☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) | ||
American Depositary Shares, each representing one ordinary share, par value US$0.001 per share | SOHU | The NASDAQ Global Select Market |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☒ | International Financial Reporting Standards as issued | |||||||
by the International Accounting Standards Board ☐ | Other ☐ |
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Item 15. | ||||||
Item 16A. | ||||||
Item 16B. | ||||||
Item 16C. | ||||||
Item 16D. | ||||||
Item 16E. | ||||||
Item 16F. | ||||||
Item 16G. | ||||||
Item 16H. | ||||||
Item 16I. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 144 | ||||
Item 17. | Financial Statements | 144 | ||||
Item 18. | Financial Statements | 144 | ||||
Item 19. | Exhibits | 146 | ||||
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
As of December 31, 2020 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 586 | 61,505 | 107,938 | 47,028 | 0 | 217,057 | |||||||||||||||||
Restricted cash | 0 | 112,028 | 217,552 | 1,211 | 0 | 330,791 | ||||||||||||||||||
Short-term investments | 0 | 31,429 | 69,163 | 153 | 0 | 100,745 | ||||||||||||||||||
Accounts receivable, net | 0 | 19,870 | 20,417 | 47,234 | 0 | 87,521 | ||||||||||||||||||
Prepaid and other current assets | 1,609 | 9,932 | 110,316 | 15,385 | (30,652 | ) | 106,590 | |||||||||||||||||
Intra-Group receivables due from the Company’s subsidiaries (1) | 533,678 | 486,704 | 1,015,652 | 506,659 | (2,542,693 | ) | 0 | |||||||||||||||||
Total current assets from continuing operations | 535,873 | 721,468 | 1,541,038 | 617,670 | (2,573,345 | ) | 842,704 | |||||||||||||||||
Assets held for sale (current) | 1,412,168 | |||||||||||||||||||||||
Total current assets | 2,254,872 | |||||||||||||||||||||||
Fixed assets, net | 0 | 55,929 | 281,450 | 295 | 0 | 337,674 | ||||||||||||||||||
Investment in subsidiaries and VIEs (2) | 0 | 898,680 | 347,153 | 0 | (1,245,833 | ) | 0 | |||||||||||||||||
Restricted time deposits | 0 | 19,924 | 81,595 | 0 | 0 | 101,519 | ||||||||||||||||||
Other non-current assets | 22,036 | 22,324 | 15,945 | 69,284 | (1,533 | ) | 128,056 | |||||||||||||||||
Total assets | $ | 2,822,121 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 0 | 15,824 | 80,642 | 11,145 | 0 | 107,611 | |||||||||||||||||
Accrued liabilities | 1,739 | 13,677 | 95,209 | 46,888 | 0 | 157,513 | ||||||||||||||||||
Receipts in advance and deferred revenue | 0 | 1,402 | 7,577 | 43,076 | 0 | 52,055 | ||||||||||||||||||
Accrued salary and benefits | 138 | 48,396 | 44,594 | 7,698 | 0 | 100,826 | ||||||||||||||||||
Tax payables | 0 | 4,322 | 19,262 | 4,422 | 0 | 28,006 | ||||||||||||||||||
Short-term bank loans | 0 | 315,550 | 0 | 0 | 0 | 315,550 | ||||||||||||||||||
Intra-Group payables due to the Company’s subsidiaries (1) | 0 | 1,216,889 | 975,205 | 350,599 | (2,542,693 | ) | 0 | |||||||||||||||||
Other short-term liabilities | 55 | 89,751 | 21,989 | 25,028 | (30,652 | ) | 106,171 | |||||||||||||||||
Total current liabilities from continuing operations | 1,932 | 1,705,811 | 1,244,478 | 488,856 | (2,573,345 | ) | 867,732 | |||||||||||||||||
Liabilities held for sale (current) | 416,998 | |||||||||||||||||||||||
Total current liabilities | 1,284,730 | |||||||||||||||||||||||
Long-term other payables | 0 | 0 | 3,202 | 0 | 0 | 3,202 | ||||||||||||||||||
Long-term bank loans | 0 | 92,000 | 0 | 0 | 0 | 92,000 | ||||||||||||||||||
Long-term tax liabilities | 158,507 | 16,119 | 0 | 14,134 | 0 | 188,760 | ||||||||||||||||||
Deferred tax liabilities | 0 | 206,594 | 8,985 | 2,014 | 0 | 217,593 | ||||||||||||||||||
Deficit of investment in subsidiaries and VIEs | 50,101 | 0 | 0 | 0 | (50,101 | ) | 0 | |||||||||||||||||
Other non-current liabilities | 0 | 84 | 3,485 | 1,819 | (1,533 | ) | 3,855 | |||||||||||||||||
Total long-term liabilities | 208,608 | 314,797 | 15,672 | 17,967 | (51,634 | ) | 505,410 | |||||||||||||||||
Total liabilities | $ | 1,790,140 | ||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Total Sohu.com Limited shareholders’ equity | 347,369 | |||||||||||||||||||||||
Noncontrolling interest | 684,612 | |||||||||||||||||||||||
Total shareholders’ equity (2) | 1,031,981 | |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,822,121 | ||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 13,564 | 606,306 | 346,566 | 32,513 | 0 | 998,949 | |||||||||||||||||
Restricted cash | 0 | 0 | 1,969 | 0 | 0 | 1,969 | ||||||||||||||||||
Short-term investments | 0 | 147,598 | 251,747 | 0 | 0 | 399,345 | ||||||||||||||||||
Accounts receivable, net | 0 | 25,552 | 20,971 | 36,027 | 0 | 82,550 | ||||||||||||||||||
Prepaid and other current assets | 723 | 13,224 | 74,528 | 18,836 | 0 | 107,311 | ||||||||||||||||||
Intra-Group receivables due from the Company’s subsidiaries (1) | 539,677 | 670,362 | 837,566 | 647,330 | (2,694,935 | ) | 0 | |||||||||||||||||
Total current assets | 553,964 | 1,463,042 | 1,533,347 | 734,706 | (2,694,935 | ) | 1,590,124 | |||||||||||||||||
Fixed assets, net | 0 | 55,358 | 274,212 | 427 | 0 | 329,997 | ||||||||||||||||||
Investment in subsidiaries and VIEs (2) | 918,243 | 779,717 | 562,971 | 0 | (2,260,931 | ) | 0 | |||||||||||||||||
Long-term time deposits | 0 | 0 | 189,007 | 0 | 0 | 189,007 | ||||||||||||||||||
Other non-current assets | 22,036 | 9,469 | 19,976 | 86,744 | (1,568 | ) | 136,657 | |||||||||||||||||
Total assets | $ | 1,494,243 | 2,307,586 | 2,579,513 | 821,877 | (4,957,434 | ) | 2,245,785 | ||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 0 | 21,301 | 53,821 | 12,325 | 0 | 87,447 | |||||||||||||||||
Accrued liabilities | 1,678 | 11,257 | 81,566 | 43,695 | 0 | 138,196 | ||||||||||||||||||
Receipts in advance and deferred revenue | 0 | 4,938 | 6,259 | 45,844 | 0 | 57,041 | ||||||||||||||||||
Accrued salary and benefits | 83 | 25,637 | 57,372 | 8,393 | 0 | 91,485 | ||||||||||||||||||
Tax payables | 9 | 7,925 | 7,241 | 1,539 | 0 | 16,714 | ||||||||||||||||||
Intra-Group payables due to the Company’s subsidiaries (1) | 36,912 | 1,011,224 | 1,184,312 | 462,487 | (2,694,935 | ) | 0 | |||||||||||||||||
Other short-term liabilities | 1,358 | 58,866 | 38,250 | 14,094 | 0 | 112,568 | ||||||||||||||||||
Total current liabilities | 40,040 | 1,141,148 | 1,428,821 | 588,377 | (2,694,935 | ) | 503,451 | |||||||||||||||||
Long-term other payables | 0 | 0 | 3,922 | 0 | 0 | 3,922 | ||||||||||||||||||
Long-term tax liabilities | 163,334 | 16,119 | 0 | 14,465 | 0 | 193,918 | ||||||||||||||||||
Deferred tax liabilities | 0 | 237,116 | 8,726 | 3,323 | 0 | 249,165 | ||||||||||||||||||
Other non-current liabilities | 0 | 0 | 2,960 | 1,750 | (1,568 | ) | 3,142 | |||||||||||||||||
Total long-term liabilities | 163,334 | 253,235 | 15,608 | 19,538 | (1,568 | ) | 450,147 | |||||||||||||||||
Total liabilities | $ | 203,374 | 1,394,383 | 1,444,429 | 607,915 | (2,696,503 | ) | 953,598 | ||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Total Sohu.com Limited shareholders’ equity | 1,290,869 | 911,936 | 1,135,084 | 213,962 | (2,260,982 | ) | 1,290,869 | |||||||||||||||||
Noncontrolling interest | 0 | 1,267 | 0 | 0 | 51 | 1,318 | ||||||||||||||||||
Total shareholders’ equity (2) | 1,290,869 | 913,203 | 1,135,084 | 213,962 | (2,260,931 | ) | 1,292,187 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,494,243 | 2,307,586 | 2,579,513 | 821,877 | (4,957,434 | ) | 2,245,785 | ||||||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Third-party revenues | $ | 0 | 111,548 | 79,972 | 482,283 | 0 | 673,803 | |||||||||||||||||
Intra-Group revenues (3) | 0 | 25,606 | 321,469 | 29,674 | (376,749 | ) | 0 | |||||||||||||||||
Total revenues | 0 | 137,154 | 401,441 | 511,957 | (376,749 | ) | 673,803 | |||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Third-party cost of revenues | 0 | 15,105 | 127,498 | 101,044 | 0 | 243,647 | ||||||||||||||||||
Intra-Group cost of revenues (3) | 0 | 2,234 | 39,692 | 139,765 | (181,691 | ) | 0 | |||||||||||||||||
Total cost of revenues | 0 | 17,339 | 167,190 | 240,809 | (181,691 | ) | 243,647 | |||||||||||||||||
Gross profit | 0 | 119,815 | 234,251 | 271,148 | (195,058 | ) | 430,156 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Third-party operating expenses | 2,320 | 75,800 | 354,102 | 69,131 | 0 | 501,353 | ||||||||||||||||||
Intra-Group operating expenses (3) | 0 | 4,260 | 6,044 | 184,799 | (195,103 | ) | 0 | |||||||||||||||||
Total operating expenses | 2,320 | 80,060 | 360,146 | 253,930 | (195,103 | ) | 501,353 | |||||||||||||||||
Operating profit/(loss) | (2,320 | ) | 39,755 | (125,895 | ) | 17,218 | 45 | (71,197 | ) | |||||||||||||||
Income/(loss) from subsidiaries and VIEs (2) | (167,657 | ) | (154,566 | ) | 75,149 | 0 | 247,074 | 0 | ||||||||||||||||
Non-operating income/(expense) | 21,142 | 11,870 | (36,770 | ) | 4,929 | (45 | ) | 1,126 | ||||||||||||||||
Income/(loss) before income tax expense | (148,835 | ) | (102,941 | ) | (87,516 | ) | 22,147 | 247,074 | (70,071 | ) | ||||||||||||||
Income tax expense | 7,887 | 6,493 | 11,508 | 2,540 | 0 | 28,428 | ||||||||||||||||||
Net income/(loss) from continuing operations | (156,722 | ) | (109,434 | ) | (99,024 | ) | 19,607 | 247,074 | (98,499 | ) | ||||||||||||||
Less: Net income from continuing operations attributable to the noncontrolling interest shareholders | 0 | 58,223 | 0 | 0 | 0 | 58,223 | ||||||||||||||||||
Net income/(loss) from continuing operations attributable to Sohu.com Limited | (156,722 | ) | (167,657 | ) | (99,024 | ) | 19,607 | 247,074 | (156,722 | ) | ||||||||||||||
Net income from discontinued operations, net of tax | 7,386 | |||||||||||||||||||||||
Net loss | $ | (149,336 | ) | |||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
(In thousands, except per ADS data) | ||||||||||||||||||||
Statements of Comprehensive Income Data: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Brand advertising | $ | 450,448 | $ | 315,235 | $ | 232,339 | $ | 175,056 | $ | 146,526 | ||||||||||
Online games | 395,709 | 449,533 | 389,788 | 440,902 | 536,684 | |||||||||||||||
Others | 77,905 | 97,937 | 68,048 | 57,845 | 66,680 | |||||||||||||||
Total revenues | 924,062 | 862,705 | 690,175 | 673,803 | 749,890 | |||||||||||||||
Cost of revenues (1): | ||||||||||||||||||||
Brand advertising | 371,066 | 363,624 | 184,473 | 126,406 | 105,604 | |||||||||||||||
Online games | 96,168 | 62,775 | 60,981 | 88,992 | 91,526 | |||||||||||||||
Others | 43,879 | 66,467 | 43,562 | 28,249 | 20,307 | |||||||||||||||
Total cost of revenues | 511,113 | 492,866 | 289,016 | 243,647 | 217,437 | |||||||||||||||
Gross profit | 412,949 | 369,839 | 401,159 | 430,156 | 532,453 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Product development (1) | 219,121 | 245,536 | 246,155 | 234,852 | 241,941 | |||||||||||||||
Sales and marketing (1) | 299,020 | 237,252 | 236,898 | 204,665 | 159,787 | |||||||||||||||
General and administrative (1) | 94,964 | 86,448 | 70,129 | 54,591 | 57,354 | |||||||||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 86,882 | 16,369 | 7,245 | 0 | |||||||||||||||
Total operating expenses | 613,105 | 656,118 | 569,551 | 501,353 | 459,082 | |||||||||||||||
Operating profit/(loss) | (200,156 | ) | (286,279 | ) | (168,392 | ) | (71,197 | ) | 73,371 | |||||||||||
Other income/(expense), net | 19,832 | 13,207 | 30,701 | 7,963 | 25,993 | |||||||||||||||
Interest income | 17,302 | 15,012 | 16,036 | 6,103 | 7,369 | |||||||||||||||
Interest expense | (1,356 | ) | (4,088 | ) | (17,538 | ) | (14,370 | ) | (6,234 | ) | ||||||||||
Exchange difference | 7,456 | (7,303 | ) | 3,301 | 1,430 | (3,800 | ) | |||||||||||||
Income/(loss) before income tax expense/(benefit) | (156,922 | ) | (269,451 | ) | (135,892 | ) | (70,071 | ) | 96,699 | |||||||||||
Income tax expense/(benefit) | 23,311 | 258,214 | (14,586 | ) | 28,428 | 133,226 | ||||||||||||||
Net loss from continuing operations | (180,233 | ) | (527,665 | ) | (121,306 | ) | (98,499 | ) | (36,527 | ) | ||||||||||
Net income/(loss) from discontinued operations, net of tax | 65,260 | 57,662 | 53,947 | 55,108 | (91,793 | ) | ||||||||||||||
Net loss | (114,973 | ) | (470,003 | ) | (67,359 | ) | (43,391 | ) | (128,320 | ) | ||||||||||
Less: Net income from continuing operations attributable to the noncontrolling interest shareholders | 46,031 | 14,050 | 41,732 | 58,223 | 18,448 | |||||||||||||||
Less: Net income/(loss) from discontinued operations attributable to the noncontrolling interest shareholders | 63,017 | 70,473 | 50,991 | 47,722 | (60,656 | ) | ||||||||||||||
Net loss from continuing operations attributable to Sohu.com Limited | $ | (226,264 | ) | $ | (541,715 | ) | $ | (163,038 | ) | $ | (156,722 | ) | $ | (54,975 | ) | |||||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited | 2,243 | (12,811 | ) | 2,956 | 7,386 | (31,137 | ) | |||||||||||||
Net loss attributable to Sohu.com Limited | $ | (224,021 | ) | $ | (554,526 | ) | $ | (160,082 | ) | $ | (149,336 | ) | $ | (86,112 | ) | |||||
Net loss | $ | (114,973 | ) | $ | (470,003 | ) | $ | (67,359 | ) | $ | (43,391 | ) | $ | (128,320 | ) | |||||
Other comprehensive income/(loss) | (77,155 | ) | 68,429 | (37,339 | ) | (13,069 | ) | 11,972 | ||||||||||||
Comprehensive loss | (192,128 | ) | (401,574 | ) | (104,698 | ) | (56,460 | ) | (116,348 | ) | ||||||||||
Year Ended December 31, 2020 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Third-party revenues | $ | 0 | 119,098 | 77,812 | 552,980 | 0 | 749,890 | |||||||||||||||||
Intra-Group revenues (3) | 0 | 19,598 | 390,062 | 30,207 | (439,867 | ) | 0 | |||||||||||||||||
Total revenues | 0 | 138,696 | 467,874 | 583,187 | (439,867 | ) | 749,890 | |||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Third-party cost of revenues | 0 | 24,674 | 99,430 | 93,333 | 0 | 217,437 | ||||||||||||||||||
Intra-Group cost of revenues (3) | 0 | 4,376 | 34,280 | 141,717 | (180,373 | ) | 0 | |||||||||||||||||
Total cost of revenues | 0 | 29,050 | 133,710 | 235,050 | (180,373 | ) | 217,437 | |||||||||||||||||
Gross profit | 0 | 109,646 | 334,164 | 348,137 | (259,494 | ) | 532,453 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Third-party operating expenses | 1,613 | 95,727 | 310,759 | 50,983 | 0 | 459,082 | ||||||||||||||||||
Intra-Group operating expenses (3) | 0 | 3,957 | 741 | 254,796 | (259,494 | ) | 0 | |||||||||||||||||
Total operating expenses | 1,613 | 99,684 | 311,500 | 305,779 | (259,494 | ) | 459,082 | |||||||||||||||||
Operating profit/(loss) | (1,613 | ) | 9,962 | 22,664 | 42,358 | 0 | 73,371 | |||||||||||||||||
Income/(loss) from subsidiaries and VIEs (2) | (46,084 | ) | 69,099 | 78,938 | 0 | (101,953 | ) | 0 | ||||||||||||||||
Non-operating income/(expense) | (1,071 | ) | (3,948 | ) | 24,679 | 3,668 | 0 | 23,328 | ||||||||||||||||
Income/(loss) before income tax expense | (48,768 | ) | 75,113 | 126,281 | 46,026 | (101,953 | ) | 96,699 | ||||||||||||||||
Income tax expense | 6,207 | 102,749 | 20,000 | 4,270 | 0 | 133,226 | ||||||||||||||||||
Net income/(loss) from continuing operations | (54,975 | ) | (27,636 | ) | 106,281 | 41,756 | (101,953 | ) | (36,527 | ) | ||||||||||||||
Less: Net income from continuing operations attributable to the noncontrolling interest shareholders | 0 | 18,448 | 0 | 0 | 0 | 18,448 | ||||||||||||||||||
Net income/(loss) from continuing operations attributable to Sohu.com Limited | (54,975 | ) | (46,084 | ) | 106,281 | 41,756 | (101,953 | ) | (54,975 | ) | ||||||||||||||
Net loss from discontinued operations, net of tax | (31,137 | ) | ||||||||||||||||||||||
Net loss | $ | (86,112 | ) | |||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest shareholders | 78,824 | 117,960 | 61,376 | 93,244 | (35,074 | ) | ||||||||||||||
Comprehensive loss attributable to Sohu.com Limited. | (270,952 | ) | (519,534 | ) | (166,074 | ) | (149,704 | ) | (81,274 | ) | ||||||||||
Basic net (loss)/income per ADS | ||||||||||||||||||||
Continuing operations | $ | (5.85 | ) | $ | (13.94 | ) | $ | (4.18 | ) | $ | (3.99 | ) | $ | (1.39 | ) | |||||
Discontinued operations | 0.06 | (0.33 | ) | 0.07 | 0.19 | (0.79 | ) | |||||||||||||
Net loss per share | (5.79 | ) | (14.27 | ) | (4.11 | ) | (3.80 | ) | (2.18 | ) | ||||||||||
Shares used in computing basic net (loss)/income per ADS | 38,706 | 38,858 | 38,959 | 39,249 | 39,452 | |||||||||||||||
Diluted net (loss)/income per ADS | ||||||||||||||||||||
Continuing operations | $ | (5.89 | ) | $ | (13.98 | ) | $ | (4.20 | ) | $ | (4.01 | ) | $ | (1.40 | ) | |||||
Discontinued operations | 0.06 | (0.32 | ) | 0.07 | 0.18 | (0.79 | ) | |||||||||||||
Net loss per share | (5.83 | ) | (14.30 | ) | (4.13 | ) | (3.83 | ) | (2.19 | ) | ||||||||||
Shares used in computing diluted net (loss)/income per ADS | 38,706 | 38,858 | 38,959 | 39,249 | 39,452 | |||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cost of revenues | $ | 195 | $ | (342 | ) | $ | (739 | ) | $ | 142 | $ | 720 | ||||||||
Product development expenses | 3,570 | 7,078 | (4,182 | ) | 1,364 | 7,325 | ||||||||||||||
Sales and marketing expenses | 578 | 1,614 | (920 | ) | (326 | ) | 460 | |||||||||||||
General and administrative expenses | 5,927 | 13,404 | (6,267 | ) | 1,170 | 5,975 |
As of December 31, | ||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance Sheets Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 764,731 | $ | 669,646 | $ | 634,310 | $ | 162,662 | $ | 217,057 | ||||||||||
Restricted cash | 0 | 3,928 | 3,539 | 3,290 | 330,791 | |||||||||||||||
Restricted time deposits | 240 | 240 | 244,150 | 240 | 101,519 | |||||||||||||||
Working capital | 918,522 | 1,472,485 | 1,131,571 | 914,801 | 970,142 | |||||||||||||||
Total assets | 2,592,450 | 3,442,985 | 3,372,956 | 2,691,864 | 2,822,121 | |||||||||||||||
Short-term bank loans | 0 | 61,216 | 129,677 | 114,528 | 315,550 | |||||||||||||||
Long-term bank loans | 0 | 122,433 | 302,323 | 0 | 92,000 | |||||||||||||||
Total liabilities | 1,034,655 | 1,625,748 | 1,820,005 | 1,384,947 | 1,790,140 | |||||||||||||||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 38,742 shares, 38,898 shares, 39,229 shares, 39,269 shares, and 39,306 shares, respectively, issued and outstanding as of December 31, 2016, 2017, 2018, 2019, and 2020) | 45 | 45 | 39 | 39 | 39 | |||||||||||||||
Total Sohu.com Limited shareholders’ equity | 993,580 | 750,634 | 588,840 | 428,454 | 347,369 | |||||||||||||||
Noncontrolling interest | 564,215 | 1,066,603 | 964,111 | 878,463 | 684,612 | |||||||||||||||
Total shareholders’ equity | 1,557,795 | 1,817,237 | 1,552,951 | 1,306,917 | 1,031,981 |
Year Ended December 31, 2021 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Third-party revenues | $ | 0 | 90,830 | 79,923 | 664,823 | 0 | 835,576 | |||||||||||||||||
Intra-Group revenues (3) | 0 | 275,774 | 256,801 | 21,488 | (554,063 | ) | 0 | |||||||||||||||||
Total revenues | 0 | 366,604 | 336,724 | 686,311 | (554,063 | ) | 835,576 | |||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Third-party cost of revenues | 0 | 26,055 | 96,891 | 81,725 | 0 | 204,671 | ||||||||||||||||||
