Qihoo 360 Reports Second Quarter 2012 Unaudited Financial Results

Qihoo 360 Technology

, a leading Internet company in China, today reported its unaudited financial results for the second quarter ended June 30, 2012. Second Quarter Financial Highlights(1) Revenues were $72.8 million, representing an increase of 107.3% from $35.1 million in the second quarter of 2011. Net income was $7.0 million, compared to $11.1 million in the second quarter of 2011. Net income excluding share-based compensation (non-GAAP)(1) was $20.6 million, compared to $13.2 million in the second quarter of 2011. Diluted earnings per ADS(2) ("EPADS") were $0.06. Diluted EPADS excluding share-based compensation (non-GAAP)(1) were $0.17. Operating Metrics Total monthly active users of Qihoo 360's PC-based products and services reached a record 425 million in June 2012, compared to 378 million in June 2011(3). User penetration of Qihoo 360's PC-based products was 94% in June 2012, compared to 92% in June 2011(3). Total smart phone users of Qihoo 360's mobile security products and services reached approximately 120 million, representing approximately 70% of the smart phone security market in China(3)(4). Monthly active users of Qihoo 360's browsers were 272 million in June 2012, compared to 209 million in June 2011(3). User penetration of Qihoo 360's browsers was 61% in June 2012, compared with 52% in June 2011(3). Average daily unique visitors to the 360 Personalized Start-up Page and its sub-pages were 83 million in the second quarter of 2012, compared to 42 million in the second quarter of 2011. Average daily clicks on Qihoo360's Personalized Start-up Page and its sub-pages were approximately 368 million in the second quarter of 2012, compared to 124 million in the second quarter of 2011.