BEIJING, Feb. 22, 2022 /PRNewswire/ -- Sohu.com Limited
(NASDAQ: SOHU), China's leading
online media, video, and game business group, today reported
unaudited financial results for the fourth quarter and fiscal year
ended December 31, 2021.
Fourth Quarter Highlights
- Total revenues were US$193
million[1], down 24% year-over-year and 11%
quarter-over-quarter.
- Brand advertising revenues were US$34
million, down 20% year-over-year and flat
quarter-over-quarter.
- Online game revenues were US$144
million, down 27% year-over-year and 14%
quarter-over-quarter.
- GAAP net income[2] attributable to Sohu.com Limited
was US$4 million, compared with net
income of US$47 million in the fourth
quarter of 2020 and net income of US$12
million in the third quarter of 2021.
- Non-GAAP[3] net income attributable to Sohu.com
Limited was US$0.2 million, compared
with net income of US$53 million in
the fourth quarter of 2020 and net income of US$17 million in the third quarter of 2021.
Fiscal Year 2021 Highlights
- Total revenues were US$836
million, up 11% compared with 2020.
- Brand advertising revenues were US$135
million, down 8% compared with 2020.
- Online game revenues were US$638
million, up 19% compared with 2020.
- GAAP net income attributable to Sohu.com Limited was
US$69 million, compared with net
income of US$33 million in 2020,
excluding the impact of an additional accrual of withholding income
tax recognized by Changyou in the second quarter of
2020[4].
- Non-GAAP net income attributable to Sohu.com Limited was
US$79 million, compared with net
income of US$51 million in 2020,
excluding the impact of the additional accrual of withholding
income tax described above.
Dr. Charles Zhang, Chairman and
CEO of Sohu.com Limited, commented, "During the fourth quarter of
2021 and for the whole year, we faced ongoing significant
challenges from the macroeconomic environment and uncertainties of
the COVID-19 pandemic. Despite these headwinds, we were proactive
in refining our technology, developing product innovations,
improving operating efficiency and exploring differentiated
monetization opportunities. In the fourth quarter, we were ahead of
guidance in brand advertising revenue, and achieved profitability
for the full year and every quarter in 2021. For Sohu Media and
Sohu Video, we provided better user experience through improvements
in products and social interaction features. We applied advanced
live broadcasting technologies to large and unique content
marketing events. Based on the competitive advantages of the Sohu
product matrix, these live broadcasting events helped us to
generate a high volume of premium content and wide social
distribution. We were able to further consolidate our influence as
a mainstream media platform, and better capture advertisers'
attention and budgets. For Changyou, its online game business
delivered in-line quarterly results, while its overall revenue for
2021 continued to grow year-over-year."
Fourth Quarter Financial Results
Revenues
Total revenues were US$193
million, down 24% year-over-year and 11%
quarter-over-quarter.
Brand advertising revenues totaled US$34
million, down 20% year-over-year and flat
quarter-over-quarter. The decrease was mainly due to decreases in
portal advertising revenues.
Online game revenues were US$144
million, down 27% year-over-year and 14%
quarter-over-quarter. The year-over-year decrease was mainly due to
the natural decline of TLBB Vintage, which was launched during the
fourth quarter of 2020. The quarter-over-quarter decrease was
mainly due to the natural decline of Little Raccoon: Heroes, which
was launched during the third quarter of 2021.
Gross Margin
Both GAAP and non-GAAP gross margin was 73%, compared with
79% in the fourth quarter of 2020 and 74% in the third quarter of
2021.
Both GAAP and non-GAAP gross margin for the brand advertising
business was 28%, compared with 31% in the fourth quarter of
2020 and 29% in the third quarter of 2021.
Both GAAP and non-GAAP gross margin for online games was 84%,
compared with 90% in the fourth quarter of 2020 and 83% in the
third quarter of 2021. The year-over-year decrease in gross margin
was mainly due to a higher percentage revenue contribution from
mobile games, which typically require higher revenue-sharing
payments.
Operating Expenses
For the fourth quarter of 2021, GAAP operating expenses
totaled US$144 million, up 8%
year-over-year and 7% quarter-over-quarter. Non-GAAP operating
expenses were US$144 million, up 9%
year-over-year and quarter-over-quarter. The year-over-year
increase was mainly due to increases in salary and benefits
expenses and marketing expenses. The quarter-over-quarter increase
was mainly due to increases in marketing expenses and increases in
Changyou's outsourcing fees related to product development.
Operating Profit/(Loss)
GAAP operating loss was US$3
million, compared with an operating profit
of US$67 million in the fourth quarter of 2020 and an
operating profit of US$25 million in
the third quarter of 2021.
Non-GAAP operating loss was US$3 million, compared with an
operating profit of US$68 million in the fourth
quarter of 2020 and an operating profit of US$28 million in the third quarter of
2021.
Income Tax Expense
GAAP income tax expense was US$9
million, compared with income tax expense of US$21 million in the fourth quarter of 2020 and
income tax expense of US$20 million
in the third quarter of 2021. Non-GAAP income tax expense was
US$6 million, compared with income
tax expense of US$21 million in the
fourth quarter of 2020 and income tax expense of US$19 million in the third quarter of 2021.
