million in 2022. Non-GAAP income tax expense was US$48 million, compared with income tax expense of US$53 million in 2022.
Net Income/(Loss)
GAAP net loss attributable to Sohu.com Limited was US$66 million, or a net loss of US$1.93 per fully-diluted ADS, compared with a net loss of US$17 million in 2022.
Non-GAAP net loss attributable to Sohu.com Limited was US$51 million, or a net loss of US$1.51 per fully-diluted ADS, compared with net income of US$2 million in 2022.
Supplementary Information for Changyou Results[3]
Fourth Quarter 2023 Operating Results
For PC games, total average monthly active user accounts[4] (MAU) were 2.3 million, an increase of 2% year-over-year and 4% quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 0.9 million, a decrease of 4% year-over-year and 9% quarter-over-quarter. The quarter-over-quarter decrease in APA was mainly a result of fewer in-game promotional activities having been launched for TLBB PC during the quarter.
For mobile games, total average MAU were 1.7 million, a decrease of 4% year-over-year and 26% quarter-over-quarter. Total quarterly APA were 0.3 million, a decrease of 14% year-over-year and 25% quarter-over-quarter. The year-over-year decreases in MAU and APA were mainly due to the natural decline of our older games, partially offset by the launch of New TLBB Mobile during the third quarter of 2023. The quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of New TLBB Mobile.
Fourth Quarter 2023 Unaudited Financial Results
Total revenues were US$116 million, a decrease of 6% year-over-year and 2% quarter-over-quarter. Online game revenues were US$115 million, a decrease of 5% year-over-year and 2% quarter-over-quarter. Online advertising revenues were US$1 million, a decrease of 18% year-over-year and an increase of 1% quarter-over-quarter.
GAAP and non-GAAP gross profit were both US$100 million, a decrease of 3% year-over-year and 2% quarter-over-quarter.
GAAP operating expenses were US$53 million, an increase of 5% year-over-year and 2% quarter-over-quarter. The year-over-year increase was mainly due to an increase in salary and benefits expenses.
Non-GAAP operating expenses were US$54 million, an increase of 8% year-over-year and 5% quarter-over-quarter.
GAAP operating profit was US$48 million, compared with an operating profit of US$53 million for the fourth quarter of 2022 and US$51 million for the third quarter of 2023.
Non-GAAP operating profit was US$47 million, compared with a non-GAAP operating profit of US$54 million for the fourth quarter of 2022 and US$52 million for the third quarter of 2023.
Fiscal Year 2023 Unaudited Financial Results
Total revenues were US$485 million, a decrease of 18% year-over-year. Online game revenues were US$480 million, a decrease of 18% year-over-year. Online advertising revenues were US$5 million, a decrease of 27% year-over-year.
GAAP and non-GAAP gross profit were both US$418 million, a decrease of 16% year-over-year.
GAAP operating expenses were US$216 million, a decrease of 3% year-over-year.
Non-GAAP operating expenses were US$215 million, a decrease of 1% year-over-year.
GAAP operating profit was US$202 million, compared with an operating profit of US$277 million for 2022.
Non-GAAP operating profit was US$203 million, compared with a non-GAAP operating profit of US$282 million for 2022.
[3] “Changyou Results” consist of the results of Changyou’s online game business and its 17173.com Website.
[4] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month.
[5] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter.
Recent Development
Sohu today announced that on March 2, 2024, its board of directors authorized an increase in Sohu’s previously-announced share repurchase from up to US$80 million to up to US$150 million of the outstanding ADSs of Sohu. As previously announced, the ADSs may be purchased from time to time over a two-year period commencing November 11, 2023 at Sohu’s management’s discretion at prevailing market prices in accordance with Rule 10b‑18 and Rule 10b5-1 under the Securities Exchange Act of 1934. Sohu’s management will continue to determine the timing and amount of any purchases of ADSs based on their evaluation of market conditions, the trading price of ADSs and other factors. The share repurchase program may be suspended or discontinued at any time. Sohu plans to continue to fund repurchases from its existing cash balance. As of February 29, 2024, Sohu had repurchased 1,276,457 ADSs under the share repurchase program for an aggregate cost of approximately US$12 million.
