- Qihoo (NYSE:QIHU) expects Q3 revenue of $181M-$183M, well above a $162.9M consensus. The company also issued blowout guidance 3 months ago.
- Revenue surged 38% Q/Q and 108% Y/Y (compares with just 59% Y/Y growth in Q1), thanks to both ramping search ad sales and strong online game activity. Online ad revenue (search/browser home page ads) +43% Q/Q and +78% Y/Y to $90.6M. Internet value-added service revenue (mostly game-related) +33% Q/Q and +181% Y/Y to $60.9M.
- Qihoo estimates 95% penetration among Chinese PC Web users for its PC security products, and 70% penetration among Chinese smartphone users for its mobile security products.
- Daily unique visitors to browser home page and sub-pages +21% Q/Q and +37% Y/Y to 114M.
- 338M smartphone users use Qihoo's 360 Mobile Safe app, +23% Q/Q. Web browser users slipped by 2M Q/Q to 330M. Qihoo's total monthly active users +1% Q/Q and +8% Y/Y to 461M (high penetration).
- CEO Hongyi Zhou: "During the quarter, we gained notable search traffic share." That's in-line with a recent comment from a company exec.
- Opex +72% Y/Y to $97.2M, thanks in large part to a 73% increase in R&D spend to $60.3M. Sales/marketing and G&A spend also ramped.
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Q2 results, PR