Income tax expense in the fourth quarter of 2021 included a
one-time tax benefit of US$7 million
recognized by Changyou after pre-adjustment of its income tax due
for 2021.
Net Income
GAAP net income attributable to Sohu.com Limited was
US$4 million, or net income of
US$0.09 per fully-diluted ADS,
compared with net income of US$47
million in the fourth quarter of 2020 and net income of
US$12 million in the third quarter of
2021.
Non-GAAP net income attributable to Sohu.com Limited was
US$0.2 million, or net
income of US$0.01 per
fully-diluted ADS, compared with net income of
US$53 million in the fourth
quarter of 2020 and net income of US$17
million in the third quarter of 2021.
Liquidity and Capital Resources
As of December 31, 2021, cash and
cash equivalents, short-term investments and long-term time
deposits were totaled approximately $1.59
billion.
Fiscal Year 2021 Financial Results
Revenues
Total revenues were US$836
million, up 11% compared with 2020.
Brand advertising revenues were US$135
million, down 8% compared with 2020. The decrease was mainly
due to decreases in portal advertising revenues.
Online game revenues were US$638
million, up 19% compared with 2020. The year-over-year
increase was mainly from TLBB Vintage.
Gross Margin
Both GAAP and non-GAAP gross margin was 76%, compared with 71%
in 2020.
Both GAAP and non-GAAP gross margin for the brand advertising
business was 26%, compared with 28% in 2020.
Both GAAP and non-GAAP gross margin for online games was 86%,
compared with 83% in 2020.
Operating Expenses
For 2021, GAAP operating expenses totaled US$533 million, up 16% compared with 2020.
Non-GAAP operating expenses were US$525
million, up 18% compared with 2020. The increase in
operating expenses was mainly due to increases in salary and
benefits expenses and marketing expenses.
Operating Profit
GAAP operating profit was US$97
million, compared with an operating profit of US$73
million in 2020.
Non-GAAP operating profit was US$106 million, compared with
an operating profit of US$88
million in 2020.
Income Tax Expense
GAAP income tax expense was US$62
million, compared with income tax expense of US$133 million in 2020. Non-GAAP income tax
expense was US$56 million, compared
with income tax expense of US$127
million in 2020. The income tax expense in 2020 included an
additional accrual of withholding income tax of US$88 million recognized by Changyou in the
second quarter of 2020, as Changyou changed its policy for its PRC
subsidiaries with respect to distribution of cash dividends after
the completion of the privatization of Changyou.
Net Income
GAAP net income attributable to Sohu.com Limited was
US$69 million, or net income of
US$1.75 per fully-diluted ADS,
compared with net income of US$33
million in 2020, excluding the impact of the additional
accrual of withholding income tax recognized by Changyou in the
second quarter of 2020 described above. Non-GAAP net income
attributable to Sohu.com Limited was US$79
million, or net income of US$2.00 per fully-diluted ADS, compared
with net income of US$51
million in 2020, excluding the impact of the additional
accrual of withholding income tax described above.
Supplementary Information for Changyou Results
Fourth Quarter 2021
Operating Results
- For PC games, total average monthly active user
accounts[5] (MAU) were 2.0 million, a
decrease of 12% year-over-year and an increase of 1%
quarter-over-quarter. The year-over-year decrease was mainly due to
the natural decline of Changyou's older games. Total quarterly
aggregate active paying accounts[6] (APA)
were 0.9 million, flat year-over-year and a decrease of 8%
quarter-over-quarter. The quarter-over-quarter decrease was mainly
due to fewer in-game promotional activities launched for TLBB PC
during the quarter.
- For mobile games, total average MAU were 2.5 million, an
increase of 3% year-over-year and a decrease of 45%
quarter-over-quarter. The quarter-over-quarter decrease was mainly
due to the natural decline of Little Raccoon: Heroes. Total
quarterly APA were 0.5 million, a decrease of 14% year-over-year
and 48% quarter-over-quarter. The year-over-year decrease was
mainly from TLBB Honor and Illusion Connect. The
quarter-over-quarter decrease was mainly due to the natural decline
of Little Raccoon: Heroes.
Fourth Quarter 2021 Unaudited Financial
Results
Total revenues were US$146
million, a decrease of 27% year-over-year and 14%
quarter-over-quarter. Online game revenues were US$144 million, a decrease of 27% year-over-year
and 14% quarter-over-quarter. Online advertising revenues were
US$2 million, a decrease of 27%
year-over-year and 33% quarter-over-quarter.
GAAP and non-GAAP gross profit were both US$122 million, a decrease of 32% year-over-year
and 13% quarter-over-quarter.
GAAP operating expenses were US$69 million, flat year-over-year and an
increase of 8% quarter-over-quarter. The quarter-over-quarter
increase was mainly due to an increase in outsourcing fees related
to product development.
Non-GAAP operating expenses were US$67 million, an increase of 1% year-over-year
and 10% quarter-over-quarter.
GAAP operating profit was US$53 million, compared with an operating profit
of US$110 million for the
fourth quarter of 2020 and US$77
million for the third quarter of 2021.
