Mon, Feb. 9, 10:34 AM
- Though SOHU beat Q4 estimates, it's guiding for Q1 revenue of $425M-$440M and EPS of -$0.95 to -$1.05, below a consensus of $445.1M and -$0.72.
- Subsidiary Chanyou (NASDAQ:CYOU), which posted a revenue beat and an EPS miss, is guiding for revenue of $195M-$200M and EPS of $0.64-$0.68; the former is below a $201M consensus, and the latter above a $0.24 consensus.
- Changyou has also announced the appointment of Sohu exec Jasmine Zhou as its permanent CFO. Zhou takes over from Rucia Ren, who had been serving as interim CFO.
- Sohu's online game revenue (stems from Changyou) rose 7% Y/Y in Q4 to $184M. Sogou search revenue rose 70% to $119M (share gains), and brand ad revenue 20% to $148M. Changyou's average monthly active accounts and quarterly active paying accounts respectively rose 81% and 59% to 13.9M and 2.7M.
- Sohu's gross margin was 59%, up from Q3's 58% but down from 64% a year ago. Operating expenses rose 16% Y/Y to $288M (compares with 24% revenue growth), with Changyou's opex rising 14% to $149.4M.
- Sohu: Q4 results, PR. Changyou: Q4 results, PR.
Mon, Feb. 9, 5:57 AM
Sun, Feb. 8, 5:30 PM
Nov. 3, 2014, 9:15 AM
- Along with its Q3 report, Changyou (NASDAQ:CYOU) announces CEO Tao Wang has resigned for "personal reasons." SOHU CFO Carol Yu and Changoyu president Dewen Chen will serve as co-CEOs.
- The news comes as both Changyou and parent Sohu post mixed Q3 results (EPS beats and revenue misses) and offer light Q4 sales guidance. Sohu expects Q4 revenue of $442M-$462M, mostly below a $461.1M consensus. Changyou expects Q4 revenue of $188M-$198M, below a $199.2M consensus.
- Changyou's Q3 revenue (42% of Sohu's revenue) fell 1% Y/Y due to a 7% drop in online game revenue to $150.3M; Changyou faces off against Tencent, Perfect World, Shanda, and a slew of other firms in a very competitive Chinese online gaming market.
- Average monthly active accounts for Changyou's games amounted to 29M, +21% Q/Q and -6% Y/Y. Average monthly accounts for platform channels totaled 275M, +9% Q/Q and +178% Y/Y.
- Sohu's Sogou search unit continued to perform well: Sales rose 17% Q/Q and 86% Y/Y to $106M. Meanwhile, Sohu's brand ad sales grew 12% Q/Q and 19% Y/Y to $106M.
- Sohu's gross margin was 58%, flat Q/Q and down from 66% a year ago. Opex was $275M, +3% Q/Q and +47% Y/Y.
- Sohu: Q3 results, PR. Changyou: Q3 results, PR.
Nov. 3, 2014, 5:50 AM
Nov. 2, 2014, 5:30 PM
Jul. 28, 2014, 2:51 PM
- Sohu (SOHU +1%) expects Q3 revenue of $427M-$442M and EPS of -$0.75 to -$0.85 vs. a consensus of $451.4M and -$0.97. Subsidiary Changyou (CYOU +0.9%) expects Q3 revenue of $186M-$192M and EPS of -$0.11 to $0.00 vs. a consensus of $200.1M and -$0.04.
- While respectively up 275% and 86% Y/Y, Changyou's sales/marketing and R&D spend fell 14% and 30% Q/Q in Q2 to $69.4M and $49M. That helped both Changyou and Sohu beat EPS estimates in spite of revenue misses. Sohu's total opex fell 8% Q/Q and rose 67% Y/Y to $267M.
- Changyou notes it "scaled back its advertising and promotion of its PC-based and mobile-based software applications" in Q2. The R&D spend decline is attributed to lower expenses related to employee incentive plans.
- Each company saw declining gross margins: Changyou's GM fell to 76% from 78% in Q1 and 83% a year ago, and Sohu's fell to 58% from 62% in Q1 and 66% a year ago. In addition to Changyou, Sohu's GM was dinged by lower advertising margins caused by higher content/bandwidth costs.
