Stock Monitor: Sohu.com Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 07, 2018 / Active-Investors.com has just released a free earnings report on Sogou Inc. (NYSE: SOGO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SOGO. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 29, 2018. The second-largest search engine by mobile queries in China reported better than expected earnings. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Sogou's total revenues soared 62% to $277.79 million compared to $171.58 million in Q4 2016. The Company's revenue numbers fell short of analysts' estimates by $2.66 million.
For the full year FY17, Sogou's total revenues surged 38% to $908.36 million compared to $660.41 million in FY16.
During Q4 2017, Sogou's cost of revenues was $134.2 million, reflecting a 59% increase on a y-o-y basis. Traffic acquisition cost, a primary driver of cost of revenues, increased 62% to $88.9 million on a y-o-y basis, representing 32.0% of total revenues in the reported quarter compared to 32.1% in the year ago same period.
For Q4 2017, Sogou's gross profit surged 65% to $143.60 million compared to $87.24 million in Q4 2016. The Company's non-GAAP gross profit was $144.1 million for the reported quarter, representing a 65% increase on a y-o-y basis.
Sogou reported total operating expenses of $123.10 million in Q4 2017 compared to $87.14 million in Q4 2016. The Company's research and development (R&D) expenses totaled $61.3 million for the reported quarter, up 64% on a y-o-y basis, and representing 22.1% of total revenues compared to 21.7% in Q4 2016. The increase was primarily attributed to a rise in share-based compensation expenses, salary and benefits expenses, as well as outsourced product development fees.
For Q4 2017, Sogou's sales and marketing (S&M) expenses increased 24% to $50.2 million on a y-o-y basis. The rise in expenses was attributable to increased marketing and promotional spend for the Company's mobile products.
Sogou's operating income was $20.50 million in Q4 2017 compared to $103,000 in Q4 2016. The Company's non-GAAP operating income was $42.9 million for the reported quarter versus $10.4 million in the year earlier comparable quarter.
For Q4 2017, Sogou's net income was $15.46 million, or $0.04 per diluted ADS, compared to $10.71 million, or $0.01 per diluted ADS, in Q4 2016. The Company's non-GAAP net income was $37.9 million in the reported quarter, reflecting an 80% increase on a y-o-y basis, while non-GAAP diluted earnings per ADS were $0.10, ahead of Wall Street's estimates of $0.07 per ADS.
For FY17, Sogou's net income was $82.20 million, or $0.20 per diluted ADS, compared to $56.11 million, or $0.11 per diluted ADS, in FY16. The Company's non-GAAP net income was $105.9 million, an increase of 54% on a y-o-y basis, while non-GAAP diluted earnings per ADS were $0.29 in FY17.
During Q4 2017, Sogou's search and search-related revenues soared 62% to $247.14 million, primarily driven by a strong growth in auction-based pay-for-click services, attributed to healthy traffic growth and improved monetization in mobile search. The Company's auction-based pay-for-click services accounted for 83.7% of search and search-related revenues in the reported quarter compared to 78.1% in the year ago corresponding period.
For Q4 2017, Sogou's other revenues were $30.6 million, representing a 61% increase on a y-o-y basis. The growth was primarily due to increased revenues from Internet value-added services (IVAS) and sales of smart hardware products.
As of December 31, 2017, Sogou had cash and cash equivalents and short-term investments of $1.0 billion compared to $286.1 million as of December 31, 2016. The increase was primarily related to capital raised in the Initial Public Offering that was completed on November 13, 2017. Sogou's net operating cash inflow was $39.5 million and capital expenditure was $9.6 million for Q4 2017.
Stock Performance Snapshot
February 06, 2018 - At Tuesday's closing bell, Sogou's stock rose 7.97%, ending the trading session at $10.29.
Volume traded for the day: 4.05 million shares, which was above the 3-month average volume of 3.15 million shares.
After yesterday's close, Sogou's market cap was at $4.06 billion.
The stock is part of the Technology sector, categorized under the Internet Information Providers industry. This sector was up 2.0% at the end of the session.
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