Sohu total revenues were US$216 million, up 37% year-over-year for Q3

Sohu.com Limited,China'sleading online media, video, gaming business group, today reported unaudited financial results for the third quarter ended September 30, 2021.

Third Quarter Highlights

• Total revenues were US$216 million, up 37% year-over-year and 6% quarter-over-quarter.
• Brand advertising revenues wereUS$34 million, down 18% year-over-year and 8% quarter-over-quarter.
• Online game revenues wereUS$167 million, up 65% year-over-year and 10% quarter-over-quarter.
• GAAP net income from continuing operations[2]attributable to Sohu.com Limited wasUS$12 million, compared with a net loss ofUS$15 million in the third quarter of 2020 and net income ofUS$22 million in the second quarter of 2021.
• Non-GAAP[3]net income from continuing operations attributable to Sohu.com Limited wasUS$17 million, compared with a net loss ofUS$7 million in the third quarter of 2020 and net income ofUS$25 million in the second quarter of 2021.

Dr.Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "For the third quarter of 2021, facing spot outbreaks of the COVID-19 pandemic and uncertainties in the macroeconomic environment, we continued to focus on refining our technology and developing products. Overall, we delivered better than expected top line and bottom line performance thanks to the solid performance of our online game business. For Sohu Media, we kept improving our products while constantly expanding premium content and stimulating social network distributions, which further consolidated our influence as a mainstream media platform. For Sohu Video, we continued to focus on our "Twin engine" strategy. We applied our advanced live broadcasting technologies into various events and scenarios as an effective tool for generating even more video content. For Changyou, our online games performed well during the quarter, with its revenue exceeding the high end of our prior guidance."

Business Outlook

For the fourth quarter of 2021, Sohu estimates:

• Brand advertising revenues to be between US$28 million andUS$31 million; this implies an annual decrease of 26% to 33% and a sequential decrease of 8% to 17%.
• Online game revenues to be betweenUS$140 millionandUS$150 million; this implies an annual decrease of 23% to 29% and a sequential decrease of 10% to 16%.
• Non-GAAP net loss attributable to Sohu.com Limited to be between nil andUS$10 million; and GAAP net loss attributable to Sohu.com Limited to be betweenUS$3 millionUS$13 million.

For the fourth quarter 2021 guidance, the Company has adopted a presumed exchange rate ofRMB6.40=US$1.00, as compared with the actual exchange rate of approximatelyRMB6.63=US$1.00for the fourth quarter of 2020, andRMB6.47=US$1.00 for the third quarter of 2021.

This forecast reflects Sohu's management's current and preliminary view, which is subject to substantial uncertainty, particularly in view of the potential ongoing impact of the worldwide COVID-19 pandemic, which remains difficult to predict.