Sohu.com Q2 Profit Rises - Quick Facts

(RTTNews) - Sohu.com Inc. (SOHU), a China-based online media, search, gaming, community and mobile service group, reported that its second-quarter GAAP net income attributable to the company was $21.63 million or $0.56 per share, up from $12.78 million or $0.28 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

But, non-GAAP net income attributable to the company for the second quarter of 2013 was $22.50 million or $0.58 per share, down from $16.36 million or $0.42 per share last year.

Operating expenses for the second quarter of 2013 totaled $161 million, up 43% year-over-year. Non-GAAP operating expenses were $160 million, up 50% year-over-year. The year-over-year increase was primarily due to an increase in the number of employees, average compensation and higher expenses associated with marketing and promotion activities.

Total revenues for the second quarter grew to $338.90 million, from $255.73 million in the prior year quarter. Nine analysts had consensus revenue estimate of $340.27 million for the quarter.

Total online advertising revenues, which include revenues from brand advertising and search and others businesses for the second quarter of 2013, were $146 million, up 49% year-over-year and 26% quarter-over-quarter.

For the third quarter of 2013, the company expects Non-GAAP net income attributable to the company to be between $19 million and $21 million, non-GAAP earnings per share of $0.50 - $0.55, and total revenues of $358 million and $370 million. Analysts expect the company to report earnings of $0.56 per share and revenues of $361.30 million for the third-quarter.

Assuming no new grants of share-based awards, the company estimates that compensation expenses relating to share-based awards to be around US$3 million to US$4 million. The estimated impact of this expense is expected to reduce the company's earnings per share for the third quarter of 2013 under US GAAP by 7 to 9 US cents.