Business Outlook
For the first quarter of 2024, Sohu estimates:
Brand advertising revenues to be between US$15 million and US$17 million; this implies an annual decrease of 25% to 33%, and a sequential decrease of 16% to 26%.Online game revenues to be between US$110 million and US$120 million; this implies an annual decrease of 7% to 15%, and a sequential decrease of 4% to a sequential increase of 5%. Non-GAAP net loss attributable to Sohu.com Limited to be between US$23 million and US$33 million; and GAAP net loss attributable to Sohu.com Limited to be between US$26 million and US$36 million.
For the first quarter 2024 guidance, the Company has adopted a presumed exchange rate of RMB7.10=US$1.00, as compared with the actual exchange rate of approximately RMB6.84=US$1.00 for the first quarter of 2023, and RMB7.15=US$1.00 for the fourth quarter of 2023.
This forecast reflects Sohu’s management’s current and preliminary view, which is subject to substantial uncertainty.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Sohu’s management uses non-GAAP measures of gross profit, operating profit, net income, net income attributable to Sohu.com Limited and diluted net income attributable to Sohu.com Limited per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense; changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments; the impact of income tax related to changes in the fair value of the Company’s investments; and interest expense recognized in connection with the Toll Charge imposed by the U.S. TCJA. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Sohu’s management believes excluding share-based compensation expense; changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments; the impact of income tax related to changes in the fair value of the Company’s investments; and interest expense recognized in connection with the Toll Charge from its non-GAAP financial measure is useful for itself and investors. Further, the impact of share-based compensation expense; changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments; the impact of income tax related to changes in the fair value of the Company’s investments; and interest expense recognized in connection with the Toll Charge cannot be anticipated by management and business line leaders and these expenses were not built into the annual budgets and quarterly forecasts that have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As share-based compensation expense and changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments, and the impact of income tax related to changes in the fair value of the Company’s investments do not involve subsequent cash outflow or are reflected in the cash flows at the equity transaction level, Sohu does not factor in their impact when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, in general, the monthly financial results for internal reporting and any performance measures for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense, changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments, the impact of income tax related to changes in the fair value of the Company’s investments, and also excluded the interest expense recognized in connection with the Toll Charge.
The non-GAAP financial measures are provided to enhance investors’ overall understanding of Sohu’s current financial performance and prospects for the future. A limitation of using non-GAAP gross profit, operating profit, net income, net income attributable to Sohu.com Limited, and diluted net income attributable to Sohu.com Limited per ADS excluding share-based compensation expense and interest expense recognized in connection with the Toll Charge is that share-based compensation expense and interest expense recognized in connection with the Toll Charge have been and can be expected to continue to be significant recurring expenses in Sohu’s business. It is also possible that changes in fair value recognized in the Company’s consolidated statements of operations with respect to the Company’s investments, and the impact of income tax related to changes in the fair value of the Company’s investments will recur in the future. In order to mitigate these limitations Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between the GAAP financial measures that are most directly comparable to the non-GAAP financial measures that have been presented.
Notes to Financial Information
Financial information in this press release other than the information indicated as being non-GAAP is derived from Sohu’s unaudited financial statements prepared in accordance with GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. It is currently expected that the Business Outlook will not be updated until release of Sohu’s next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason. Statements that are not historical facts, including statements about Sohu’s beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, instability in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations, including their potential impact on the Chinese economy and on Sohu’s reported U.S. dollar results; fluctuations in Sohu’s quarterly operating results; the possibilities that Sohu will be unable to recoup its investment in video content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; Sohu’s reliance on online advertising sales and online games for its revenues; and the impact of the U.S. TCJA. Further information regarding these and other risks is included in Sohu’s annual report on Form 20-F for the year ended December 31, 2022, and other filings with and information furnished to the U.S. Securities and Exchange Commission.
Conference Call and Webcast
Sohu’s management team will host a conference call at 7:30 a.m. U.S. Eastern Time, March 4, 2024 (8:30 p.m. Beijing/Hong Kong time, March 4, 2024) following the quarterly results announcement. Participants can register for the conference call by clicking here, which will lead them to the conference registration website. Upon registration, participants will receive details for the conference call, including the dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.
