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Sohu.com Reports Second Quarter 2020 Unaudited Financial Results
Second Quarter Highlights[1]
The privatization of Changyou was completed on
- Total revenues were
US$421 million [2], down 9% year-over-year and 3% quarter-over-quarter. - Brand advertising revenues were
US$38 million , down 14% year-over-year and up 48% quarter-over-quarter. - Search and search related advertising revenues[3] were
US$241 million , down 13% year-over-year and up 1% quarter-over-quarter. - Online game revenues were
US$106 million , up 4% year-over-year and down 21% quarter-over-quarter. - GAAP net loss attributable to
Sohu.com Limited wasUS$80 million . Excluding the impact of the additional accrual of withholding income tax described above, GAAP net income attributable toSohu.com Limited wasUS$8 million , compared with a net loss ofUS$35 million in the second quarter of 2019 and a net loss ofUS$20 million in the first quarter of 2020. - Excluding the impact of the additional accrual of withholding income tax described above, non-GAAP net income attributable to
Sohu.com Limited wasUS$11 million . Further excluding the loss generated by Sogou, non-GAAP net income attributable toSohu.com Limited wasUS$12 million , compared with a net loss ofUS$41 million in the second quarter of 2019 and a net loss ofUS$8 million in the first quarter of 2020.
Dr.
[1] As Changyou's cinema advertising business ceased operations during the third quarter of 2019, its results of operations have been excluded from the Company's results from continuing operations in the condensed consolidated statements of operations and are presented in separate line items as discontinued operations. Retrospective adjustments to the historical statements have been made in order to provide a consistent basis of comparison. Unless indicated otherwise, results presented in this release are related to continuing operations only, and exclude results from the cinema advertising business. |
[2] On a constant currency (non-GAAP) basis, if the exchange rate in the second quarter of 2020 had been the same as it was in the second quarter of 2019, or |
[3] Search and Search related advertising revenues exclude intra-Group transactions. |
Second Quarter Financial Results
Revenues
Total revenues for the second quarter of 2020 were
Total online advertising revenues, which include revenues from the brand advertising and search and search-related advertising businesses, for the second quarter of 2020 were
Brand advertising revenues for the second quarter of 2020 totaled
Search and search-related advertising revenues for the second quarter of 2020 were
Online game revenues for the second quarter of 2020 were
Gross Margin
Both GAAP and non-GAAP[4] gross margin was 41% for the second quarter of 2020, compared with 46% in the second quarter of 2019 and 37% in the first quarter of 2020.
Both GAAP and non-GAAP gross margin for the online advertising business for the second quarter of 2020 was 23%, compared with 33% in the second quarter of 2019 and 10% in the first quarter of 2020.
Both GAAP and non-GAAP gross margin for the brand advertising business in the second quarter of 2020 were 40%, compared with 28% in the second quarter of 2019 and nil in the first quarter of 2020. The year-over-year margin improvement was mainly due to decreased video content cost. The quarter-over-quarter margin improvement was mainly due to increased revenues in the portal and video advertising businesses.
Both GAAP and non-GAAP gross margin for the search and search-related advertising business in the second quarter of 2020 were 21%, compared with 34% in the second quarter of 2019 and 11% in the first quarter of 2020. The year-over-year decrease primarily resulted from an increase in traffic acquisition cost as a percentage of search and search related advertising revenues. The quarter-over-quarter increase was due to a decrease in traffic acquisition cost as a percentage of search and search related advertising revenues due to normalized user traffic following the easing of COVID-19 restrictions in
GAAP gross margin for online games in the second quarter of 2020 was 77%, compared with 82% in the second quarter of 2019 and 79% in the first quarter of 2020. Non-GAAP gross margin for online games in the second quarter of 2020 was 78%, compared with 82% in the second quarter of 2019 and 79% in the first quarter of 2020. The year-over-year decrease in gross margin was mainly due to an increase in revenue-sharing payments related to TLBB Honor, which was launched during the third quarter of 2019.
