Qihoo Q4 Earnings Preview: Diversification Into Hardware Will Be Key In 2015
Neil Flynn • 32 Comments
Neil Flynn • 32 Comments
Qihoo: Near-Term Pain For Long-Term Gains
Neil Flynn • 15 Comments
Neil Flynn • 15 Comments
Aug. 30, 2013, 12:48 PM
- The China mobile internet sector has collected enough users, J.P. Morgan says, and prefers Qihoo (QIHU -0.7%) and Tencent (TCEHY.PK, TCTZF.PK) because they have already amassed large mobile platforms.
- Both companies should continue to capitalize on China’s booming mobile economy, the firm says; it expects Tencent to capture 30%-35% mobile game share by the end of 2014 through content development and distribution, while QIHU could take 10% through distribution.
- The firm cuts Youku (YOKU -2.7%) and Sohu (SOHU -2.1%) to Neutral from Overweight.
- JPM also likes online real estate services platform Soufun (SFUN +4.6%) for its market leading position; users seem sticky and barrier to entry seems high.
Aug. 28, 2013, 11:22 AM
- Qihoo's (QIHU -6.6%) 2018 convertible notes carry an interest rate of 2.5%, and a conversion price of $110.96 (51% above current levels). (PR)
- Goldman estimated (before the deal was priced) the offering would dilute EPS by 4%-6%. The firm thinks Qihoo will use the proceeds " to strengthen its presence in the key strategic areas, such as in mobile gaming and search," to counter the expansion efforts of rivals.
- Judging by today's rally in Sohu (SOHU +4.7%) shares, some investors are clearly betting Qihoo will use the funds to strengthen its search presence by acquiring Sohu's Sogou unit, for which Qihoo has already held buyout talks.
- Previous: Qihoo announces $550M convertible debt offering
Aug. 28, 2013, 9:11 AM
Aug. 27, 2013, 5:41 PM
Aug. 27, 2013, 4:31 PM
- Qihoo (QIHU) is taking advantage of its giant 2013 run-up to offer $550M worth of convertible senior notes due Sep. 2018. (PR)
- A $50M overallotment option exists. The notes can be redeemed "under certain circumstances on or after September 20, 2016."
- Qihoo had $379M in cash/investments on its balance sheet at the end of Q2, and no debt. Is the company looking to use the offering to help finance a deal for Sohu's Sogou unit?
Aug. 27, 2013, 9:52 AM
- Qihoo (QIHU +3.1%) has been upgraded to Buy by BNP Paribas and Jefferies a day after the company posted a Q2 beat and strong Q3 guidance.
- Blackbaud (BLKB +5.3%) has been upgraded to Buy by Stifel following its CEO transition news.
- Peregrine Semi (PSMI +1.6%) has been started at Outperform by JMP.
- Synnex (SNX -4%) has been cut to Underperform by Raymond James.
Aug. 26, 2013, 9:48 AM
- Qihoo (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.
- Q2 results, PR
Aug. 26, 2013, 9:11 AM
Aug. 26, 2013, 6:02 AM
- Qihoo 360 (QIHU): Q2 EPS of $0.40 beats by $0.14.
- Revenue of $151.7M beats by $7.51M. (PR)
Aug. 26, 2013, 12:05 AM| Aug. 26, 2013, 12:05 AM
Aug. 25, 2013, 5:30 PM| Aug. 25, 2013, 5:30 PM
Aug. 19, 2013, 6:00 PM
Aug. 19, 2013, 1:48 PM
- Chinese Internet stocks are turning in an a very good day, aided by a rally in Shanghai that came in the wake of positive housing data.
- In addition to NetEase (boosted by a China Telecom deal) and real estate play SouFun (previous), winners include AutoNavi (AMAP +13.6%), Qihoo (QIHU +7.5%, adding to Friday's gains), YY (YY +5.7%), Vipshop (VIPS +9.1%), NQ Mobile (NQ +4.2% - SA contributor Treasure Hunter has another positive article), Sina (SINA +2.6% - still basking in its post-earnings glow) and Perfect World (PWRD +2.1%).
- The group has already been performing very well this summer, thanks to good earnings news, short-covering, momentum traders, and optimism the Chinese economy can see a soft landing.
Aug. 16, 2013, 1:13 PM
- Down 11% over the prior two days (thanks in part to a general selloff in Chinese tech stocks), Qihoo (QIHU +10%) is flying higher today.
- A likely trigger: Remarks from president Qi Xiangdong stating Qihoo's So.com search engine (launched a year ago) now has a Chinese query share of 20%. Qi also predicts So.com's query share will top 30% by the end of 2014.
- Research firm CNZZ gave Qihoo a 15.3% Chinese search share for June, up from 9.6% in Oct. '12. Baidu (BIDU -0.5%) was assigned a 69.4% June share (down from 73% in Oct. '12).
- Last month, Qihoo announced it's in talks to by Sohu's Sogou search unit (8.8% June share, per CNZZ), but cautioned it hadn't reached "the pricing stage."
- Shares +132% YTD. Q2 results are due on Aug. 26.
Aug. 15, 2013, 5:35 PM
Jul. 29, 2013, 12:35 PM
- Shanda (GAME) is nosediving as investors balk at the price it's paying to acquire affiliates responsible for handling its online game billing and customer service work, among other activities.
- One of the affiliates (Shengzhan) owns valuable data about user activity. The other (Shengjiang) runs a network that sells 2M+ real/virtual prepaid gaming cards via 180K distribution channels.
- Shanda claims service fees paid to the affiliates made up 21.3% of its Q1 revenue, and that buying the companies will help it deliver the kind of integrated platform it considers crucial for mobile success.
- Shanda is paying for the deals with cash, deferred payments, and the settlement of an outstanding loan receivable.
- Shares had more than doubled since early May before today's plunge.
- Fellow online game providers NetEase (NTES -2.6%), Qihoo (QIHU -4.1%), Perfect World (PWRD -5.3%), and Giant Interactive (GA -5%) are selling off. Sohu and subsidiary Changyou's disappointing Q2 results and Q3 guidance are the main trigger, though a moderate selloff in Shanghai isn't helping either.
Qihoo 360 Technology Co., Ltd. engages in the provision of Internet and mobile security products. Its core Internet and mobile security products include 360 Safe Guard, 360 Anti-Virus, and 360 Mobile Safe. It also develops platform products that include 360 Browsers, 360 Personal Start-Up page,... More
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