The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu’s website at https://investors.sohu.com/
About Sohu
Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China’s internet pioneers, in the 1990s. As a mainstream media platform, Sohu is indispensable to the daily life of millions of Chinese, providing a network of web properties and community based products which continually offer a broad array of choices regarding information, entertainment and communication to the vast number of Sohu users. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of the leading online media destinations Sohu News App, mobile news portal m.sohu.com, PC portal www.sohu.com; online video website tv.sohu.com; and the online games platform www.changyou.com/en/.
Sohu provides online brand advertising services as well as multiple news, information and content services on its matrix of websites and also on its mobile platforms. Sohu’s online game business, conducted by its subsidiary Changyou, develops and operates a diverse portfolio of PC and mobile games, such as the well-known Tian Long Ba Bu (“TLBB”) PC and Legacy TLBB Mobile.
For investor and media inquiries, please contact:
In China:
In the United States:
SOHU.COM LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended
Twelve Months Ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Revenues:
Brand advertising
$
20,195
$
22,087
$
28,778
$
88,689
$
103,233
Online games
114,759
117,049
121,381
479,697
585,424
Others
6,405
6,294
10,241
32,286
45,215
Total revenues
141,359
145,430
160,400
600,672
733,872
Cost of revenues:
Brand advertising (includes share-based compensation
expense of $0, $15, $8, $7, and $48, respectively)
16,966
18,745
14,020
71,103
86,642
Online games (includes share-based compensation expense
of $-44, $18, $18, $10, and $143, respectively)
15,123
15,039
18,888
65,029
91,001
Others
1,733
687
2,888
9,625
13,930
Total cost of revenues
33,822
34,471
35,796
145,757
191,573
Gross profit
107,537
110,959
124,604
454,915
542,299
Operating expenses:
Product development (includes share-based compensation
expense of $-572, $280, $217, $156, and $2,026, respectively)
69,553
67,749
67,147
279,842
260,772
Sales and marketing (includes share-based compensation
expense of $4, $39, $-21, $26, and $128, respectively)
50,813
53,040
47,067
213,449
225,480
General and administrative (includes share-based
compensation expense of $-393, $358, $332, $509, and $2,594,
respectively)
12,450
10,801
15,970
48,934
56,920
Total operating expenses
132,816
131,590
130,184
542,225
543,172
Operating loss
(25,279)
(20,631)
(5,580)
(87,310)
(873)
Other income, net
15,949
10,869
779
35,746
17,643
Interest income
11,578
11,519
6,190
45,222
17,311
Exchange difference
(823)
(478)
(1,071)
692
6,524
Income/(loss) before income tax expense
1,425
1,279
318
(5,650)
40,605
Income tax expense
14,044
15,340
7,413
60,420
57,946
Net loss from continuing operations
(12,619)
(14,061)
(7,095)
(66,070)
(17,341)
Net income from discontinued operations, net of tax [6]
–
35,426
–
35,426
–
Net income/(loss)
(12,619)
21,365
(7,095)
(30,644)
(17,341)
Less: Net income/(loss) from continuing operations
attributable to the noncontrolling interest shareholders
(1)
(2)
(1)
(265)
2
Net loss from continuing operations attributable to Sohu.com
Limited
(12,618)
(14,059)
(7,094)
(65,805)
(17,343)
Net income from discontinued operations attributable to
Sohu.com Limited
–
35,426
–
35,426
–
Net income/(loss) attributable to Sohu.com Limited
(12,618)
21,367
(7,094)
(30,379)
(17,343)
Basic net loss from continuing operations per share/ADS
attributable to Sohu.com Limited[7]
$
(0.37)
$
(0.41)
$
(0.21)
(1.93)
$
(0.50)
Basic net income from discontinued operations per share/ADS
attributable to Sohu.com Limited
$
–
$
1.04
$
–
1.04
$
–
Basic net income/(loss) per share/ADS attributable to
Sohu.com Limited
$
(0.37)
$
0.63
$
(0.21)
(0.89)
$
(0.50)
Shares/ADSs used in computing basic net income/(loss) per
share/ADS attributable to Sohu.com Limited
34,061
34,190
34,091
34,109
34,945
Diluted net loss from continuing operations per share/ADS
attributable to Sohu.com Limited
$
(0.37)
$
(0.41)
$
(0.21)
(1.93)
$
(0.50)
Diluted net income from discontinued operations per
share/ADS attributable to Sohu.com Limited
$
–
$
1.04
$
–
1.04
$
–
Diluted net income/(loss) per share/ADS attributable to
Sohu.com Limited
$
(0.37)
$
0.63
$
(0.21)
(0.89)
$
(0.50)
Shares/ADSs used in computing diluted net income/(loss) per
share/ADS attributable to Sohu.com Limited
34,061
34,190
34,091
34,109
34,945
[6] See Footnote 1.
[7] Each ADS represents one ordinary share.
SOHU.COM LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
As of Dec. 31, 2023
As of Dec. 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
362,504
$
697,821
Restricted cash
3,184
3,641
Short-term investments
597,770
473,624
Accounts receivable, net
71,618
67,541
Prepaid and other current assets
81,971
83,093
Total current assets
1,117,047
1,325,720
Fixed assets, net
269,058
288,226
Goodwill
47,163
47,415
Long-term investments, net
45,198
26,012
Intangible assets, net
2,226
5,394
Long-term time deposits
388,613
265,802
Other assets
12,793
19,207
Total assets
$
1,882,098
$
1,977,776
LIABILITIES
Current liabilities:
Accounts payable
$
44,609
$
56,449
Accrued liabilities
103,779
126,461
Receipts in advance and deferred revenue
50,829
48,080
Accrued salary and benefits
50,330
60,754
Taxes payables
11,363
10,612
Other short-term liabilities
81,482
114,532
Total current liabilities
$
342,392
$
416,888
Long-term other payables
3,924
1,795
Long-term tax liabilities
474,374
448,043
Other long-term liabilities
2,130
340
Total long-term liabilities
$
480,428
$
450,178
Total liabilities
$
822,820
$
867,066
SHAREHOLDERS’ EQUITY:
Sohu.com Limited shareholders’ equity
1,058,956
1,109,442
Noncontrolling interest
322
1,268
Total shareholders’ equity
$
1,059,278
$
1,110,710
Total liabilities and shareholders’ equity
$
1,882,098
$
1,977,776
SOHU.COM LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended Dec. 31, 2023
Three Months Ended Sep. 30, 2023
Three Months Ended Dec. 31, 2022
GAAP
Non-GAAP
Adjustment
Non-GAAP
GAAP
Non-GAAP
Adjustment
Non-GAAP
GAAP
Non-GAAP
Adjustment
Non-GAAP
–
(a)
15
(a)
(8)
(a)
Brand advertising gross profit
$
3,229
$
–
$
3,229
$
3,342
$
15
$
3,357
$
14,758
$
(8)
$
14,750
Brand advertising gross margin
16 %
16 %
15 %
15 %
51 %
51 %
(44)
(a)
18
(a)
18
(a)
Online games gross profit
$
99,636
$
(44)
$
99,592
$
102,010
$
18
$
102,028
$
102,493
$
18
$
102,511
Online games gross margin
87 %
87 %
87 %
87 %
84 %
84 %
–
(a)
–
(a)
–
(a)
Others gross profit
$
4,672
$
–
$
4,672
$
5,607
$
–
$
5,607
$
7,353
$
–
$
7,353
Others gross margin
73 %
73 %
89 %
89 %
72 %
72 %
(44)
(a)
33
(a)
10
(a)
Gross profit
$
107,537
$
(44)
$
107,493
$
110,959
$
33
$
110,992
$
124,604
$
10
$
124,614
Gross margin
76 %
76 %
76 %
76 %
78 %
78 %
Operating expenses
$
132,816
$
961
(a) $
133,777
$
131,590
$
(677)
(a) $
130,913
$
130,184
$
(528)
(a) $
129,656
(1,005)
(a)
710
(a)
538
(a)
Operating loss
$
(25,279)
$
(1,005)
$
(26,284)
$
(20,631)
$
710
$
(19,921)
$
(5,580)
$
538
$
(5,042)
Operating margin
-18 %
-19 %
-14 %
-14 %
-3 %
-3 %
Income tax expense
$
14,044
$
(3,667)
(d)$
10,377
$
15,340
$
(3,149)
(d)$
12,191
$
7,413
$
(1,954)
(c,d)$
5,459
(1,005)
(a)
710
(a)
538
(a)
(827)
(b)
–
2,442
(b)
–
–
(610)
(c)
3,667
(d)
3,149
(d)
2,564
(d)
Net loss before non-controlling interest
$
(12,619)
$
1,835
$
(10,784)
$
(14,061)
3,859
(10,202)
$
(7,095)
$
4,934
$
(2,161)
(1,005)
(a)
710
(a)
538
(a)
(827)
(b)
–
2,442
(b)
–
–
(610)
(c)
3,667
(d)
3,149
(d)
2,564
(d)
Net loss from continuing operations
attributable to Sohu.com Limited for
diluted net loss per share/ADS
$
(12,618)
$
1,835
$
(10,783)
$
(14,059)
3,859
(10,200)
$
(7,094)
$
4,934
$
(2,160)
Net income from discontinued operations
attributable to Sohu.com Limited for
diluted net loss per share/ADS [8]
$
–
