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
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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.
Jul. 24, 2013, 10:01 PMChinese Internet stocks finished AH trading with solid gains thanks to Baidu's big Q2 beat and above-consensus Q3 guidance. Baidu mentioned in its report revenue/ad customer rose 11% Q/Q, and that mobile now accounts for over 10% of its sales. SINA +4.1%. SOHU +2.2%. RENN +4.3%. YOKU +3.6%. YY +3.1%. Rival QIHU +3.3%. | Jul. 24, 2013, 10:01 PM | Comment!
Jul. 19, 2013, 2:25 PMSohu (SOHU +0.9%) responds to comments from a Qihoo (QIHU +1.6%) exec about M&A talks regarding Sohu's Sogou search unit by stating it "has been, and continues to be, in preliminary discussions with several potential strategic investors and partners." Sohu adds its Sogou options include both the sale of a minority stake, and "a more comprehensive strategic combination." Qihoo has issued a PR in which it says "no agreement has been reached with respect to a significant transaction," but provides little color beyond that. | Jul. 19, 2013, 2:25 PM | Comment!
Jul. 19, 2013, 9:38 AMQihu (QIHU -1.1%) says it's in talks to buy Sohu's (SOHU +0.4%) Sogou search unit, but cautions it's "not in the pricing stage yet" and is still weighing integration issues. Analysts estimate the business is worth $1.2B-$1.4B. Sogou, rumored to be drawing interest from a few different companies, was recently estimated to have an 8.8% share of the Chinese search market in June; Qihoo was given a 15.3% share. If integration challenges can be handled well, a Qihoo/Sogou merger would yield a company with more resources, user data, and advertising scale to take on Baidu (BIDU -0.3%, 69.4% share). Sohu has forecast Sogou revenue of $48M-$50M for Q2, +41%-44% Y/Y. | Jul. 19, 2013, 9:38 AM | 1 Comment
Jul. 16, 2013, 11:25 AMQihoo (QIHU -4.4%) slides as investors mull the impact of Baidu's (BIDU +4.9%) purchase of Chinese app store owner 91 Wireless on Qihoo's rival Mobile Assistant app store. Baidu will likely try to bundle 91's app store with its existing arsenal of mobile apps/services for OEMs, and also pitch its developer partners on publishing their apps to the store. Stifel is defending Qihoo: the firm thinks Mobile Assistant handled more downloads than 91 Wireless in the 6 months ending Jan. '13 (7B vs. 6.2B). Meanwhile, ABR defends the steep price Baidu paid: it thinks 91's rapid growth could lead it to contribute $0.11-$0.17 to 2014 EPS. | Jul. 16, 2013, 11:25 AM | Comment!
Jul. 15, 2013, 10:30 PMBaidu (BIDU) is acquiring top Chinese mobile app distributor 91 Wireless from Hong Kong-listed NetDragon and minority shareholders for $1.9B. 91 was estimated to host ~900K Android apps from ~93K developers (#1 in China) at the end of 2012; the company has also developed several popular apps. Baidu is paying steep multiples for rapid growth: NetDragon's mobile ops posted 2012 revenue of $46M, and Q1 revenue of $23.6M (+42% Q/Q and +219% Y/Y). The deal follows Baidu's purchases of video sites PPS and iQiyi, and is another step towards building a Google-like mobile ecosystem ... and perhaps also lowering its search dependence in the face of growing competition and mobile monetization issues. 91 competes with Qihoo's (QIHU) Mobile Assistant app store. | Jul. 15, 2013, 10:30 PM | 11 Comments
Jul. 15, 2013, 2:34 PMChinese Internet stocks are turning in a good day after the government unveils a new telecom plan promising to increase fiber-to-the-home deployments, improving 3G connectivity, and issue 4G licenses by year's end. YOKU +6.2%. BIDU +4.7%. QIHU +4.8%. DANG +4.9%. YY +9.2%. CYOU +5.2%. China's telecom giants aren't moving much: CHL +0.3%. CHA -0.4%. CHU +1%. (more on China/4G) | Jul. 15, 2013, 2:34 PM | Comment!
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