Published on 13 Nov 2023 on Zacks via Yahoo Finance

Sohu.com (SOHU) Q3 Loss Narrower Than Expected, Revenues Fall Y/Y

Sohu.com Limited SOHU reported mixed third-quarter 2023 results, with the bottom line surpassing the Zacks Consensus Estimate but the top line missing the same. The company reported lower revenues year over year owing to declining trends in all verticals. However, management’s twin-engine strategy to generate and distribute enhanced short-form content and unique marketing campaigns has boosted user engagement and improved monetization. Despite weakness in older games, various content updates have partially reversed the net sales decline from online games.

Net Income

On a GAAP basis, Sohu registered a net loss of $14.1 million or a loss of 41 cents per ADS from continuing operations compared with a net loss of $21.6 million or a loss of 63 cents per ADS in the year-ago quarter. Lower operating expenses and higher interest income led to a narrower loss during the quarter.Non-GAAP net loss was $10.2 million or a loss of 30 cents per ADS compared with a net loss of $17.4 million or a loss of 50 cents per ADS in the year-ago quarter. Non-GAAP net loss for the September quarter was narrower than the consensus estimate of a loss of 59 cents.