Seeking Alpha
 

QIHOO 360 Technology Co. Ltd. (QIHU)

- NYSE
  • Aug. 25, 2014, 1:11 PM
    • Though Qihoo (NYSE:QIHU) beat Q2 estimates and offered above-consensus Q3 sales guidance, its gross margin fell to 79.1% from 79.5% in Q1 and 88.3% a year ago. In addition, opex rose 19% Q/Q and 114% Y/Y to $208.3M on the back of a 254% Y/Y increase in sales/marketing spend.
    • Online ad revenue +22.3% Q/Q and +89% Y/Y to $171.3M thanks to search and mobile ad growth. Internet value-added service revenue +17.2% Q/Q and +140% Y/Y thanks to PC/mobile gaming growth.
    • Total monthly active users of Qihoo's PC products totaled 496M in June, up from 497M in March and 461M a year ago. Smartphone users of Qihoo's 360 Mobile Safe app rose to 641M from 538M in March and 338M a year ago.
    • Daily unique visitors for Qihoo's 360 browser home page grew to 128M in Q2 from 122M in Q1 and 114M a year ago. Average daily clicks for the page grew totaled 749M, up from 590M a year ago but down from 772M in Q1.
    • Citi estimates PC search revenue (boosted by share gains) rose 52% Q/Q to $62M (20% of total revenue), and that mobile revenue rose 16% Q/Q to $68M, with 67% coming from games. At the same time, it expects heavy spend to result in op. margin falling to 25% in 2014 from 34% in 2013.
    • Q2 results, PR
    | Comment!
  • Aug. 25, 2014, 12:46 PM
    | Comment!
  • Aug. 25, 2014, 9:11 AM
    | 1 Comment
  • Aug. 24, 2014, 11:11 PM
    • Qihoo 360 (NYSE:QIHU): Q2 EPS of $0.50 beats by $0.04.
    • Revenue of $317.9M (+109.6% Y/Y) beats by $8.5M.
    • Expects Q3 revenue of $360M-$365M (+92%-94% Y/Y), above a $357.4M consensus.
    • Press Release
    | 5 Comments
  • Aug. 24, 2014, 5:30 PM
  • Aug. 22, 2014, 7:03 PM
    • Ahead of Qihoo's (NYSE:QIHU) Q2 report (due Monday morning), CNZZ estimates Qihoo now has 30.2% of the Chinese search market in terms of page views. That's up sharply from the 16.3% it had a year ago, and suggests Qihoo may have already reached its 30% year-end target.
    • Baidu's (NASDAQ:BIDU) share is pegged at 54.5%, down from 67.7% a year ago. Sohu's (NASDAQ:SOHU) Sogou unit is assigned a 12.8% share, up from 9.7% a year ago.
    • Two caveats: 1) iResearch has provided higher search share figures for Baidu, and lower ones for Qihoo, than CNZZ. The firm has argued CNZZ's figures paint an incomplete picture due to a heavy reliance on small/medium-sized sites for data. 2) Qihoo's mobile search position is weaker than its PC search position. Baidu, meanwhile, just topped 500M monthly mobile search users.
    | 13 Comments
  • Aug. 4, 2014, 10:20 AM
    • The Chinese government's procurement agency has warned departments not to use antivirus software from Symantec (SYMC -0.6%) and fellow U.S. supplier Kaspersky Lab.
    • Qihoo (QIHU +3.4%), which has a giant share of the Chinese antivirus software market, is rallying, though it's worth noting several other Chinese tech companies are also doing well.
    • Previously, China's Public Security Ministry had warned Symantec's Data Loss Prevention software had security loopholes that could enable outside access. As in several other regions, NSA-related tensions have been running high in the Middle Kingdom. Local authorities have also launched an anti-monopoly probe against Microsoft.
    • The whole of Asia-Pac accounted for 17% of Symantec's FQ4 revenue. FQ1 results arrive on Wednesday.
    | Comment!
  • Jul. 30, 2014, 4:08 PM
    • Qihoo (NYSE:QIHU) is selling $900M worth of convertible senior notes due 2020 and 2021. Underwriters will have a $135M overallotment option.
    • Qihoo sold $550M worth of 2018 convertible notes last year. The company had $901.6M in cash at the end of Q1, and $600M in debt.
    | Comment!
  • Jul. 25, 2014, 5:32 PM
    • Goldman has raised its 2014-2016 Baidu (BIDU +10.9%) EPS estimates by 17%-23% following its sizable Q2 EPS beat and above-consensus Q3 guidance, and hiked its target by $35 to $260. BofA/Merrill, Deutsche, and Piper have also raised their Baidu PTs.
    • Goldman was pleased with several datapoints provided in the Q2 report and CC (transcript). Among them: 1) Baidu topped 500M mobile search monthly active users (MAUs) in June. 2) Maps MAUs have passed 200M. 3) Baidu's app distribution platforms (led by 91 Wireless) averaged 130M downloads/day in Q2. 4) The Nuomi daily deals unit (acquired from Renren) has seen its user base double since Q4.
