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What were the key takeaways from Sohu.com’s earnings call?

- **Revenue Growth**: Total revenue up 19% YoY to $110M, driven by 27% YoY growth in online games.
- **Game Success**: TLBB: Return and TLBB Vintage outperformed, with user spending and retention exceeding expectations.
- **AI Utilization**: Enhances content creation and user experience, with no large language model development.
- **Q4 Outlook**: Online games expected to decline 24%-30% QoQ, reflecting post-launch trends and macro challenges.

**【Management Opening Remarks】**
- Participants include CEO Charles Zhang, CFO Joanna Lv, and other executives. The call begins with a safe harbor statement cautioning about forward-looking statements.

**【CEO Commentary】**
- **Q3 Financial Highlights**: Total revenue of $110 million (+19% YoY), driven by online games ($162 million, +27% YoY). Marketing services revenue declined (-27% YoY) due to macro challenges.
- **Game Performance**: TLBB: Return exceeded expectations with relaxed gameplay and stable user retention. TLBB Vintage saw record-high spending. Expansion packs for Legacy TLBB Mobile maintained stability.
- **AI Integration**: Used for video summarization, news search, and game design (e.g., art and code generation). No large language model development.
- **Share Repurchase**: $97 million spent (7.6M ADS) toward $150M program, with 2/3 completed.

**【CFO Financial Commentary】**
- **Q3 Segment Results**: Sohu Media ($70M rev, -$71M op loss); Changyou ($163M rev, $88M op profit). Both up YoY.
- **Q4 Guidance**: Online games $113-123M (-24% to -30% QoQ), marketing services $15-16M (+10% to +18% QoQ). Net loss $25-35M.

**【Q&A Highlights】**
- **Game Performance**: TLBB: Return's user spending and retention exceeded expectations. Q4 decline attributed to natural post-launch trends.
- **Advertising Challenges**: Auto and IT sectors under pressure, but unique campaigns (e.g., live streaming) stabilize revenue.
- **AI Impact**: Primarily enhances user experience in media and gaming, with no direct cost savings.
- **Sector Trends**: Auto and consumer electronics advertisers show slight resilience despite macro weakness.

Sohu.com Limited (SOHU) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SOHU

SOHU fundamentals

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