Intra-Group cost of revenues (3) | 0 | 4,957 | 37,732 | 136,221 | (178,910 | ) | 0 | |||||||||||||||||
Total cost of revenues | 0 | 31,012 | 134,623 | 217,946 | (178,910 | ) | 204,671 | |||||||||||||||||
Gross profit | 0 | 335,592 | 202,101 | 468,365 | (375,153 | ) | 630,905 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Third-party operating expenses | 1,768 | 123,963 | 335,576 | 72,126 | 0 | 533,433 | ||||||||||||||||||
Intra-Group operating expenses (3) | 0 | 11,325 | 2,831 | 366,762 | (380,918 | ) | 0 | |||||||||||||||||
Total operating expenses | 1,768 | 135,288 | 338,407 | 438,888 | (380,918 | ) | 533,433 | |||||||||||||||||
Operating profit/(loss) | (1,768 | ) | 200,304 | (136,306 | ) | 29,477 | 5,765 | 97,472 | ||||||||||||||||
Income/(loss) from subsidiaries and VIEs (2) | 75,343 | (71,989 | ) | 218,623 | 0 | (221,977 | ) | 0 | ||||||||||||||||
Non-operating income/(expense) | 526 | (3,017 | ) | 32,843 | 9,508 | (5,765 | ) | 34,095 | ||||||||||||||||
Income before income tax expense | 74,101 | 125,298 | 115,160 | 38,985 | (221,977 | ) | 131,567 | |||||||||||||||||
Income tax expense | 4,827 | 49,958 | 4,331 | 3,180 | 0 | 62,296 | ||||||||||||||||||
Net income from continuing operations | 69,274 | 75,340 | 110,829 | 35,805 | (221,977 | ) | 69,271 | |||||||||||||||||
Less: Net loss from continuing operations attributable to the noncontrolling interest shareholders | 0 | (3 | ) | 0 | 0 | 0 | (3 | ) | ||||||||||||||||
Net income from continuing operations attributable to Sohu.com Limited | 69,274 | 75,343 | 110,829 | 35,805 | (221,977 | ) | 69,274 | |||||||||||||||||
Net income from discontinued operations, net of tax | 858,451 | |||||||||||||||||||||||
Net income | $ | 927,725 | ||||||||||||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net cash provided by/(used in) transactions with external parties | $ | (3,126 | ) | 26,983 | (377,027 | ) | 334,903 | 0 | (18,267 | ) | ||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | 0 | 23,240 | 287,003 | (310,243 | ) | 0 | 0 | |||||||||||||||||
Net cash provided by/(used in) continuing operating activities (4) | (3,126 | ) | 50,223 | (90,024 | ) | 24,660 | 0 | (18,267 | ) | |||||||||||||||
Net cash provided by discontinued operating activities | 228,857 | |||||||||||||||||||||||
Net cash provided by operating activities | 210,590 | |||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Net cash used in transactions with external parties | 0 | (11,975 | ) | (189,567 | ) | (13,272 | ) | 0 | (214,814 | ) | ||||||||||||||
Net cash used in transactions with intra-Group entities | (9,610 | ) | (439,805 | ) | (318,738 | ) | (40,426 | ) | 808,579 | 0 | ||||||||||||||
Net cash used in continuing investing activities (4) | (9,610 | ) | (451,780 | ) | (508,305 | ) | (53,698 | ) | 808,579 | (214,814 | ) | |||||||||||||
Net cash used in discontinued investing activities | (228,406 | ) | ||||||||||||||||||||||
Net cash used in investing activities | (443,220 | ) | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Net cash used in transactions with external parties | 0 | (374,682 | ) | (105,066 | ) | 0 | 0 | (479,748 | ) | |||||||||||||||
Net cash provided by transactions with intra-Group entities | 0 | 294,566 | 487,454 | 26,559 | (808,579 | ) | 0 | |||||||||||||||||
Net cash provided by/(used in) continuing financing activities (4) | 0 | (80,116 | ) | 382,388 | 26,559 | (808,579 | ) | (479,748 | ) | |||||||||||||||
Net cash used in discontinued financing activities | (33,415 | ) | ||||||||||||||||||||||
Net cash used in financing activities | (513,163 | ) |
Year Ended December 31, 2020 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net cash provided by/(used in) transactions with external parties | $ | (5,371 | ) | (25,798 | ) | (264,700 | ) | 459,263 | 0 | 163,394 | ||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | 0 | 18,721 | 360,928 | (379,649 | ) | 0 | 0 | |||||||||||||||||
Net cash provided by/(used in) continuing operating activities (4) | (5,371 | ) | (7,077 | ) | 96,228 | 79,614 | 0 | 163,394 | ||||||||||||||||
Net cash provided used in discontinued operating activities | (68,187 | ) | ||||||||||||||||||||||
Net cash provided by operating activities | 95,207 | |||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Net cash provided by/(used in) transactions with external parties | 0 | 167,702 | 17,464 | (773 | ) | 0 | 184,393 | |||||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | 1,961 | 5,660 | 226,972 | (106,321 | ) | (128,272 | ) | 0 | ||||||||||||||||
Net cash provided by/(used in) continuing investing activities (4) | 1,961 | 173,362 | 244,436 | (107,094 | ) | (128,272 | ) | 184,393 | ||||||||||||||||
Net cash provided by discontinued investing activities | 235,374 | |||||||||||||||||||||||
Net cash provided by investing activities | 419,767 | |||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Net cash provided by/(used in) transactions with external parties | 0 | 204,941 | (103,146 | ) | 0 | 0 | 101,795 | |||||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | 0 | (254,216 | ) | 93,193 | 32,751 | 128,272 | 0 | |||||||||||||||||
Net cash provided by/(used in) continuing financing activities (4) | 0 | (49,275 | ) | (9,953 | ) | 32,751 | 128,272 | 101,795 | ||||||||||||||||
Net cash used in discontinued financing activities | (8,209 | ) | ||||||||||||||||||||||
Net cash provided by financing activities | 93,586 |
Year Ended December 31, 2021 | ||||||||||||||||||||||||
Sohu.com Limited | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and their subsidiaries | Eliminating adjustments | Consolidated totals | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net cash provided by/(used in) transactions with external parties | $ | (517 | ) | (127,098 | ) | (299,947 | ) | 541,172 | 0 | 113,610 | ||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | 0 | 288,308 | 217,245 | (505,553 | ) | 0 | 0 | |||||||||||||||||
Net cash provided by/(used in) continuing operating activities | (517 | ) | 161,210 | (82,702 | ) | 35,619 | 0 | 113,610 | ||||||||||||||||
Net cash used in discontinued operating activities | (175,888 | ) | ||||||||||||||||||||||
Net cash used in operating activities | (62,278 | ) | ||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Net cash used in transactions with external parties | 0 | (112,599 | ) | (400,933 | ) | (23,887 | ) | 0 | (537,419 | ) | ||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | (5,999 | ) | (172,370 | ) | 209,079 | (140,671 | ) | 109,961 | 0 | |||||||||||||||
Net cash used in continuing investing activities | (5,999 | ) | (284,969 | ) | (191,854 | ) | (164,558 | ) | 109,961 | (537,419 | ) | |||||||||||||
Net cash provided by discontinued investing activities | 1,054,148 | |||||||||||||||||||||||
Net cash provided by investing activities | 516,729 | |||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Net cash used in transactions with external parties | (17,418 | ) | (407,550 | ) | 0 | 0 | 0 | (424,968 | ) | |||||||||||||||
Net cash provided by/(used in) transactions with intra-Group entities | 36,912 | (236,658 | ) | 197,819 | 111,888 | (109,961 | ) | 0 | ||||||||||||||||
Net cash provided by/(used in) continuing financing activities | 19,494 | (644,208 | ) | 197,819 | 111,888 | (109,961 | ) | (424,968 | ) | |||||||||||||||
Net cash used in discontinued financing activities | (9,132 | ) | ||||||||||||||||||||||
Net cash used in financing activities | (434,100 | ) |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash paid by the VIEs to our subsidiaries under service agreements | $ | (341,696 | ) | $ | (411,668 | ) | $ | (528,330 | ) | |||
Cash received by the VIEs from our subsidiaries under service agreements | 31,453 | 32,019 | 22,777 | |||||||||
Cash paid by the VIEs to our subsidiaries for intra-Group financing | (40,426 | ) | (106,321 | ) | (140,671 | ) | ||||||
Cash received by the VIEs from our subsidiaries for intra-Group financing | 26,559 | 32,751 | 111,888 |
ITEM 4. | INFORMATION ON THE COMPANY |
- | $124.2 million in brand advertising revenues, of which $75.4 million was from Sohu Media Portal, $26.8 million was from Sohu Video, and $22.0 million was from Focus; and |
- | $62.4 million in other revenues, mainly attributable to revenues from paid subscription services, interactive broadcasting services, and revenue sharing from other platforms. |
- | $638.2 million in online game revenues, of which $469.3 million was from PC games, and $168.9 million was from mobile games; and |
- | $10.8 million in brand advertising revenues, mainly attributable to Changyou’s 17173.com Website. |
- | $124.2 million in brand advertising revenues, of which $75.4 million was from Sohu Media Portal, $26.8 million was from Sohu Video, and $22.0 million was from Focus; and |
- | $62.4 million in other revenues, mainly attributable to revenues from paid subscription services, interactive broadcasting services, and revenue sharing from other platforms. |
- | $638.2 million in online game revenues, of which $469.3 million was from PC games, and $168.9 million was from mobile games; and |
- | $10.8 million in brand advertising revenues, mainly attributable to Changyou’s 17173.com Website. |
- | $124.2 million in brand advertising revenues, of which $75.4 million was from Sohu Media Portal, $26.8 million was from Sohu Video, and $22.0 million was from Focus; and |
- | $62.4 million in other revenues, mainly attributable to revenues from paid subscription services, interactive broadcasting services, and revenue sharing from other platforms. |
- | $638.2 million in online game revenues, of which $469.3 million was from PC games, and $168.9 million was from mobile games; and |
- | $10.8 million in brand advertising revenues, mainly attributable to Changyou’s 17173.com Website. |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
Year Ended December 31, 2018 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 127,612 | 0 | 127,612 | ||||||||
Sohu Video | 53,886 | 0 | 53,886 | |||||||||
Focus | 31,144 | 0 | 31,144 | |||||||||
17173.com Website | 0 | 19,697 | 19,697 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 236,743 | 236,743 | |||||||||
Mobile games | 0 | 151,737 | 151,737 | |||||||||
Other games | 0 | 1,308 | 1,308 | |||||||||
Others | 61,974 | 6,074 | 68,048 | |||||||||
Total | $ | 274,616 | 415,559 | 690,175 | ||||||||
Year Ended December 31, 2019 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 94,692 | 0 | 94,692 | ||||||||
Sohu Video | 34,529 | 0 | 34,529 | |||||||||
Focus | 32,120 | 0 | 32,120 | |||||||||
17173.com Website | 0 | 13,715 | 13,715 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 267,752 | 267,752 | |||||||||
Mobile games | 0 | 172,718 | 172,718 | |||||||||
Other games | 0 | 432 | 432 | |||||||||
Others | 57,082 | 763 | 57,845 | |||||||||
Total | $ | 218,423 | 455,380 | 673,803 | ||||||||
Year Ended December 31, 2020 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 86,293 | 0 | 86,293 | ||||||||
Sohu Video | 25,312 | 0 | 25,312 | |||||||||
Focus | 23,281 | 0 | 23,281 | |||||||||
17173.com Website | 0 | 11,640 | 11,640 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 353,737 | 353,737 | |||||||||
Mobile games | 0 | 182,947 | 182,947 | |||||||||
Other games | 0 | 0 | 0 | |||||||||
Others | 66,658 | 22 | 66,680 | |||||||||
Total | $ | 201,544 | 548,346 | 749,890 | ||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2020 VS 2019 | 2021 VS 2020 | ||||||||||||||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||
Brand advertising | $ | 175,056 | 26 | % | $ | 146,526 | 20 | % | $ | 134,967 | 16 | % | $ | (28,530 | ) | (16 | )% | $ | (11,559 | ) | (8 | )% | ||||||||||||||||||
Online games | 440,902 | 65 | % | 536,684 | 72 | % | 638,225 | 76 | % | 95,782 | 22 | % | 101,541 | 19 | % | |||||||||||||||||||||||||
Others | 57,845 | 9 | % | 66,680 | 8 | % | 62,384 | 8 | % | 8,835 | 15 | % | (4,296 | ) | (6 | )% | ||||||||||||||||||||||||
Total revenues | $ | 673,803 | 100 | % | $ | 749,890 | 100 | % | $ | 835,576 | 100 | % | $ | 76,087 | 11 | % | $ | 85,686 | 11 | % | ||||||||||||||||||||
Average Monthly Active Accounts (1) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||
2019 | 1.9 | 2.7 | 2.0 | 2.7 | 2.1 | 3.5 | 2.2 | 3.7 | ||||||||||||||||||||||||
2020 | 2.1 | 3.4 | 1.9 | 3.1 | 2.0 | 3.8 | 2.3 | 2.4 | ||||||||||||||||||||||||
2021 | 2.3 | 2.0 | 2.1 | 1.9 | 2.0 | 4.6 | 2.0 | 2.5 |
Quarterly Aggregate Active Paying Accounts (2) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||
2019 | 0.9 | 0.6 | 0.9 | 0.6 | 1.0 | 1.1 | 1.0 | 1.1 | ||||||||||||||||||||||||
2020 | 1.0 | 1.0 | 0.9 | 0.6 | 1.0 | 0.6 | 0.9 | 0.6 | ||||||||||||||||||||||||
2021 | 0.9 | 0.5 | 0.9 | 0.5 | 1.0 | 1.0 | 0.9 | 0.5 |
(2) | Quarterly Aggregate Active Paying Accounts for a given quarter refers to the number of accounts from which game points are used at least once during the quarter. |
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2020 VS 2019 | 2021 VS 2020 | ||||||||||||||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||
Brand advertising | $ | 175,056 | 26 | % | $ | 146,526 | 20 | % | $ | 134,967 | 16 | % | $ | (28,530 | ) | (16 | )% | $ | (11,559 | ) | (8 | )% | ||||||||||||||||||
Online games | 440,902 | 65 | % | 536,684 | 72 | % | 638,225 | 76 | % | 95,782 | 22 | % | 101,541 | 19 | % | |||||||||||||||||||||||||
Others | 57,845 | 9 | % | 66,680 | 8 | % | 62,384 | 8 | % | 8,835 | 15 | % | (4,296 | ) | (6 | )% | ||||||||||||||||||||||||
Total revenues | $ | 673,803 | 100 | % | $ | 749,890 | 100 | % | $ | 835,576 | 100 | % | $ | 76,087 | 11 | % | $ | 85,686 | 11 | % | ||||||||||||||||||||
Average Monthly Active Accounts (1) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||
2019 | 1.9 | 2.7 | 2.0 | 2.7 | 2.1 | 3.5 | 2.2 | 3.7 | ||||||||||||||||||||||||
2020 | 2.1 | 3.4 | 1.9 | 3.1 | 2.0 | 3.8 | 2.3 | 2.4 | ||||||||||||||||||||||||
2021 | 2.3 | 2.0 | 2.1 | 1.9 | 2.0 | 4.6 | 2.0 | 2.5 |
Quarterly Aggregate Active Paying Accounts (2) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||
2019 | 0.9 | 0.6 | 0.9 | 0.6 | 1.0 | 1.1 | 1.0 | 1.1 | ||||||||||||||||||||||||
2020 | 1.0 | 1.0 | 0.9 | 0.6 | 1.0 | 0.6 | 0.9 | 0.6 | ||||||||||||||||||||||||
2021 | 0.9 | 0.5 | 0.9 | 0.5 | 1.0 | 1.0 | 0.9 | 0.5 |
(1) | Average Monthly Active Accounts for a given period refers to the number of registered accounts that were logged in to these games at least once during the period. |
(2) | Quarterly Aggregate Active Paying Accounts for a given quarter refers to the number of accounts from which game points are used at least once during the quarter. |
December 31, 2019 | ASU 2016-13 adjustment | January 1, 2020 | ||||||||||
Allowance for credit losses | ||||||||||||
Accounts receivable, net | $ | 126,081 | $ | (3,383 | ) | $ | 122,698 | |||||
Accounts receivable and financing receivables, net classified as assets held for sale (1) | 134,635 | (3,273 | ) | 131,362 | ||||||||
Total assets | 2,691,864 | (6,656 | ) | 2,685,208 | ||||||||
Shareholders’ equity | ||||||||||||
Accumulated deficit | (544,137 | ) | (6,656 | ) | (550,793 | ) |
As of December 31, | ||||||||
2019 | 2020 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 130,037 | $ | 94,528 | ||||
Less: Allowance for credit losses | (3,956 | ) | (7,007 | ) | ||||
$ | 126,081 | $ | 87,521 |
As of December 31, | ||||||||
2019 | 2020 | |||||||
Less than 179 days | $ | 113,173 | $ | 78,805 | ||||
180-359 days | 6,516 | 7,569 | ||||||
360 days and greater | 10,348 | 8,154 | ||||||
Total | 130,037 | 94,528 |
For the year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Balance at the beginning of year | $ | 4,487 | $ | 7,574 | $ | 3,956 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 0 | 3,383 | |||||||||
Additional allowance for credit losses, net of recoveries | 5,449 | 4,724 | 2,419 | |||||||||
Write-offs | (1,940 | ) | (8,237 | ) | (3,231 | ) | ||||||
Exchange difference | (422 | ) | (105 | ) | 480 | |||||||
Balance at the end of year | 7,574 | 3,956 | 7,007 |
As of December 31, | ||||||||
2019 | 2020 | |||||||
Accounts receivable | $ | 77,210 | $ | 35,975 | ||||
Financing receivables | 66,858 | 41,911 | ||||||
Less: Allowance for credit losses (1) | (12,255 | ) | (6,700 | ) | ||||
$ | 131,813 | $ | 71,186 |
December 31, 2019 | 1 -30 Days Past Due | 31 -60 Days Past Due | 61 -90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Total | |||||||||||||||||||||
Financing receivables by origination year | ||||||||||||||||||||||||||||
2018 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,744 | $ | 1,744 | ||||||||||||||
2019 | 10,606 | 1,635 | 1,176 | 1,709 | 15,126 | 49,988 | 65,114 | |||||||||||||||||||||
Total | 10,606 | 1,635 | 1,176 | 1,709 | 15,126 | 51,732 | 66,858 | |||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||
Financing receivables by origination year | ||||||||||||||||||||||||||||
2018 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,081 | $ | 1,081 | ||||||||||||||
2019 | 1 | 1 | 2 | 0 | 4 | 182 | 186 | |||||||||||||||||||||
2020 | 7,037 | 576 | 548 | 501 | 8,662 | 31,982 | 40,644 | |||||||||||||||||||||
Total | $ | 7,038 | $ | 577 | $ | 550 | $ | 501 | $ | 8,666 | $ | 33,245 | $ | 41,911 |
For the year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Beginning balance | $ | 384 | $ | 7,511 | $ | 12,255 | ||||||
Change on initial application of ASU 2016-13 (1) | 0 | 0 | 3,273 | |||||||||
Additional allowance for credit losses, net of recoveries | 9,119 | 15,620 | 3,049 | |||||||||
Write-offs | (1,908 | ) | (11,741 | ) | (12,517 | ) | ||||||
Exchange difference | (84 | ) | 865 | 640 | ||||||||
Balance at the end of year | $ | 7,511 | $ | 12,255 | $ | 6,700 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 VS 2018 | 2020 VS 2019 | 2019 | 2020 | 2021 | 2020 VS 2019 | 2021 VS 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brand advertising | $ | 232,339 | 34 | % | $ | 175,056 | 26 | % | $ | 146,526 | 20 | % | $ | (57,283 | ) | (25 | )% | $ | (28,530 | ) | (16 | )% | $ | 175,056 | 26 | % | $ | 146,526 | 20 | % | $ | 134,967 | 16 | % | $ | (28,530 | ) | (16 | )% | $ | (11,559 | ) | (8 | )% | ||||||||||||||||||||||||||||||||||||
Online games | 389,788 | 56 | % | 440,902 | 65 | % | 536,684 | 72 | % | 51,114 | 13 | % | 95,782 | 22 | % | 440,902 | 65 | % | 536,684 | 72 | % | 638,225 | 76 | % | 95,782 | 22 | % | 101,541 | 19 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Others | 68,048 | 10 | % | 57,845 | 9 | % | 66,680 | 8 | % | (10,203 | ) | (15 | )% | 8,835 | 15 | % | 57,845 | 9 | % | 66,680 | 8 | % | 62,384 | 8 | % | 8,835 | 15 | % | (4,296 | ) | (6 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 690,175 | 100 | % | $ | 673,803 | 100 | % | $ | 749,890 | 100 | % | $ | (16,372 | ) | (2 | )% | $ | 76,087 | 11 | % | $ | 673,803 | 100 | % | $ | 749,890 | 100 | % | $ | 835,576 | 100 | % | $ | 76,087 | 11 | % | $ | 85,686 | 11 | % | |||||||||||||||||||||||||||||||||||||||
