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Sohu.com (ticker: SOHU), China's leading online media, communications, commerce and mobile
value-added services company, met Q4 2004 consensus EPS estimates of $0.17. Here are the
highlights:


Q4 Results:
(all percentage changes and comparisons are year on
year, unless stated otherwise)

  • Revenues totaled $24.1 million vs $24.6 million.
  • Gross margins were 68% vs 72%.
  • Net income was $6.5 million vs $11.6 million.
  • Fully diluted EPS of $0.17 vs $0.28.

Q4 Highlights:
(all percentage changes and comparisons are year on
year, unless stated otherwise)

  • Ad revenue increased 68% to $15.9 million.
  • Ad revenue consisted of $13.2 million in brand advertising and $2.7 million in sponsored search.
  • Ad revenue accounted for 66% of total revenues.
  • Ad gross margins were 80% vs 77%.
  • Non-advertising revenue, which is derived from wireless value-added services, online games and e-commerce, decreased 46% Y-o-Y, and 22% Q-o-Q to $8.2 million.
  • The decline was predominantly caused by loss in wireless revenue, which was down 64% Y-o-Y and 43% Q-o-Q.
  • Non-advertising revenue represented 34% of total revenues.
  • Non-advertising gross margins were 45% compared to 69% largely due to the decline in high-margin wireless product sales

Q1 2005 Guidance:

  • Revenues of $22.5 - $23.5 million.
  • Advertising revenue of $14.5 - $15.0 million.
  • Non-advertising revenue of $8.0 - $8.5 million.
  • Fully diluted EPS of $0.14 - $0.16. Analyst estimates of $0.18.
Source: SOHU meets estimates on weak wireless revenue, lowers guidance (4Q04 earnings)