Brand advertising revenues rose 20% Y/Y to $30.7 million from higher revenues in the portal and video advertising businesses.
Online game revenues rose 32% Y/Y to $176.5 million, facilitated by the revenues from TLBB Vintage, while Revenue from Others fell 3.3% Y/Y to $14.9 million.
Total average monthly active user accounts (MAU) for PC games rose 7% Y/Y to 2.3 million from the TLBB Vintage contribution, partially offset by the termination of the Warframe operation.
Total average MAU for mobile games declined 40% Y/Y to 2 million, reflecting the natural declining life cycles of Changyou's older games, including Legacy TLBB Mobile and TLBB Honor.
Non-GAAP gross margin expanded 1,100 basis points to 79%, and the margin for the brand advertising business rose 2,000 basis points to 20%. Online games margins jumped 1,100 basis points to 90%.
Non-GAAP operating profit rose 178.9% Y/Y to $53 million.
Related content: Benzinga's Full Guidance Calendar
Sohu clocked adjusted income of $37 million with an adjusted EPS of $0.93, versus an $(8) million net loss in the year-ago period.
Sohu held $335 million in cash and equivalents.
Guidance: Sohu sees Q2 Brand advertising revenues guidance of $36 million - $40 million, Online game revenues guidance of $134 million - $144 million, and adjusted net income guidance of $8 million - $18 million.
Price action: SOHU shares traded higher by 6.14% at $18.14 on the last check Friday.
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