Free Research Report as Sogou’s Revenues Surged 53% and Earnings Soared 100%

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LONDON, UK / ACCESSWIRE / May 16, 2018 / If you want access to our free earnings report on Sogou Inc. (SOGO), 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 financial results on April 25, 2018, for first quarter of the fiscal year 2018 (Q1 FY18). The leader in Chinese internet industry surpassed market estimates for revenue and earnings. In addition, the Company provided guidance for Q2 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Sogou reported total revenues of $284.4 million compared to $162.3 million in Q1 FY17, increasing 53% on a y-o-y basis. The Company's revenue numbers for the reported quarter surpassed market estimates of $225.0 million.

During Q1 FY18, the Company's cost of revenue increased 76% to $154.0 million compared to $87.5 million in Q1 FY17, primarily due to traffic acquisition cost which represented 45.1% of the Company's total revenues for the reported quarter compared to 35.6% in the same period of 2017.

Sogou's gross profit surged 26% to $94.4 million in the reported quarter versus $74.8 million in the year ago comparable quarter.

Sogou incurred operating expenses of $80.1 million in Q1 FY18 compared to $62.6 million in Q1 FY17, which included research and development (R&D), sales and marketing (S&M), and general and administrative (G&A) expenses.

During Q1 FY18, Sogou's R&D expenses increased 41% to $46.6 million, which corresponded to 18.8% of total revenues, compared to $33.1 million in the prior year's corresponding period, which represented 20.4% of total revenues; primarily due to an increase in salary and benefits expenses.

Sogou's S&M expenses grew 9% to $27.0 million in Q1 FY18 compared to $24.8 million in Q1 FY17, mainly due to an increase in salary and benefits expenses for its S&M staff. S&M expenses represented 10.9% of total revenues in Q1 FY18 compared to 15.3% of total revenues in Q1 FY17.

During Q1 FY18, Sogou's G&A expenses increased to $6.4 million compared to $4.6 million in Q1 FY17, increasing 38% y-o-y, primarily due to an increase in professional service fees. G&A expenses represented 2.6% of total revenues in the reported quarter compared to 2.9% of total revenues in year ago same quarter.

Sogou's operating income rose 16% to $14.3 million in Q1 FY18 compared to $12.2 million in Q1 FY17.

For Q1 FY18, Sogou reported a growth in net income of 25% to $15.3 million versus $12.2 million in Q1 FY17. During Q1 FY18, Sogou's earnings per share (EPS) increased to $0.04 compared to $0.02 in Q1 FY17, increasing 100% on a y-o-y basis. The Company's adjusted EPS were $0.05 in the reported quarter, surpassing market estimates of $0.03.

Segment Details

Sogou generated revenues from two sources, namely (i) Search and Search-Related Advertising, and (ii) Other.

During Q1 FY18, the Company's Search and Search-Related Advertising revenues were $220.4 million compared to $142.1 million in Q1 FY17, increasing 55% y-o-y. The progress was primarily due to a strong growth in auction-based pay-for-click services, driven by a continued traffic growth and an improved monetization in mobile search.

Sogou's Other revenues grew by 38% to $28.0 million in the reported quarter compared to $20.2 million in the year ago comparable quarter, primarily due to increased revenues from sales of smart hardware products and internet value-added services.

Cash Matters

As of March 31, 2018, Sogou's cash and cash equivalents stood at $352.2 million compared to $694.2 million as of December 31, 2017.

Sogou's net cash inflow from operating activities was $56.2 million in the reported quarter.

Outlook

For the second quarter of the fiscal year 2018, Sogou expects total revenue growth to be in the range of 39.8% to 44.6%, equal to $295 million to $305 million.

Stock Performance Snapshot

May 15, 2018 - At Tuesday's closing bell, Sogou's stock fell 1.55%, ending the trading session at $9.50.

Volume traded for the day: 938.27 thousand shares.

Stock performance in the last month – up 10.85%

After yesterday's close, Sogou's market cap was at $3.63 billion.

Price to Earnings (P/E) ratio was at 46.34.

The stock is part of the Technology sector, categorized under the Internet Information Providers industry.

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