–
–
$
35,426
–
$
35,426
$
–
–
$
–
Net income/(loss) attributable to
Sohu.com Limited for diluted net
income/(loss) per share/ADS
$
(12,618)
1,835
(10,783)
$
21,367
3,859
25,226
$
(7,094)
$
4,934
$
(2,160)
Diluted net loss from continuing
operations per share/ADS attributable to
Sohu.com Limited
$
(0.37)
$
(0.32)
$
(0.41)
$
(0.30)
$
(0.21)
$
(0.06)
Diluted net income from discontinued
operations per share/ADS attributable to
Sohu.com Limited
$
–
–
$
1.04
$
1.04
$
–
$
–
Diluted net income/(loss) per share/ADS
attributable to Sohu.com Limited
$
(0.37)
(0.32)
$
0.63
$
0.74
$
(0.21)
$
(0.06)
Shares/ADSs used in computing diluted
net income/(loss) per share/ADS
attributable to Sohu.com Limited
34,061
34,061
34,190
34,190
34,091
34,091
Note:
(a) To eliminate the impact of share-based awards.
(b) To adjust for changes in the fair value of the Company’s investments.
(c) To adjust for the impact of income tax related to changes in the fair value of the Company’s investments.
(d) To adjust for the effect of the Toll Charge.
[8] See Footnote 1.
SOHU.COM LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Twelve Months Ended Dec. 31, 2023
Twelve Months Ended Dec. 31, 2022
GAAP
Non-GAAP
Adjustments
Non-GAAP
GAAP
Non-GAAP
Adjustments
Non-GAAP
7
(a)
48
(a)
Brand advertising gross profit
$
17,586
$
7
$
17,593
$
16,591
$
48
$
16,639
Brand advertising gross margin
20 %
20 %
16 %
16 %
10
(a)
143
(a)
Online games gross profit
$
414,668
$
10
$
414,678
$
494,423
$
143
$
494,566
Online games gross margin
86 %
86 %
84 %
84 %
–
(a)
–
(a)
Others gross profit
$
22,661
$
–
$
22,661
$
31,285
$
–
$
31,285
Others gross margin
70 %
70 %
69 %
69 %
17
(a)
191
(a)
Gross profit
$
454,915
$
17
$
454,932
$
542,299
$
191
$
542,490
Gross margin
76 %
76 %
74 %
74 %
Operating expenses
$
542,225
$
(691)
(a)$
541,534
$
543,172
$
(4,748)
(a)$
538,424
708
(a)
4,939
(a)
Operating profit/(loss)
$
(87,310)
$
708
$
(86,602)
$
(873)
$
4,939
$
4,066
Operating margin
-15 %
-14 %
0 %
1 %
Income tax expense
$
60,420
$
(12,297)
(c,d)$
48,123
$
57,946
$
(5,118)
(c,d)$
52,828
708
(a)
4,939
(a)
1,391
(b)
9,659
(b)
(555)
(c)
(2,416)
(c)
12,852
(d)
7,534
(d)
Net income/(loss) before non-controlling
interest
$
(66,070)
14,396
(51,674)
$
(17,341)
$
19,716
$
2,375
708
(a)
4,939
(a)
1,391
(b)
9,659
(b)
(555)
(c)
(2,416)
(c)
12,852
(d)
7,534
(d)
Net income/(loss) from continuing operations
attributable to Sohu.com Limited for diluted net
income/(loss) per share/ADS
$
(65,805)
$
14,396
$
(51,409)
$
(17,343)
$
19,716
$
2,373
Net income from discontinued operations
attributable to Sohu.com Limited for diluted net
income per share/ADS [9]
$
35,426
–
35,426
$
–
$
–
$
–
Net income/(loss) attributable to Sohu.com
Limited for diluted net income/(loss) per
share/ADS
$
(30,379)
14,396
(15,983)
$
(17,343)
$
19,716
$
2,373
Diluted net income/(loss) from continuing
operations per share/ADS attributable to
Sohu.com Limited
$
(1.93)
$
(1.51)
$
(0.50)
$
0.07
Diluted net income from discontinued
operations per share/ADS attributable to
Sohu.com Limited
$
1.04
1.04
$
–
–
Diluted net income/(loss) per share/ADS
attributable to Sohu.com Limited
$
(0.89)
(0.47)
$
(0.50)
0.07
Share/ADS used in computing diluted net
income/(loss) per share/ADS attributable to
Sohu.com Limited
34,109
34,109
34,945
34,945
Note:
(a) To eliminate the impact of share-based awards.
