- Fourth Quarter 2007 Total Revenue Guidance Increases to US$55.5 Million to
US$57.5 Million
- Non-advertising Revenue Guidance Increases to US$24.5 Million to US$25.5
Million
- Non-GAAP EPS Guidance Increases to US$0.36 to US$0.38
BEIJING, Dec. 4 /Xinhua-PRNewswire-FirstCall/ -- Sohu.com Inc. (Nasdaq: SOHU), China's leading online media, communication, search, online game and mobile value-added services company, today announced it has raised guidance for its fourth quarter 2007 financial results.
Sohu is raising its guidance for the fourth quarter of 2007 for total revenue, which is now expected to be between US$55.5 million and US$57.5 million, an increase of US$2 million over previous guidance, with advertising revenue guidance unchanged from previously reported estimates of US$31 million to US$32 million, but with non-advertising revenue now expected to be between US$24.5 million and US$25.5 million, an increase of US$2 million over previous guidance. The revised non-advertising guidance results from stronger than expected performance by Sohu's online game Tian Long Ba Bu ("TLBB"). On November 1, 2007, Sohu successfully launched its second expansion pack of TLBB. Peak concurrent users (PCU) of the game have exceeded 500,000. Although TLBB is experiencing robust growth to date, Sohu anticipates the game to mature starting first quarter of 2008. Sohu now estimates that non-GAAP fully diluted earnings per share (i.e. excluding share-based compensation expense) for the fourth quarter of 2007 will be between US$0.36 and US$0.38, an increase of US$0.03.
Dr. Charles Zhang, Chairman and CEO of Sohu, commented, "We are excited about the way the fourth quarter is shaping up, with on-track advertising business and a stronger than expected performance by TLBB. We believe that this is a direct result of our continued focus on the development of our core technological strengths and advancements. Fueled by the increased contribution from our online games business, we are able to further reinvest strategically into our technology and our portal business so as to continue to create and enhance shareholder value."
About Sohu.com
Sohu.com Inc. (Nasdaq: SOHU) is China's premier online brand and indispensable to the daily life of millions of Chinese, providing a network of web properties and community based/web 2.0 products which offer the vast Sohu user community a broad array of choices regarding information, entertainment and communication. Sohu has built one of the most comprehensive matrices of Chinese language web properties and proprietary search engines, consisting of the mass portal and leading online media destination http://www.sohu.com; interactive search engine http://www.sogou.com; #1 online alumni club http://www.chinaren.com; #1 games information portal http://www.17173.com; the top real estate website http://www.focus.cn; wireless value-added services provider http://www.goodfeel.com.cn; and leading online mapping service provider http://www.go2map.com.
Sohu corporate services consist of brand advertising on its matrix of websites as well as paid listing and bid listing on its in-house developed search directory and engines. Sohu also offers two types of consumer services. The company operates two massive multi-player online role-playing games, namely Tian Long Ba Bu and Blade Online, and a casual game platform. Sohu also offers wireless value-added services such as news, information, music, ringtone and picture content sent over mobile phones. Sohu.com, established by Dr. Charles Zhang, one of China's Internet pioneers, is in its eleventh year of operation.
Safe Harbor Statement
This announcement contains forward-looking statements. It is currently expected the Business Outlook will not be updated until release of Sohu's next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason.
Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the uncertain regulatory landscape in the People's Republic of China, fluctuations in Sohu's quarterly operating results, Sohu's historical and possible future losses and limited operating history, the company's reliance on online advertising sales, online games and wireless services (most wireless revenues are collected from a few mobile network operators) for its revenues, and the possibility that Sohu's online game TLBB will not continue to perform for the remaining month of the fourth quarter of 2007 as well as it has in the first two months of the quarter. Further information regarding these and other risks is included in Sohu's annual report on Form 10-K for the year ended December 31, 2006, and other filings with the Securities and Exchange Commission.