Average Monthly Active Accounts (1) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2.5 | 2.6 | 2.3 | 3.2 | 2.3 | 3.7 | 2.0 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 1.9 | 2.7 | 2.0 | 2.7 | 2.1 | 3.5 | 2.2 | 3.7 | 1.9 | 2.7 | 2.0 | 2.7 | 2.1 | 3.5 | 2.2 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2.1 | 3.4 | 1.9 | 3.1 | 2.0 | 3.8 | 2.3 | 2.4 | 2.1 | 3.4 | 1.9 | 3.1 | 2.0 | 3.8 | 2.3 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Aggregate Active Paying Accounts (2) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 0.8 | 0.8 | 0.7 | 0.7 | 0.8 | 0.7 | 0.9 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 0.9 | 0.6 | 0.9 | 0.6 | 1.0 | 1.1 | 1.0 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 1.0 | 1.0 | 0.9 | 0.6 | 1.0 | 0.6 | 0.9 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2.3 | 2.0 | 2.1 | 1.9 | 2.0 | 4.6 | 2.0 | 2.5 |
Quarterly Aggregate Active Paying Accounts (2) | Three Months Ended March 31 | Three Months Ended June 30 | Three Months Ended September 30 | Three Months Ended December 31 | ||||||||||||||||||||||||||||
(in millions) | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | PC games | Mobile games | ||||||||||||||||||||||||
2019 | 0.9 | 0.6 | 0.9 | 0.6 | 1.0 | 1.1 | 1.0 | 1.1 | ||||||||||||||||||||||||
2020 | 1.0 | 1.0 | 0.9 | 0.6 | 1.0 | 0.6 | 0.9 | 0.6 | ||||||||||||||||||||||||
2021 | 0.9 | 0.5 | 0.9 | 0.5 | 1.0 | 1.0 | 0.9 | 0.5 |
(1) | Average Monthly Active Accounts for a given period refers to the number of registered accounts that were logged in to these games at least once during the period. |
(2) | Quarterly Aggregate Active Paying Accounts for a given quarter refers to the number of accounts from which game points are used at least once during the quarter. |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 VS 2018 | 2020 VS 2019 | 2019 | 2020 | 2021 | 2020 VS 2019 | 2021 VS 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brand advertising | $ | 184,473 | 64 | % | $ | 126,406 | 52 | % | $ | 105,604 | 49 | % | $ | (58,067 | ) | (31 | )% | $ | (20,802 | ) | (16 | )% | $ | 126,406 | 52 | % | $ | 105,604 | 49 | % | $ | 99,522 | 49 | % | $ | (20,802 | ) | (16 | )% | $ | (6,082 | ) | (6 | )% | ||||||||||||||||||||||||||||||||||||
Online games | 60,981 | 21 | % | 88,992 | 37 | % | 91,526 | 42 | % | 28,011 | 46 | % | 2,534 | 3 | % | 88,992 | 37 | % | 91,526 | 42 | % | 87,616 | 43 | % | 2,534 | 3 | % | (3,910 | ) | (4 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||
Others | 43,562 | 15 | % | 28,249 | 11 | % | 20,307 | 9 | % | (15,313 | ) | (35 | )% | (7,942 | ) | (28 | )% | 28,249 | 11 | % | 20,307 | 9 | % | 17,533 | 8 | % | (7,942 | ) | (28 | )% | (2,774 | ) | (14 | )% | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | $ | 289,016 | 100 | % | $ | 243,647 | 100 | % | $ | 217,437 | 100 | % | $ | (45,369 | ) | (16 | )% | $ | (26,210 | ) | (11 | )% | $ | 243,647 | 100 | % | $ | 217,437 | 100 | % | $ | 204,671 | 100 | % | $ | (26,210 | ) | (11 | )% | $ | (12,766 | ) | (6 | )% | ||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 VS 2018 | 2020 VS 2019 | 2019 | 2020 | 2021 | 2020 VS 2019 | 2021 VS 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Incremental ratio | Amount | Incremental ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product development | $ | 246,155 | 43 | % | $ | 234,852 | 47 | % | $ | 241,941 | 53 | % | $ | (11,303 | ) | (5 | )% | $ | 7,089 | 3 | % | $ | 234,852 | 47 | % | $ | 241,941 | 53 | % | $ | 268,863 | 50 | % | $ | 7,089 | 3 | % | $ | 26,922 | 11 | % | |||||||||||||||||||||||||||||||||||||||
Sales and marketing | 236,898 | 42 | % | 204,665 | 41 | % | 159,787 | 35 | % | (32,233 | ) | (14 | )% | (44,878 | ) | (22 | )% | 204,665 | 41 | % | 159,787 | 35 | % | 182,690 | 34 | % | (44,878 | ) | (22 | )% | 22,903 | 14 | % | |||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 70,129 | 12 | % | 54,591 | 11 | % | 57,354 | 12 | % | (15,538 | ) | (22 | )% | 2,763 | 5 | % | 54,591 | 11 | % | 57,354 | 12 | % | 81,880 | 16 | % | 2,763 | 5 | % | 24,526 | 43 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 16,369 | 3 | % | 7,245 | 1 | % | 0 | 0 | % | (9,124 | ) | (56 | )% | (7,245 | ) | (100 | )% | 7,245 | 1 | % | 0 | 0 | % | 0 | 0 | % | (7,245 | ) | (100 | )% | 0 | 0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 569,551 | 100 | % | $ | 501,353 | 100 | % | $ | 459,082 | 100 | % | $ | (68,198 | ) | (12 | )% | $ | (42,271 | ) | (8 | )% | $ | 501,353 | 100 | % | $ | 459,082 | 100 | % | $ | 533,433 | 100 | % | $ | (42,271 | ) | (8 | )% | $ | 74,351 | 16 | % | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
Share-based compensation expense | 2018 | 2019 | 2020 | 2019 | 2020 | 2021 | ||||||||||||||||||
Cost of revenues | $ | (739 | ) | $ | 142 | $ | 720 | $ | 142 | $ | 720 | $ | 277 | |||||||||||
Product development expenses | (4,182 | ) | 1,364 | 7,325 | 1,364 | 7,325 | 3,904 | |||||||||||||||||
Sales and marketing expenses | (920 | ) | (326 | ) | 460 | (326 | ) | 460 | 166 | |||||||||||||||
General and administrative expenses | (6,267 | ) | 1,170 | 5,975 | 1,170 | 5,975 | 4,231 | |||||||||||||||||
$ | (12,108 | ) | $ | 2,350 | $ | 14,480 | $ | 2,350 | $ | 14,480 | $ | 8,578 | ||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
Share-based compensation expense | 2018 | 2019 | 2020 | 2019 | 2020 | 2021 | ||||||||||||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | (5,100 | ) | $ | 1,940 | $ | 2,633 | $ | 1,940 | $ | 2,633 | $ | 1,849 | |||||||||||
For Changyou share-based awards | (6,461 | ) | 1,305 | 12,544 | 1,305 | 12,544 | 7,773 | |||||||||||||||||
For Sohu Video share-based awards | (547 | ) | (895 | ) | (697 | ) | (895 | ) | (697 | ) | (1,044 | ) | ||||||||||||
$ | (12,108 | ) | $ | 2,350 | $ | 14,480 | $ | 2,350 | $ | 14,480 | $ | 8,578 | ||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
Net cash provided by/(used in) continuing operating activities | $ | (52,143 | ) | $ | (18,267 | ) | $ | 163,394 | $ | (18,267 | ) | $ | 163,394 | $ | 113,610 | |||||||||
Net cash provided by/(used in) discontinued operating activities | 136,168 | 228,857 | (68,187 | ) | 228,857 | (68,187 | ) | (175,888 | ) | |||||||||||||||
Net cash provided by operating activities | 84,025 | 210,590 | 95,207 | |||||||||||||||||||||
Net cash provided by/(used in) operating activities | 210,590 | 95,207 | (62,278 | ) | ||||||||||||||||||||
Net cash provided by/(used in) continuing investing activities | 180,146 | (214,814 | ) | 184,393 | (214,814 | ) | 184,393 | (537,419 | ) | |||||||||||||||
Net cash provided by/(used in) discontinued investing activities | (639,390 | ) | (228,406 | ) | 235,374 | (228,406 | ) | 235,374 | 1,054,148 | |||||||||||||||
Net cash provided by/(used in) investing activities | (459,244 | ) | (443,220 | ) | 419,767 | (443,220 | ) | 419,767 | 516,729 | |||||||||||||||
Net cash provided by/(used in) continuing financing activities | 96,333 | (479,748 | ) | 101,795 | (479,748 | ) | 101,795 | (424,968 | ) | |||||||||||||||
Net cash provided by/(used in) discontinued financing activities | 1 | (33,415 | ) | (8,209 | ) | |||||||||||||||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 96,334 | (513,163 | ) | 93,586 | (513,163 | ) | 93,586 | (434,100 | ) | |||||||||||||||
Effect of exchange rate change on cash, cash equivalents, restricted cash and restricted time deposits | (19,544 | ) | (10,047 | ) | 36,984 | (10,047 | ) | 36,984 | 20,997 | |||||||||||||||
Net increase/(decrease) in cash, cash equivalents, restricted cash and restricted time deposits | (298,429 | ) | (755,840 | ) | 645,544 | (755,840 | ) | 645,544 | 41,348 | |||||||||||||||
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of period | 1,368,295 | 1,069,866 | 314,026 | 1,069,866 | 314,026 | 959,570 | ||||||||||||||||||
Cash, cash equivalents, restricted cash and restricted time deposits at end of period | $ | 1,069,866 | $ | 314,026 | $ | 959,570 | $ | 314,026 | $ | 959,570 | $ | 1,000,918 | ||||||||||||
Less: Cash, cash equivalents, restricted cash and restricted time deposits of discontinued operations, end of year | 187,867 | 147,834 | 310,203 | 147,834 | 310,203 | 0 | ||||||||||||||||||
Cash, cash equivalents, restricted cash and restricted time deposits of continuing operations, end of year | 881,999 | 166,192 | 649,367 | 166,192 | 649,367 | 1,000,918 | ||||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||
Repayment of principal of bank loans related to Changyou Merger | $ | 0 | 7,500 | 7,500 | 77,000 | 0 | 0 | 92,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Royalties and expenditures for licensed content of games | 28,423 | 7,870 | 0 | 0 | 0 | 0 | 36,293 | $ | 15,976 | 13,512 | 2,746 | 0 | 0 | 0 | 32,234 | |||||||||||||||||||||||||||||||||||||||||
Purchase of bandwidth | 14,418 | 1,029 | 455 | 0 | 0 | 0 | 15,902 | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease obligations | 6,101 | 5,432 | 2,586 | 264 | 132 | 0 | 14,515 | 6,208 | 2,900 | 380 | 135 | 0 | 0 | 9,623 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of bandwidth | 14,084 | 150 | 102 | 0 | 0 | 0 | 14,336 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest payment commitment | 6,623 | 1,458 | 1,334 | 628 | 0 | 0 | 10,043 | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of content and services - others | 6,715 | 236 | 19 | 0 | 0 | 0 | 6,970 | 7,530 | 389 | 43 | 0 | 0 | 0 | 7,962 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of content and services - video | 5,398 | 1,006 | 0 | 0 | 0 | 0 | 6,404 | 6,387 | 0 | 0 | 0 | 0 | 0 | 6,387 | ||||||||||||||||||||||||||||||||||||||||||
Others | 518 | 24 | 0 | 0 | 0 | 0 | 542 | 3,796 | 0 | 0 | 0 | 0 | 0 | 3,796 | ||||||||||||||||||||||||||||||||||||||||||
Total Payments Required | $ | 67,862 | 23,676 | 11,541 | 77,892 | 132 | 0 | 181,103 | $ | 54,315 | 17,830 | 3,624 | 135 | 0 | 0 | 75,904 | ||||||||||||||||||||||||||||||||||||||||
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Directors and Executive Officers | Age | Position | ||||
Charles Zhang | 57 | Chairman of the Board and Chief Executive Officer | ||||
Dewen Chen | 46 | Chief Executive Officer of | ||||
Joanna Lv | 51 | Chief Financial Officer | ||||
Charles Huang | 52 | Director | ||||
Zhonghan Deng (1) (2) (3) | 54 | Independent Director | ||||
Dave De Yang (1) | 56 | Independent Director | ||||
Dave Qi (1) (2) (3) | 58 | Independent Director | ||||
Shi Wang (3) | 71 | Independent Director |
(1) | Member of the audit committee of our Board of Directors. |
(2) | Member of the compensation committee of our Board of Directors. |
(3) | Member of the nominating committee of our Board of Directors. |
Board Diversity Matrix (As of March 11, 2022) | ||||||||
Country of Principal Executive Offices: | People’s Republic of China | |||||||
Foreign Private Issuer | Yes | |||||||
Disclosure Prohibited Under Home Country Law | No | |||||||
Total Number of Directors | 6 | |||||||
Female | Male | Non-Binary | Did Not Disclose Gender | |||||
Part I: Gender Identity | ||||||||
Directors | 0 | 6 | 0 | 0 | ||||
Part II: Demographic Background | ||||||||
Underrepresented Individual in Home Country Jurisdiction | 0 | |||||||
LGBTQ+ | 0 | |||||||
Did Not Disclose Demographic Background | 0 |
Directors and Executive Officers | Ordinary Shares underlying outstanding options | Exercise price | Date of grant | Expiration date | Ordinary Shares underlying outstanding options | Exercise price | Date of grant | Expiration date | ||||||||||||||||||||||||
Charles Zhang | 75,000 | (1) | $ | 0.001 | 2/16/2015 | 2/15/2025 | 75,000 | (1) | $ | 0.001 | 2/16/2015 | 2/15/2025 | ||||||||||||||||||||
Charles Zhang | 70,000 | (2) | $ | 0.001 | 7/1/2019 | 6/30/2029 | 70,000 | (2) | $ | 0.001 | 7/1/2019 | 6/30/2029 | ||||||||||||||||||||
Joanna Lv | 7,500 | (3) | $ | 0.001 | 2/16/2015 | 2/15/2025 | 7,500 | (3) | $ | 0.001 | 2/16/2015 | 2/15/2025 | ||||||||||||||||||||
Joanna Lv | 40,000 | (4) | $ | 0.001 | 7/1/2019 | 6/30/2029 | 40,000 | (4) | $ | 0.001 | 7/1/2019 | 6/30/2029 | ||||||||||||||||||||
Joanna Lv | 10,000 | (5) | $ | 0.001 | 9/1/2020 | 8/31/2030 | 10,000 | (5) | $ | 0.001 | 9/1/2020 | 8/31/2030 |
(1) | Consists of options to purchase our ordinary shares at a nominal exercise price, of which 75,000 options are vested and exercisable as of |
(2) | Consists of options to purchase our ordinary shares at a nominal exercise price, of which |
(3) | Consists of options to purchase our ordinary shares at a nominal exercise price, of which 7,500 options are vested and exercisable as of |
(4) | Consists of options to purchase our ordinary shares at a nominal exercise price, of which |
(5) | Consists of options |
Directors and Executive Officers | Ordinary Shares underlying outstanding options | Exercise price | Date of grant | Expiration date | Ordinary Shares underlying outstanding options | Exercise price | Date of grant | Expiration date | ||||||||||||||||||||||||
Dewen Chen | 1,288,000 | (1) | $ | 0.01 | 8/26/2019 | 9/30/2029 | 1,288,000 | (1) | $ | 0.01 | 8/26/2019 | 9/30/2029 |
(1) | Consists of options, granted on August 26, 2019 and effective as of October 1, 2019, that are subject to vesting in equal annual installments over a four-year period commencing on October 1, 2019. |
Directors and Executive Officers | Restricted Sogou Class A Ordinary Shares | Exercise price | Date of grant | Expiration date | ||||||||||||
Xiaochuan Wang | 1,440,000 | (1) | $ | 0.625 | 1/31/2013 | N/A |
Directors and Executive Officers | Ordinary Shares underlying outstanding options | Exercise price | Date of grant | Expiration date | Ordinary Shares underlying outstanding options | Exercise price | Date of grant | Expiration date | ||||||||||||||||||||||||
Joanna Lv | 110,000 | (1) | $ | 0.01 | 1/4/2012 | 1/3/2022 | 110,000 | (1) | $ | 0.01 | 1/4/2012 | 1/3/2022 | ||||||||||||||||||||
Xiaochuan Wang | 50,000 | (2) | $ | 0.01 | 1/4/2012 | 1/3/2022 |
(1) | Consists of options to purchase Sohu |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership (1) | Percent of Class (1) | ||||||
Charles Zhang | 10,282,029 | (2) | 26.09 | % | ||||
Charles Huang (3) | 76,265 | * | ||||||
Shi Wang (4) | 34,132 | * | ||||||
Dave Qi (5) | 28,940 | * | ||||||
Zhonghan Deng (6) | 14,514 | * | ||||||
Dave De Yang (7) | — | — | ||||||
Joanna Lv | 20,500 | (8) | * | |||||
Xiaochuan Wang (9) | 69,258 | * | ||||||
Dewen Chen (10) | — | — | ||||||
All directors, nominees and executive officers as a group (9 persons) | 10,525,638 | (11) | 26.70 | % | ||||
Photon Group Limited (12) | 9,920,829 | 25.23 | % | |||||
Macquarie Investment Management Business Trust (13) | 3,618,481 | 9.21 | % | |||||
Renaissance Technologies LLC. (14) | 2,699,355 | 7.30 | % |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership (1) | Percent of Class (1) | ||||||
Charles Zhang | 11,095,133 | (2) | 30.29 | % | ||||
Charles Huang (3) | 76,265 | * | ||||||
Shi Wang (4) | 34,132 | * | ||||||
Dave Qi (5) | 28,940 | * | ||||||
Zhonghan Deng (6) | 5,878 | * | ||||||
Dave De Yang (7) | — | — | ||||||
Joanna Lv | 33,000 | (8) | * | |||||
Dewen Chen (9) | — | — | ||||||
All directors, nominees and executive officers as a group (8 persons) | 11,273,348 | (10) | 30.75 | % | ||||
Photon Group Limited (11) | 10,716,433 | 29.35 | % | |||||
Macquarie Investment Management Business Trust (12) | 3,523,045 | 8.96 | % |
* | Less than 1%. |
(1) | Includes the number of shares and percentage ownership represented by such shares determined to be beneficially owned by a person in accordance with the rules of the SEC. The number of shares beneficially owned by a person includes the number of ordinary shares subject to options or restricted stock units held by that person that are currently exercisable or settleable or that are exercisable or settleable within 60 days of |
(2) | Includes (i) |
(3) | Mr. Charles Huang’s address is Suite 5206, Central Plaza, Wanchai, Hong Kong. |
(4) | Mr. Shi Wang’s address is Vanke Architecture Research Center, No. 68 Meilin Road, Futian District, Shenzhen 518049, People’s Republic of China. |
(5) | Dr. Dave Qi’s address is 3/F, Tower E3, Oriental Plaza, 1 East Chang An Avenue, Beijing 100005, People’s Republic of China. |
(6) | Dr. Zhonghan Deng’s address is 16/F, Shining Tower, No. 35, Xueyuan Road, Haidian District, Beijing 100191, People’s Republic of China. |
(7) | Mr. Dave De Yang’s address is |
(8) | Includes |
(9) |
Mr. Dewen Chen’s address is c/o |
Includes |
Photon Group Limited’s address is c/o Sohu.com |
Data based on a Schedule 13G/A filed with the SEC on February |
ITEM 8. | FINANCIAL INFORMATION |
ITEM 9. | THE OFFER AND LISTING |
ITEM 10. | ADDITIONAL INFORMATION |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Persons depositing or withdrawing shares or ADS holders must pay: | For: | |
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | • Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property | |
• Cancellation of ADSs for the purpose of withdrawal, including if the Deposit Agreement terminates | ||
$0.05 (or less) per ADS | • Any cash distribution to ADS holders | |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | • Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS holders | |
$0.05 (or less) per ADSs per calendar year | • Depositary services | |
Registration or transfer fees | • Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares |
must pay: | ||
Expenses of the depositary | • Cable, telex and facsimile transmissions (when expressly provided in the Deposit Agreement) | |
• converting foreign currency to U.S. dollars | ||
Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes | • As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | • As necessary |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the year ended December 31, | ||||||||
2019 | 2020 | |||||||
(in thousands) | ||||||||
Audit fees (1) | $ | 2,654 | $ | 2,304 | ||||
Tax fees (2) | 567 | 487 | ||||||
Audit related fees (3) | 142 | 67 | ||||||
All other fees | 2 | 2 | ||||||
Total | $ | 3,365 | $ | 2,860 |
For the year ended December 31, | ||||||||
2020 | 2021 | |||||||
(in thousands) | ||||||||
Audit fees (1) | $ | 2,304 | $ | 1,991 | ||||
Tax fees (2) | 487 | 243 | ||||||
Audit related fees (3) | 67 | 36 | ||||||
All other fees | 2 | 2 | ||||||
Total | $ | 2,860 | $ | 2,272 |
(1) | “Audit fees” means the aggregate fees incurred in each of the fiscal years listed for professional services rendered by our principal auditors for the audit of our annual financial statements and our internal controls over financial reporting. |
(2) | “Tax fees” means the aggregate fees incurred in each of the fiscal years listed for professional services rendered by our principal auditors for tax compliance and tax advice. |
(3) | “Audit-related fees” means the aggregate fees incurred in each of the fiscal years listed for professional services rendered by our principal auditors related to the audit of our financial statements and our internal controls over financial reporting that are not reported under “Audit Fees” and consultation on accounting standards or transactions. |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Total Number of ADSs Purchased Under the Program | Average Price Paid Per ADS* | Approximate Dollar Value of ADSs that May Yet Be Purchased Under the Program (in million) | ||||||||||
