U.S. Markets closed

Free Research Report as Sogou’s Quarterly Revenue Soared 62% and Earnings Per ADS Rocketed 300%

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:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Sohu.com Inc. (NASDAQ: SOHU), which also belongs to the Technology sector as the Company Sogou. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=SOHU

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sogou most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SOGO

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.

Revenue Details

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.

Cash Matters

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.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visithttp://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors