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SOHU.COM REPORTS FIRST QUARTER 2025 UNAUDITED FINANCIAL RESULTS
SOHUSohu.com(SOHU) Prnewswire·2025-05-19 05:00

Core Viewpoint - Sohu.com Limited reported strong financial results for the first quarter of 2025, with marketing services and online game revenues exceeding expectations, while also benefiting from a significant tax reversal that contributed to a net income of 182million[2][3][11].FinancialPerformance−TotalrevenuesforQ12025were182 million [2][3][11]. Financial Performance - Total revenues for Q1 2025 were 136 million, a decrease of 3% year-over-year but an increase of 1% quarter-over-quarter [5]. - Marketing services revenues were 14million,down1514 million, down 15% year-over-year and 27% quarter-over-quarter [5]. - Online game revenues were 117 million, flat year-over-year and up 7% quarter-over-quarter [5]. - Both GAAP and non-GAAP gross margins were 76%, compared to 77% in Q1 2024 and 73% in Q4 2024 [6]. - GAAP operating expenses were 122million,down9122 million, down 9% year-over-year and 1% quarter-over-quarter [7]. - GAAP net income attributable to Sohu.com Limited was 182 million, or 6.07perfully−dilutedADS,comparedtoanetlossof6.07 per fully-diluted ADS, compared to a net loss of 25 million in Q1 2024 [11]. Tax Reversal Impact - The company fully reversed a tax expense of approximately 199millionrelatedtoaone−timetransitiontax,resultinginasignificantincometaxbenefitforQ12025[3][9].Non−GAAPFinancialMeasures−Non−GAAPnetlossattributabletoSohu.comLimitedwas199 million related to a one-time transition tax, resulting in a significant income tax benefit for Q1 2025 [3][9]. Non-GAAP Financial Measures - Non-GAAP net loss attributable to Sohu.com Limited was 16 million, or a net loss of 0.55perfully−dilutedADS,comparedtoanetlossof0.55 per fully-diluted ADS, compared to a net loss of 22 million in Q1 2024 [12]. - Non-GAAP results exclude share-based compensation and the income tax benefit related to the Toll Charge [4][21]. Liquidity and Capital Resources - As of March 31, 2025, the company had cash and cash equivalents, short-term investments, and long-term time deposits totaling approximately 1.2billion[13].BusinessOutlook−ForQ22025,Sohuestimatesmarketingservicesrevenuesbetween1.2 billion [13]. Business Outlook - For Q2 2025, Sohu estimates marketing services revenues between 16 million and 17million,indicatinganannualdecreaseof1417 million, indicating an annual decrease of 14% to 19% [27]. - Online game revenues are expected to be between 96 million and $106 million, reflecting an annual decrease of 28% to 35% [27].