[4] Non-GAAP results exclude share-based compensation expense; non-cash tax benefits from excess tax deductions related to share-based awards; changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; a one-time impairment charge recognized for an investment unrelated to the Company's core businesses; income/expense from the adjustment of contingent consideration previously recorded for acquisitions; dividends and deemed dividends to non-controlling preferred shareholders of Sogou; a one-time income tax expense recognized in the fourth quarter of 2017 as a result of the one-time transition tax (the "Toll Charge") imposed by the |
Operating Expenses
For the second quarter of 2020, GAAP operating expenses totaled
Operating Loss
GAAP operating loss for the second quarter of 2020 was
Non-GAAP operating loss for the second quarter of 2020 was US$16 million, compared with an operating loss of US$7 million in the second quarter of 2019 and an operating loss of
Income Tax Expense
GAAP income tax expense was
Net Income/(Loss)
GAAP net loss attributable to
Excluding the impact of the additional accrual of withholding income tax described above, GAAP net income attributable to
Liquidity
As of
Supplementary Information for Changyou Results
Second Quarter 2020 Operational Results
- For PC games, total average monthly active accounts[5] were 1.9 million, a decrease of 5% year-over-year and 10% quarter-over-quarter. Total quarterly aggregate active paying accounts[6] were 0.9 million, flat year-over-year and a decrease of 10% quarter-over-quarter. The quarter-over-quarter decreases were mainly due to a decrease in player engagement as a result of the resumption of work during the quarter following the easing of COVID-19 restrictions in
China .
- For mobile games, total average monthly active accounts were 3.1 million, an increase of 15% year-over-year and a decrease of 9% quarter-over-quarter. The year-over-year increase was mainly due to the contribution of TLBB Honor, which was launched during the third quarter of 2019. Total quarterly aggregate active paying accounts were 0.6 million, flat year-over-year and a decrease of 40% quarter-over-quarter. The quarter-over-quarter decreases were mainly due to a decrease in player engagement as a result of the resumption of work during the quarter following the easing of COVID-19 restrictions in
China .
[5] Monthly active accounts refers to the number of registered accounts that are logged in to these games at least once during the month. |
[6] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter. |
Second Quarter 2020 Unaudited Financial Results
Total revenues for the second quarter of 2020 were
GAAP and non-GAAP gross profit for the second quarter of 2020 were both
GAAP operating expenses for the second quarter were
Non-GAAP operating expenses for the second quarter were
GAAP operating profit for the second quarter of 2020 was
Non-GAAP operating profit for the second quarter of 2020 was
Recent Developments
On
On
Sohu's board of directors has not had an opportunity to review and evaluate the Proposal in detail, or to make a determination as to how to respond to the Proposal or as to whether or not the proposed acquisition of Sogou would be in the best interests of Sohu, in its capacity as Sogou's controlling shareholder, and Sohu's shareholders for Sohu to approve or reject the Proposal or a Proposed Transaction.
Business Outlook
For the third quarter of 2020, Sohu estimates:
- Brand advertising revenues to be between US$37 million and
US$42 million ; this implies an annual decrease of 9% to 20% and a sequential decrease of 3% to a sequential increase of 11%. - Online game revenues to be between
US$85 million andUS$95 million ; this implies an annual decrease of 12% to 21% and a sequential decrease of 10% to 20%. - Excluding the profit/loss generated by Sogou, non-GAAP net loss attributable to
Sohu.com Limited to be betweenUS$10 million andUS$20 million ; and GAAP net loss attributable toSohu.com Limited to be betweenUS$15 million andUS$25 million .