(b) To adjust for changes in the fair value of the Company’s investments.
(c) To adjust for the impact of income tax related to changes in the fair value of the Company’s investments.
(d) To adjust for the effect of the U.S. TCJA.
[9] See Footnote 1.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sohucom-reports-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302078045.html
SOURCE Sohu.com Limited
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Technology
O3 Mining Grants Security-Based Compensation For 2024
Published
18 minutes agoon
December 23, 2024By
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TSXV:OIII – O3 Mining
TORONTO, Dec. 23, 2024 /CNW/ – O3 Mining Inc. (TSXV: OIII) (OTCQX: OIIIF) (“O3 Mining” or the “Corporation”) announces its ordinary course security-based compensation awards for the year ended December 31, 2024. Effective December 23, 2024, the Corporation has granted to certain officers, directors and/or employees of the Corporation an aggregate of (i) 878,817 restricted share units of the Corporation (“RSUs”), and (ii) 230,750 deferred share units of the Corporation (“DSUs”). The RSUs will vest in their entirety over three years from the date of grant, with one-third of the RSUs vesting on each of the first, second and third anniversaries of the date of grant. The DSUs will vest in accordance with the Corporation’s DSU plan.
The Corporation anticipates the vesting of RSUs and DSUs will be accelerated in connection with the initial deposit period for the previously announced cash offer of $1.67 per common share of the Corporation by an affiliate of Agnico Eagle Mines Limited (“Agnico Eagle”) to acquire all of the issued and outstanding common shares of the Corporation not already owned, directly or indirectly, by Agnico Eagle (the “Offer”). The Offer has been made in accordance with the support agreement between Agnico Eagle and O3 Mining dated December 12, 2024, a copy of which is available on SEDAR+ (www.sedarplus.ca) under O3 Mining’s issuer profile.
About O3 Mining Inc.
O3 Mining Inc. is a gold explorer and mine developer in Québec, Canada, adjacent to Agnico Eagle’s Canadian Malartic mine. O3 Mining owns a 100% interest in all its properties (128,680 hectares) in Québec. Its principal asset is the Marban Alliance project in Québec, which O3 Mining has advanced over the last five years to the cusp of its next stage of development, with the expectation that the project will deliver long-term benefits to stakeholders. Further information can be found on our website at https://o3mining.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation that is based on current expectations, estimates, projections, and interpretations about future events as at the date of this news release. Forward-looking information and statements are based on estimates of management by O3 Mining, at the time they were made, and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or statements. Forward-looking statements in this news release include, but are not limited to, statements regarding vesting of RSUs and DSUs, including any accelerated vesting thereof; the anticipated next stage of development of the Marban Alliance project; and the expectation that the Marban Alliance project will deliver long-term benefits to stakeholders. Although the forward-looking information contained in this news release is based upon what O3 Mining believes, or believed at the time, to be reasonable expectations and assumptions, there is no assurance that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither O3 Mining nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. O3 Mining does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by applicable law. These statements speak only as of the date of this news release. Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of O3 Mining.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE O3 Mining Inc.