2021 Month | ||||||||||||
December (from December 1 to December 31) | 1,129,228 | 16.57 | 81.3 |
* | Cost and average price data exclude trading commissions. There may be some variation in figures due to rounding. |
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | CORPORATE GOVERNANCE |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
Exhibit No. | Description | |
1.1(1) | ||
4.1(2) | ||
4.2(3) | ||
4.3(4) | ||
4.4(4) | ||
4.5(5) | ||
4.6(6) | ||
4.7(6) | ||
4.8(6) | ||
4.9(7) | ||
4.10(7) | ||
4.11(7) | ||
4.12(8) | ||
4.13(8) | ||
4.14(8) | ||
(1) | Incorporated herein by reference to Sohu.com Limited’s Registration Statement on Form F-4 (FileNo. 333-224069) filed with the SEC on April 19, 2018. |
(2) | Incorporated herein by reference to Sohu.com Inc.’s Annual Report on Form 10-K filed on March 15, 2002. |
(3) | Incorporated herein by reference to Sohu.com Inc.’s Quarterly Report on Form 10-Q filed on May 8, 2007. |
(4) | Incorporated herein by reference to Sohu.com Inc.’s Annual Report on Form 10-K filed on February 26, 2010. |
(5) | Incorporated herein by reference to Sohu.com Inc.’s Quarterly Report on Form 10-Q filed on May 7, 2010. |
(6) | Incorporated herein by reference to Sohu.com Inc.’s Quarterly Report on Form 10-Q filed on November 8, 2010. |
(7) | Incorporated herein by reference to Sohu.com Inc.’s Current Report on Form 8-K filed on December 1, 2011. |
(8) | Incorporated herein by reference to Sohu.com Inc.’s Annual Report on Form 10-K filed on February 28, 2013. |
(9) |
Incorporated herein by reference to Sohu.com Inc.’s Annual Report on Form 10-K filed on March 2, 2015. |
Incorporated herein by reference to Sohu.com Inc.’s Quarterly Report on Form 10-Q filed on August 7, 2015. |
Incorporated herein by reference to Sohu.com Inc.’s Quarterly Report on Form 10-Q filed on November 6, 2015. |
Incorporated herein by reference to Sohu.com Inc.’s Annual Report on Form 10-K filed on February 26, 2016. |
Incorporated herein by reference to Sohu.com Inc.’s Annual Report on Form 10-K filed on February 27, 2017. |
Incorporated herein by reference to Sohu.com Inc.’s Current Report on Form 8-K filed on May 19, 2017. |
Incorporated herein by reference to Sohu.com Inc.’s Current Report on Form 8-K filed on September 7, 2017. |
Incorporated herein by reference to Sohu.com Inc.’s Current Report on Form 8-K filed on April 16, 2018. |
Incorporated herein by reference to Sohu.com Limited’s Registration Statement on Form S-8 POS filed on June 1, 2018. |
Incorporated herein by reference to Sohu.com Limited’s Annual Report on Form 20-F filed on March 28, 2019. |
Incorporated herein by reference to Sohu.com Limited’s Annual Report on Form 20-F filed on April 21, 2020. |
Incorporated herein by reference to Sohu.com Limited’s Annual Report |
(21) | Filed herewith. |
SOHU.COM LIMITED | ||
By | /s/ Charles Zhang | |
Name: | Charles Zhang | |
Title: | Chief Executive Officer | |
By | /s/ Joanna Lv | |
Name: | Joanna Lv | |
Title: | Chief Financial Officer |
CONSOLIDATED FINANCIAL STATEMENTS: | |||||||
Report of Independent Registered Public Accounting Firm (PCAOB ID: 1424) | F-2 | ||||||
F-5 | |||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 162,662 | $ | 217,057 | ||||
Restricted cash | 3,290 | 330,791 | ||||||
Short-term investments | 321,483 | 100,745 | ||||||
Accounts receivable, net (including $2,006 and $2,096, respectively, due from a related party as of December 31, 2019 and 2020) | 126,081 | 87,521 | ||||||
Prepaid and other current assets (including $33,329 and $34,123, respectively, due from a related party as of December 31, 2019 and 2020) | 97,531 | 106,590 | ||||||
Assets held for sale (current) | 1,304,621 | 1,412,168 | ||||||
Total current assets | 2,015,668 | 2,254,872 | ||||||
Fixed assets, net | 337,682 | 337,674 | ||||||
Goodwill | 47,390 | 48,434 | ||||||
Long-term investments, net | 30,987 | 31,634 | ||||||
Intangible assets, net | 9,922 | 4,842 | ||||||
Restricted time deposits | 240 | 101,519 | ||||||
Prepaid non-current assets | 1,882 | 1,006 | ||||||
Other assets | 30,413 | 42,140 | ||||||
Assets held for sale (non-current) | 217,680 | 0 | ||||||
Total assets | $ | 2,691,864 | $ | 2,822,121 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable (including accounts payable of consolidated variable interest entities (“VIEs”) without recourse to the Company of $8,595 and $11,145, respectively, as of December 31, 2019 and 2020) | $ | 121,318 | $ | 107,611 | ||||
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $50,913 and $46,888, respectively, as of December 31, 2019 and 2020) | 157,861 | 157,513 | ||||||
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $38,754 and $43,076, respectively, as of December 31, 2019 and 2020) | 50,321 | 52,055 | ||||||
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $6,420 and $7,698, respectively, as of December 31, 2019 and 2020) | 86,666 | 100,826 | ||||||
Tax payables (including tax payables of consolidated VIEs without recourse to the Company of $3,666 and $4,422, respectively, as of December 31, 2019 and 2020) | 25,997 | 28,006 | ||||||
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of NaN as of both December 31, 2019 and 2020) | 114,528 | 315,550 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 217,057 | $ | 998,949 | ||||
Restricted cash | 330,791 | 1,969 | ||||||
Short-term investments | 100,745 | 399,345 | ||||||
Accounts receivable, net (including $2,096 and $2,456, respectively, due from a related party as of December 31, 2020 and 2021) | 87,521 | 82,550 | ||||||
Prepaid and other current assets (including $34,123 and $34,123, respectively, due from a related party as of December 31, 2020 and 2021) | 106,590 | 107,311 | ||||||
Assets held for sale (current) | 1,412,168 | 0 | ||||||
Total current assets | 2,254,872 | 1,590,124 | ||||||
Fixed assets, net | 337,674 | 329,997 | ||||||
Goodwill | 48,434 | 48,811 | ||||||
Long-term investments, net | 31,634 | 53,121 | ||||||
Intangible assets, net | 4,842 | 9,136 | ||||||
Long-term time deposits | 0 | 189,007 | ||||||
Restricted time deposits | 101,519 | 0 | ||||||
Prepaid non-current assets | 1,006 | 0 | ||||||
Other assets | 42,140 | 25,589 | ||||||
Total assets | $ | 2,822,121 | $ | 2,245,785 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable (including accounts payable of consolidated variable interest entities (“VIEs”) without recourse to the Company of $11,145 and $12,325, respectively, as of December 31, 2020 and 2021) | $ | 107,611 | $ | 87,447 | ||||
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $46,888 and $43,695, respectively, as of December 31, 2020 and 2021) | 157,513 | 138,196 | ||||||
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $43,076 and $45,844, respectively, as of December 31, 2020 and 2021) | 52,055 | 57,041 | ||||||
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $7,698 and $8,393, respectively, as of December 31, 2020 and 2021) | 100,826 | 91,485 | ||||||
Tax payables (including tax payables of consolidated VIEs without recourse to the Company of $4,422 and $1,539, respectively, as of December 31, 2020 and 2021) | 28,006 | 16,714 | ||||||
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of NaN as of both December 31, 2020 and 2021) | 315,550 | 0 | ||||||
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $25,028 and $14,095, respectively, as of December 31, 2020 and 2021, and due to a related party of $34,123 and $34,123, respectively, as of December 31, 2020 and 2021.) | 106,171 | 112,568 | ||||||
Liabilities held for sale (current) (including liabilities held for sale (current) of consolidated VIEs without recourse to the Company of $187,712 and NaN, respectively, as of December 31, 2020 and 2021) | 416,998 | 0 | ||||||
Total current liabilities | 1,284,730 | 503,451 | ||||||
Long-term other payable (including long-terms other p of consolidated VIEs without recourse to the Company of NaN as of both December 31, 2020 and 2021)a yables | 3,202 | 3,922 | ||||||
Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of NaN as of both December 31, 2020 and 2021) | 92,000 | 0 | ||||||
Long-term tax liabilities (including long-term tax liabilities of consolidated VIEs without recourse to the Company of $14,134 and $14,465, respectively, as of December 31, 2020 and 2021) | 188,760 | 193,918 | ||||||
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $2,014 and $3,323, respectively, as of December 31, 2020 and 2021) | 217,593 | 249,165 | ||||||
Other long-term liabilities (including other long-term liabilities of consolidated VIEs without recourse to the Company of $286 and $182, respectively, as of December 31, 2020 and 2021) | 3,855 | 3,142 | ||||||
Total long-term liabilities | 505,410 | 450,147 | ||||||
Total liabilities | $ | 1,790,140 | $ | 953,598 | ||||
Commitments and contingencies | 0 | 0 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Sohu.com Limited shareholders’ equity: | ||||||||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,306 shares and 38,221 shares, respectively, issued and outstanding as of December 31, 2020 and 2021) | $ | 39 | $ | 39 | ||||
Additional paid-in capital | 952,733 | 965,328 | ||||||
Treasury Stock: $0.001 par value per share (NaN and 1,129 shares, , as of December 31, | 0 | (18,776 | ) | |||||
Accumulated other comprehensive income | 29,189 | 51,145 | ||||||
Accumulated earnings/(deficit) | (634,592 | ) | 293,133 | |||||
Total Sohu.com Limited shareholders’ equity | 347,369 | 1,290,869 | ||||||
Noncontrolling interest | 684,612 | 1,318 | ||||||
Total shareholders’ equity | 1,031,981 | 1,292,187 | ||||||
Total liabilities and shareholders’ equity | $ | 2,822,121 | $ | 2,245,785 | ||||
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $21,598 and $25,028, respectively, as of December 31, 2019 and 2020, and due to a related party of $33,536 and $34,123, respectively, as of December 31, 2019 and 2020.) | 91,065 | 106,171 | ||||||
Liabilities held for sale (current) (including liabilities held for sale (current) of consolidated VIEs without recourse to the Company of $138,303 and $187,712, respectively, as of December 31, 2019 and 2020) | 453,111 | 416,998 | ||||||
Total current liabilities | 1,100,867 | 1,284,730 | ||||||
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of NaN as of both December 31, 2019 and 2020) | 767 | 3,202 | ||||||
Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of NaN as of both December 31, 2019 and 2020) | 0 | 92,000 | ||||||
Long-term tax liabilities (including long-term tax liabilities of consolidated VIEs without recourse to the Company of $13,220 and $14,134, respectively, as of December 31, 2019 and 2020) | 181,640 | 188,760 | ||||||
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $1,998 and $2,014, respectively, as of December 31, 2019 and 2020) | 95,904 | 217,593 | ||||||
Other long-term liabilities (including other long-term liabilities of consolidated VIEs without recourse to the Company of NaN and $286, respectively, as of December 31, 2019 and 2020) | 83 | 3,855 | ||||||
Liabilities held for sale (non-current) (including liabilities held for sale(non-current) of consolidated VIEs without recourse to the Company of $1,130 and NaN, respectively, as of December 31, 2019 and 2020) | 5,686 | 0 | ||||||
Total long-term liabilities | 284,080 | 505,410 | ||||||
Total liabilities | $ | 1,384,947 | $ | 1,790,140 | ||||
Commitments and contingencies | 0 | 0 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Sohu.com Limited shareholders’ equity: | ||||||||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,269 shares and 39,306 shares, respectively, issued and outstanding as of December 31, 2019 and 2020) | $ | 39 | $ | 39 | ||||
Additional paid-in capital | 948,201 | 952,733 | ||||||
Accumulated other comprehensive income | 24,351 | 29,189 | ||||||
Accumulated deficit | (544,137 | ) | (634,592 | ) | ||||
Total Sohu.com Limited shareholders’ equity | 428,454 | 347,369 | ||||||
Noncontrolling interest | 878,463 | 684,612 | ||||||
Total shareholders’ equity | 1,306,917 | 1,031,981 | ||||||
Total liabilities and shareholders’ equity | $ | 2,691,864 | $ | 2,822,121 | ||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Revenues: | ||||||||||||
Brand advertising (including revenues generated from a related party of $174, $227 and $173, respectively, for 2019, 2020 and 2021) | $ | 175,056 | $ | 146,526 | $ | 134,967 | ||||||
Online games | 440,902 | 536,684 | 638,225 | |||||||||
Others (including revenues generated from a related party of $3,796, $3,752 and $4,155, respectively, for 2019, 2020 and 2021) | 57,845 | 66,680 | 62,384 | |||||||||
Total revenues | 673,803 | 749,890 | 835,576 | |||||||||
Cost of revenues: | ||||||||||||
Brand advertising | 126,406 | 105,604 | 99,522 | |||||||||
Online games | 88,992 | 91,526 | 87,616 | |||||||||
Others (including cost generated from a related party of $57, NaN and NaN , respectively, for 2019, 2020 and 2021) | 28,249 | 20,307 | 17,533 | |||||||||
Total cost of revenues | 243,647 | 217,437 | 204,671 | |||||||||
Gross profit | 430,156 | 532,453 | 630,905 | |||||||||
Operating expenses: | ||||||||||||
Product development | 234,852 | 241,941 | 268,863 | |||||||||
Sales and marketing | 204,665 | 159,787 | 182,690 | |||||||||
General and administrative (including expenses generated from a related party of NaN, $55 and $35, respectively, for 2019, 2020 and 2021) | 54,591 | 57,354 | 81,880 | |||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 7,245 | 0 | 0 | |||||||||
Total operating expenses | 501,353 | 459,082 | 533,433 | |||||||||
Operating profit/(loss) | (71,197 | ) | 73,371 | 97,472 | ||||||||
Other income, net | 7,963 | 25,993 | 29,416 | |||||||||
Interest income (including interest income generated from a related party of $1,015, $810 and NaN, respectively, for 2019, 2020 and 2021) | 6,103 | 7,369 | 15,641 | |||||||||
Interest expense (including interest expense generated from a related party of $818, $588, and NaN, respectively, for 2019, 2020 and 2021) | (14,370 | ) | (6,234 | ) | (7,500 | ) | ||||||
Exchange difference | 1,430 | (3,800 | ) | (3,462 | ) | |||||||
Income/(loss) before income tax expense | (70,071 | ) | 96,699 | 131,567 | ||||||||
Income tax expense | 28,428 | 133,226 | 62,296 | |||||||||
Net income/(loss) from continuing operations | (98,499 | ) | (36,527 | ) | 69,271 | |||||||
Net income/(loss) from discontinued operations, net of tax | 55,108 | (91,793 | ) | 864,902 | ||||||||
Net income/(loss) | (43,391 | ) | (128,320 | ) | 934,173 | |||||||
Less: Net income/(loss) from continuing operations attributable to the noncontrolling interest shareholders | 58,223 | 18,448 | (3 | ) | ||||||||
Less: Net income/(loss) from discontinued operations attributable to the noncontrolling interest shareholders | 47,722 | (60,656 | ) | 6,451 | ||||||||
Net income/(loss) from continuing operations attributable to Sohu.com Limited | (156,722 | ) | (54,975 | ) | 69,274 | |||||||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited | 7,386 | (31,137 | ) | 858,451 | ||||||||
Net income/(loss) attributable to Sohu.com Limited | $ | (149,336 | ) | $ | (86,112 | ) | $ | 927,725 | ||||
Net income/(loss) | $ | (43,391 | ) | $ | (128,320 | ) | $ | 934,173 | ||||
Foreign currency translation adjustments | (13,069 | ) | 11,972 | 23,474 | ||||||||
Other comprehensive income/(loss) | (13,069 | ) | 11,972 | 23,474 | ||||||||
Comprehensive income/(loss) | (56,460 | ) | (116,348 | ) | 957,647 | |||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interest shareholders | 93,244 | (35,074 | ) | 7,966 | ||||||||
Comprehensive income/(loss) attributable to Sohu.com Limited | (149,704 | ) | (81,274 | ) | 949,681 | |||||||
Basic net income/(loss) per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (3.99 | ) | $ | (1.39 | ) | $ | 1.75 | ||||
Discontinued operations | 0.19 | (0.79 | ) | 21.74 | ||||||||
Net income/(loss) per share | (3.80 | ) | (2.18 | ) | 23.49 | |||||||
Shares used in computing basic net income per share attributable to Sohu.com Limited | 39,249 | 39,452 | 39,501 | |||||||||
Diluted net income/(loss) per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (4.01 | ) | $ | (1.40 | ) | $ | 1.75 | ||||
Discontinued operations | 0.18 | (0.79 | ) | 21.74 | ||||||||
Net loss per share | (3.83 | ) | (2.19 | ) | 23.49 | |||||||
Shares used in computing diluted net income per share attributable to Sohu.com Limited | 39,249 | 39,452 | 39,501 | |||||||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Revenues: | ||||||||||||
Brand advertising (including revenues generated from a related party of $224, $174 and $227, respectively, for 2018, 2019 and 2020) | $ | 232,339 | $ | 175,056 | $ | 146,526 | ||||||
Online games | 389,788 | 440,902 | 536,684 | |||||||||
Others (including revenues generated from a related party of $2,187, $3,796 and $3,752, respectively, for 2018, 2019 and 2020) | 68,048 | 57,845 | 66,680 | |||||||||
Total revenues | 690,175 | 673,803 | 749,890 | |||||||||
Cost of revenues: | ||||||||||||
Brand advertising | 184,473 | 126,406 | 105,604 | |||||||||
Online games | 60,981 | 88,992 | 91,526 | |||||||||
Others (including cost generated from a related party of $237, $57 and NaN respectively, for 2018, 2019 and 2020) | 43,562 | 28,249 | 20,307 | |||||||||
Total cost of revenues | 289,016 | 243,647 | 217,437 | |||||||||
Gross profit | 401,159 | 430,156 | 532,453 | |||||||||
Operating expenses: | ||||||||||||
Product development | 246,155 | 234,852 | 241,941 | |||||||||
Sales and marketing | 236,898 | 204,665 | 159,787 | |||||||||
General and administrative | 70,129 | 54,591 | 57,354 | |||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 16,369 | 7,245 | 0 | |||||||||
Total operating expenses | 569,551 | 501,353 | 459,082 | |||||||||
Operating profit/(loss) | (168,392 | ) | (71,197 | ) | 73,371 | |||||||
Other income, net | 30,701 | 7,963 | 25,993 | |||||||||
Interest income (including interest income generated from a related party of $1,051, $1,015 and $810, respectively, for 2018, 2019 and 2020) | 16,036 | 6,103 | 7,369 | |||||||||
Interest expense (including interest expense generated from a related party of $519, $818, and $588, respectively, for 2018, 2019 and 2020) | (17,538 | ) | (14,370 | ) | (6,234 | ) | ||||||
Exchange difference | 3,301 | 1,430 | (3,800 | ) | ||||||||
Income/(loss) before income tax expense /(benefit) | (135,892 | ) | (70,071 | ) | 96,699 | |||||||
Income tax expense /(benefit) | (14,586 | ) | 28,428 | 133,226 | ||||||||
Net loss from continuing operations | (121,306 | ) | (98,499 | ) | (36,527 | ) | ||||||
Net income/(loss) from discontinued operations, net of tax | 53,947 | 55,108 | (91,793 | ) | ||||||||
Net loss | (67,359 | ) | (43,391 | ) | (128,320 | ) | ||||||