For the third quarter 2020 guidance, the Company has adopted a presumed exchange rate of
This forecast reflects Sohu's management's current and preliminary view, which is subject to substantial uncertainty, particularly in view of the potential ongoing impact of the COVID-19 virus, which remains difficult to predict.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in
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 equity investments with readily determinable fair values; the one-time impairment charge recognized for an investment unrelated to the Company's core businesses; 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; dividend and deemed dividend to non-controlling preferred shareholders; and income tax expense, income tax benefit, uncertain tax position, and interest recognized in relation to the Toll Charge from its non-GAAP financial measure is useful for itself and investors. Further, the impact of share-based compensation expense and changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; the one-time impairment charge recognized for an investment unrelated to the Company's core businesses; 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; dividend and deemed dividend to non-controlling preferred shareholders; the one-time income tax expense recognized in the fourth quarter of 2017 as a result of the Toll Charge imposed by the TCJA and the subsequent re-evaluation for the fourth quarter of 2018 and adjustment of the tax expense previously recognized for the Toll Charge; the resulting recognition of a previously unrecognized tax benefit and recording of an uncertain tax position related to the balance of the Toll Charge; 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 the impact of share-based compensation expense and changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values, the one-time impairment charge recognized for an investment unrelated to the Company's core businesses, 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 share-based compensation expense and changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values, a one-time impairment charge recognized for an investment unrelated to the Company's core businesses, 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, and also excluded the one-time income tax expense recognized in the fourth quarter of 2017 as a result of the Toll Charge imposed by the TCJA and the subsequent re-evaluation for the fourth quarter of 2018 and adjustment of the tax expense previously recognized for the Toll Charge, the resulting recognition of a previously unrecognized tax benefit and recording of an uncertain tax position related to the balance of the Toll Charge, and 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
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 US dollar results; recent slow-downs in the growth of the Chinese economy; the uncertain regulatory landscape in
Conference Call and Webcast
Sohu's management team will host a conference call at
To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly. Please dial in 10 minutes before the call is scheduled to begin.
A telephone replay of the call will be available after the conclusion of the conference call at
International: |
+1-646-254-3697 |
Passcode: |
8993497 |
The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu's Website at http://investors.sohu.com/.
About
