Skip to main content

Market Overview

Sogou Misses On Q1 Revenue Due To Tencent's Proposed Acquisition, Lower Traffic Activity

Share:
Sogou Misses On Q1 Revenue Due To Tencent's Proposed Acquisition, Lower Traffic Activity
  • Sogou Inc (NYSE: SOGOreported a first-quarter FY21 revenue decline of 47% year-on-year to $137.2 million, missing the analyst consensus of $256.5 million.
  • Uncertainties about Sogou's business policies among certain advertisers due to the proposed acquisition offer by Tencent Holdings Ltd (OTC: TCEHY) and reduced traffic acquisition activity drove the decline.
  • Search, and search-related revenues declined 46% Y/Y to $127.8 million due to a decline in auction-based pay-for-click services.
  • Other revenues declined 52% Y/Y to $9.5 million as the company scaled back non-core businesses.
  • Non-GAAP gross profit declined 27% Y/Y to $29.4 million. The margin expanded 500 basis points to 21%.
  • Non-GAAP operating loss rose 13.8% Y/Y to $47.7 million. The loss margin contracted 1,900 basis points to (35%).
  • Sogou reported adjusted net income was $36.5 million, compared to a net loss of $31.1 million in Q1 FY20. The income was driven by a $76.7 million unrealized gain from a change in the fair value of the company's equity investment in Zhihu Inc (NYSE: ZH).
  • Adjusted EPS of $0.09 beat the analyst consensus of $0.
  • Sogou held $1 billion in cash and equivalents and generated $56.6 million in operating cash flow.
  • Price action: SOGO shares are up 0.60% at $8.33 on the last check Friday.
 

Related Articles (SOGO)

View Comments and Join the Discussion!

Posted-In: BriefsEarnings News Tech Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com