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Sohu.com Provides Updated Guidance for Second Quarter 2017
The Company now expects:
- Total revenues to be between
US$420 million andUS$450 million , compared with the prior guidance[1] of betweenUS$390 million andUS$420 million . - Of the total revenues, online game revenues to be between
US$110 million andUS$120 million , compared with the prior guidance of betweenUS$75 million andUS$85 million . - Non-GAAP[2] net loss attributable to Sohu.com Inc. to be between US$47 million and
US$57 million , compared with the prior guidance of net loss betweenUS$70 million andUS$80 million and non-GAAP loss per fully-diluted share to be between US$1.21 andUS$1.47 , compared with the prior guidance of loss per fully-diluted share betweenUS$1.80 andUS$2.05 . - Assuming no new grants of share-based awards and that the market price of our shares is unchanged, we estimate that compensation expense relating to share-based awards will be around US$11 million. Including the impact of the share-based awards, and approximately US$4 million of Sohu's economic interests in Changyou and Sogou, GAAP net loss attributable to
Sohu.com Inc. to be between US$62 million andUS$72 million , compared with the prior guidance of net loss betweenUS$79 million andUS$89 million , and GAAP loss per fully-diluted share to be between US$1.60 andUS$1.86 , compared with the prior guidance of loss per fully-diluted share betweenUS$2.05 andUS$2.30 .
Mr.
[1] For the second quarter 2017 guidance, the Company has adopted a presumed exchange rate of |
[2] Non-GAAP results exclude share-based compensation expense. For an explanation of the Company's non-GAAP financial measures and related reconciliations to GAAP financial measures applicable to the Company's last-completed fiscal quarter, please see "Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures" included in the Company's earnings release for the quarter ended |
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in
Sohu's management believes excluding the share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards, income/expense from the adjustment of contingent consideration previously recorded for acquisitions and dividend and deemed dividend to non-controlling preferred shareholders from its non-GAAP financial measure is useful for itself and investors. Further, the impact of share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards, income/expense from the adjustment of contingent consideration previously recorded for acquisitions, and dividend and deemed dividend to non-controlling preferred shareholders cannot be anticipated by management and business line leaders and these expenses were not built into the annual budgets and quarterly forecasts, which have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As the impact of share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards, income/expense from the adjustment of contingent consideration previously recorded for acquisitions, and dividend and deemed dividend to non-controlling preferred shareholders does not involve subsequent cash outflow or is reflected in the cash flows at the equity transaction level, Sohu does not factor this impact in 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 the share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards, income/expense from the adjustment of contingent consideration previously recorded for acquisitions, and dividend and deemed dividend to non-controlling preferred shareholders.
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
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 US dollar results; recent slow-downs in the growth of the Chinese economy; the uncertain regulatory landscape in
About
Sohu corporate services consist of online brand advertising on its matrix of websites as well as bid listing and home page on its in-house developed search directory and engine. Sohu also provides multiple news and information service on mobile platforms, including Sohu News App and mobile news portal m.sohu.com. Sohu's online game subsidiary,
For investor and media inquiries, please contact:
In
Mr. | |
| |
Tel: |
+86 (10) 6272-6593 |
E-mail: |
In
Ms. | |
Christensen | |
Tel: |
+1 (480) 614-3004 |
E-mail: |
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