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Sohu.com (SOHU)
NASDAQ:SOHU
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Sohu
(NASDAQ:SOHU)
45Neutral
Sohu (SOHU) vs. S&P 500 (SPY)
Market Cap
$350.56M
Dividend YieldN/A
Average Volume (3M)176.13K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth-0.38%
EPS Growth-61.79%
CountryUS
Employees4,300
SectorCommunication Services
Sector Strength84
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.49
Shares Outstanding30,065,400
10 Day Avg. Volume178,942
30 Day Avg. Volume176,128
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-1.24
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-1.00
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside61.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sohu Business Overview & Revenue Model
Company DescriptionSohu.com Limited provides online media, video, and game products and services on PCs and mobile devices in China. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, and ifox, a PC video application. The company is also involved in the development, operation, and licensing of online games for PCs and mobile devices, which include massive multiplayer online role-playing games, and casual and strategy games. In addition, it operates focus.cn, which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. Further, the company provides paid subscription services, interactive broadcasting services, and sub-licensing of purchased video content to third parties. Sohu.com Limited was incorporated in 1996 and is headquartered in Beijing, China.
How the Company Makes MoneySohu primarily generates revenue through online advertising, which involves selling advertising space on its various platforms, including its news portals and other media properties. Advertising revenue is driven by the traffic and user engagement on its websites and mobile applications. Additionally, Sohu's search engine, Sogou, contributes to its revenue through pay-for-click and other performance-based advertising services. Another significant revenue stream for Sohu comes from its online gaming subsidiary, Changyou, which develops and operates a portfolio of online games. These games generate income through user subscriptions, in-game purchases, and virtual item sales. The company's partnerships, particularly in the gaming sector, also play a crucial role in monetizing its services and expanding its user base.
Sohu Financial Statement Overview
Summary
Sohu's financial performance is challenged by declining revenues and persistent net losses, reflecting inefficiencies and high operational costs. The company has a strong equity position with low leverage, but negative cash flows and low returns on equity highlight significant financial hurdles.Income Statement
Sohu has faced declining revenue with a decrease from $600.7M to $598.4M in 2024, representing a slight contraction. The company struggles with profitability, as evidenced by a consistent negative net income and EBIT over recent years. The gross profit margin remains strong at 72.29% for 2024, but the net profit margin is negative at -16.76%, indicating inefficiencies and high operational costs.45
Neutral
Balance Sheet
Sohu's balance sheet shows a relatively strong equity position, with a debt-to-equity ratio of 0.04, suggesting low leverage. The equity ratio stands at 53.16%, indicating a solid equity buffer. However, the return on equity is negative at -10.87% for 2024, highlighting challenges in generating returns for shareholders.60
Neutral
Cash Flow
The cash flow statement reveals a declining trend in free cash flow, with a fall from -$43.98M in 2023 to -$67.94M in 2024. Operating cash flow also turned negative, indicating cash flow challenges. The operating cash flow to net income ratio is 0.48, reflecting issues in converting profits into cash flow.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 598.40M | 600.67M | 733.87M | 835.58M | 749.89M | Gross Profit |
| 432.57M | 454.92M | 542.30M | 630.90M | 532.45M | EBIT |
| -109.40M | -87.31M | 2.78M | 97.47M | 73.37M | EBITDA |
| -76.97M | -37.09M | 30.43M | 133.43M | 114.72M | Net Income Common Stockholders |
| -100.27M | -30.38M | -17.34M | 69.27M | -36.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 904.42M | 960.27M | 1.17B | 1.40B | 317.80M | Total Assets |
| 1.73B | 1.88B | 1.98B | 2.25B | 2.82B | Total Debt |
| 35.85M | 35.31M | 36.16M | 36.12M | 407.55M | Net Debt |
| -124.08M | -327.19M | -661.66M | -962.83M | 190.49M | Total Liabilities |
| 811.98M | 822.82M | 867.07M | 953.60M | 1.79B | Stockholders Equity |
| 922.34M | 1.06B | 1.11B | 1.29B | 347.37M |
| Cash Flow | Free Cash Flow | |||
| -67.94M | -43.98M | 8.40M | -104.48M | 61.43M | Operating Cash Flow |
| -48.02M | -25.57M | 32.24M | -62.28M | 95.21M | Investing Cash Flow |
| -113.36M | -291.67M | -232.79M | 516.73M | 419.77M | Financing Cash Flow |
| -40.88M | -6.56M | -82.14M | -434.10M | 93.59M |
Sohu Technical Analysis
Negative
10.53
Price Trends
11.91
Negative
12.59
Negative
13.60
Negative
Market Momentum
-0.07
Negative
46.82
Neutral
72.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHU, the sentiment is Negative. The current price of 10.53 is above the 20-day moving average (MA) of 9.75, below the 50-day MA of 11.91, and below the 200-day MA of 13.60, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 72.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOHU.