- While Changyou's gaming revenue fell 9% Y/Y to $154M, Sohu's search/other revenue grew 84% Y/Y to $85M, and its brand ad revenue grew 33% Y/Y to $133M.
- Revenue related to the Sogou search engine (largely search/other) rose 30% Q/Q and 82% Y/Y to $91M. Average monthly active accounts for Changyou's games fell 14% Q/Q and 33% Y/Y to 24M. Changyou's platform channel accounts grew 5% Q/Q and 196% Y/Y to 252M.
- Q2 results: Sohu, Changyou
Jul. 28, 2014, 5:52 AM
Jul. 27, 2014, 5:30 PM
Apr. 28, 2014, 8:58 AM
- SOHU expects Q2 revenue of $397M-$411M and EPS of $1.25-$1.35. The former's $404M midpoint is unfavorable to a $409.1M consensus, and the latter is well below a -$0.62 consensus. Subsidiary Changyou (CYOU) expects Q2 revenue of $182M-$188M and EPS of -$0.26 to -$0.38, below a consensus of $191.4M and $0.08. The companies also offered light guidance three months ago.
- Pressuring Sohu's Q1 EPS: Opex rose 17% Q/Q and 122% Y/Y to $295M, thanks largely to Changyou's marketing/promotional spend and new employee incentive plans. Like peers, Changyou is spending aggressively to hold its ground in a fiercely competitive Chinese gaming market.
- Also taking a toll: Sohu's gross margin fell 200 bps Q/Q and 400 bps Y/Y to 62%, due in part to higher amortization costs for licensed video content.
- Brand ad sales rose 38% Y/Y in Q1 to $111M, after growing 50% in Q4. Thanks in part to the acquisition of Tencent's Soso search unit, search revenue rose 78% to $64M; mobile search traffic rose 24% Q/Q, and PC traffic "edged up."
- Online game revenue (via Changyou) fell 2% Y/Y to $163M, after growing 9% in Q4. Changyou's gaming average monthly accounts totaled 28M, +12% Q/Q but -26% Y/Y due to declines for TLBB, Wartune, and DDTank. Changyou's platform channel accounts (video site, browser, etc.) rose 60% Q/Q and 182% Y/Y to 239M.
- Q1 results: Sohu, Changyou. PRs: Sohu, Changyou.
Apr. 28, 2014, 5:52 AM
Apr. 27, 2014, 5:30 PM
Feb. 10, 2014, 10:25 AM
- For the second straight quarter (previous), Sohu (SOHU -3.6%) and subsidiary Changyou (CYOU -12.5%) are falling after posting mixed results and issuing light guidance.
- Sohu expects Q1 revenue of $355M-$367M and EPS of -$1.10 to -$1.20, below a consensus of $378.6M and breakeven. Changyou expects Q1 revenue of $174M-$180M and EPS of -$0.30 to -$0.42, below a consensus of $198.8M and $1.00.
- Along with its Q4 report, Changyou has announced CFO Alex Ho is leaving to "start his own business." Finance director Erin Sheng will serve as interim CFO while the game developer searches for a permanent replacement.
- Changyou, responsible for over half of Sohu's Q4 revenue, attributes its guidance to a revenue drop for flagship title TLBB, seasonal ad weakness, and bigger marketing and personnel investments. Changyou also says it's implementing an employee profit-sharing plan tied to specific projects.
- Though its revenue rose 9% Y/Y, Changyou's monthly active accounts fell 19% Q/Q and 34% Y/Y to 25M, thanks to declining accounts for TLBB and DDTank. Platform channel accounts rose 51% Q/Q and 93% Y/Y to 149M.
- Changyou's opex soared 82% Q/Q and 156% Y/Y. Gross margin was 82%, -200 bps Q/Q and Y/Y.
- Sohu's Sogou search revenue rose 23% Q/Q and 72% Y/Y to $70M. Brand ad sales fell 1% Q/Q but rose 50% Y/Y to $123M.
- Sohu's opex rose 78% Y/Y, well above rev. growth of 29%. Gross margin fell 200 bps Q/Q and 500 bps Y/Y to 64%.
- Q4 results: Sohu, Changyou. PRs: Sohu, Changyou.
Feb. 10, 2014, 5:52 AM| 3 Comments
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