Sohu revenue grew 19% year-on-year in the first quarter, sogou business ChengLiang points


sohu company today announced as of March 31, 2014 unaudited financial report in the first quarter of 2014. Data show that total revenue for the quarter revenue of $365 million, compared with the same period in 2013 increased by 19%, compared with the previous quarter fell by 5%; For sohu company gaap net loss of $79 million in the United States, us gaap diluted net loss of $2.05 per share; To sohu company of us gaap net loss of $48 million.

group in the first quarter results

Income of

in the first quarter of 2014 revenue was $365 million, compared with the same period in 2013 increased by 19%, compared with the previous quarter fell by 5%.

in the first quarter of 2014 online advertising revenues of $175 million, compared with the same period in 2013 increased by 51%, compared with the previous quarter fell by 7%. Online advertising revenue, including brand advertising and search, and other business income.

in the first quarter of 2014 brand advertising revenues of $111 million, compared with the same period in 2013 increased by 38%, compared with the previous quarter fell by 10%. Revenue growth is mainly due to the online video advertising business and real estate income growth. Fell is mainly affected by seasonal factors, in the first quarter is usually the off-season of brand advertising.

search and other business income in the first quarter of 2014 was $64 million, compared with the same period in 2013 increased by 78%, the same as the previous quarter. Revenue growth is mainly due to the traffic growth and cashability to improve, and in the third quarter of 2013 since the merger search have synergistic effect.

in the first quarter of 2014 online gaming revenue was $163 million, down 2% compared with the same period in 2013, down 5% compared with the previous quarter.

we believe that the wireless business Financial performance is no longer important to require a separate disclosure degree, therefore, starting from the first quarter of 2014, we will be incorporated into the “other” business “wireless”. After the merger, briefly merged three business profit and loss statement disclosure, namely “brand advertising,” “search and other” and “online games”, the rest of the small business line as “other” to disclose their business merger.

Gross margin

in the first quarter of 2014 the United States general accounting standards and the U.S. gaap gross margins are 62%, last quarter was 64%, compared with the same period in 2013 to 66%.

in the first quarter of 2014 general accounting standards and the growing business of online advertising us gaap gross margins are 45%, last quarter was 48%, compared with the same period in 2013 to 44%.

in the first quarter of 2014 the brand advertising business general accounting standards and the accounting standards for general gross margins are 42%, last quarter was 50%, compared with the same period in 2013 to 44%. Brand advertising gross margin year-on-year decline is mainly due to the content and the increased cost of bandwidth. Gross margin fell is mainly due to the relatively low income. Through our regular monitoring of video content traffic data, we found that the user to the purchase of domestic TV viewing mode has changed. To reflect this change, from January 1, 2014, our domestic TV play video content of procurement related to copyright cost amortization method of making accounting estimate adjustment, further accelerate the amortization of video content copyright costs. Changes, accounting estimates assume that do not use this in the first quarter of 2014 brand advertising us gaap gross margin was 46%, the general accounting standards gross margin was 45%.

in the first quarter of 2014 general search, and other business accounting standards and the U.S. gaap gross margins are 51%, last quarter was 42%, compared with the same period in 2013 to 42%. Gross margin and rose compared to the purchase cost is mainly due to the flow of search and other revenues decline.

in the first quarter of 2014 online games general accounting standards and the U.S. gaap gross margins are 84%, last quarter was 85%, compared with the same period in 2013 to 86%.

Operating expenses in the

in the first quarter of 2014 operating expenses of $295 million, compared with the same period in 2013 increased by 122%, 17% from the previous quarter. The us gaap operating expenses of $290 million, compared with the same period in 2013 increased by 119%, 17% from the previous quarter. Year-on-year growth is mainly due to the cost of salary welfare costs caused by increase in the number of employees increases, changyou performed previously announced new employee incentive plan as well as increase the cost of travel marketing. Quarter-on-quarter growth is mainly due to swim up the cost of new employee incentive compensation plan, and increase the cost of marketing.

operating loss

in the first quarter of 2014 operating loss of $69 million, last quarter operating loss was $4 million, compared with the same period in 2013 operating profit of $71 million. Operating loss is mainly due to the salary, benefits the growth of the associated costs and marketing activities.

in the first quarter of 2014 the us gaap operating loss of $63 million last quarter operating profit of $1 million, compared with the same period in 2013 operating profit of $72 million.

income tax expenses

in the first quarter of 2014 U.S. gaap and us gaap income tax expenses were $200000, on income tax in the first quarter earnings of $5 million, and $2013 for the same period in 2013 income tax. Year-on-year decline is mainly due to changyou loss incurred in the first quarter of 2014, confirmed that changyou net operating losses of the deferred income tax assets.

The net loss

, prior to the deduction of the non-controlling interest in the first quarter of 2014 the us gaap net loss of $56 million, the first quarter net profit of $14 million, compared with the same period in 2013 net profit of $58 million. In the first quarter of 2014 the us gaap net loss of $51 million, last quarter net profit of $19 million, compared with the same period in 2013 net profit of $59 million.

in the first quarter of 2014 due to sohu company gaap net loss of $79 million in the United States, the U.S. gaap diluted net loss of $2.05 a share, last quarter net profit of $2 million, compared with the same period in 2013 net profit of $23 million. In the first quarter of 2014 due to sohu company of us gaap net loss of $48 million, the U.S. gaap diluted net loss of $1.26 a share, last quarter net profit of $5 million, compared with the same period in 2013 net profit of $24 million.

cash balances

as of March 31, 2014, sohu group, cash and cash equivalents balance of $1.144 billion as of December 31, 2013 the balance of $1.287 billion.

joint sohu company President and chief financial officer ms carol yu said, “in the first quarter, sohu group mobile products, especially the sohu video commercial presents good momentum. Sogou, we sogou income this year is expected to achieve strong growth again, good business development, in the second half of this year is expected to achieve profitability. Swim for fruitful in prospective new business. Above all, I believe, sohu will seize the great opportunities in the mobile era.”

business outlook

sohu is expected in the second quarter of 2014:

? Total revenue between $397 million to $411 million.

? Brand advertising revenue between $130 million and $135 million, compared with 2014 in the first quarter growth of 17% to 22%, compared with the same period in 2013 increased by 30% to 35%.

? Sogou revenue between $86 million and $90 million, compared with 2014 in the first quarter growth of 23% to 29%, compared with the same period in 2013 increased by 72% to 80%.

? Online gaming revenue between $161 million to $166 million. Compared with 2014 in the first quarter fell by 1% to 2% growth, down from 1% to 4% compared with the same period in 2013.

? Before the net loss deduction to the minority shareholders, not American gaap net losses of between $47 million to $53 million.

? Due to sohu company of us gaap net losses of between $48 million to $52 million. The us gaap diluted net loss per share is between $1.25 and $1.35.

? Under the hypothesis of not to raise new equity incentive, sohu equity incentive is expected to cost between $8 million to $9 million. Is expected to make sohu this fee in the second quarter of 2014 U.S. gaap diluted net loss increased 21 cents per share to 23 cents. In addition to the equity incentive, sohu company does not provide other affect U.S. gaap diluted net loss per share adjustment.