Sohu.com Limited Q3 FY2025 earnings call

• Social media platform: Continues to refine products, integrate resources, host events like the autumn convention of social media influencers and Sohu Hip Hop Dancing Festival, launch dramas, and leverage IP for content generation and monetization.
• Gaming business: Launched new PC game TLBB Return, TLBB Vantage new servers performed well, launched expansion packs for mobile games, follow a top game strategy, and aim to diversify game types.
• Marketing services: Actively provides customized marketing solutions to advertisers through innovative campaigns and events, leveraging product metrics and marketing capabilities.

Total revenue for 2025 is $180 million, up 19% year-over-year and 43% quarter over quarter. Marketing services revenues are $14 million, down 27% year over year and 13% quarter over quarter. Online game revenues are $162 million, up 27% year-over-year and 53% quarter over quarter. GAAP net income attributable to Sohu.com Limited is $9 million, and non-GAAP net income is also $9 million. For the social media platform, quarterly revenues were $70 million in 2025. For Changyou (gaming), quarterly revenue was $163 million in 2025.

• Marketing services revenues expected to be between $50 million and $60 million, implying an annual decrease of 15% to 20% and a sequential increase of 10% to 18%.
• Online game revenue expected to be between $130 million and $123 million, implying an annual increase of 3% to 12% and a sequential decrease of 24% to 30%.
• Both non-GAAP and GAAP net loss attributable to Sohu.com Limited expected to be between $25 million and $35 million.

• Matters discussed may contain forward-looking statements with inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from forward-looking statements. For more information, refer to the company's SEC filings including the most recent annual report on Form 20-F.

Q: First question is about the online game business, asking about Q4 performance, Q4 ad rebound, macro sentiment, and brand advertising outlook.

A: Huang Pu said the performance of the fourth quarter so far is in line with expectation, driven by the successful launch of TLBB Return and the good performance of TLBB Vantage new servers.

Q: Follow-up question about AI integration, asking how AI is integrated within Sohu.com and its impact.

A: Dr. Charles Zhang said AI is used to improve user experience in social media and news app, like summarizing video content, providing subtitles, and AI-enhanced search and question-answering features.

Q: Follow-up from Alicia Yap about TLBB Return surprises, Q4 guidance, and macro sectors.

A: Huang Pu said the first surprise from TLBB Return is user spending beyond expectation and stable retention; Dr. Charles Zhang and Huang Pu also discussed ad market pressure in sectors like auto and consumer electronics, but Sohu has unique campaigns to get ad budgets.