Non-GAAP operating profit was US$55 million, compared with a non-GAAP operating
profit of US$112 million for the
fourth quarter of 2020 and US$79
million for the third quarter of 2021.
Fiscal Year 2021 Unaudited Financial Results
Total revenues were US$649
million, an increase of 18% year-over-year. Online game
revenues were US$638 million, an
increase of 19% year-over-year. Online advertising revenues were
US$11 million, a decrease of 8%
year-over-year.
GAAP and non-GAAP gross profit were both
US$558 million, an increase of 23%
year-over-year.
GAAP operating expenses were US$256 million, an increase of 13%
year-over-year. The year-over-year increase was mainly due to an
increase in bonus expenses related to revenue growth.
Non-GAAP operating expenses were US$249 million, an increase of 15%
year-over-year.
GAAP operating profit was US$302 million, compared with an operating profit
of US$226 million for 2020.
Non-GAAP operating profit was US$310 million, compared with a non-GAAP
operating profit of US$238 million
for 2020.
Recent Development
As previously announced, on November 13,
2021 Sohu's board of directors authorized a share repurchase
program of up to US$100 million of
the outstanding American depositary shares ("ADSs") of Sohu over
the next twelve months. As of February 18,
2022, Sohu had repurchased 3,079,064 ADSs under the share
repurchase program for an aggregate cost of approximately
US$53 million.
Business Outlook
For the first quarter of 2022, Sohu estimates:
- Brand advertising revenues to be between US$23 million and
US$26 million; this implies an annual
decrease of 15% to 25% and a sequential decrease of 23% to
32%.
- Online game revenues to be between US$130 million and US$140
million; this implies an annual decrease of 21% to 26% and a
sequential decrease of 3% to 10%.
- Non-GAAP net loss attributable to Sohu.com Limited to be
between US$10 million and
US$20 million; and GAAP net loss
attributable to Sohu.com Limited to be between US$13 million US$23
million.
For the first quarter 2022 guidance, the Company has
adopted a presumed exchange rate of RMB6.36 =US$1.00,
as compared with the actual exchange rate of approximately
RMB6.48=US$1.00 for the first quarter of 2021, and
RMB6.40=US$1.00 for the fourth quarter of
2021.
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
worldwide COVID-19 pandemic, which remains difficult to
predict.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements
presented in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"), Sohu's management uses non-GAAP measures
of gross profit, operating profit, net income, net income
attributable to Sohu.com Limited and diluted net income
attributable to Sohu.com Limited per ADS, which are adjusted from
results based on GAAP to exclude the impact of the share-based
awards, which consist mainly of 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; an impairment charge recognized
for an investment unrelated to the Company's core businesses; and
interest expense recognized in connection with the Toll Charge
imposed by the U.S. TCJA. These measures should be considered in
addition to results prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, GAAP
results.
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 impairment
charge recognized for an investment unrelated to the Company's core
businesses; and interest recognized in connection with 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 impairment charge recognized
for an investment unrelated to the Company's core businesses; 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,
changes in fair value recognized in the Company's consolidated
statements of operations with respect to equity investments with
readily determinable fair values, and the impairment charge
recognized for an investment unrelated to the Company's core
businesses 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, changes in fair value recognized
in the Company's consolidated statements of operations with respect
to equity investments with readily determinable fair values, the
impairment charge recognized for an investment unrelated to the
Company's core businesses, and also excluded the 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 Sohu.com Limited and diluted net income
attributable to Sohu.com Limited per ADS, excluding share-based
compensation expense, is that the impact of share-based awards has
been and will continue to be a significant recurring expense in
Sohu's business for the foreseeable future. In order to mitigate
these limitations Sohu has provided specific information regarding
the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
the GAAP financial measures that are most directly comparable to
the non-GAAP financial measures that have been presented.
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 the People's Republic of
China; fluctuations in Sohu's quarterly operating results;
the possibilities that Sohu will be unable to recoup its investment
in video content and that Changyou will be unable to develop a
series of successful games for mobile platforms or successfully
monetize mobile games it develops or acquires; Sohu's reliance on
online advertising sales, online games and mobile services for its
revenues; the impact of the U.S. TCJA; and the effects of the
COVID-19 pandemic on the economy in China in general and on Sohu's business in
particular. Further information regarding these and other
risks is included in Sohu's annual report on Form 20-F for the year
ended December 31, 2020, and other
filings with and information furnished to the Securities and
Exchange Commission.
Conference Call and Webcast
Sohu's management team will host a conference call at
7:30 a.m. U.S. Eastern Time,
February 22, 2022 (8:30 p.m. Beijing/Hong
Kong time, February 22, 2022)
following the quarterly results announcement. Participants can
register for the conference call by navigating
to http://apac.directeventreg.com/registration/event/3658638.
Once preregistration has been completed, participants will receive
dial-in numbers, an event passcode, and a unique registrant ID.
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 10:30
a.m. Eastern Time February 22 through
March 1, 2022. The dial-in details for the telephone replay
are:
|
International:
|
+1-646-254-3697
|
|
Passcode:
|
3658638
|
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.com
Sohu.com Limited (NASDAQ: SOHU) was established by Dr.