Less: Net income from continuing operations attributable to the noncontrolling interest shareholders | 41,732 | 58,223 | 18,448 | |||||||||
Less: Net income/(loss) from discontinued operations attributable to the noncontrolling interest shareholders | 50,991 | 47,722 | (60,656 | ) | ||||||||
Net loss from continuing operations attributable to Sohu.com Limited | (163,038 | ) | (156,722 | ) | (54,975 | ) | ||||||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited | 2,956 | 7,386 | (31,137 | ) | ||||||||
Net loss attributable to Sohu.com Limited | $ | (160,082 | ) | $ | (149,336 | ) | $ | (86,112 | ) | |||
Net loss | $ | (67,359 | ) | $ | (43,391 | ) | $ | (128,320 | ) | |||
Foreign currency translation adjustments | (37,339 | ) | (13,069 | ) | 11,972 | |||||||
Other comprehensive income/(loss) | (37,339 | ) | (13,069 | ) | 11,972 | |||||||
Comprehensive loss | (104,698 | ) | (56,460 | ) | (116,348 | ) | ||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interest shareholders | 61,376 | 93,244 | (35,074 | ) | ||||||||
Comprehensive loss attributable to Sohu.com Limited | (166,074 | ) | (149,704 | ) | (81,274 | ) | ||||||
Basic net (loss)/income per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (4.18 | ) | $ | (3.99 | ) | $ | (1.39 | ) | |||
Discontinued operations | 0.07 | 0.19 | (0.79 | ) | ||||||||
Net loss per share | (4.11 | ) | (3.80 | ) | (2.18 | ) | ||||||
Shares used in computing basic net (loss)/income per share attributable to Sohu.com Limited | 38,959 | 39,249 | 39,452 | |||||||||
Diluted net (loss)/income per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (4.20 | ) | $ | (4.01 | ) | $ | (1.40 | ) | |||
Discontinued operations | 0.07 | 0.18 | (0.79 | ) | ||||||||
Net loss per share | (4.13 | ) | (3.83 | ) | (2.19 | ) | ||||||
Shares used in computing diluted net (loss)/income per share attributable to Sohu.com Limited | 38,959 | 39,249 | 39,452 | |||||||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (67,359 | ) | $ | (43,391 | ) | $ | (128,320 | ) | |||
Net income/(loss) from discontinued operations, net of tax | 53,947 | 55,108 | (91,793 | ) | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Amortization of intangible assets and purchased video content in prepaid expense | 58,064 | 38,842 | 14,386 | |||||||||
Depreciation | 32,109 | 28,225 | 25,466 | |||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 16,369 | 7,245 | 0 | |||||||||
Share-based compensation expense | (12,108 | ) | 2,350 | 14,480 | ||||||||
Impairment of long-term investment | 0 | 23,154 | 384 | |||||||||
Impairment of other intangible assets and other assets | 10,797 | 5,903 | 4,156 | |||||||||
Research and development expense allocation | (671 | ) | 0 | 0 | ||||||||
Investment loss/(gain) from equity investments | 3,968 | (2,960 | ) | 465 | ||||||||
Allowance for credit losses | 5,449 | 4,725 | 4,884 | |||||||||
Gain from sale of equity investments | (134 | ) | 0 | 0 | ||||||||
Change in fair value of financial instruments | 11,201 | (1,185 | ) | 1,784 | ||||||||
Others | 152 | (786 | ) | (390 | ) | |||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | 10,998 | (13,152 | ) | 39,979 | ||||||||
Prepaid and other assets | 5,758 | 5,574 | (10,276 | ) | ||||||||
Accounts payable | (1,628 | ) | (160 | ) | (3,358 | ) | ||||||
Receipts in advance and deferred revenue | (524 | ) | (3,689 | ) | (96 | ) | ||||||
Tax liabilities | (79,238 | ) | (2,253 | ) | 8,683 | |||||||
Deferred tax | 43,194 | 11,202 | 102,626 | |||||||||
Accrued liabilities and other short-term liabilities | (34,593 | ) | (22,803 | ) | (3,252 | ) | ||||||
Net cash provided by/(used in) continuing operating activities | (52,143 | ) | (18,267 | ) | 163,394 | |||||||
Net cash provided by/(used in) discontinued operating activities | 136,168 | 228,857 | (68,187 | ) | ||||||||
Net cash provided by operating activities | 84,025 | 210,590 | 95,207 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of fixed assets | (25,217 | ) | (15,081 | ) | (6,339 | ) | ||||||
Purchase of intangible and other assets | (96,317 | ) | (50,583 | ) | (27,441 | ) | ||||||
Purchase of long-term investments | (727 | ) | (12,290 | ) | (114 | ) | ||||||
Return of funds from a third party | 5,264 | 0 | 0 | |||||||||
Proceeds from financial instruments | 1,783,772 | 883,991 | 1,423,600 | |||||||||
Purchase of financial instruments | (1,499,491 | ) | (1,022,049 | ) | (1,206,777 | ) | ||||||
Proceeds received from sale of equity investment | 12,073 | 0 | 0 | |||||||||
Other cash proceeds related to investing activities | 789 | 1,198 | 1,464 | |||||||||
Net cash provided by/(used in) continuing investing activities | 180,146 | (214,814 | ) | 184,393 | ||||||||
Net cash provided by/(used in) discontinued investing activities | (639,390 | ) | (228,406 | ) | 235,374 | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income/(loss) | $ | (43,391 | ) | $ | (128,320 | ) | $ | 934,173 | ||||
Net income/(loss) from discontinued operations, net of tax | 55,108 | (91,793 | ) | 864,902 | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Amortization of intangible assets and purchased video content in prepaid expense | 38,842 | 14,386 | 12,461 | |||||||||
Depreciation | 28,225 | 25,466 | 23,495 | |||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 7,245 | 0 | 0 | |||||||||
Share-based compensation expense | 2,350 | 14,480 | 8,578 | |||||||||
Impairment of long-term investment | 23,154 | 384 | 215 | |||||||||
Impairment of other intangible assets and other assets | 5,903 | 4,156 | 1,758 | |||||||||
Investment loss/(gain) from equity investments | (2,960 | ) | 465 | (6,345 | ) | |||||||
Allowance for credit losses | 4,725 | 4,884 | 7,970 | |||||||||
Change in fair value of financial instruments | (1,185 | ) | 1,784 | (2,470 | ) | |||||||
Others | (786 | ) | (390 | ) | (909 | ) | ||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | (13,152 | ) | 39,979 | 444 | ||||||||
Prepaid and other assets | 5,574 | (10,276 | ) | (2,770 | ) | |||||||
Accounts payable | (160 | ) | (3,358 | ) | (904 | ) | ||||||
Receipts in advance and deferred revenue | (3,689 | ) | (96 | ) | 3,776 | |||||||
Tax liabilities | (2,253 | ) | 8,683 | (4,968 | ) | |||||||
Deferred tax | 11,202 | 102,626 | 26,239 | |||||||||
Accrued liabilities and other short-term liabilities | (22,803 | ) | (3,252 | ) | | (22,231 | ||||||
Net cash provided by/(used in) continuing operating activities | (18,267 | ) | 163,394 | | 113,610 | | ||||||
Net cash provided by/(used in) discontinued operating activities | 228,857 | (68,187 | ) | | (175,888 | |||||||
Net cash provided by/(used in) operating activities | 210,590 | 95,207 | (62,278 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of fixed assets | (15,081 | ) | (6,339 | ) | (6,718 | ) | ||||||
Purchase of intangible and other assets | (50,583 | ) | (27,441 | ) | (35,489 | ) | ||||||
Purchase of long-term investments | (12,290 | ) | (114 | ) | (15,891 | ) | ||||||
Purchase of time deposits | 0 | 0 | (188,215 | ) | ||||||||
Proceeds from financial instruments | 883,991 | 1,423,600 | 740,730 | |||||||||
Purchase of financial instruments | (1,022,049 | ) | (1,206,777 | ) | (1,034,337 | ) | ||||||
Other cash proceeds related to investing activities | 1,198 | 1,464 | | 2,501 | | |||||||
Net cash provided by/(used in) continuing investing activities | (214,814 | ) | 184,393 | | (537,419 | |||||||
Net cash provided by/(used in) discontinued investing activities | (228,406 | ) | 235,374 | | 1,054,148 | | ||||||
Net cash provided by/(used in) investing activities | (443,220 | ) | 419,767 | 516,729 | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term bank loans | 0 | 92,000 | 0 | |||||||||
Proceeds from short-term bank loans | 58,035 | 315,550 | 153,000 | |||||||||
Exercise of share-based awards in subsidiaries | 7 | 0 | 0 | |||||||||
Repurchase of Sohu Ordinary Shares, represented by ADSs | 0 | 0 | (17,418 | ) | ||||||||
Repayments of loans from banks | (371,973 | ) | (113,952 | ) | (560,550 | ) | ||||||
Acquisition of noncontrolling interests in Changyou Merger | 0 | (191,803 | ) | 0 | ||||||||
Distribution of Changyou dividend to noncontrolling interest shareholders | (165,817 | ) | 0 | 0 | ||||||||
Net cash provided by/(used in) continuing financing activities | (479,748 | ) | 101,795 | (424,968 | ) | |||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) | ||||||
Net cash provided by/(used in) financing activities | (513,163 | ) | 93,586 | (434,100 | ) | |||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted time deposits | (10,047 | ) | 36,984 | 20,997 | ||||||||
Net increase/(decrease) in cash, cash equivalents, restricted cash, and restricted time deposits | (755,840 | ) | 645,544 | 41,348 | ||||||||
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year | 1,069,866 | 314,026 | 959,570 | |||||||||
Cash, cash equivalents, restricted cash and restricted time deposits at end of year | $ | 314,026 | $ | 959,570 | $ | 1,000,918 | ||||||
Less: Cash, cash equivalents, restricted cash and restricted time deposits of discontinued operations, end of year | 147,834 | 310,203 | 0 | |||||||||
Cash, cash equivalents, restricted cash and restricted time deposits of continuing operations, end of year | 166,192 | 649,367 | 1,000,918 | |||||||||
Supplemental cash flow disclosures from continuing operations: | ||||||||||||
Cash paid for income taxes | (27,781 | ) | (35,705 | ) | (46,145 | ) | ||||||
Cash paid for interest expense | (12,947 | ) | (3,778 | ) | (7,633 | ) | ||||||
Barter transactions | 4,357 | 4,039 | 5,086 | |||||||||
Supplemental schedule of non-cash investing activity from continuing operations: | ||||||||||||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | (24,568 | ) | (20,964 | ) | (19,391 | ) |
Net cash provided by/(used in) investing activities | (459,244 | ) | (443,220 | ) | 419,767 | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term bank loans | 251,738 | 0 | 92,000 | |||||||||
Proceeds from short-term bank loans | 74,056 | 58,035 | 315,550 | |||||||||
Exercise of share-based awards in subsidiaries | 11 | 7 | 0 | |||||||||
Repayments of loans from banks | (67,011 | ) | (371,973 | ) | (113,952 | ) | ||||||
Acquisition of noncontrolling interests in Changyou Merger | 0 | 0 | (191,803 | ) | ||||||||
Distribution of Changyou dividend to noncontrolling interest shareholders | (162,461) | (165,817 | ) | 0 | ||||||||
Net cash provided by/(used in) continuing financing activities | 96,333 | (479,748 | ) | 101,795 | ||||||||
Net cash provided by/(used in) discontinued financing activities | 1 | (33,415 | ) | (8,209 | ) | |||||||
Net cash provided by/(used in) financing activities | 96,334 | (513,163 | ) | 93,586 | ||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted time deposits | (19,544 | ) | (10,047 | ) | 36,984 | |||||||
Net increase/(decrease) in cash, cash equivalents, restricted cash, and restricted time deposits | (298,429 | ) | (755,840 | ) | 645,544 | |||||||
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year | 1,368,295 | 1,069,866 | 314,026 | |||||||||
Cash, cash equivalents, restricted cash and restricted time deposits at end of year | $ | 1,069,866 | $ | 314,026 | $ | 959,570 | ||||||
Less: Cash, cash equivalents, restricted cash and restricted time deposits of discontinued operations, end of year | 187,867 | 147,834 | 310,203 | |||||||||
Cash, cash equivalents, restricted cash and restricted time deposits of continuing operations, end of year | 881,999 | 166,192 | 649,367 | |||||||||
Supplemental cash flow disclosures from continuing operations: | ||||||||||||
Cash paid for income taxes | (38,737 | ) | (27,781 | ) | (35,705 | ) | ||||||
Cash paid for interest expense | (12,563 | ) | (12,947 | ) | (3,778 | ) | ||||||
Barter transactions | 6,587 | 4,357 | 4,039 | |||||||||
Supplemental schedule of non-cash investing activity from continuing operations: | ||||||||||||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | (31,406 | ) | (24,568 | ) | (20,964 | ) |
Sohu.com Limited Shareholders’ Equity | ||||||||||||||||||||||||||||
Total | Ordinary Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Noncontrolling Interest | ||||||||||||||||||||||
Beginning balance | $ | 1,817,237 | 45 | 1,098,455 | (143,858 | ) | 38,212 | (242,220 | ) | 1,066,603 | ||||||||||||||||||
Impact of adoption of new accounting standards* | 0 | 0 | 0 | 0 | (7,501 | ) | 7,501 | 0 | ||||||||||||||||||||
Share-based compensation expense | 2,095 | 0 | (5,559 | ) | 0 | 0 | 0 | 7,654 | ||||||||||||||||||||
Settlement/Adjustment of share-based awards in subsidiary | 1,811 | 0 | 9,839 | 0 | 0 | 0 | (8,028 | ) | ||||||||||||||||||||
Distribution of Changyou dividend to noncontrolling interest shareholders | (162,461 | ) | 0 | 0 | 0 | 0 | 0 | (162,461 | ) | |||||||||||||||||||
Disposal of a majority-owned subsidiary | (2,113 | ) | 0 | 0 | 0 | 0 | 0 | (2,113 | ) | |||||||||||||||||||
Liquidation of Sohu.com Inc. | 0 | (6 | ) | (143,852 | ) | 143,858 | 0 | 0 | 0 | |||||||||||||||||||
Net income/(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (67,359 | ) | 0 | 0 | 0 | 0 | (160,082 | ) | 92,723 | |||||||||||||||||||
Accumulated other comprehensive loss | (37,339 | ) | 0 | 0 | 0 | (5,992 | ) | 0 | (31,347 | ) | ||||||||||||||||||
Others | 1,080 | 0 | 0 | 0 | 0 | 0 | 1,080 | |||||||||||||||||||||
Ending balance | $ | 1,552,951 | 39 | 958,883 | 0 | 24,719 | (394,801 | ) | 964,111 | |||||||||||||||||||
Sohu.com Limited Shareholders’ Equity | ||||||||||||||||||||||||||||
Total | Ordinary Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Noncontrolling Interest | ||||||||||||||||||||||
Beginning balance | $ | 1,552,951 | 39 | 958,883 | 0 | 24,719 | (394,801 | ) | 964,111 | |||||||||||||||||||
Share-based compensation expense | 18,251 | 0 | 1,045 | 0 | 0 | 0 | 17,206 | |||||||||||||||||||||
Settlement/adjustment of share-based awards in subsidiary | 698 | 0 | 2,555 | 0 | 0 | 0 | (1,857 | ) | ||||||||||||||||||||
Distribution shareholders | (166,507 | ) | 0 | 0 | 0 | 0 | 0 | (166,507 | ) | |||||||||||||||||||
Net income/(loss) attributable to Sohu.com Limited noncontrolling interest shareholders | (43,391 | ) | 0 | 0 | 0 | 0 | (149,336 | ) | 105,945 | |||||||||||||||||||
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (42,016 | ) | 0 | (14,282 | ) | 0 | 0 | 0 | (27,734 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (13,069 | ) | 0 | 0 | 0 | (368 | ) | 0 | (12,701 | ) | ||||||||||||||||||
Ending balance | $ | 1,306,917 | 39 | 948,201 | 0 | 24,351 | (544,137 | ) | 878,463 | |||||||||||||||||||
Sohu.com Limited Shareholders’ Equity | ||||||||||||||||||||||||||||
Total | Ordinary Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Noncontrolling Interest | ||||||||||||||||||||||
Beginning balance | $ | 1,552,951 | 39 | 958,883 | 0 | 24,719 | (394,801 | ) | 964,111 | |||||||||||||||||||
Share-based compensation expense | 18,251 | 0 | 1,045 | 0 | 0 | 0 | 17,206 | |||||||||||||||||||||
Settlement/Adjustment of share-based awards in subsidiary | 698 | 0 | 2,555 | 0 | 0 | 0 | (1,857 | ) | ||||||||||||||||||||
Distribution of Changyou dividend to noncontrolling interest shareholders | (166,507 | ) | 0 | 0 | 0 | 0 | 0 | (166,507 | ) | |||||||||||||||||||
Net income/(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (43,391 | ) | 0 | 0 | 0 | 0 | (149,336 | ) | 105,945 | |||||||||||||||||||
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (42,016 | ) | 0 | (14,282 | ) | 0 | 0 | 0 | (27,734 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (13,069 | ) | 0 | 0 | 0 | (368 | ) | 0 | (12,701 | ) | ||||||||||||||||||
Ending balance | $ | 1,306,917 | 39 | 948,201 | 0 | 24,351 | (544,137 | ) | 878,463 | |||||||||||||||||||
Sohu.com Limited Shareholders’ Equity | ||||||||||||||||||||||||||||
Total | Ordinary Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Noncontrolling Interest | ||||||||||||||||||||||
Beginning balance | $ | 1,306,917 | 39 | 948,201 | 0 | 24,351 | (544,137 | ) | 878,463 | |||||||||||||||||||
Share-based compensation expense | 18,115 | 0 | 1,935 | 0 | 0 | 0 | 16,180 | |||||||||||||||||||||
Settlement/adjustment of share-based awards in subsidiary | 1,862 | 0 | 2,476 | 0 | 0 | 0 | (614 | ) | ||||||||||||||||||||
Modification - based | (10,506 | ) | 0 | 0 | 0 | 0 | 0 | (10,506 | ) | |||||||||||||||||||
Net loss attributable to Sohu.com Limited and noncontrolling interest shareholders | (128,320 | ) | 0 | 0 | 0 | 0 | (86,112 | ) | (42,208 | ) | ||||||||||||||||||
Repurchase noncontrolling shareholders | (8,301 | ) | 0 | (2,847 | ) | 0 | 0 | 0 | (5,454 | ) | ||||||||||||||||||
Acquisition of a partially-held subsidiary | 642 | 0 | 31 | 0 | 0 | 0 | 611 | |||||||||||||||||||||
Impact of adoption of new accounting standards* | (6,656 | ) | 0 | 0 | 0 | 0 | (4,343 | ) | (2,313 | ) | ||||||||||||||||||
Acquisition Merger | (191,803 | ) | 0 | 2,937 | 0 | (38,059 | ) | 0 | (156,681 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | 50,031 | 0 | 0 | 0 | 42,897 | 0 | 7,134 | |||||||||||||||||||||
Ending balance | $ | 1,031,981 | 39 | 952,733 | 0 | 29,189 | (634,592 | ) | 684,612 | |||||||||||||||||||
* | For details see Note 2 - Summary of Significant Accounting Policies- Accounts Receivable, Net- Allowance of credit losses. |
Sohu.com Limited Shareholders’ Equity | ||||||||||||||||||||||||||||
Total | Ordinary Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Noncontrolling Interest | ||||||||||||||||||||||
Beginning balance | $ | 1,306,917 | 39 | 948,201 | 0 | 24,351 | (544,137 | ) | 878,463 | |||||||||||||||||||
Share-based compensation expense | 18,115 | 0 | 1,935 | 0 | 0 | 0 | 16,180 | |||||||||||||||||||||
Settlement/Adjustment of share-based awards in subsidiary | 1,862 | 0 | 2,476 | 0 | 0 | 0 | (614 | ) | ||||||||||||||||||||
Modification of share-based awards in Changyou | (10,506 | ) | 0 | 0 | 0 | 0 | 0 | (10,506 | ) | |||||||||||||||||||
Net loss attributable to Sohu.com Limited and noncontrolling interest shareholders | (128,320 | ) | 0 | 0 | 0 | 0 | (86,112 | ) | (42,208 | ) | ||||||||||||||||||
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (8,301 | ) | 0 | (2,847 | ) | 0 | 0 | 0 | (5,454 | ) | ||||||||||||||||||
Acquisition of a partially-held subsidiary | 642 | 0 | 31 | 0 | 0 | 0 | 611 | |||||||||||||||||||||
Impact of adoption of new accounting standards* | (6,656 | ) | 0 | 0 | 0 | 0 | (4,343 | ) | (2,313 | ) | ||||||||||||||||||
Acquisition of noncontrolling interests in Changyou Merger | (191,803 | ) | 0 | 2,937 | 0 | (38,059 | ) | 0 | (156,681 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | 50,031 | 0 | 0 | 0 | 42,897 | 0 | 7,134 | |||||||||||||||||||||
Ending balance | $ | 1,031,981 | 39 | 952,733 | 0 | 29,189 | (634,592 | ) | 684,612 | |||||||||||||||||||
Sohu.com Limited Shareholders’ Equity | ||||||||||||||||||||||||||||
Total | Ordinary Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Earnings/(Deficit) | Noncontrolling Interest | ||||||||||||||||||||||
Beginning balance | $ | 1,031,981 | 39 | 952,733 | 0 | 29,189 | (634,592 | ) | 684,612 | |||||||||||||||||||