Sohu Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $421.66M | 6.76 | 16.75% | ― | -33.83% | -38.30% | |
75 Outperform | $488.10M | 3.94 | 15.08% | ― | 10.71% | 21.74% | |
66 Neutral | $298.06M | 7.67 | ― | -5.57% | ― | ||
60 Neutral | $13.74B | 7.25 | -2.74% | 3.81% | 2.21% | -37.97% | |
57 Neutral | $164.40M | ― | -11.64% | ― | -11.11% | -90.96% | |
45 Neutral | $350.56M | ― | -10.12% | ― | -0.38% | -61.79% |
* Communication Services Sector Average
Performance Comparison
SOHU
Sohu
10.53
-1.10
-9.46%
GRVY
Gravity Co
60.20
-6.80
-10.15%
NCTY
The9
10.61
3.42
47.57%
DDI
Doubledown Interactive Co
9.88
-2.10
-17.53%
GDEV
Nexters
16.75
-1.33
-7.36%
MYPS
PLAYSTUDIOS
1.36
-1.08
-44.26%
Sohu Earnings Call Summary
Earnings Call Date:Feb 18, 2025
(Q4-2024)
| % Change Since: -28.22%|
Next Earnings Date:May 26, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with highlights in the gaming sector's performance and innovative strategies, whereas challenges are evident in declining advertising revenues and increased net losses due to macroeconomic factors.Q4-2024 Updates
Positive Updates
Online Game Business Outperformance
Online game revenues were $110 million for Q4 2024, exceeding prior guidance despite a 4% year-over-year decline. For the full year 2024, online game revenues increased by 5% compared to 2023, reaching $502 million.
Innovative Gaming Strategies
The online game business launched new expansion packs and innovative gameplay, boosting user engagement. Notable efforts include new clan introductions and crossover content for the TLBB series.
Sohu Media Platform Engagement
The platform attracted younger generations through events like the K-pop dancing tour and Hanfu Festival, strengthening its influence and providing unique marketing solutions for advertisers.
Share Repurchase Program
Sohu has repurchased 4.2 million ADS at an aggregated cost of approximately $52 million, with $100 million still available for future repurchases.
Negative Updates
Decline in Brand Advertising Revenues
Brand advertising revenues decreased by 7% year-over-year and 1% quarter-over-quarter for Q4 2024. For the full year, revenues fell by 17% compared to 2023.
Overall Revenue Decline
Total revenues for Q4 2024 were $135 million, down 5% year-over-year and 11% quarter-over-quarter. Full-year 2024 revenues were flat compared to 2023.
Increased Net Loss
GAAP net loss attributable to Sohu.com Limited was $21 million for Q4 2024, compared to a net loss of $13 million in Q4 2023. The full-year GAAP net loss increased to $100 million from $66 million in 2023.
Economic Challenges Impacting Advertising
The macroeconomic situation has led to reduced consumer spending, impacting advertising budgets, particularly in the automotive sector.
Company Guidance
During Sohu's fourth quarter 2024 earnings call, the company reported total revenues of $135 million, experiencing a 5% year-over-year and 11% quarter-over-quarter decline. Brand advertising revenues reached $19 million, marking a 7% year-over-year and 1% quarter-over-quarter decrease. The online game segment achieved revenues of $110 million, down 4% year-over-year and 14% quarter-over-quarter. The GAAP net loss attributable to Sohu.com Limited was $21 million, compared to a net loss of $13 million in Q4 2023 and $16 million in Q3 2024. The non-GAAP net loss was $15 million, against $11 million in Q4 2023 and $12 million in Q3 2024. For the full year 2024, Sohu's total revenues were $598 million, unchanged from 2023, with brand advertising revenues falling 17% to $73 million, while online game revenues rose 5% to $502 million. The company anticipates first quarter 2025 brand advertising revenues to range between $30 million and $40 million, and online game revenues between $105 million and $115 million, with a projected non-GAAP net loss of between $16 million and $26 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.