Sohu's corporate services consist of online brand advertising on Sohu's 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 services on mobile platforms, including Sohu News App and the mobile news portal m.sohu.com. Sohu's online game subsidiary Changyou develops and operates a diverse portfolio of PC and mobile games, such as
For investor and media inquiries, please contact:
In
Ms. |
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Tel: |
+86 (10) 6272-6645 |
E-mail: |
In
Ms. |
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Christensen |
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Tel: |
+1 (480) 614-3004 |
E-mail: |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) |
||||||
Three Months Ended |
||||||
|
|
|
||||
Revenues: |
||||||
Online advertising |
||||||
Brand advertising |
$ |
37,969 |
$ |
25,580 |
$ |
43,958 |
Search and search-related advertising |
240,579 |
237,589 |
275,942 |
|||
Subtotal |
278,548 |
263,169 |
319,900 |
|||
Online games |
105,937 |
133,360 |
102,147 |
|||
Others |
36,579 |
39,471 |
40,199 |
|||
Total revenues |
421,064 |
436,000 |
462,246 |
|||
Cost of revenues: |
||||||
Online advertising |
||||||
Brand advertising (includes stock-based |
22,790 |
25,519 |
31,432 |
|||
Search and search-related advertising (includes |
191,150 |
212,210 |
182,593 |
|||
Subtotal |
213,940 |
237,729 |
214,025 |
|||
Online games (includes stock-based compensation |
23,959 |
28,389 |
18,163 |
|||
Others |
12,133 |
8,568 |
19,624 |
|||
Total cost of revenues |
250,032 |
274,686 |
251,812 |
|||
Gross profit |
171,032 |
161,314 |
210,434 |
|||
Operating expenses: |
||||||
Product development (includes stock-based |
105,022 |
103,412 |
109,048 |
|||
Sales and marketing (includes stock-based |
64,579 |
62,841 |
90,580 |
|||
General and administrative (includes stock-based |
24,097 |
19,296 |
21,987 |
|||
Total operating expenses |
193,698 |
185,549 |
221,615 |
|||
Operating loss |
(22,666) |
(24,235) |
(11,181) |
|||
Other income[7], net |
24,094 |
10,645 |
5,684 |
|||
Interest income |
2,196 |
2,126 |
3,286 |
|||
Interest expense |
(1,431) |
(2,275) |
(3,737) |
|||
Exchange difference |
(259) |
2,225 |
3,551 |
|||
Income/(loss) before income tax expense |
1,934 |
(11,514) |
(2,397) |
|||
Income tax expense[8] |
85,023 |
13,600 |
3,941 |
|||
Net loss from continuing operations |
(83,089) |
(25,114) |
(6,338) |
|||
Net loss from discontinued operations, net of tax |
- |
- |
(27,037) |
|||
Net loss |
(83,089) |
(25,114) |
(33,375) |
|||
Less: Net income/(loss) from continuing operations |
(3,159) |
(5,008) |
28,467 |
|||
Less: Net loss from discontinued operations |
- |
- |
(8,949) |
|||
Net loss from continuing operations attributable to |
(79,930) |
(20,106) |
(34,805) |
|||
Net loss from discontinued operations attributable to |
- |
- |
(18,088) |
|||
Net loss attributable to |
(79,930) |
(20,106) |
(52,893) |
|||
Basic net loss from continuing operations per ADS |
(2.04) |
(0.51) |
(0.89) |
|||
Basic net loss from discontinued operations per ADS |
- |
- |
(0.46) |
|||
Basic net loss per ADS attributable to Sohu.com Limited |
$ |
(2.04) |
$ |
(0.51) |
$ |
(1.35) |
ADS used in computing basic net loss per ADS attributable to |
39,271 |
39,270 |
39,244 |
|||
Diluted net loss from continuing operations per ADS |
(2.04) |
(0.52) |
(0.89) |
|||
Diluted net loss from discontinued operations per ADS |
- |
- |
(0.46) |
|||
Diluted net loss per ADS attributable to |
$ |
(2.04) |
$ |
(0.52) |
$ |
(1.35) |
ADS used in computing diluted net loss per ADS |
39,271 |
39,270 |
39,244 |
