Sohu.com (SOHU) Q4 2024 earnings summary

Executive summary

• Q4 2024 total revenues were $135M, down 5% year-over-year and 11% quarter-over-quarter; FY 2024 revenues were $598M, flat year-over-year.

• Q4 2024 brand advertising revenues reached the high end of guidance at $19M, down 7% year-over-year and 1% quarter-over-quarter; online game revenues were $110M, down 4% year-over-year and 14% quarter-over-quarter.

• Q4 GAAP net loss was $21M, compared to $13M in Q4 2023 and $16M in Q3 2024; FY 2024 GAAP net loss was $100M, up from $66M in 2023.

• Media platforms focused on product refinement, algorithm optimization, and budget control, enhancing user experience and monetization.

• Online games saw solid performance due to new high-quality releases and revitalization of legacy titles.

Financial highlights

• Q4 non-GAAP net loss was $15M, compared to $11M in Q4 2023 and $12M in Q3 2024; FY 2024 non-GAAP net loss was $83M, up from $51M in 2023.

• Q4 gross margin was 73%, down from 76% in Q4 2023; FY 2024 gross margin was 72%, down from 76% in 2023.

• Q4 operating expenses were $123M, down 8% year-over-year; FY 2024 operating expenses were $542M, flat year-over-year.

• Q4 GAAP operating loss was $25M, flat year-over-year; FY 2024 GAAP operating loss was $109M, up from $87M in 2023.

• As of Dec 31, 2024, cash, equivalents, and investments totaled $1.2B.

Outlook and guidance

• Q1 2025 brand advertising revenues expected between $13M–$14M, down 13%–19% year-over-year and 26%–31% sequentially.

• Q1 2025 online game revenues expected between $105M–$115M, down 2%–11% year-over-year, sequential change from -4% to +5%.

• Q1 2025 non-GAAP net loss expected between $16M–$26M; GAAP net loss between $20M–$30M.

• Guidance reflects management's preliminary view and is subject to substantial uncertainty.