Charles Zhang, one of China's internet pioneers, in the 1990s. As a
mainstream media platform in China, Sohu is indispensable to the daily life
of millions of Chinese, providing a network of web properties and
community based products which continually offer a broad array of
choices regarding information, entertainment and communication to
the vast number of Sohu users. Sohu has built one of the most
comprehensive matrices of Chinese language web properties,
consisting of the leading online media destinations Sohu News App,
mobile news portal m.sohu.com, PC portal www.sohu.com; online video
website tv.sohu.com; and the online games platform
www.changyou.com/en/.
Sohu provides online brand advertising services as well as
multiple news, information and content services on its matrix of
websites and also on its mobile platforms. Sohu's online game
business, conducted by its subsidiary Changyou, develops and
operates a diverse portfolio of PC and mobile games, such as
Tian Long Ba Bu ("TLBB"), one of the
most popular PC games in China.
Changyou also owns and operates the 17173.com Website, a game
information portal in China.
For investor and media inquiries, please contact:
In China:
|
Ms. Pu
Huang
|
|
Sohu.com
Limited
|
|
Tel:
|
+86 (10)
6272-6645
|
|
E-mail:
|
ir@contact.sohu.com
|
In the United
States:
|
Ms. Linda
Bergkamp
|
|
Christensen
|
|
Tel:
|
+1 (480)
614-3004
|
|
E-mail:
|
lbergkamp@christensenir.com
|
|
[1] On a
constant currency (non-GAAP) basis, if the exchange rate in the
fourth quarter of 2021 had been the same as it was in the fourth
quarter of 2020, or RMB6.63=US$1.00, US$ total revenues in the
fourth quarter of 2021 would have been US$186 million, or US$7
million less than GAAP total revenues, and down 26%
year-over-year.
|
|
[2]
Following the completion on September 23, 2021 of the transaction
with Tencent related to Sogou, Sohu no longer has any ownership
interest in Sogou. 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 exclude results from Sogou operations. For historical
statements, the results of operations of Sogou and the gain from
its disposal are presented in separate line items as discontinued
operations.
|
|
[3]
Non-GAAP results exclude 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; an impairment charge recognized
for an investment unrelated to the Company's core businesses; and
interest expense recognized in connection with the one-time
transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and
Jobs Act signed into law on December 22, 2017 (the "U.S. TCJA").
Explanation of the Company's non-GAAP financial measures and
related reconciliations to GAAP financial measures are included in
the accompanying "Non-GAAP Disclosure" and "Reconciliations of
Non-GAAP Results of Operation Measures to the Nearest Comparable
GAAP Measures."
|
|
[4]
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 in
the second quarter of 2020.
|
|
[5] Monthly active user 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.
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
2021
|
|
Sep. 30,
2021
|
|
Dec. 31,
2020
|
|
|
Dec. 31,
2021
|
|
Dec. 31,
2020
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand advertising
|
$
|
33,638
|
$
|
33,748
|
$
|
41,810
|
|
$
|
134,967
|
$
|
146,526
|
|
Online games
|
|
143,708
|
|
166,750
|
|
196,063
|
|
|
638,225
|
|
536,684
|
|
Others
|
|
15,645
|
|
15,592
|
|
15,362
|
|
|
62,384
|
|
66,680
|
|
Total
revenues
|
|
192,991
|
|
216,090
|
|
253,235
|
|
|
835,576
|
|
749,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand advertising (includes share-based compensation
expense of $-115, $7, $-59, $1, and $177 respectively)
|
|
24,214
|
|
24,006
|
|
28,836
|
|
|
99,522
|
|
105,604
|
|
Online games (includes share-based compensation
expense of $43, $78, $79, $276, and $543, respectively)
|
|
23,053
|
|
28,977
|
|
19,154
|
|
|
87,616
|
|
91,526
|
|
Others
|
|
4,477
|
|
3,754
|
|
5,086
|
|
|
17,533
|
|
20,307
|
|
Total cost of
revenues
|
|
51,744
|
|
56,737
|
|
53,076
|
|
|
204,671
|
|
217,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
141,247
|
|
159,353
|
|
200,159
|
|
|
630,905
|
|
532,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development (includes share-based
compensation expense of $437, $1,118, $966, $3,904, and
$7,326 respectively)
|
|
68,392
|
|
65,898
|
|
65,671
|
|
|
268,863
|
|
241,941