[7] For the second quarter of 2020, other income included a tax refund that was received by Sogou as part of the Chinese government's initiatives taken in response to COVID-19. |
[8] Following completion of the Changyou privatization, Changyou changed its policy for its PRC subsidiaries with respect to distribution of cash dividends. As a result, Changyou recognized an additional accrual of withholding income tax of |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) |
||||
As of |
As of |
|||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ |
397,425 |
$ |
305,126 |
Restricted cash[9] |
112,887 |
8,661 |
||
Short-term investments |
1,077,572 |
1,316,833 |
||
Account and financing receivables, net |
219,910 |
260,716 |
||
Prepaid and other current assets |
132,673 |
124,332 |
||
Total current assets |
1,940,467 |
2,015,668 |
||
Long-term investments, net |
107,709 |
94,332 |
||
Fixed assets, net |
410,105 |
447,688 |
||
|
53,185 |
52,923 |
||
Intangible assets, net |
9,012 |
11,437 |
||
Restricted time deposits[9] |
25,426 |
240 |
||
Prepaid non-current assets |
1,391 |
1,882 |
||
Other assets |
63,279 |
65,620 |
||
Total assets |
$ |
2,610,574 |
$ |
2,689,790 |
LIABILITIES |
||||
Current liabilities: |
||||
Accounts payable |
$ |
342,403 |
$ |
253,403 |
Accrued liabilities |
236,849 |
249,810 |
||
Receipts in advance and deferred revenue |
114,494 |
118,222 |
||
Accrued salary and benefits |
101,289 |
110,833 |
||
Taxes payable |
77,236 |
102,686 |
||
Short-term bank loans |
128,251 |
114,528 |
||
Other short-term liabilities |
146,422 |
149,311 |
||
Total current liabilities |
$ |
1,146,944 |
$ |
1,098,793 |
Long-term accounts payable |
755 |
767 |
||
Long-term bank loans |
92,000 |
- |
||
Long-term tax liabilities[10] |
375,714 |
277,544 |
||
Other long-term liabilities |
3,284 |
5,769 |
||
Total long-term liabilities |
$ |
471,753 |
$ |
284,080 |
Total liabilities |
$ |
1,618,697 |
$ |
1,382,873 |
SHAREHOLDERS' EQUITY: |
||||
|
288,946 |
428,454 |
||
Noncontrolling interest |
702,931 |
878,463 |
||
Total shareholders' equity |
$ |
991,877 |
$ |
1,306,917 |
Total liabilities and shareholders' equity |
$ |
2,610,574 |
$ |
2,689,790 |
[9] In the second quarter of 2020, in connection with the Company's financing of the Changyou privatization, Changyou pledged deposit certificates in the amount of [10] Following completion of the Changyou privatization, Changyou changed its policy for its PRC subsidiaries with respect to distribution of cash dividends. As a result, Changyou recognized an additional accrual of withholding income tax of |
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) |
||||||||||||||||||
Three Months Ended Jun. 30, 2020 |
Three Months Ended Mar. 31, 2020 |
Three Months Ended Jun. 30, 2019 |
||||||||||||||||
GAAP |
Non-GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
Non-GAAP |
||||||||||
36 |
(a) |
(40) |
(a) |
(22) |
(a) |
|||||||||||||
Brand advertising gross profit |
$ |
15,179 |
$ |
36 |
$ |
15,215 |
$ |
61 |
$ |
(40) |
$ |
21 |
$ |
12,526 |
$ |
(22) |
$ |
12,504 |
Brand advertising gross |
40% |
40% |
0% |
0% |
28% |
28% |
||||||||||||
45 |
(a) |
77 |
(a) |
127 |
(a) |
|||||||||||||
Search and search-related |
$ |
49,429 |
$ |
45 |
$ |
49,474 |
$ |
25,379 |
$ |
77 |
$ |
25,456 |
$ |
93,349 |
$ |
127 |
$ |
93,476 |
Search and search-related |
21% |
21% |
11% |
11% |
34% |
34% |
||||||||||||
81 |
(a) |
37 |
(a) |
105 |
(a) |
|||||||||||||
Online advertising gross profit |
$ |
64,608 |
$ |
81 |
$ |
64,689 |
$ |
25,440 |
$ |
37 |
$ |
25,477 |
$ |
105,875 |
$ |
105 |
