2025-05-19-Jefferies-搜狐（SOHU）_速览2025年第一季度业绩_7页_104kb

Sohu.com Ltd (SOHU) Equity Research Summary

1Q25 Performance Overview

Sohu reported first-quarter 2025 results with total revenue of USD 136 million, a 1% increase quarter-on-quarter and 3% year-on-year decline. The performance exceeded expectations due to strong online gaming revenue, which stood at USD 117 million (flat YoY). Marketing services revenue declined 27% QoQ to USD 13.7 million, within the guidance range of USD 13-14 million. Non-GAAP net loss narrowed to USD 16.5 million, better than the estimated USD 25.7 million loss.

2Q25 Guidance

• Brand advertising revenue: Expected at USD 16-17 million (sequential increase of 17-24%), below firm’s estimate of USD 17.2 million.
• Online games revenue: Estimated at USD 96-106 million (sequential decline of 10-18%), lower than the USD 124 million forecast.
• Non-GAAP net loss: Projected between USD 20-30 million, worse than the USD 44.7 million estimate.

Key Updates

• Share Repurchase: The company repurchased shares costing approximately USD 67 million as of May 15, 2025, under its USD 150 million program.
• Earnings Call: Scheduled for 7:30 PM HKT on May 19, 2025, covering topics such as advertising market outlook, competitive landscape, AIGC strategies, and cash usage.

Valuation and Rating

• Recommendation: Buy, with a price target of USD 17, reflecting an upside based on SOTP valuation.
• Risks: Exposure to macro headwinds, competitive pressures in online advertising, and slower gaming growth.
• Outlook: Analysts highlight opportunities in brand advertising and gaming, but caution on sustained ad spending declines.

Analyst Notes

Thomas Chong and Zoey Zong certify adherence to compliance standards and note potential conflicts of interest due to investment banking relationships.