Technology
CreateAI Announces Results of 2024 Annual Meeting of Stockholders
Published
1 hour agoon
December 23, 2024By
SAN DIEGO, Dec. 23, 2024 /PRNewswire/ — CreateAI Holdings Inc., formerly TuSimple Holdings Inc. (OTCMKTS: TSPH) (“CreateAI” or the “Company”), a global artificial intelligence technology company, today announced shareholder voting results for its annual meeting of stockholders held on December 20, 2024 (the “Annual Meeting”).
As of October 28, 2024, the record date for the Annual Meeting, there were a total of 232,618,399 shares of common stock outstanding and entitled to vote at the Annual Meeting, comprised of 208,618,399 shares of Class A Common Stock (each with one vote per share) and 24,000,000 shares of Class B Common Stock (each with ten votes per share). At the Annual Meeting, holders of 207,347,538 shares of common stock, representing 423,347,538 votes, entitled to vote at the meeting were represented in person or by proxy and, therefore, a quorum constituted of the majority of the voting power of the shares of common stock issued and outstanding and entitled to vote at the Annual Meeting was present.
The following is a brief description of each matter voted upon at the 2024 Annual Meeting and the numbers of votes cast for, withheld, or against, the number of abstentions, and the number of broker non-votes with respect to each other, as applicable.
1. Election of six nominees to serve on the Board of Directors (the “Board”) for a term which will expire at the 2025 annual meeting of stockholders, or, if Proposal Two is adopted, to hold office until the annual meeting of stockholders in accordance with the class of director to which each nominee will be assigned. The following six directors were elected by the votes as indicated below.
For
Withheld
Broker Non-Votes
Cheng Lu
208,949,915
164,765,0191
49,632,604
Mo Chen
208,946,146
164,768,7881
49,632,604
James Lu
209,109,928
164,605,0061
49,632,604
Zhen Tao
209,158,316
164,556,6181
49,632,604
Albert Schultz
348,895,0191
24,819,915
49,632,604
Jianan Hao
209,021,652
164,693,2821
49,632,604
The totals above include the 240,000,000 votes represented by the Class B shares of Common Stock. 12,000,000 shares of Class B Common Stock (representing 120,000,00 votes) were voted “FOR” and 12,000,000 shares of Class B Common stock (representing 120,000,00 votes) were voted “WITHHELD” for each of the Directors other than Albert Schultz. All shares of Class B Common Stock were voted “FOR” the election of Albert Schultz. Excluding the 240,000,000 votes from the 24,000,000 shares of Class B Common Stock from the totals above, the 183,347,538 shares of Class A Common Stock were voted as indicated below.
For
Withheld
Broker Non-Votes
Cheng Lu
88,949,915
44,765,019
49,632,604
Mo Chen
88,946,146
44,768,788
49,632,604
James Lu
89,109,928
44,605,006
49,632,604
Zhen Tao
89,158,316
44,556,618
49,632,604
Albert Schultz
108,895,019
24,819,915
49,632,604
Jianan Hao
89,021,652
44,693,282
49,632,604
2. Amendment to the Company’s Restated Certificate of Incorporation to classify the Board of Directors into three classes, with directors in each class to serve staggered three-year terms. Pursuant to the Restated Certificate of Incorporation, Proposal Two must receive the affirmative vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of the capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class, since directors representing two-thirds (2/3) of the total number of authorized directors have already approved. The amendment was not approved2 by the votes as indicated below:
For
Against1
Abstain
Broker Non-Votes
208,955,668
164,659,652
99,614
49,632,604
Because Proposal Two was not approved, the six directors elected pursuant to Proposal One will serve on the Board for a term which will expire at the 2025 annual meeting of stockholders.
3. Ratification of the appointment of UHY LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2024. The selection was ratified by the votes as indicated below:
For
Against1
Abstain
Broker Non-Votes
255,504,371
155,923,768
11,919,399
–
Note 1: Includes 120,000,000 votes of the 12,000,000 shares of Class B Common Stock held by White Marble LLC and White Marble International Limited (together, the “White Marble Entities”) controlled by Dr. Xiaodi Hou.