|
|
Sales and marketing (includes share-based
compensation expense of $-186, $83, $-95, $168, and
$458 respectively)
|
|
54,793
|
|
45,349
|
|
51,945
|
|
|
182,690
|
|
159,787
|
|
General and administrative (includes share-based
compensation expense of $110, $1,368, $459, $4,229,
and $5,976 respectively)
|
|
20,970
|
|
23,290
|
|
15,696
|
|
|
81,880
|
|
57,354
|
|
Total operating
expenses
|
|
144,155
|
|
134,537
|
|
133,312
|
|
|
533,433
|
|
459,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit/(loss)
|
|
(2,908)
|
|
24,816
|
|
66,847
|
|
|
97,472
|
|
73,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
12,982
|
|
5,043
|
|
1,738
|
|
|
29,416
|
|
25,993
|
|
Interest
income
|
|
3,359
|
|
4,200
|
|
2,670
|
|
|
15,641
|
|
7,369
|
|
Interest
expense
|
|
-
|
|
(2,501)
|
|
(1,176)
|
|
|
(7,500)
|
|
(6,234)
|
|
Exchange
difference
|
|
(1,150)
|
|
317
|
|
(2,080)
|
|
|
(3,462)
|
|
(3,800)
|
|
Income before income
tax expense
|
|
12,283
|
|
31,875
|
|
67,999
|
|
|
131,567
|
|
96,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense[7]
|
8,695
|
19,577
|
21,416
|
|
|
62,296
|
|
133,226
|
|
Net income/(loss)
from continuing operations
|
|
3,588
|
|
12,298
|
|
46,583
|
|
|
69,271
|
|
(36,527)
|
|
Net income/(loss)
from discontinued operations, net of tax[8]
|
|
-
|
|
756,768
|
|
(9,212)
|
|
|
864,902
|
|
(91,793)
|
|
Net
income/(loss)
|
|
3,588
|
|
769,066
|
|
37,371
|
|
|
934,173
|
|
(128,320)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income/(
loss) from continuing operations
attributable to the noncontrolling interest shareholders
|
|
(1)
|
|
(1)
|
|
2
|
|
|
(3)
|
|
18,448
|
|
Less: Net
income/(loss) from discontinued operations
attributable to the noncontrolling interest shareholders
|
|
-
|
|
(65,134)
|
|
(6,119)
|
|
|
6,451
|
|
(60,656)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
from continuing operations attributable
to Sohu.com Limited
|
|
3,589
|
|
12,299
|
|
46,581
|
|
|
69,274
|
|
(54,975)
|
|
Net income/(loss)
from discontinued operations
attributable to Sohu.com Limited
|
|
-
|
|
821,902
|
|
(3,093)
|
|
|
858,451
|
|
(31,137)
|
|
Net income/(loss)
attributable to Sohu.com Limited
|
|
3,589
|
|
834,201
|
|
43,488
|
|
|
927,725
|
|
(86,112)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) from continuing operations per
share/ADS attributable to Sohu.com Limited[9]
|
$
|
0.09
|
$
|
0.31
|
$
|
1.18
|
|
$
|
1.75
|
$
|
(1.39)
|
|
Basic net
income/(loss) from discontinued operations per
share/ADS attributable to Sohu.com Limited
|
$
|
-
|
$
|
20.75
|
$
|
(0.08)
|
|
$
|
21.74
|
$
|
(0.79)
|
|
Basic net
income/(loss) per share/ADS attributable to Sohu.com
Limited
|
$
|
0.09
|
$
|
21.06
|
$
|
1.10
|
|
$
|
23.49
|
$
|
(2.18)
|
|
Shares/ADSs used in
computing basic net income/(loss)
per share/ADS attributable to Sohu.com Limited
|
|
39,373
|
|
39,614
|
|
39,508
|
|
|
39,501
|
|
39,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income/(loss) from continuing operations per
share/ADS attributable to Sohu.com Limited
|
$
|
0.09
|
$
|
0.31
|
$
|
1.18
|
|
$
|
1.75
|
$
|
(1.40)
|
|
Diluted net
income/(loss) from discontinued operations per share/ADS
attributable to
Sohu.com Limited
|
$
|
-
|
$
|
20.75
|
$
|
(0.08)
|
|
$
|
21.74
|
$
|
(0.79)
|
|
Diluted net
income/(loss) per share/ADS attributable to Sohu.com
Limited
|
$
|
0.09
|
$
|
21.06
|
$
|
1.10
|
|
$
|
23.49
|
$
|
(2.19)
|
|
Shares/ADSs used in
computing diluted net income/(loss)
per share/ADS attributable to Sohu.com Limited
|
|
39,373
|
|
39,614
|
|
39,508
|
|
|
39,501
|
|
39,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[7] Income
tax expense for 2020 includes an additional accrual of withholding
income tax of US$88 million recognized by Changyou in the second
quarter of 2020, as Changyou
changed its policy for its PRC subsidiaries with respect to
distribution of cash dividends after the completion of the
privatization of Changyou.
|
|
[8]
Following the completion on September 23, 2021 of the transaction
with Tencent related to Sogou, Sohu no longer has any ownership
interest in Sogou. 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 exclude
results from Sogou operations. For historical statements, the
results of operations of Sogou and the gain from its disposal are
presented in separate line items as discontinued
operations.
|
|
[9] Each ADS represents one ordinary
share.
