Sohu.com Clocks 24% Revenue Decline In Q4

Sohu.com Ltd SOHU reported a fourth-quarter FY21 revenue decline of 24% year-on-year to $193 million. Revenue declined 11% quarter-over-quarter.
Brand advertising revenues declined 20% Y/Y to $34 million due to decreases in portal advertising revenues.
Online game revenues decreased 27% Y/Y to $144 million, mainly due to the decline of TLBB Vintage.
The gross margin was 73%, contracting 600 basis points Y/Y and 100 basis points sequentially. The gross margin for online games was 84% versus 90% last year and 83% in 3Q21.
Non-GAAP earnings per ADS were $0.01.
Sohu held $1.6 billion in cash and equivalents.
Average monthly active user accounts for Changyou PC games decreased 12% Y/Y to 2 million, mainly due to the natural decline of Changyou's older games. Average MAU for Changyou mobile games rose 3% Y/Y to 2.5 million.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "During the fourth quarter of 2021 and for the whole year, we faced ongoing significant challenges from the macroeconomic environment and uncertainties of the COVID-19 pandemic."
Outlook: Sohu sees Q1 FY22 brand advertising revenue decrease 15%-25% Y/Y to $23 million - $26 million.
It sees Q1 online game revenues decline of 21%-26% Y/Y to $130 million - $140 million.
Price Action: SOHU shares traded lower by 2.76% at $18.00 in pre-market on the last check Tuesday.

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