Note 2: The White Marble Entities have filed an action in the Delaware Court of Chancery seeking a declaratory judgment that the voting agreement between White Marble and Mo Chen is invalid and White Marble, not Mo Chen, controls the vote. White Marble LLC v. Chen, C.A. No. 2024-1208-PAF (Del. Ch.) On December 13, 2024, the Court entered an order that allows the Company to hold the vote on Proposal Two, and ordered that if Proposal Two is not approved at the Annual Meeting but the Court determines in the Action that Mo Chen, not the White Marble Entities, control how the White Marble Entities’ Shares are voted, then the White Marble Entities’ shares shall be deemed to have been voted in favor of Proposal Two at the Annual Meeting and that such vote shall stand. The vote totals above include the votes of the shares held by the White Marble Entities as voted by the White Marble Entities. If the shares held by the White Marble entities reflected in the totals above are deemed to have been voted in favor of Proposal Two, the Proposal will have passed. Accordingly, if the Court rules in Mo Chen’s favor, Proposal Two will be deemed to have passed and the Company would be permitted to amend its Certificate of Incorporation to implement Proposal Two and each of the directors elected pursuant to Proposal One will serve on the Board until the annual meeting of stockholders in accordance with the class of director to which each nominee is assigned.
About CreateAI
CreateAI (formerly TuSimple) is a global artificial intelligence company with offices in US, China, and Japan. The company is pioneering the future of digital entertainment content production, seamlessly blending cutting-edge generative AI technology with the creativity of world-class talent. Our mission is to redefine the boundaries of what’s possible in digital storytelling by developing immersive, captivating, and visually stunning experiences that resonate with audiences on a global scale.
Investor Relations Contact:
ICR for CreateAI
CreateAI.IR@icrinc.com
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SOURCE CreateAI Holdings Inc
Technology
Rosica Communications Releases V2 of Thought Leadership Measurement Matrix™
Published
1 hour agoon
December 23, 2024By
Beta Phase Concludes, Formerly Launching Market Influence Platform
FAIR LAWN, N.J., Dec. 23, 2024 /PRNewswire-PRWeb/ — Rosica Communications, a national PR agency specializing in education, animal health, nonprofits, and healthcare, has completed beta-testing of its comprehensive tool for assessing thought leadership, now called the Thought Leadership Measurement Matrix™. This innovative tool utilizes a unique, weighted algorithm to measure and analyze 20 marketing, online, and public relations factors or activities that impact thought leadership and influence industry reputation and standing.
This PR thought leadership measurement system provides both qualitative and quantitative assessments of an organization’s market influence, pinpointing strengths and uncovering opportunities for advancing thought leadership. After nearly two years of development and retaining an analytics specialist and mathematician in 2024 to advance its thought leadership scoring tables, Rosica’s Thought Leadership Measurement Matrix™ is now ready for prime time. Formerly launched by Rosica as the “Thought Leadership Index,” this is the only tool that thoroughly measures 20 distinct variables affecting thought leadership. It allows organizations to gauge their leadership presence through an in-depth analysis of performance indicators, SEO, content marketing (owned media), speaking engagements, website traffic and user experience (UX), and influencer or KOL advocacy.
“Completing the beta phase with our clients created insights that shaped the final PR and thought leadership measurement platform we’re now officially introducing. The Thought Leadership Measurement Matrix™ is the most comprehensive tool available to measure earned, owned, social, and paid media, plus a number of additional online and traditional marketing, PR, and communications activities that move the needle for organizations to impact of their thought leadership,” said Chris Rosica, CEO and president of Rosica Communications.
“Rosica goes beyond traditional web metrics to deliver a tool that tracks the broader scope of an organization’s thought leadership activities. This tool doesn’t just measure visibility, it quantifies influence, helping organizations not only get noticed but also become recognized leaders in their industries,” said Analytics Specialist Dan Scheuermann.
For more information, visit http://www.rosica.com
Media Contact
Micah Carroll, Rosica Communications, 201-843-5600, micah@rosica.com, www.Rosica.com
View original content to download multimedia:https://www.prweb.com/releases/rosica-communications-releases-v2-of-thought-leadership-measurement-matrix-302338568.html
SOURCE Rosica Communications
O3 Mining Grants Security-Based Compensation For 2024
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