Share-based compensation expense | 4,427 | 0 | 805 | 0 | 0 | 0 | 3,622 | |||||||||||||||||||||
Settlement/adjustment of share-based awards in subsidiary | 0 | 0 | 7,579 | 0 | 0 | 0 | (7,579 | ) | ||||||||||||||||||||
Net income attributable to Sohu.com Limited and | 934,173 | 0 | 0 | 0 | 0 | 927,725 | 6,448 | |||||||||||||||||||||
Repurchase of Sohu Ordinary Shares, represented by ADSs | (18,776 | ) | 0 | 0 | (18,776 | ) | 0 | 0 | 0 | |||||||||||||||||||
Disposal of noncontrolling interests in Tencent/Sohu Sogou Share Purchase | (687,303 | ) | 0 | 0 | 0 | 0 | 0 | (687,303 | ) | |||||||||||||||||||
Write-down of transaction costs related to business acquisitions | 4,211 | 0 | 4,211 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Accumulated other comprehensive income | 23,474 | 0 | 0 | 0 | 21,956 | 0 | 1,518 | |||||||||||||||||||||
Ending balance | $ | 1,292,187 | 39 | 965,328 | (18,776 | ) | 51,145 | 293,133 | 1,318 | |||||||||||||||||||
1. THE COMPANY AND NATURE OF OPERATIONS |
Name of Entity | Date of Incorporation/Acquisition | Place of Incorporation/ Acquisition | Effective Interest held Interest held through equity ownership/contractual arrangements | |||||
Subsidiaries: | ||||||||
For Sohu: | ||||||||
Sohu.com (Hong Kong) Limited | Incorporated on April 19, 2000 | Hong Kong | 100 | % | ||||
Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”) | Incorporated on July 25, 2003 | People’s Republic of China | 100 | % | ||||
Sohu.com (Search) Limited (“Sohu Search”) | Incorporated on October 28, 2005 | Cayman Islands | 100 | % | ||||
Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) | Incorporated on June 19, 2006 | People’s Republic of China | 100 | % | ||||
Sohu.com (Game) Limited (“Sohu Game”) | Incorporated on February 11, 2008 | Cayman Islands | 100 | % | ||||
Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”) | Incorporated on May 31, 2010 | People’s Republic of China | 100 | % | ||||
Fox Video Limited (“Sohu Video”) | Incorporated on July 26, 2011 | Cayman Islands | 100 | % | ||||
Fox Information Technology (Tianjin) Limited (“Video Tianjin”) | Incorporated on November 17, 2011 | People’s Republic of China | 100 | % | ||||
Sohu Focus Limited | Incorporated on July 11, 2013 | Cayman Islands | 100 | % | ||||
Sohu Focus (HK) Limited (“Focus HK”) | Incorporated on July 26, 2013 | Hong Kong | 100 | % | ||||
For Changyou: | ||||||||
Changyou.com Limited (“Changyou”) | Incorporated on August 6, 2007 | Cayman Islands | 100 | % | ||||
Changyou.com (HK) Limited (“Changyou HK”) | Incorporated on August 13, 2007 | Hong Kong | 100 | % | ||||
Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”) | Incorporated on September 26, 2007 | People’s Republic of China | 100 | % | ||||
Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”) | Incorporated on October 29, 2009 | People’s Republic of China | 100 | % | ||||
Changyou.com Korea LLC | Incorporated on January 7, 2010 | Korea | 100 | % | ||||
Beijing Changyou Chuangxiang Software Technology Co., Ltd. (“Changyou Chuangxiang”) | Incorporated on November 8, 2016 | People’s Republic of China | 100 | % | ||||
VIEs: | ||||||||
For Sohu: | ||||||||
Beijing Century High-Tech Investment Co., Ltd. (“High Century”) | Incorporated on December 28, 2001 | People’s Republic of China | 100 | % | ||||
BeijingHengDaYiTongInformationTechnologyCo.,Ltd. Tong”) | Incorporated on February 7, 2002 | People’s Republic of China | 100 | % | ||||
Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”) | Incorporated on July 31, 2003 | People’s Republic of China | 100 | % | ||||
Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) | Incorporated on May 17, 2010 | People’s Republic of China | 100 | % | ||||
Tianjin Jinhu Culture Development Co., Ltd (“Tianjin Jinhu”) | Incorporated on November 24, 2011 | People’s Republic of China | 100 | % | ||||
Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) | Incorporated on July 15, 2014 | People’s Republic of China | 100 | % | ||||
Guangzhou Qianjun Network Technology Co., Ltd. (“Guangzhou Qianjun”) | Acquired on November 25, 2014 | People’s Republic of China | 100 | % | ||||
For Changyou: | ||||||||
Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”) | Incorporated on August 23, 2007 | People’s Republic of China | 100 | % | ||||
Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) | Acquired on May 28, 2010 | People’s Republic of China | 100 | % | ||||
Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) | Incorporated on August 5, 2010 | People’s Republic of China | 100 | |||||
Year Ended December 31, 2018 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 127,612 | 0 | 127,612 | ||||||||
Sohu Video | 53,886 | 0 | 53,886 | |||||||||
Focus | 31,144 | 0 | 31,144 | |||||||||
17173.com Website | 0 | 19,697 | 19,697 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 236,743 | 236,743 | |||||||||
Mobile games | 0 | 151,737 | 151,737 | |||||||||
Other games | 0 | 1,308 | 1,308 | |||||||||
Others | 61,974 | 6,074 | 68,048 | |||||||||
Total | $ | 274,616 | 415,559 | 690,175 | ||||||||
Year Ended December 31, 2019 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 94,692 | 0 | 94,692 | ||||||||
Sohu Video | 34,529 | 0 | 34,529 | |||||||||
Focus | 32,120 | 0 | 32,120 | |||||||||
17173.com Website | 0 | 13,715 | 13,715 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 267,752 | 267,752 | |||||||||
Mobile games | 0 | 172,718 | 172,718 | |||||||||
Other games | 0 | 432 | 432 | |||||||||
Others | 57,082 | 763 | 57,845 | |||||||||
Total | $ | 218,423 | 455,380 | 673,803 | ||||||||
Year Ended December 31, 2020 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 86,293 | 0 | 86,293 | ||||||||
Sohu Video | 25,312 | 0 | 25,312 | |||||||||
Focus | 23,281 | 0 | 23,281 | |||||||||
17173.com Website | 0 | 11,640 | 11,640 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 353,737 | 353,737 | |||||||||
Mobile games | 0 | 182,947 | 182,947 | |||||||||
Other games | 0 | 0 | 0 | |||||||||
Others | 66,658 | 22 | 66,680 | |||||||||
Total | $ | 201,544 | 548,346 | 749,890 |
Year Ended December 31, 2020 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 86,293 | 0 | 86,293 | ||||||||
Sohu Video | 25,312 | 0 | 25,312 | |||||||||
Focus | 23,281 | 0 | 23,281 | |||||||||
17173.com Website | 0 | 11,640 | 11,640 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 353,737 | 353,737 | |||||||||
Mobile games | 0 | 182,947 | 182,947 | |||||||||
Others | 66,658 | 22 | 66,680 | |||||||||
Total | $ | 201,544 | 548,346 | 749,890 | ||||||||
Year Ended December 31, 2021 (in thousands) | ||||||||||||
Sohu | Changyou | Total | ||||||||||
Brand advertising: | ||||||||||||
Sohu Media Portal | $ | 75,408 | 0 | 75,408 | ||||||||
Sohu Video | 26,803 | 0 | 26,803 | |||||||||
Focus | 22,013 | 0 | 22,013 | |||||||||
17173.com Website | 0 | 10,743 | 10,743 | |||||||||
Online games: | ||||||||||||
PC games | 0 | 469,332 | 469,332 | |||||||||
Mobile games | 0 | 168,893 | 168,893 | |||||||||
Others | 62,382 | 2 | 62,384 | |||||||||
Total | $ | 186,606 | 648,970 | 835,576 | ||||||||
December 31, 2019 | ASU 2016-13 adjustment | January 1, 2020 | ||||||||||
Allowance for credit losses | ||||||||||||
Accounts receivable, net | $ | 126,081 | $ | (3,383 | ) | $ | 122,698 | |||||
Accounts receivable and financing receivables, net classified as assets held for sale (1) | 134,635 | (3,273 | ) | 131,362 | ||||||||
Total assets | 2,691,864 | (6,656 | ) | 2,685,208 | ||||||||
Shareholders’ equity | ||||||||||||
Accumulated deficit | (544,137 | ) | (6,656 | ) | (550,793 | ) |
As of December 31, | ||||||||
2019 | 2020 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 130,037 | $ | 94,528 | ||||
Less: Allowance for credit losses | (3,956 | ) | (7,007 | ) | ||||
$ | 126,081 | $ | 87,521 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | $ | 94,908 | ||||
Less: Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | $ | 82,550 |
As of December 31, | ||||||||
2019 | 2020 | |||||||
Less than 179 days | $ | 113,173 | $ | 78,805 | ||||
180-359 days | 6,516 | 7,569 | ||||||
360 days and greater | 10,348 | 8,154 | ||||||
Total | 130,037 | 94,528 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Less than 179 days | $ | 78,805 | $ | 79,155 | ||||
180-359 days | 7,569 | 7,437 | ||||||
360 days and greater | 8,154 | 8,316 | ||||||
Total | 94,528 | 94,908 |
For the year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Balance at the beginning of year | $ | 4,487 | $ | 7,574 | $ | 3,956 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 0 | 3,383 | |||||||||
Additional allowance for credit losses, net of recoveries | 5,449 | 4,724 | 2,419 | |||||||||
Write-offs | (1,940 | ) | (8,237 | ) | (3,231 | ) | ||||||
Exchange difference | (422 | ) | (105 | ) | 480 | |||||||
Balance at the end of year | 7,574 | 3,956 | 7,007 |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 7,574 | $ | 3,956 | $ | 7,007 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 3,383 | 0 | |||||||||
Additional allowance for credit losses, net of recoveries | 4,724 | 2,419 | 6,292 | |||||||||
Write-offs | (8,237 | ) | (3,231 | ) | (1,155 | ) | ||||||
Exchange difference | (105 | ) | 480 | 214 | ||||||||
Balance at the end of year | 3,956 | 7,007 | 12,358 |
As of December 31, | ||||||||
2019 | 2020 | |||||||
Accounts receivable | $ | 77,210 | $ | 35,975 | ||||
Financing receivables | 66,858 | 41,911 | ||||||
Less: Allowance for credit losses (1) | (12,255 | ) | (6,700 | ) | ||||
$ | 131,813 | $ | 71,186 |
1 - 30 DaysPast Due | 31 Days- Past | 6 1 -9 Days0 Past Due | Greater Past | Total Past Due | Current | Total | ||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||
Financing receivables by origination year | ||||||||||||||||||||||||||||
2018 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,744 | $ | 1,744 | ||||||||||||||
2019 | 10,606 | 1,635 | 1,176 | 1,709 | 15,126 | 49,988 | 65,114 | |||||||||||||||||||||
Total | 10,606 | 1,635 | 1,176 | 1,709 | 15,126 | 51,732 | 66,858 | |||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||
Financing receivables by origination year | ||||||||||||||||||||||||||||
2018 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,081 | $ | 1,081 | ||||||||||||||
2019 | 1 | 1 | 2 | 0 | 4 | 182 | 186 | |||||||||||||||||||||
2020 | 7,037 | 576 | 548 | 501 | 8,662 | 31,982 | 40,644 | |||||||||||||||||||||
Total | $ | 7,038 | $ | 577 | $ | 550 | $ | 501 | $ | 8,666 | $ | 33,245 | $ | 41,911 |
For the year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Beginning balance | $ | 384 | $ | 7,511 | $ | 12,255 | ||||||
Change on initial application of ASU 2016-13 (1) | 0 | 0 | 3,273 | |||||||||
Additional allowance for credit losses, net of recoveries | 9,119 | 15,620 | 3,049 | |||||||||
Write-offs | (1,908 | ) | (11,741 | ) | (12,517 | ) | ||||||
Exchange difference | (84 | ) | 865 | 640 | ||||||||
Balance at the end of year | $ | 7,511 | $ | 12,255 | $ | 6,700 |
Fixed Assets | Estimated Useful Lives (years) | |
Office buildings | 36-47 | |
Leasehold improvements | Lesser of term of the lease or the estimated useful lives of the assets | |
Vehicles | ||
Office furniture | 5 | |
Computer equipment and hardware |
Intangible Assets | Estimated Useful Lives (years) | |
Purchased video content | 1 month to 2 years | |
Computer software | 1-5 | |
Developed technologies | 3-10 | |
Domain names and trademarks | 4-30 | |
Operating rights for licensed games | over the contract terms |
As of December 31, 2019 | As of December 31, 2020 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 142,464 | $ | 287,185 | ||||
Restricted cash | 5,370 | 23,018 | ||||||
Short-term investments | 995,350 | 774,618 | ||||||
Account and financing receivables, net | 134,635 | 73,656 | ||||||
Prepaid and other current assets | 26,802 | 28,946 | ||||||
Long-term investments, ne t | 63,345 | 74,004 | ||||||
Fixed assets, net | 110,006 | 89,089 | ||||||
Goodwill | 5,534 | 6,527 | ||||||
Intangible assets, net | 1,514 | 1,446 | ||||||
Other assets | 37,281 | 53,679 | ||||||
Total assets associated with discontinued operations | $ | 1,522,301 | $ | 1,412,168 | ||||
LIABILITIES | ||||||||
Accounts payable | $ | 132,085 | $ | 122,695 | ||||
Accrued liabilities | 91,949 | 68,582 | ||||||
Receipts in advance | 67,902 | 64,414 | ||||||
Accrued salary and benefits | 24,167 | 25,350 | ||||||
Taxes payable | 76,688 | 64,082 | ||||||
Other short-term liabilities | 60,320 | 61,154 | ||||||
Long-term liabilities | 5,686 | 10,721 | ||||||
Total liabilities associated with discontinued operations | $ | 458,797 | $ | 416,998 | ||||
As of December 31, 2020 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 287,185 | ||
Restricted cash | 23,018 | |||
Short-term investments | 774,618 | |||
Account and financing receivables, net | 73,656 | |||
Prepaid and other current assets | 28,946 | |||
Long-term investments, net | 74,004 | |||
Fixed assets, net | 89,089 | |||
Goodwill | 6,527 | |||
Intangible assets, net | 1,446 | |||
Other assets | 53,679 | |||
Total assets associated with discontinued operations | $ | 1,412,168 | ||
LIABILITIES | ||||
Accounts payable | $ | 122,695 | ||
Accrued liabilities | 68,582 | |||
Receipts in advance | 64,414 | |||
Accrued salary and benefits | 25,350 | |||
Taxes payable | 64,082 | |||
Other short-term liabilities | 61,154 | |||
Long-term liabilities | 10,721 | |||
Total liabilities associated with discontinued operations | $ | 416,998 | ||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Revenues | $ | 1,124,158 | $ | 1,172,252 | $ | 924,664 | ||||||
Cost of revenues | 693,470 | 738,454 | 722,614 | |||||||||
Gross profit | 430,688 | 433,798 | 202,050 | |||||||||
Operating expenses: | ||||||||||||
Research and development (1) | 201,739 | 190,402 | 193,376 | |||||||||
Sales and marketing (1) | 146,194 | 138,291 | 102,523 | |||||||||
General and administrative (1) | 38,072 | 40,670 | 29,271 | |||||||||
Total operating expenses | 386,005 | 369,363 | 325,170 | |||||||||
Operating profit/(loss) | 44,683 | 64,435 | (123,120 | ) | ||||||||
Interest income | 8,037 | 4,443 | 2,807 | |||||||||
Foreign currency exchange gain/(loss) | 5,725 | 1,849 | (7,767 | ) | ||||||||
Other income, net (1) | 41,490 | 21,127 | 38,633 | |||||||||
Income/(loss) before income tax expense | 99,935 | 91,854 | (89,447 | ) | ||||||||
Income tax expense | 1,153 | 2,748 | 2,346 | |||||||||
Net income/(loss) from discontinued operations, net of tax | 98,782 | 89,106 | (91,793 | ) | ||||||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Net cash provided by/(used in) discontinued operating activities | $ | 132,746 | $ | 219,516 | $ | (68,187 | ) | |||||
Net cash provided by/(used in) discontinued investing activities | (638,672 | ) | (217,598 | ) | 235,374 | |||||||
Net cash provided by/(used in) discontinued financing activities | 1 | (33,415 | ) | (8,209 | ) |
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Revenues | $ | 1,172,252 | $ | 924,664 | $ | 407,607 | ||||||
Cost of revenues | 738,454 | 722,614 | 274,408 | |||||||||
Gross profit | 433,798 | 202,050 | 133,199 | |||||||||
Operating expenses: | ||||||||||||
Research and development (2) | 190,402 | 193,376 | 141,506 | |||||||||
Sales and marketing (2) | 138,291 | 102,523 | 53,481 | |||||||||
General and administrative (2) | 40,670 | 29,271 | 11,854 | |||||||||
Total operating expenses | 369,363 | 325,170 | 206,841 | |||||||||
Operating profit/(loss) | 64,435 | (123,120 | ) | (73,642 | ) | |||||||
Interest income | 4,443 | 2,807 | 2,377 | |||||||||
Interest expense | 0 | 0 | (761 | ) | ||||||||
Foreign currency exchange gain/(loss) | 1,849 | (7,767 | ) | (848 | ) | |||||||
Other income, net | 21,127 | 38,633 | 81,655 | |||||||||
Income/(loss) from discontinued operations before income tax expense | 91,854 | (89,447 | ) | 8,781 | ||||||||
Income tax expense/(benefit) | 2,748 | 2,346 | (1,112 | ) | ||||||||
Results of operations from discontinued operations, net of tax | 89,106 | (91,793 | ) | 9,893 | ||||||||
Gain on disposal of discontinued operations | 0 | 0 | 855,009 | |||||||||
Net income/(loss) from discontinued operations, net of tax | 89,106 | (91,793 | ) | 864,902 | ||||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1)(3) | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | (2 | %) | (18 | %) | 127 | % | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 3 | % | (3 | %) | (90 | %) | ||||||
Changes in valuation allowance for deferred tax assets | 7 | % | (43 | %) | 349 | % | ||||||
Research and development super-deduction and other permanent book-tax differences | (25 | %) | 35 | % | (249 | %) | ||||||
Capital gains from equity investments | (5 | %) | 1 | % | (175 | %) | ||||||
3 | % | (3 | %) | (13 | %) | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Net cash provided by/(used in) discontinued operating activities | $ | 219,516 | $ | (68,187 | ) | $ | (175,888 | ) | ||||
Net cash provided by/(used in) discontinued investing activities | (217,598 | ) | 235,374 | 1,054,148 | ||||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) |
Note | (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Year Ended December 31, | ||||||||
2018 | 2019 (1) | |||||||
Revenues | $ | 70,202 | $ | 37,323 | ||||
Cost of revenues | 89,233 | 43,857 | ||||||
Gross loss | (19,031 | ) | (6,534 | ) | ||||
Operating expenses: | ||||||||
Sales and marketing | 20,288 | 8,807 | ||||||
General and administrative | 4,965 | 18,583 | ||||||
Total operating expenses | 25,253 | 27,390 | ||||||
Operating loss | (44,284 | ) | (33,924 | ) | ||||
Interest income | 6 | 7 | ||||||
Other income/(expense), net | (557 | ) | 61 | |||||
Loss before income tax expense | (44,835 | ) | (33,856 | ) | ||||
Income tax expense | 0 | 142 | ||||||
Net loss from discontinued operations, net of tax | (44,835 | ) | (33,998 | ) | ||||
Year Ended December 31, | ||||
2019 (1) | ||||
Revenues | $ | 37,323 | ||
Cost of revenues | 43,857 | |||
Gross loss | (6,534 | ) | ||
Operating expenses: | ||||
Sales and marketing | 8,807 | |||
General and administrative | 18,583 | |||
Total operating expenses | 27,390 | |||
Operating loss | (33,924 | ) | ||
Interest income | 7 | |||
Other income/(expense), net | 61 | |||
Loss from discontinued operations before income tax expense | (33,856 | ) | ||
Income tax expense | 142 | |||
Net loss from discontinued operations, net of tax | (33,998 | ) | ||
Year Ended December 31, | ||||||||
2018 | 2019 (1) | |||||||
Net cash provided by discontinued operating activities | $ | 3,422 | $ | 9,341 | ||||
Net cash used in discontinued investing activities | (718 | ) | (10,808 | ) | ||||
Net cash provided by/(used in) discontinued financing activities | 0 | 0 |
Year Ended December 31, | ||||
2019 (1) | ||||
Net cash provided by discontinued operating activities | $ | 9,341 | ||
Net cash used in discontinued investing activities | (10,808 | ) | ||
Net cash provided by discontinued financing activities | 0 |
Year Ended December 31, 2018 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 274,670 | $ | 415,561 | $ | (56 | ) | $ | 690,175 | |||||||