|
|
|
|
|
|
SOHU.COM
LIMITED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
|
|
|
|
As of Dec. 31,
2021
|
|
As of Dec. 31,
2020
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
998,949
|
$
|
217,057
|
|
Restricted cash
|
|
1,969
|
|
330,791
|
|
Short-term investments
|
|
399,345
|
|
100,745
|
|
Accounts receivable, net
|
|
82,550
|
|
87,521
|
|
Prepaid and other current assets
|
|
107,311
|
|
106,590
|
|
Assets held for sale (current)
|
|
-
|
|
1,412,168
|
|
Total current
assets
|
|
1,590,124
|
|
2,254,872
|
|
Long-term
investments, net
|
|
53,121
|
|
31,634
|
|
Fixed assets,
net
|
|
329,997
|
|
337,674
|
|
Goodwill
|
|
48,811
|
|
48,434
|
|
Intangible assets,
net
|
|
9,136
|
|
4,842
|
|
Long -term time
deposits
|
|
189,007
|
|
-
|
|
Restricted time
deposits
|
|
-
|
|
101,519
|
|
Prepaid non-current
assets
|
|
-
|
|
1,006
|
|
Other
assets
|
|
25,589
|
|
42,140
|
|
Total
assets
|
$
|
2,245,785
|
$
|
2,822,121
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
87,447
|
$
|
107,611
|
|
Accrued liabilities
|
|
138,196
|
|
157,513
|
|
Receipts in advance and deferred revenue
|
|
57,041
|
|
52,055
|
|
Accrued salary and benefits
|
|
91,485
|
|
100,826
|
|
Taxes payable
|
|
16,714
|
|
28,006
|
|
Short-term bank loans
|
|
-
|
|
315,550
|
|
Other short-term liabilities
|
|
112,568
|
|
106,171
|
|
Liabilities held for sale (current)
|
|
-
|
|
416,998
|
|
Total current
liabilities
|
$
|
503,451
|
$
|
1,284,730
|
|
|
|
|
|
|
Long-term other
payables
|
|
3,922
|
|
3,202
|
|
Long-term bank
loans
|
|
-
|
|
92,000
|
|
Long-term tax
liabilities
|
|
443,083
|
|
406,353
|
|
Other long-term
liabilities
|
|
3,142
|
|
3,855
|
|
Total long-term
liabilities
|
$
|
450,147
|
$
|
505,410
|
|
Total liabilities
|
$
|
953,598
|
$
|
1,790,140
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Sohu.com Limited shareholders' equity
|
|
1,290,869
|
|
347,369
|
|
Noncontrolling interest
|
|
1,318
|
|
684,612
|
|
Total shareholders' equity
|
$
|
1,292,187
|
$
|
1,031,981
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
2,245,785
|
$
|
2,822,121
|
|
SOHU.COM
LIMITED
|
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OFOPERATIONS MEASURES TO THE NEAREST
COMPARABLE GAAP MEASURES
|
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec. 31, 2021
|
|
Three Months Ended
Sep. 30, 2021
|
|
Three Months Ended
Dec. 31, 2020
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(115)
|
(a)
|
|
|
|
|
7
|
(a)
|
|
|
|
|
(59)
|
(a)
|
|
|
|
Brand advertising
gross profit
|
$
|
9,424
|
$
|
(115)
|
$
|
9,309
|
$
|
9,742
|
$
|
7
|
$
|
9,749
|
$
|
12,974
|
$
|
(59)
|
$
|
12,915
|
|
|
Brand advertising
gross margin
|
|
28%
|
|
|
|
28%
|
|
29%
|
|
|
|
29%
|
|
31%
|
|
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43
|
(a)
|
|
|
|
|
78
|
(a)
|
|
|
|
|
79
|
(a)
|
|
|
|
Online games gross
profit
|
$
|
120,655
|
$
|
43
|
$
|
120,698
|
$
|
137,773
|
$
|
78
|
$
|
137,851
|
$
|
176,909
|
$
|
79
|
$
|
176,988
|
|
|
Online games gross
margin
|
|
84%
|
|
|
|
84%
|
|
83%
|
|
|
|
83%
|
|
90%
|
|
|
|
90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
Others gross
profit
|
$
|
11,168
|
$
|
-
|
$
|
11,168
|
$
|
11,838
|
$
|
-
|
$
|
11,838
|
$
|
10,276
|
$
|
-
|
$
|
10,276
|
|
|
Others gross
margin
|
|
71%
|
|
|
|
71%
|
|
76%
|
|
|
|
76%
|
|
67%
|
|
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(72)
|
(a)
|
|
|
|
|
85
|
(a)
|
|
|
|
|
20
|
(a)
|
|
|
|
Gross
profit
|
$
|
141,247
|
$
|
(72)
|
$
|
141,175
|
$
|
159,353
|
$
|
85
|
$
|
159,438
|
$
|
200,159
|
$
|
20
|
$
|
200,179
|
|
|
Gross
margin
|
|
73%
|
|
|
|
73%
|
|
74%
|
