Sohu.com Limited ( SOHU ) reported a revenue decline of 14% year-over-year to $139.4 million for the fiscal first quarter of 2024. Revenue was down by 1% Q/Q.

The Chinese internet company's adjusted loss per ADS was $(0.65), missing the analyst consensus loss estimate of $(0.49). 

Brand advertising revenues declined 29% Y/Y to $16 million. Online game revenues decreased 9% Y/Y to $118 million.

The adjusted gross margin improved by 200 bps Y/Y to 77% and by 100 bps Q/Q. The adjusted gross margin for online games was 88% versus 85% last year and 87% in the prior quarter.

Sohu held $1.3 billion in cash and equivalents as of March-end.

Average monthly active user accounts for Changyou PC games increased by 5% Y/Y to 2.3 million. The average MAU for Changyou mobile games grew by 71% Y/Y to 2.8 million.

Under the previously-announced share repurchase program, Sohu had repurchased ADSs worth $17 million.

Charles Zhang, Chairman and CEO of Sohu.com Limited ( SOHU ), commented, “For Sohu Media and Sohu Video, we continued to enhance user experience by refining products and optimizing algorithms.”

Outlook: Sohu expects second-quarter brand advertising revenue of $18 million – $20 million, an annual decrease of 16% – 25% Y/Y.

It projects quarterly online game revenues growth by 12% – 21% to $133 million – $143 million. Sohu estimates a quarterly adjusted net loss of $27 million – $37 million.

Sohu stock gained 22% year-to-date. Investors can gain exposure to Sohu via Invesco Golden Dragon China ETF ( PGJ )  and SPDR S&P Emerging Markets Small Cap ETF ( EWX ) .

Price Action: SOHU shares traded lower by 0.38% at $11.89 at last check Monday.