Sohu.com Registers 14% Revenue Decline In Q3 As Pandemic And Macro Uncertainties Weighed On Its Businesses - Sohu.com (NASDAQ:SOHU)

Sohu.com Limited (NASDAQ: SOHU) reported a third-quarter FY22 revenue decline of 14% year-on-year to $185 million. Revenue was down 5% Q/Q.
Brand advertising revenues declined 24% Y/Y to $26 million.
Online game revenues decreased 11% Y/Y to $149 million.
The non-GAAP gross margin was 71%, contracting 300 basis points Y/Y and declining 200 basis points sequentially. The non-GAAP gross margin for online games was 84% versus 83% last year and 84% in the prior quarter.
GAAP loss per ADS was $(0.50).
Sohu held $1.39 billion in cash and equivalents.
Average monthly active user accounts for Changyou PC games increased by 6% Y/Y to 2.1 million. The average MAU for Changyou mobile games fell by 45% Y/Y to 2.5 million.
Dr. Charles Zhang, Chairman, and CEO, commented, "In the third quarter of 2022, we faced severe headwinds from the COVID-19 pandemic and uncertainties in the macroeconomic environment. Despite these, we maintained our focus on refining our products, improving operating efficiency, and enhancing monetization capabilities. Thanks to strict budget controls and the solid performance of our online game business, our bottom-line performance for the quarter was well above expectations."
Outlook: Sohu sees Q4 brand advertising revenue decrease of 17%-26% Y/Y to $25 million - $28 million.
It sees Q4 online game revenues decline of 11%-18% Y/Y to $118 million - $128 million.
Sohu estimates to report a loss on both GAAP and non-GAAP basis.
Price Action: SOHU shares closed higher by 7.47% at $15.96 on Friday.
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