|
|
|
74%
|
|
79%
|
|
|
|
79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
144,155
|
$
|
(361)
|
(a) $
|
143,794
|
$
|
134,537
|
$
|
(2,639)
|
(a) $
|
131,898
|
$
|
133,312
|
$
|
(1,330)
|
(a) $
|
131,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
289
|
(a)
|
|
|
|
|
2,724
|
(a)
|
|
|
|
|
1,350
|
(a)
|
|
|
|
Operating
profit/(loss)
|
$
|
(2,908)
|
$
|
289
|
$
|
(2,619)
|
$
|
24,816
|
$
|
2,724
|
$
|
27,540
|
$
|
66,847
|
$
|
1,350
|
$
|
68,197
|
|
|
Operating
margin
|
|
-2%
|
|
|
|
-1%
|
|
11%
|
|
|
|
13%
|
|
26%
|
|
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
8,695
|
$
|
(2,863)
|
(b,c)$
|
5,832
|
$
|
19,577
|
$
|
(865)
|
(b,c)$
|
18,712
|
$
|
21,416
|
$
|
(8)
|
(b,c)$
|
21,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
289
|
(a)
|
|
|
|
|
2,724
|
(a)
|
|
|
|
|
1,350
|
(a)
|
|
|
|
|
|
|
(4,900)
|
(b)
|
|
|
|
|
1,068
|
(b)
|
|
|
|
|
3,547
|
(b)
|
|
|
|
|
|
|
1,230
|
(c)
|
|
|
|
|
1,221
|
(c)
|
|
|
|
|
1,190
|
(c)
|
|
|
|
Net income before
non-controlling
interest
|
$
|
3,588
|
$
|
(3,381)
|
$
|
207
|
$
|
12,298
|
$
|
5,013
|
$
|
17,311
|
$
|
46,583
|
$
|
6,087
|
$
|
52,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
289
|
(a)
|
|
|
|
|
2,724
|
(a)
|
|
|
|
|
1,350
|
(a)
|
|
|
|
|
|
|
(4,900)
|
(b)
|
|
|
|
|
1,068
|
(b)
|
|
|
|
|
3,547
|
(b)
|
|
|
|
|
|
|
1,230
|
(c)
|
|
|
|
|
1,221
|
(c)
|
|
|
|
|
1,190
|
(c)
|
|
|
|
Net income from
continuing
operations attributable to Sohu.com
Limited for diluted net loss per
share/ADS
|
$
|
3,589
|
$
|
(3,381)
|
$
|
208
|
$
|
12,299
|
$
|
5,013
|
$
|
17,312
|
$
|
46,581
|
$
|
6,087
|
$
|
52,668
|
|
|
Net income/(loss)
from discontinued
operations attributable to Sohu.com
Limited for diluted net loss per
share/ADS[10]
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
821,902
|
$
|
320
|
$
|
822,222
|
$
|
(3,093)
|
$
|
425
|
$
|
(2,668)
|
|
|
Net income
attributable to Sohu.com
Limited for diluted net loss per
share/ADS
|
$
|
3,589
|
$
|
(3,381)
|
$
|
208
|
$
|
834,201
|
$
|
5,333
|
$
|
839,534
|
$
|
43,488
|
$
|
6,512
|
$
|
50,000
|
|
|
Diluted net
income from continuing
operations per share/ADS
attributable to Sohu.com Limited
|
$
|
0.09
|
|
|
$
|
0.01
|
$
|
0.31
|
|
|
$
|
0.44
|
$
|
1.18
|
|
|
$
|
1.33
|
|
|
Diluted net
income/(loss) from
discontinued operations per
share/ADS attributable to Sohu.com
Limited
|
$
|
-
|
|
|
$
|
-
|
$
|
20.75
|
|
|
$
|
20.76
|
$
|
(0.08)
|
|
|
$
|
(0.06)
|
|
|
Diluted net
income per share/ADS
attributable to Sohu.com Limited
|
$
|
0.09
|
|
|
$
|
0.01
|
$
|
21.06
|
|
|
$
|
21.19
|
$
|
1.10
|
|
|
$
|
1.27
|
|
|
Shares/ADSs used in
computing
diluted net income/(loss) per
share/ADS attributable to Sohu.com
Limited
|
|
39,373
|
|
|
|
39,373
|
|
39,614
|
|
|
|
39,614
|
|
39,508
|
|
|
|
39,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To eliminate
the impact of share-based awards as measured using the fair value
method. This adjustment does not have an impact on income tax
expense.
|
|
|
(b) To adjust
for changes in the fair value of the Company's investments and the
income tax effect.
|
|
|
(c) To adjust for the
effect of the U.S. TCJA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[10]
Following the completion on September 23, 2021 of the transaction
with Tencent related to Sogou, Sohu no longer has any ownership
interest in Sogou. 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 exclude results from Sogou operations. For historical
statements,
the results of operations of Sogou and the gain from its disposal
are presented in separate line items as discontinued
operations.
