Online gaming platform Sohu.com Q3 revenue drops on high base effect
SOHU•Sohu.com’s third-quarter revenue fell 26% year over year, while it posted a non-GAAP net loss of $15 million, reversing a profit a year earlier. For Q4, it expects marketing services revenue of $13 million to $14 million, online game revenue of $111 million to $121 million, and a net loss of $17 million to $27 million.
1. Third-quarter results
Sohu.com’s third-quarter revenue fell 26% year over year, and online game revenue declined 30%. The company posted a non-GAAP net loss of $15 million, reversing a profit in the prior-year quarter.
2. Revenue outlook
For the fourth quarter, Sohu expects marketing services revenue of $13 million to $14 million and online game revenue of $111 million to $121 million. It forecasts a net loss of $17 million to $27 million.
3. Reasons for decline
Sohu attributed lower online game revenue to a high comparison base following prior-year content updates and game launches. It also cited the natural decline of older games for lower active user and payer numbers, and said it introduced new content and tailored gameplay to maintain player engagement.