$ |
105,980 |
Online advertising gross |
23% |
23% |
10% |
10% |
33% |
33% |
||||||||||||
152 |
(a) |
161 |
(a) |
(17) |
(a) |
|||||||||||||
Online games gross profit |
$ |
81,978 |
$ |
152 |
$ |
82,130 |
$ |
104,971 |
$ |
161 |
$ |
105,132 |
$ |
83,984 |
$ |
(17) |
$ |
83,967 |
Online games gross margin |
77% |
78% |
79% |
79% |
82% |
82% |
||||||||||||
Others gross profit |
$ |
24,446 |
$ |
- |
(a) $ |
24,446 |
$ |
30,903 |
$ |
- |
(a) $ |
30,903 |
$ |
20,575 |
$ |
- |
(a) $ |
20,575 |
Others gross margin |
67% |
67% |
78% |
78% |
51% |
51% |
||||||||||||
233 |
(a) |
198 |
(a) |
88 |
(a) |
|||||||||||||
Gross profit |
$ |
171,032 |
$ |
233 |
$ |
171,265 |
$ |
161,314 |
$ |
198 |
$ |
161,512 |
$ |
210,434 |
$ |
88 |
$ |
210,522 |
Gross margin |
41% |
41% |
37% |
37% |
46% |
46% |
||||||||||||
Operating expenses |
$ |
193,698 |
$ |
(6,642) |
(a) $ |
187,056 |
$ |
185,549 |
$ |
(3,575) |
(a) $ |
181,974 |
$ |
221,615 |
$ |
(4,370) |
(a) $ |
217,245 |
6,875 |
(a) |
3,773 |
(a) |
4,458 |
(a) |
|||||||||||||
Operating loss |
$ |
(22,666) |
$ |
6,875 |
$ |
(15,791) |
$ |
(24,235) |
$ |
3,773 |
$ |
(20,462) |
$ |
(11,181) |
$ |
4,458 |
$ |
(6,723) |
Operating margin |
-5% |
-4% |
-6% |
-5% |
-2% |
-1% |
||||||||||||
Income tax expense[11] |
$ |
(85,023) |
$ |
3,141 |
(c,d)$ |
(81,882) |
$ |
(13,600) |
$ |
2,195 |
(c,d)$ |
(11,405) |
$ |
(3,941) |
$ |
1,566 |
(c,d)$ |
(2,375) |
6,875 |
(a) |
3,773 |
(a) |
4,458 |
(a) |
|||||||||||||
(3,618) |
(c) |
(855) |
(c) |
794 |
(c) |
|||||||||||||
1,934 |
(d) |
1,910 |
(d) |
1,831 |
(d) |
|||||||||||||
- |
- |
- |
||||||||||||||||
Net income/(loss) before non- |
$ |
(83,089) |
5,191 |
(77,898) |
$ |
(25,114) |
4,828 |
(20,286) |
$ |
(6,338) |
7,083 |
745 |
||||||
6,875 |
(a) |
3,773 |
(a) |
4,458 |
(a) |
|||||||||||||
(2,338) |
(b) |
(2,761) |
(b) |
(3,733) |
(b) |
|||||||||||||
(3,618) |
(c) |
(855) |
(c) |
794 |
(c) |
|||||||||||||
1,934 |
(d) |
1,910 |
(d) |
1,831 |
(d) |
|||||||||||||
Net loss from continuing |
$ |
(79,986) |
2,853 |
(77,133) |
$ |
(20,441) |
2,067 |
(18,374) |
$ |
(34,932) |
3,350 |
(31,582) |
||||||
Net loss from discontinued |
- |
- |
- |
- |
- |
- |
(18,062) |
- |
(18,062) |
|||||||||
Net loss attributable to |
(79,986) |
2,853 |
(77,133) |
(20,441) |
2,067 |
(18,374) |
(52,994) |
3,350 |
(49,644) |
|||||||||
Diluted net loss from |
$ |
(2.04) |
(1.96) |
$ |
(0.52) |
(0.47) |
$ |
(0.89) |
(0.80) |
|||||||||
Diluted net loss from |
- |
- |
- |
- |
(0.46) |
(0.46) |
||||||||||||
Diluted net loss per ADS |
(2.04) |
(1.96) |
(0.52) |
(0.47) |
(1.35) |
(1.27) |
||||||||||||
Shares used in computing |
39,271 |
39,271 |
39,270 |
39,270 |
39,244 |
39,244 |
||||||||||||
[11] Following completion of the Changyou privatization, Changyou changed its policy for its PRC subsidiaries with respect to distribution of cash dividends. As a result, Changyou recognized an additional accrual of withholding income tax of US$88 million for the second quarter of 2020. |
Note: |
|
(a) To eliminate the impact of share-based awards as measured using the fair value method. This adjustment does not have any impact on income tax expense. |
|
(b) To adjust Sohu's economic interests in Changyou and Sogou attributable to the above non-GAAP adjustments. This adjustment does not have any impact on income tax expense. |
|
(c) To adjust for a change in the fair value of the Company's investment in Hylink and the income tax effect. |
|
(d) To adjust for the effect of the |
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