Sohu.com Reports Wider Loss Amid Declining Revenues

Sohu.com Ltd faces challenges as it announces a wider net loss and lower revenues for Q4. The outlook for Q1 2025 suggests continued difficulties ahead.

Date: 18-02-2025

AI Rating: 4

Wider Loss and Declining Revenues

Sohu.com Ltd has reported a significant widening of its net loss for the fourth quarter, amounting to $21.29 million or $0.69 per ADS, compared to a loss of $12.62 million or $0.37 per ADS from the previous year. This marks a concerning trend as the net loss excluding items also increased to $15.0 million.

Quarterly revenues have dropped to $134.68 million, which represents a decline of about 5% from the previous year’s revenues of $141.36 million, indicating a struggle in maintaining sales amidst rising costs of revenues. The company's expectation for the first quarter of 2025 further reflects a bleak scenario as it anticipates a net loss in the range of $16 million to $26 million and an adjusted loss of $20 million to $30 million.

In particular, brand advertising revenues are expected to decline by 13% to 19%, while online game revenues are projected to decrease by 2% to 11%, highlighting a concerning contraction in key revenue streams.

These elements could lead to negative sentiment around Sohu.com Ltd's stock performance as investors react to the wider loss and lowered revenue outlook.

Stocks: SOHU