Segment cost of revenues | (218,184 | ) | (71,626 | ) | 56 | (289,754 | ) | |||||||||
Segment gross profit | 56,486 | 343,935 | 0 | 400,421 | ||||||||||||
SBC (1) in cost of revenues | 707 | 31 | 0 | 738 | ||||||||||||
Gross profit | 57,193 | 343,966 | 0 | 401,159 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development | (123,743 | ) | (126,593 | ) | (1 | ) | (250,337 | ) | ||||||||
Sales and marketing | (203,307 | ) | (34,512 | ) | (1 | ) | (237,820 | ) | ||||||||
General and administrative | (47,738 | ) | (28,657 | ) | 0 | (76,395 | ) | |||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | (16,369 | ) | 0 | (16,369 | ) | ||||||||||
SBC (1) in operating expenses | 4,940 | 6,430 | 0 | 11,370 | ||||||||||||
Total operating expenses | (369,848 | ) | (199,701 | ) | (2 | ) | (569,551 | ) | ||||||||
Operating profit/(loss) | (312,655 | ) | 144,265 | (2 | ) | (168,392 | ) | |||||||||
Other income | 30,701 | |||||||||||||||
Interest income | 16,036 | |||||||||||||||
Interest expense | (17,538 | ) | ||||||||||||||
Exchange difference | 3,301 | |||||||||||||||
Loss before income tax expense | (135,892 | ) | ||||||||||||||
Income tax benefit | 14,586 | |||||||||||||||
Net loss from continuing operations | (121,306 | ) | ||||||||||||||
Net income from discontinued operations | 53,947 | |||||||||||||||
Net loss | $ | (67,359 | ) | |||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 218,442 | $ | 455,380 | $ | (19 | ) | $ | 673,803 | |||||||
Segment cost of revenues (1) | (148,258 | ) | (95,268 | ) | 21 | (243,505 | ) | |||||||||
Segment gross profit | 70,184 | 360,112 | 2 | 430,298 | ||||||||||||
SBC in cost of revenues (2) | (23 | ) | (120 | ) | 1 | (142 | ) | |||||||||
Gross profit | 70,161 | 359,992 | 3 | 430,156 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,761 | ) | (119,726 | ) | 0 | (233,487 | ) | |||||||||
Sales and marketing (1) | (155,226 | ) | (49,768 | ) | 2 | (204,992 | ) | |||||||||
General and administrative (1) | (31,330 | ) | (22,074 | ) | (17 | ) | (53,421 | ) | ||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245 | ) | 0 | 0 | (7,245 | ) | ||||||||||
SBC in operating expenses (2) | (1,023 | ) | (1,185 | ) | 0 | (2,208 | ) | |||||||||
Total operating expenses | (308,585 | ) | (192,753 | ) | (15 | ) | (501,353 | ) | ||||||||
Operating profit/(loss) | (238,424 | ) | 167,239 | (12 | ) | (71,197 | ) | |||||||||
Other income | 7,963 | |||||||||||||||
Interest income | 6,103 | |||||||||||||||
Interest expense | (14,370 | ) | ||||||||||||||
Exchange difference | 1,430 | |||||||||||||||
Loss before income tax expense | (70,071 | ) | ||||||||||||||
Income tax benefit | (28,428 | ) | ||||||||||||||
Net loss from continuing operations | (98,499 | ) | ||||||||||||||
Net income from discontinued operations | 55,108 | |||||||||||||||
Net loss | $ | (43,391 | ) | |||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 218,442 | $ | 455,380 | $ | (19 | ) | $ | 673,803 | |||||||
Segment cost of revenues | (148,258 | ) | (95,268 | ) | 21 | (243,505 | ) | |||||||||
Segment gross profit | 70,184 | 360,112 | 2 | 430,298 | ||||||||||||
SBC (1) in cost of revenues | (23 | ) | (120 | ) | 1 | (142 | ) | |||||||||
Gross profit | 70,161 | 359,992 | 3 | 430,156 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development | (113,761 | ) | (119,726 | ) | 0 | (233,487 | ) | |||||||||
Sales and marketing | (155,226 | ) | (49,768 | ) | 2 | (204,992 | ) | |||||||||
General and administrative | (31,330 | ) | (22,074 | ) | (17 | ) | (53,421 | ) | ||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245 | ) | 0 | 0 | (7,245 | ) | ||||||||||
SBC (1) in operating expenses | (1,023 | ) | (1,185 | ) | 0 | (2,208 | ) | |||||||||
Total operating expenses | (308,585 | ) | (192,753 | ) | (15 | ) | (501,353 | ) | ||||||||
Operating profit/(loss) | (238,424 | ) | 167,239 | (12 | ) | (71,197 | ) | |||||||||
Other income | 7,963 | |||||||||||||||
Interest income | 6,103 | |||||||||||||||
Interest expense | (14,370 | ) | ||||||||||||||
Exchange difference | 1,430 | |||||||||||||||
Loss before income tax expense | (70,071 | ) | ||||||||||||||
Income tax expense | (28,428 | ) | ||||||||||||||
Net loss from continuing operations | (98,499 | ) | ||||||||||||||
Net income from discontinued operations | 55,108 | |||||||||||||||
Net loss | $ | (43,391 | ) | |||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 201,544 | $ | 548,346 | $ | 0 | $ | 749,890 | ||||||||
Segment cost of revenues (1) | (122,362 | ) | (94,362 | ) | 7 | (216,717 | ) | |||||||||
Segment gross profit | 79,182 | 453,984 | 7 | 533,173 | ||||||||||||
SBC in cost of revenues (2) | (177 | ) | (543 | ) | 0 | (720 | ) | |||||||||
Gross profit | 79,005 | 453,441 | 7 | 532,453 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (97,681 | ) | (136,934 | ) | 0 | (234,615 | ) | |||||||||
Sales and marketing (1) | (106,057 | ) | (53,272 | ) | 0 | (159,329 | ) | |||||||||
General and administrative (1) | (25,861 | ) | (25,517 | ) | 0 | (51,378 | ) | |||||||||
SBC in operating expenses (2) | (1,759 | ) | (12,001 | ) | 0 | (13,760 | ) | |||||||||
Total operating expenses | (231,358 | ) | (227,724 | ) | 0 | (459,082 | ) | |||||||||
Operating profit/(loss) | (152,353 | ) | 225,717 | 7 | 73,371 | |||||||||||
Other income | 25,993 | |||||||||||||||
Interest income | 7,369 | |||||||||||||||
Interest expense | (6,234 | ) | ||||||||||||||
Exchange difference | (3,800 | ) | ||||||||||||||
Loss before income tax expense | 96,699 | |||||||||||||||
Income tax expense | (133,226 | ) | ||||||||||||||
Net loss from continuing operations | (36,527 | ) | ||||||||||||||
Net income from discontinued operations | (91,793 | ) | ||||||||||||||
Net loss | $ | (128,320 | ) | |||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 201,544 | $ | 548,346 | $ | 0 | $ | 749,890 | ||||||||
Segment cost of revenues | (122,362 | ) | (94,362 | ) | 7 | (216,717 | ) | |||||||||
Segment gross profit | 79,182 | 453,984 | 7 | 533,173 | ||||||||||||
SBC (1) in cost of revenues | (177 | ) | (543 | ) | 0 | (720 | ) | |||||||||
Gross profit | 79,005 | 453,441 | 7 | 532,453 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development | (97,681 | ) | (136,934 | ) | 0 | (234,615 | ) | |||||||||
Sales and marketing | (106,057 | ) | (53,272 | ) | 0 | (159,329 | ) | |||||||||
General and administrative | (25,861 | ) | (25,517 | ) | 0 | (51,378 | ) | |||||||||
SBC (1) in operating expenses | (1,759 | ) | (12,001 | ) | 0 | (13,760 | ) | |||||||||
Total operating expenses | (231,358 | ) | (227,724 | ) | 0 | (459,082 | ) | |||||||||
Operating profit/(loss) | (152,353 | ) | 225,717 | 7 | 73,371 | |||||||||||
Other income | 25,993 | |||||||||||||||
Interest income | 7,369 | |||||||||||||||
Interest expense | (6,234 | ) | ||||||||||||||
Exchange difference | (3,800 | ) | ||||||||||||||
Income before income tax expense | 96,699 | |||||||||||||||
Income tax expense | (133,226 | ) | ||||||||||||||
Net loss from continuing operations | (36,527 | ) | ||||||||||||||
Net loss from discontinued operations | (91,793 | ) | ||||||||||||||
Net loss | $ | (128,320 | ) | |||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 186,606 | $ | 648,970 | $ | 0 | $ | 835,576 | ||||||||
Segment cost of revenues (1) | (113,881 | ) | (90,517 | ) | 4 | (204,394 | ) | |||||||||
Segment gross profit | 72,725 | 558,453 | 4 | 631,182 | ||||||||||||
SBC in cost of revenues (2) | (1 | ) | (276 | ) | 0 | (277 | ) | |||||||||
Gross profit | 72,724 | 558,177 | 4 | 630,905 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,186 | ) | (151,773 | ) | 0 | (264,959 | ) | |||||||||
Sales and marketing (1) | (126,126 | ) | (56,396 | ) | 0 | (182,522 | ) | |||||||||
General and administrative (1) | (36,949 | ) | (40,702 | ) | 0 | (77,651 | ) | |||||||||
SBC in operating expenses (2) | (804 | ) | (7,497 | ) | 0 | (8,301 | ) | |||||||||
Total operating expenses | (277,065 | ) | (256,368 | ) | 0 | (533,433 | ) | |||||||||
Operating profit/(loss) | (204,341 | ) | 301,809 | 4 | 97,472 | |||||||||||
Other income | 29,416 | |||||||||||||||
Interest income | 15,641 | |||||||||||||||
Interest expense | (7,500 | ) | ||||||||||||||
Exchange difference | (3,462 | ) | ||||||||||||||
Income before income tax expense | 131,567 | |||||||||||||||
Income tax expense | (62,296 | ) | ||||||||||||||
Net loss from continuing operations | 69,271 | |||||||||||||||
Net loss from discontinued operations | 864,902 | |||||||||||||||
Net loss | $ | 934,173 | ||||||||||||||
As of December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 56,977 | $ | 160,080 | $ | 0 | $ | 217,057 | ||||||||
Accounts receivable, net | 60,886 | 26,635 | 0 | 87,521 | ||||||||||||
Fixed assets, net | 174,700 | 162,976 | (2 | ) | 337,674 | |||||||||||
Total assets (1) | $ | 1,632,736 | $ | 2,478,705 | $ | (2,701,488 | ) | $ | 1,409,953 |
As of December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 68,229 | $ | 94,433 | $ | 0 | $ | 162,662 | ||||||||
Accounts receivable, net | 70,252 | 55,829 | 0 | 126,081 | ||||||||||||
Fixed assets, net | 177,978 | 159,713 | (9 | ) | 337,682 | |||||||||||
Total assets (1) | $ | 1,721,801 | $ | 1,871,685 | $ | (2,423,923 | ) | $ | 1,169,563 |
As of December 31, 2020 | As of December 31, 202 1 | |||||||||||||||||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | Sohu | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 56,977 | $ | 160,080 | $ | 0 | $ | 217,057 | $ | 929,851 | $ | 69,098 | $ | 0 | $ | 998,949 | ||||||||||||||||
Accounts receivable, net | 60,886 | 26,635 | 0 | 87,521 | 48,108 | 34,442 | 0 | 82,550 | ||||||||||||||||||||||||
Fixed assets, net | 174,700 | 162,976 | (2 | ) | 337,674 | 170,213 | 159,784 | 0 | 329,997 | |||||||||||||||||||||||
Total assets (1) | $ | 1,632,736 | $ | 2,478,705 | $ | (2,701,488 | ) | $ | 1,409,953 | $ | 2,294,537 | $ | 2,610,964 | $ | (2,659,716 | ) | $ | 2,245,785 |
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2018 | 2019 | 2020 | |||||||||
Cost of revenues | $ | (739 | ) | $ | 142 | $ | 720 | |||||
Product development expenses | (4,182 | ) | 1,364 | 7,325 | ||||||||
Sales and marketing expenses | (920 | ) | (326 | ) | 460 | |||||||
General and administrative expenses | (6,267 | ) | 1,170 | 5,975 | ||||||||
$ | (12,108 | ) | $ | 2,350 | $ | 14,480 | ||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
Cost of revenues | $ | 142 | $ | 720 | $ | 277 | ||||||
Product development expenses | 1,364 | 7,325 | 3,904 | |||||||||
Sales and marketing expenses | (326 | ) | 460 | 166 | ||||||||
General and administrative expenses | 1,170 | 5,975 | 4,231 | |||||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2018 | 2019 | 2020 | |||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | (5,100 | ) | $ | 1,940 | $ | 2,633 | |||||
For Changyou share-based awards | (6,461 | ) | 1,305 | 12,545 | ||||||||
For Sohu Video share-based awards | (547 | ) | (895 | ) | (698 | ) | ||||||
$ | (12,108 | ) | $ | 2,350 | $ | 14,480 | ||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | 1,940 | $ | 2,633 | $ | 1,849 | ||||||
For Changyou share-based awards | 1,305 | 12,545 | 7,773 | |||||||||
For Sohu Video share-based awards | (895 | ) | (698 | ) | (1,044 | ) | ||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Rental income from Sogou (1) | 8,392 | 8,029 | 9,793 | |||||||||
Individual tax refund and additional deduction of PRC value-added tax (2) | 0 | 907 | 6,169 | |||||||||
Government grant | 5,342 | 5,763 | 5,928 | |||||||||
Gain from the changes in fair value of financial instruments (3) | 17,999 | 11,113 | 4,303 | |||||||||
Write-off of unpaid long-term accounts payable | 0 | 0 | 47 | |||||||||
Investment income/(expense) | (3,448 | ) | 3,004 | 3 | ||||||||
Impairment loss on equity investments (4) | 0 | (23,154 | ) | (384 | ) | |||||||
Donations | 0 | (283 | ) | (1,460 | ) | |||||||
Others | 2,416 | 2,584 | 1,594 | |||||||||
$ | 30,701 | $ | 7,963 | $ | 25,993 | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Rental income from Sogou (1) | 8,029 | 9,793 | 10,427 | |||||||||
Investment income | 3,004 | 3 | 6,352 | |||||||||
Income from investments in financial instruments (2) | 11,113 | 4,303 | 5,260 | |||||||||
Individual tax refund and additional deduction of PRC value-added tax | 907 | 6,169 | 4,827 | |||||||||
Write-down of unpaid long-term accounts payable | 0 | 47 | 1,276 | |||||||||
Gover nment grant | 5,763 | 5,928 | 418 | |||||||||
Impairment loss on equity investments ( 3 ) | (23,154 | ) | (384 | ) | (215 | ) | ||||||
Donations | (283 | ) | (1,460 | ) | (1,565 | ) | ||||||
Others | 2,584 | 1,594 | 2,636 | |||||||||
$ | 7,963 | $ | 25,993 | $ | 29,416 | |||||||
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Accounts receivable, net | ||||||||||||||||
Accounts receivable | $ | 130,037 | 94,528 | $ | 94,528 | 94,908 | ||||||||||
Allowance for credit losses | (3,956 | ) | (7,007 | ) | (7,007 | ) | (12,358 | ) | ||||||||
$ | 126,081 | 87,521 | $ | 87,521 | 82,550 | |||||||||||
Balance at the beginning of year | Changes on initial application of ASU 2016-13 | Additional allowance for credit losses, net of recoveries | Write-offs | Exchange difference | Balance at the end of year | Balance at the beginning of year | Changes on initial application of ASU 2016-13 | Additional allowance for credit losses, net of recoveries | Write-offs | Exchange difference | Balance at the end of year | |||||||||||||||||||||||||||||||||||||
2018 | 4,487 | 0 | 5,449 | (1,940 | ) | (422 | ) | 7,574 | ||||||||||||||||||||||||||||||||||||||||
2019 | 7,574 | 0 | 4,724 | (8,237 | ) | (105 | ) | 3,956 | 7,574 | 0 | 4,724 | (8,237 | ) | (105 | ) | 3,956 | ||||||||||||||||||||||||||||||||
2020 | 3,956 | 3,383 | 2,419 | (3,231 | ) | 480 | 7,007 | 3,956 | 3,383 | 2,419 | (3,231 | ) | 480 | 7,007 | ||||||||||||||||||||||||||||||||||
2021 | 7,007 | 0 | 6,292 | (1,155 | ) | 214 | 12,358 |
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Prepaid and other current assets | ||||||||||||||||
Matching loan due from a related party (See Note 9) | $ | 33,329 | $ | 34,123 | $ | 34,123 | $ | 34,123 | ||||||||
Prepaid taxes | 26,274 | 25,043 | 25,043 | 28,719 | ||||||||||||
Prepaid content and license | 12,964 | 11,029 | ||||||||||||||
Prepaid cost of revenue | 7,175 | 10,120 | ||||||||||||||
Prepaid revenue-sharing cost | 10,120 | 12,428 | ||||||||||||||
Prepaid content and license costs | 11,029 | 8,694 | ||||||||||||||
Prepaid advertising and promotion fee | 244 | 4,685 | ||||||||||||||
Interest receivable from bank deposits with original maturities of three months or less | 3,875 | 3,059 | ||||||||||||||
Receivables from third party payment platforms | 3,435 | 5,488 | 5,488 | 2,670 | ||||||||||||
Interest receivable from bank deposits with original maturities of three months or less | 1,012 | 3,875 | ||||||||||||||
Prepaid professional fees | 610 | 2,365 | 2,365 | 2,432 | ||||||||||||
Prepaid rental deposit | 2,891 | 2,310 | ||||||||||||||
Prepaid rental deposit s | 2,310 | 1,928 | ||||||||||||||
Emplo yee advances | 587 | 569 | ||||||||||||||
Prepaid office rent and facilities expenses | 601 | 696 | 696 | 338 | ||||||||||||
Employee advances | 1,249 | 587 | ||||||||||||||
Others | 7,991 | 10,954 | 10,710 | 7,666 | ||||||||||||
$ | 97,531 | $ | 106,590 | $106,590 | $ | 107,311 | ||||||||||
Prepaid non-current assets | ||||||||||||||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | $ | 1,882 | $ | 1,006 | $ | 1,006 | $ | 0 | ||||||||
$ | 1,882 | $ | 1,006 | $ | 1,006 | $ | 0 | |||||||||
Other short-term liabilities | ||||||||||||||||
Matching loans due to a related party (See Note 9) | 33,536 | 34,123 | 34,123 | 34,123 | ||||||||||||
Contingent liability related to Shanghai Jingmao liquidation (1) | 23,900 | 23,900 | 23,900 | 23,900 | ||||||||||||
Deposits related to Focus | 19,101 | 21,936 | 21,936 | 10,387 | ||||||||||||
Share-based awards in Changyou | 0 | 13,292 | 13,292 | 20,693 | ||||||||||||
Other payables related to Shanghai Jingmao liquidation (2) | 0 | 9,380 | ||||||||||||||
Contract deposits from advertisers | 3,060 | 3,036 | 3,036 | 2,679 | ||||||||||||
Lease liabilities | 2,510 | 1,107 | 1,107 | 1,999 | ||||||||||||
Consideration payable for equity investment | 740 | 751 | 751 | 769 | ||||||||||||
Others | 8,218 | 8,026 | 8,026 | 8,638 | ||||||||||||
$ | 91,065 | $ | 106,171 | $ | 106,171 | $ | 112,568 | |||||||||
Receipts in advance and deferred revenue | ||||||||
Receipts in advance relating to: | ||||||||
brand advertising business | $ | 5,214 | $ | 4,297 | ||||
online game business | 7,869 | 9,310 | ||||||
other business | 6,029 | 5,286 | ||||||
Total receipts in advance | 19,112 | 18,893 | ||||||
Deferred revenue | 32,943 | 38,148 | ||||||
$52,055 | $57,041 | |||||||
Receipts in advance relating to: | ||||||||
brand advertising business | $ | 7,097 | $ | 5,214 | ||||
online game business | 5,524 | 7,869 | ||||||
other business | 6,490 | 6,029 | ||||||
Total receipts in advance | 19,111 | 19,112 | ||||||
Deferred revenue | 31,210 | 32,943 | ||||||
$ | 50,321 | $ | 52,055 | |||||
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 112,349 | $ | 0 | $ | 112,349 | $ | 0 | ||||||||
Restricted cash | 3,290 | 0 | 3,290 | 0 | ||||||||||||
Restricted time deposits | 240 | 0 | 240 | 0 | ||||||||||||
Short-term investments | 321,483 | 0 | 321,483 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 9,320 | 9,320 | 0 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 173,655 | $ | 0 | $ | 173,655 | $ | 0 | ||||||||
Restricted cash | 330,791 | 0 | 330,791 | 0 | ||||||||||||
Restricted time deposits | 101,519 | 0 | 101,519 | 0 | ||||||||||||
Short-term investments | 100,745 | 0 | 100,745 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 9,457 | 9,457 | 0 | 0 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | $ | 94,908 | ||||
Less: Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | $ | 82,550 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Less than 179 days | $ | 78,805 | $ | 79,155 | ||||
180-359 days | 7,569 | 7,437 | ||||||
360 days and greater | 8,154 | 8,316 | ||||||
Total | 94,528 | 94,908 |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 7,574 | $ | 3,956 | $ | 7,007 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 3,383 | 0 | |||||||||
Additional allowance for credit losses, net of recoveries | 4,724 | 2,419 | 6,292 | |||||||||
Write-offs | (8,237 | ) | (3,231 | ) | (1,155 | ) | ||||||
Exchange difference | (105 | ) | 480 | 214 | ||||||||
Balance at the end of year | 3,956 | 7,007 | 12,358 |
Fixed Assets | Estimated Useful Lives (years) | |
Office buildings | 36-47 | |
Leasehold improvements | Lesser of term of the lease or the estimated useful lives of the assets | |
Vehicles | 4 | |
Office furniture | 5 | |
Computer equipment and hardware | 4-5 |
Intangible Assets | Estimated Useful Lives (years) | |
Purchased video content | 1 month to 2 years | |
Computer software | 1-5 | |
Developed technologies | 3-10 | |
Domain names and trademarks | 4-30 | |
