Sohu.com Inc (SOHU) saw its loss widen to $68.25 million, or $1.77 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $20.29 million, or $0.53 a share. On an adjusted basis, net profit for the quarter stood at $0.93 million, or $1.75 a share compared with a net loss of $21.53 million, or $0.56 a share in the last year period. Revenue during the quarter dropped 8.30 percent to $374.10 million from $407.95 million in the previous year period. Gross margin for the quarter contracted 1124 basis points over the previous year period to 41.49 percent. Operating margin for the quarter stood at negative 12.65 percent as compared to a positive 3.62 percent for the previous year period.
Operating loss for the quarter was $47.31 million, compared with an operating income of $14.77 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $40.08 million compared to operating profit of $15.20 million in prior year period.
Dr. Charles Zhang, chairman and chief executive officer of Sohu.com Inc., commented, “We are off a solid start in 2017 as we delivered in-line results in the first quarter. For Sohu Media Portal, we launched a re-designed front page of our PC portal to meet the changing habits of users in the mobile era. For Sohu Video, we continued to shift more resources to self-produced content, and made subscription business one of our key priorities this year. Sogou achieved better-than-expected top line results as its mobile search traffic maintained robust growth. Changyou’s online game business performed well in the first quarter and our new Legacy TLBB mobile game is set to debut in mid-May.”
For the second-quarter, Sohu Com forecasts revenue to be in the range of $390 million to $420 million. Sohu Com projects net income to be in the range of $79 million to $89 million for the second-quarter. Sohu Com expects adjusted net income to be in the range of $70 million to $80 million for the second-quarter. The company expects diluted earnings per share to be in the range of $2.05 to $2.30 for the second-quarter. On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.80 to $2.05 for the second-quarter.
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