SOHU Latest Report

Financial Performance

Sohu.com's operating revenue totaled RMB134.68 million (approximately US$1.3468 million) as of December 31, 2024, a 5.5% decrease from RMB141.35 million (approximately US$1.4135 million) in 2023. This decline reflects the pressure on revenue, which may affect its overall profitability and financial health.

Key Financial Data

1. A 5.5% decrease in operating revenue indicates pressure on income, which may affect profitability.

2. Ad revenue at Sohu.com decreased in 2024, with brand advertising revenue down 15% YoY in Q3 2024.

3. R&D expenses increased to RMB61.584 million, which may negatively impact operating revenue in the short term.

4. The overall ad revenue in the internet industry is affected by the economic slowdown, with many companies reporting a decrease in operating revenue.

5. User growth slowed down, especially in the PC client game segment, with a YoY decrease of 2% in the average monthly active users.

Peer Comparison

1. Industry-wide analysis: The internet industry as a whole faces pressure on ad revenue, especially in the context of increased economic uncertainty, with overall ad spending decreasing in 2024, affecting the revenue of all major internet companies. Despite an estimated growth of about 13.5% in the overall ad market, Sohu faces a tough competitive environment.

2. Peer evaluation analysis: Compared to peers, Sohu's operating revenue decline is relatively small, but attention should be paid to changes in market share. Sohu's user growth performance in the mobile game segment is good, but the slowdown in overall user growth may further affect its market competitiveness.

Summary

Sohu.com's main challenge in 2024 is the decrease in operating revenue, mainly affected by increased competition, decreased ad revenue, and slowed user growth. Although the overall ad market shows a growth trend, Sohu still faces pressure in gaining ad revenue and user traffic.

Opportunities

1. The significant increase in user activity in the mobile game segment may bring new revenue growth points.

2. The launch of new games promotes user growth, especially in the mobile game market.

3. The growth of the overall internet advertising market provides potential market opportunities for Sohu, as long as it can improve its ad business performance.

Risks

1. Continued decline in ad revenue may lead to a deterioration in overall financial health.

2. Slowed user growth may affect revenue sources, especially in the PC client game segment.

3. Competitors outperforming in ad revenue and user acquisition may cause Sohu to further lose market share.