    • BofA/Merrill observes Baidu's aggressive spending growth is now being fueled more by hiring than by marketing spend, something it expects will translate into future leverage. Marketing spend fell to 11.5% of revenue from 14.1% in Q1, while R&D grew to 14.6% from 13.6%.
    • Baidu made fresh highs today, and provided a lift to rivals Qihoo (QIHU +3.7%) and Sohu (SOHU +2.2%) along the way.
    | 5 Comments
  • Jul. 14, 2014, 5:53 PM
    • With Cheetah Mobile (CMCM -4.5%)  obtaining 82% of its 2013 revenue from ad sales, and 92.6% from PCs, the ongoing shift in Chinese ad spend from PC to mobile "puts it in a tough spot," writes WestEnd511 in a column now out of embargo.
    • The author argues Cheetah's "subscale" position in key markets especially leaves it at a disadvantage relative Qihoo (QIHU +2.1%) and other bigger rivals. Cheetah's mobile security software has an estimated 3% Chinese market penetration vs. 62% for Qihoo's software, 27% for Tencent's, and 18% for Baidu's.
    • On PCs, Cheetah's antivirus software has 25% penetration vs. 92% for Qihoo's product and 23% for Tencent's. Its PC browser share is at just 1.3%, well below Qihoo's 24.6% and Internet Explorer's 48.1%.
    • The author adds Qihoo, Baidu, and Tencent's popular Android app stores give them a distribution edge. A $16 PT is set based on a sum-of-the-parts analysis.
    | 1 Comment
  • Jun. 11, 2014, 2:39 PM
    • Acquisition-hungry Alibaba (ABABA) is buying the 1/3 of top Chinese mobile browser vendor UCWeb it doesn't yet own for a mixture of cash and stock. The price hasn't been disclosed, but Alibaba claims the deal is the biggest Chinese Web merger in history, exceeding Baidu's (BIDU +0.4%) $1.9B purchase of app store provider 91 Wireless.
    • UCWeb has a 50%+ share of the Chinese mobile browser market, and also has 35% of the Indian market. The company claims 500M total browser users, as well as 50M users for its Android app store, which competes against Baidu and Qihoo's (QIHU +3.8%) popular stores.
    • More importantly for Baidu (and also relevant for Qihoo), UCWeb claims a 20%+ share of the Chinese mobile search market on the back of 100M active users. A mobile search JV was launched with Alibaba in April.
    • Meanwhile, CNBC reports Alibaba will likely file a new F-1 early next week that includes its Q1 results. Odds are Yahoo (YHOO +0.6%), which has been reporting Alibaba's results a quarter in arrears, will move on the numbers.
    • CNBC adds Alibaba is still expected to go public in the first week of August. Bloomberg previously reported Alibaba is eying an Aug. 8 IPO.
    | 10 Comments
  • Jun. 2, 2014, 4:03 PM
    • Though Qihoo's (QIHU -4.3%) Q1 EPS beat estimates, it benefited from a $28M one-time gain and was otherwise pressured by surging expenses, writes Nomura, which has cut its PT by $12 to $113.
    • The firm has respectively cut its 2014 and 2015 EPS estimates by 10% and 13% to budget for higher expenses, particularly for app pre-install deals.
    • Qihoo's opex rose 101% Y/Y in Q1 (still below revenue growth of 141%), and its gross margin fell 790 bps Y/Y to 79.5%.
    | Comment!
  • May. 27, 2014, 6:32 PM
    • Qihoo (QIHU) expects Q2 revenue of $300M-$305M, well above a $270.2M consensus.
    • Q1 results trounced estimates on the back of a 120.9% Y/Y increase in ad revenue to $140M, and a 172.2% increase in value-added service (largely gaming) revenue to $124.8M.
    • Improving search/mobile monetization contributed to the ad growth. Qihoo notes it's now estimated to have 25% of the Chinese search market, up from 23% in Q4; the company has been aiming for a 30% share by year's end.
    • Total users of Qihoo products/services rose by 4M Q/Q and 38M Y/Y to 497M. Users of Qihoo's 360 Mobile Safe app rose another 13% Q/Q and 96% Y/Y to 538M.
    • Daily unique home page visitors rose by 3M Q/Q to 122M, after slipping by 7M in Q4. Average home page daily clicks rose by 91M Q/Q to 772M.
    • Gross margin fell to 79.5% from 87.4% a year ago. Opex rose 101% Y/Y to $155.2M.
    • Q1 results, PR
    | 1 Comment
  • May. 27, 2014, 6:03 PM
    • QIHOO 360 Technology (QIHU): Q1 EPS of $0.54 beats by $0.20.
    • Revenue of $265.1M (+141.3% Y/Y) beats by $36.9M.
    • Shares +0.24% AH.
    • Press Release
    | 2 Comments
  • May. 26, 2014, 5:35 PM
  • May. 7, 2014, 10:50 AM
    | 15 Comments
Visit Seeking Alpha's
QIHU vs. ETF Alternatives
Company Description
Qihoo 360 Technology Co Ltd provides high-quality internet and mobile security products in China. Its products and services are supported by its cloud-based security technology.
Sector: Technology
Country: China