|
|
SOHU.COM
LIMITED
|
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
|
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended Dec. 31, 2021
|
|
Twelve Months
Ended Dec. 31, 2020
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
(a)
|
|
|
|
|
177
|
(a)
|
|
|
|
Brand advertising
gross profit
|
$
|
35,445
|
$
|
1
|
$
|
35,446
|
$
|
40,922
|
$
|
177
|
$
|
41,099
|
|
|
Brand advertising
gross margin
|
|
26%
|
|
|
|
26%
|
|
28%
|
|
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
276
|
(a)
|
|
|
|
|
543
|
(a)
|
|
|
|
Online games gross
profit
|
$
|
550,609
|
$
|
276
|
$
|
550,885
|
$
|
445,158
|
$
|
543
|
$
|
445,701
|
|
|
Online games gross
margin
|
|
86%
|
|
|
|
86%
|
|
83%
|
|
|
|
83%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(a)
|
|
|
|
|
-
|
(a)
|
|
|
|
Others gross
profit
|
$
|
44,851
|
$
|
-
|
$
|
44,851
|
$
|
46,373
|
$
|
-
|
$
|
46,373
|
|
|
Others gross
margin
|
|
72%
|
|
|
|
72%
|
|
70%
|
|
|
|
70%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
277
|
(a)
|
|
|
|
|
720
|
(a)
|
|
|
|
Gross
profit
|
$
|
630,905
|
$
|
277
|
$
|
631,182
|
$
|
532,453
|
$
|
720
|
$
|
533,173
|
|
|
Gross
margin
|
|
76%
|
|
|
|
76%
|
|
71%
|
|
|
|
71%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
533,433
|
$
|
(8,301)
|
(a)$
|
525,132
|
$
|
459,082
|
$
|
(13,760)
|
(a)
$
|
445,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,578
|
(a)
|
|
|
|
|
14,480
|
(a)
|
|
|
|
Operating
profit
|
$
|
97,472
|
$
|
8,578
|
$
|
106,050
|
$
|
73,371
|
$
|
14,480
|
$
|
87,851
|
|
|
Operating
margin
|
|
12%
|
|
|
|
13%
|
|
10%
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense[11]
|
$
|
62,296
|
$
|
(6,101)
|
(c,d)$
|
56,195
|
$
|
133,226
|
$
|
(5,985)
|
(c,d)$
|
127,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,578
|
(a)
|
|
|
|
|
14,480
|
(a)
|
|
|
|
|
|
|
(3,828)
|
(c)
|
|
|
|
|
660
|
(c)
|
|
|
|
|
|
|
4,827
|
(d)
|
|
|
|
|
6,205
|
(d)
|
|
|
|
|
|
|
156
|
(e)
|
|
|
|
|
-
|
(e)
|
|
|
|
Net income/(loss)
before non-controlling
interest
|
|
69,271
|
|
9,733
|
|
79,004
|
|
(36,527)
|
|
21,345
|
|
(15,182)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8578
|
(a)
|
|
|
|
|
14,480
|
(a)
|
|
|
|
|
|
|
-
|
(b)
|
|
|
|
|
(2,868)
|
(b)
|
|
|
|
|
|
|
(3,828)
|
(c)
|
|
|
|
|
660
|
(c)
|
|
|
|
|
|
|
4,827
|
(d)
|
|
|
|
|
6,205
|
(d)
|
|
|
|
|
|
|
156
|
(e)
|
|
|
|
|
-
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
from continuing
operations attributable to Sohu.com Limited
for diluted net loss per ADS
|
$
|
69,274
|
$
|
9,733
|
$
|
79,007
|
$
|
(55,365)
|
$
|
18,477
|
$
|
(36,888)
|
|
|
Net income/(loss)
from discontinued
operations attributable to Sohu.com Limited
for diluted net loss per ADS[12]
|
$
|
858,431
|
|
1,216
|
|
859,647
|
$
|
(31,139)
|
|
3,048
|
$
|
(28,091)
|
|
|
Net income/(loss)
attributable to Sohu.com
Limited for diluted net loss per ADS
|
$
|
927,705
|
|
10,949
|
|
938,654
|
$
|
(86,504)
|
|
21,525
|
$
|
(64,979)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income/(loss) from continuing
operations per ADS attributable to
Sohu.com Limited
|
$
|
1.75
|
|
|
$
|
2.00
|
$
|
(1.40)
|
|
|
$
|
(0.94)
|
|
|
Diluted net
income/ (loss) from
discontinued operations per ADS
attributable to Sohu.com Limited
|
$
|
21.74
|
|
|
|
21.76
|
$
|
(0.79)
|
|
|
$
|
(0.71)
|
|
|
Diluted net
income/(loss) per ADS
attributable to Sohu.com Limited.
|
$
|
23.49
|
|
|
|
23.76
|
$
|
(2.19)
|
|
|
$
|
(1.65)
|
|
|
ADS used in computing
diluted net
income/(loss) per ADS attributable to
Sohu.com Limited
|
|
39,501
|
|
|
|
39,501
|
|
39,452
|
|
|
|
39,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To eliminate
the impact of share-based awards as measured using the fair value
method. This adjustment does not have an impact on income tax
expense.
|
|
(b) To adjust Sohu's
economic interests in Changyou attributable to the above non-GAAP
adjustments. This adjustment does not have an impact on income tax
expense.
|
|
(c) To adjust
for changes in the fair value of the Company's investments and the
income tax effect.
|
|
(d) To adjust for the
effect of the U.S. TCJA.
|
|
(e) To adjust for the
one-time impairment charge recognized for an investment unrelated
to the Company's core businesses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[11] For
the income tax expense in 2020, 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 in
the second quarter of 2020.
|
|
[12]
Following the completion on September 23, 2021 of the transaction
with Tencent related to Sogou, Sohu no longer has any ownership
interest in Sogou.
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 exclude results from Sogou operations.
For historical statements, the results of operations of Sogou and
the gain from its disposal are
presented in separate line items as discontinued
operations.
|
View original content to download
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SOURCE Sohu.com Limited