Operating rights for licensed games | over the contract terms |
As of December 31, 2020 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 287,185 | ||
Restricted cash | 23,018 | |||
Short-term investments | 774,618 | |||
Account and financing receivables, net | 73,656 | |||
Prepaid and other current assets | 28,946 | |||
Long-term investments, net | 74,004 | |||
Fixed assets, net | 89,089 | |||
Goodwill | 6,527 | |||
Intangible assets, net | 1,446 | |||
Other assets | 53,679 | |||
Total assets associated with discontinued operations | $ | 1,412,168 | ||
LIABILITIES | ||||
Accounts payable | $ | 122,695 | ||
Accrued liabilities | 68,582 | |||
Receipts in advance | 64,414 | |||
Accrued salary and benefits | 25,350 | |||
Taxes payable | 64,082 | |||
Other short-term liabilities | 61,154 | |||
Long-term liabilities | 10,721 | |||
Total liabilities associated with discontinued operations | $ | 416,998 | ||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Revenues | $ | 1,172,252 | $ | 924,664 | $ | 407,607 | ||||||
Cost of revenues | 738,454 | 722,614 | 274,408 | |||||||||
Gross profit | 433,798 | 202,050 | 133,199 | |||||||||
Operating expenses: | ||||||||||||
Research and development (2) | 190,402 | 193,376 | 141,506 | |||||||||
Sales and marketing (2) | 138,291 | 102,523 | 53,481 | |||||||||
General and administrative (2) | 40,670 | 29,271 | 11,854 | |||||||||
Total operating expenses | 369,363 | 325,170 | 206,841 | |||||||||
Operating profit/(loss) | 64,435 | (123,120 | ) | (73,642 | ) | |||||||
Interest income | 4,443 | 2,807 | 2,377 | |||||||||
Interest expense | 0 | 0 | (761 | ) | ||||||||
Foreign currency exchange gain/(loss) | 1,849 | (7,767 | ) | (848 | ) | |||||||
Other income, net | 21,127 | 38,633 | 81,655 | |||||||||
Income/(loss) from discontinued operations before income tax expense | 91,854 | (89,447 | ) | 8,781 | ||||||||
Income tax expense/(benefit) | 2,748 | 2,346 | (1,112 | ) | ||||||||
Results of operations from discontinued operations, net of tax | 89,106 | (91,793 | ) | 9,893 | ||||||||
Gain on disposal of discontinued operations | 0 | 0 | 855,009 | |||||||||
Net income/(loss) from discontinued operations, net of tax | 89,106 | (91,793 | ) | 864,902 | ||||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1)(3) | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | (2 | %) | (18 | %) | 127 | % | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 3 | % | (3 | %) | (90 | %) | ||||||
Changes in valuation allowance for deferred tax assets | 7 | % | (43 | %) | 349 | % | ||||||
Research and development super-deduction and other permanent book-tax differences | (25 | %) | 35 | % | (249 | %) | ||||||
Capital gains from equity investments | (5 | %) | 1 | % | (175 | %) | ||||||
3 | % | (3 | %) | (13 | %) | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Net cash provided by/(used in) discontinued operating activities | $ | 219,516 | $ | (68,187 | ) | $ | (175,888 | ) | ||||
Net cash provided by/(used in) discontinued investing activities | (217,598 | ) | 235,374 | 1,054,148 | ||||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) |
Note | (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Year Ended December 31, | ||||
2019 (1) | ||||
Revenues | $ | 37,323 | ||
Cost of revenues | 43,857 | |||
Gross loss | (6,534 | ) | ||
Operating expenses: | ||||
Sales and marketing | 8,807 | |||
General and administrative | 18,583 | |||
Total operating expenses | 27,390 | |||
Operating loss | (33,924 | ) | ||
Interest income | 7 | |||
Other income/(expense), net | 61 | |||
Loss from discontinued operations before income tax expense | (33,856 | ) | ||
Income tax expense | 142 | |||
Net loss from discontinued operations, net of tax | (33,998 | ) | ||
Year Ended December 31, | ||||
2019 (1) | ||||
Net cash provided by discontinued operating activities | $ | 9,341 | ||
Net cash used in discontinued investing activities | (10,808 | ) | ||
Net cash provided by discontinued financing activities | 0 |
Year Ended December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 218,442 | $ | 455,380 | $ | (19 | ) | $ | 673,803 | |||||||
Segment cost of revenues (1) | (148,258 | ) | (95,268 | ) | 21 | (243,505 | ) | |||||||||
Segment gross profit | 70,184 | 360,112 | 2 | 430,298 | ||||||||||||
SBC in cost of revenues (2) | (23 | ) | (120 | ) | 1 | (142 | ) | |||||||||
Gross profit | 70,161 | 359,992 | 3 | 430,156 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,761 | ) | (119,726 | ) | 0 | (233,487 | ) | |||||||||
Sales and marketing (1) | (155,226 | ) | (49,768 | ) | 2 | (204,992 | ) | |||||||||
General and administrative (1) | (31,330 | ) | (22,074 | ) | (17 | ) | (53,421 | ) | ||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245 | ) | 0 | 0 | (7,245 | ) | ||||||||||
SBC in operating expenses (2) | (1,023 | ) | (1,185 | ) | 0 | (2,208 | ) | |||||||||
Total operating expenses | (308,585 | ) | (192,753 | ) | (15 | ) | (501,353 | ) | ||||||||
Operating profit/(loss) | (238,424 | ) | 167,239 | (12 | ) | (71,197 | ) | |||||||||
Other income | 7,963 | |||||||||||||||
Interest income | 6,103 | |||||||||||||||
Interest expense | (14,370 | ) | ||||||||||||||
Exchange difference | 1,430 | |||||||||||||||
Loss before income tax expense | (70,071 | ) | ||||||||||||||
Income tax benefit | (28,428 | ) | ||||||||||||||
Net loss from continuing operations | (98,499 | ) | ||||||||||||||
Net income from discontinued operations | 55,108 | |||||||||||||||
Net loss | $ | (43,391 | ) | |||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 201,544 | $ | 548,346 | $ | 0 | $ | 749,890 | ||||||||
Segment cost of revenues (1) | (122,362 | ) | (94,362 | ) | 7 | (216,717 | ) | |||||||||
Segment gross profit | 79,182 | 453,984 | 7 | 533,173 | ||||||||||||
SBC in cost of revenues (2) | (177 | ) | (543 | ) | 0 | (720 | ) | |||||||||
Gross profit | 79,005 | 453,441 | 7 | 532,453 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (97,681 | ) | (136,934 | ) | 0 | (234,615 | ) | |||||||||
Sales and marketing (1) | (106,057 | ) | (53,272 | ) | 0 | (159,329 | ) | |||||||||
General and administrative (1) | (25,861 | ) | (25,517 | ) | 0 | (51,378 | ) | |||||||||
SBC in operating expenses (2) | (1,759 | ) | (12,001 | ) | 0 | (13,760 | ) | |||||||||
Total operating expenses | (231,358 | ) | (227,724 | ) | 0 | (459,082 | ) | |||||||||
Operating profit/(loss) | (152,353 | ) | 225,717 | 7 | 73,371 | |||||||||||
Other income | 25,993 | |||||||||||||||
Interest income | 7,369 | |||||||||||||||
Interest expense | (6,234 | ) | ||||||||||||||
Exchange difference | (3,800 | ) | ||||||||||||||
Loss before income tax expense | 96,699 | |||||||||||||||
Income tax expense | (133,226 | ) | ||||||||||||||
Net loss from continuing operations | (36,527 | ) | ||||||||||||||
Net income from discontinued operations | (91,793 | ) | ||||||||||||||
Net loss | $ | (128,320 | ) | |||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 186,606 | $ | 648,970 | $ | 0 | $ | 835,576 | ||||||||
Segment cost of revenues (1) | (113,881 | ) | (90,517 | ) | 4 | (204,394 | ) | |||||||||
Segment gross profit | 72,725 | 558,453 | 4 | 631,182 | ||||||||||||
SBC in cost of revenues (2) | (1 | ) | (276 | ) | 0 | (277 | ) | |||||||||
Gross profit | 72,724 | 558,177 | 4 | 630,905 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,186 | ) | (151,773 | ) | 0 | (264,959 | ) | |||||||||
Sales and marketing (1) | (126,126 | ) | (56,396 | ) | 0 | (182,522 | ) | |||||||||
General and administrative (1) | (36,949 | ) | (40,702 | ) | 0 | (77,651 | ) | |||||||||
SBC in operating expenses (2) | (804 | ) | (7,497 | ) | 0 | (8,301 | ) | |||||||||
Total operating expenses | (277,065 | ) | (256,368 | ) | 0 | (533,433 | ) | |||||||||
Operating profit/(loss) | (204,341 | ) | 301,809 | 4 | 97,472 | |||||||||||
Other income | 29,416 | |||||||||||||||
Interest income | 15,641 | |||||||||||||||
Interest expense | (7,500 | ) | ||||||||||||||
Exchange difference | (3,462 | ) | ||||||||||||||
Income before income tax expense | 131,567 | |||||||||||||||
Income tax expense | (62,296 | ) | ||||||||||||||
Net loss from continuing operations | 69,271 | |||||||||||||||
Net loss from discontinued operations | 864,902 | |||||||||||||||
Net loss | $ | 934,173 | ||||||||||||||
As of December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 56,977 | $ | 160,080 | $ | 0 | $ | 217,057 | ||||||||
Accounts receivable, net | 60,886 | 26,635 | 0 | 87,521 | ||||||||||||
Fixed assets, net | 174,700 | 162,976 | (2 | ) | 337,674 | |||||||||||
Total assets (1) | $ | 1,632,736 | $ | 2,478,705 | $ | (2,701,488 | ) | $ | 1,409,953 |
As of December 31, 202 1 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 929,851 | $ | 69,098 | $ | 0 | $ | 998,949 | ||||||||
Accounts receivable, net | 48,108 | 34,442 | 0 | 82,550 | ||||||||||||
Fixed assets, net | 170,213 | 159,784 | 0 | 329,997 | ||||||||||||
Total assets (1) | $ | 2,294,537 | $ | 2,610,964 | $ | (2,659,716 | ) | $ | 2,245,785 |
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
Cost of revenues | $ | 142 | $ | 720 | $ | 277 | ||||||
Product development expenses | 1,364 | 7,325 | 3,904 | |||||||||
Sales and marketing expenses | (326 | ) | 460 | 166 | ||||||||
General and administrative expenses | 1,170 | 5,975 | 4,231 | |||||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | 1,940 | $ | 2,633 | $ | 1,849 | ||||||
For Changyou share-based awards | 1,305 | 12,545 | 7,773 | |||||||||
For Sohu Video share-based awards | (895 | ) | (698 | ) | (1,044 | ) | ||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Rental income from Sogou (1) | 8,029 | 9,793 | 10,427 | |||||||||
Investment income | 3,004 | 3 | 6,352 | |||||||||
Income from investments in financial instruments (2) | 11,113 | 4,303 | 5,260 | |||||||||
Individual tax refund and additional deduction of PRC value-added tax | 907 | 6,169 | 4,827 | |||||||||
Write-down of unpaid long-term accounts payable | 0 | 47 | 1,276 | |||||||||
Gover nment grant | 5,763 | 5,928 | 418 | |||||||||
Impairment loss on equity investments ( 3 ) | (23,154 | ) | (384 | ) | (215 | ) | ||||||
Donations | (283 | ) | (1,460 | ) | (1,565 | ) | ||||||
Others | 2,584 | 1,594 | 2,636 | |||||||||
$ | 7,963 | $ | 25,993 | $ | 29,416 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | 94,908 | |||||
Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | 82,550 | ||||||
Balance at the beginning of year | Changes on initial application of ASU 2016-13 | Additional allowance for credit losses, net of recoveries | Write-offs | Exchange difference | Balance at the end of year | |||||||||||||||||||
2019 | 7,574 | 0 | 4,724 | (8,237 | ) | (105 | ) | 3,956 | ||||||||||||||||
2020 | 3,956 | 3,383 | 2,419 | (3,231 | ) | 480 | 7,007 | |||||||||||||||||
2021 | 7,007 | 0 | 6,292 | (1,155 | ) | 214 | 12,358 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Prepaid and other current assets | ||||||||
Matching loan due from a related party (See Note 9) | $ | 34,123 | $ | 34,123 | ||||
Prepaid taxes | 25,043 | 28,719 | ||||||
Prepaid revenue-sharing cost | 10,120 | 12,428 | ||||||
Prepaid content and license costs | 11,029 | 8,694 | ||||||
Prepaid advertising and promotion fee | 244 | 4,685 | ||||||
Interest receivable from bank deposits with original maturities of three months or less | 3,875 | 3,059 | ||||||
Receivables from third party payment platforms | 5,488 | 2,670 | ||||||
Prepaid professional fees | 2,365 | 2,432 | ||||||
Prepaid rental deposit s | 2,310 | 1,928 | ||||||
Emplo yee advances | 587 | 569 | ||||||
Prepaid office rent and facilities expenses | 696 | 338 | ||||||
Others | 10,710 | 7,666 | ||||||
$106,590 | $ | 107,311 | ||||||
Prepaid non-current assets | ||||||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | $ | 1,006 | $ | 0 | ||||
$ | 1,006 | $ | 0 | |||||
Other short-term liabilities | ||||||||
Matching loans due to a related party (See Note 9) | 34,123 | 34,123 | ||||||
Contingent liability related to Shanghai Jingmao liquidation (1) | 23,900 | 23,900 | ||||||
Deposits related to Focus | 21,936 | 10,387 | ||||||
Share-based awards in Changyou | 13,292 | 20,693 | ||||||
Other payables related to Shanghai Jingmao liquidation (2) | 0 | 9,380 | ||||||
Contract deposits from advertisers | 3,036 | 2,679 | ||||||
Lease liabilities | 1,107 | 1,999 | ||||||
Consideration payable for equity investment | 751 | 769 | ||||||
Others | 8,026 | 8,638 | ||||||
$ | 106,171 | $ | 112,568 | |||||
Receipts in advance and deferred revenue | ||||||||
Receipts in advance relating to: | ||||||||
brand advertising business | $ | 5,214 | $ | 4,297 | ||||
online game business | 7,869 | 9,310 | ||||||
other business | 6,029 | 5,286 | ||||||
Total receipts in advance | 19,112 | 18,893 | ||||||
Deferred revenue | 32,943 | 38,148 | ||||||
$52,055 | $57,041 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | $ | 94,908 | ||||
Less: Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | $ | 82,550 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Less than 179 days | $ | 78,805 | $ | 79,155 | ||||
180-359 days | 7,569 | 7,437 | ||||||
360 days and greater | 8,154 | 8,316 | ||||||
Total | 94,528 | 94,908 |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 7,574 | $ | 3,956 | $ | 7,007 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 3,383 | 0 | |||||||||
Additional allowance for credit losses, net of recoveries | 4,724 | 2,419 | 6,292 | |||||||||
Write-offs | (8,237 | ) | (3,231 | ) | (1,155 | ) | ||||||
Exchange difference | (105 | ) | 480 | 214 | ||||||||
Balance at the end of year | 3,956 | 7,007 | 12,358 |
Fixed Assets | Estimated Useful Lives (years) | |
Office buildings | 36-47 | |
Leasehold improvements | Lesser of term of the lease or the estimated useful lives of the assets | |
Vehicles | 4 | |
Office furniture | 5 | |
Computer equipment and hardware | 4-5 |
Intangible Assets | Estimated Useful Lives (years) | |
Purchased video content | 1 month to 2 years | |
Computer software | 1-5 | |
Developed technologies | 3-10 | |
Domain names and trademarks | 4-30 | |
Operating rights for licensed games | over the contract terms |
As of December 31, 2020 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 287,185 | ||
Restricted cash | 23,018 | |||
Short-term investments | 774,618 | |||
Account and financing receivables, net | 73,656 | |||
Prepaid and other current assets | 28,946 | |||
Long-term investments, net | 74,004 | |||
Fixed assets, net | 89,089 | |||
Goodwill | 6,527 | |||
Intangible assets, net | 1,446 | |||
Other assets | 53,679 | |||
Total assets associated with discontinued operations | $ | 1,412,168 | ||
LIABILITIES | ||||
Accounts payable | $ | 122,695 | ||
Accrued liabilities | 68,582 | |||
Receipts in advance | 64,414 | |||
Accrued salary and benefits | 25,350 | |||
Taxes payable | 64,082 | |||
Other short-term liabilities | 61,154 | |||
Long-term liabilities | 10,721 | |||
Total liabilities associated with discontinued operations | $ | 416,998 | ||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Revenues | $ | 1,172,252 | $ | 924,664 | $ | 407,607 | ||||||
Cost of revenues | 738,454 | 722,614 | 274,408 | |||||||||
Gross profit | 433,798 | 202,050 | 133,199 | |||||||||
Operating expenses: | ||||||||||||
Research and development (2) | 190,402 | 193,376 | 141,506 | |||||||||
Sales and marketing (2) | 138,291 | 102,523 | 53,481 | |||||||||
General and administrative (2) | 40,670 | 29,271 | 11,854 | |||||||||
Total operating expenses | 369,363 | 325,170 | 206,841 | |||||||||
Operating profit/(loss) | 64,435 | (123,120 | ) | (73,642 | ) | |||||||
Interest income | 4,443 | 2,807 | 2,377 | |||||||||
Interest expense | 0 | 0 | (761 | ) | ||||||||
Foreign currency exchange gain/(loss) | 1,849 | (7,767 | ) | (848 | ) | |||||||
Other income, net | 21,127 | 38,633 | 81,655 | |||||||||
Income/(loss) from discontinued operations before income tax expense | 91,854 | (89,447 | ) | 8,781 | ||||||||
Income tax expense/(benefit) | 2,748 | 2,346 | (1,112 | ) | ||||||||
Results of operations from discontinued operations, net of tax | 89,106 | (91,793 | ) | 9,893 | ||||||||
Gain on disposal of discontinued operations | 0 | 0 | 855,009 | |||||||||
Net income/(loss) from discontinued operations, net of tax | 89,106 | (91,793 | ) | 864,902 | ||||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1)(3) | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | (2 | %) | (18 | %) | 127 | % | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 3 | % | (3 | %) | (90 | %) | ||||||
Changes in valuation allowance for deferred tax assets | 7 | % | (43 | %) | 349 | % | ||||||
Research and development super-deduction and other permanent book-tax differences | (25 | %) | 35 | % | (249 | %) | ||||||
Capital gains from equity investments | (5 | %) | 1 | % | (175 | %) | ||||||
3 | % | (3 | %) | (13 | %) | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Net cash provided by/(used in) discontinued operating activities | $ | 219,516 | $ | (68,187 | ) | $ | (175,888 | ) | ||||
Net cash provided by/(used in) discontinued investing activities | (217,598 | ) | 235,374 | 1,054,148 | ||||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) |
Note | (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Year Ended December 31, | ||||
2019 (1) | ||||
Revenues | $ | 37,323 | ||
Cost of revenues | 43,857 | |||
Gross loss | (6,534 | ) | ||
Operating expenses: | ||||
Sales and marketing | 8,807 | |||
General and administrative | 18,583 | |||
Total operating expenses | 27,390 | |||
Operating loss | (33,924 | ) | ||
Interest income | 7 | |||
Other income/(expense), net | 61 | |||
Loss from discontinued operations before income tax expense | (33,856 | ) | ||
Income tax expense | 142 | |||
Net loss from discontinued operations, net of tax | (33,998 | ) | ||
Year Ended December 31, | ||||
2019 (1) | ||||
Net cash provided by discontinued operating activities | $ | 9,341 | ||
Net cash used in discontinued investing activities | (10,808 | ) | ||
Net cash provided by discontinued financing activities | 0 |
Year Ended December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 218,442 | $ | 455,380 | $ | (19 | ) | $ | 673,803 | |||||||
Segment cost of revenues (1) | (148,258 | ) | (95,268 | ) | 21 | (243,505 | ) | |||||||||
Segment gross profit | 70,184 | 360,112 | 2 | 430,298 | ||||||||||||
SBC in cost of revenues (2) | (23 | ) | (120 | ) | 1 | (142 | ) | |||||||||
Gross profit | 70,161 | 359,992 | 3 | 430,156 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,761 | ) | (119,726 | ) | 0 | (233,487 | ) | |||||||||
Sales and marketing (1) | (155,226 | ) | (49,768 | ) | 2 | (204,992 | ) | |||||||||
General and administrative (1) | (31,330 | ) | (22,074 | ) | (17 | ) | (53,421 | ) | ||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245 | ) | 0 | 0 | (7,245 | ) | ||||||||||
SBC in operating expenses (2) | (1,023 | ) | (1,185 | ) | 0 | (2,208 | ) | |||||||||
Total operating expenses | (308,585 | ) | (192,753 | ) | (15 | ) | (501,353 | ) | ||||||||
Operating profit/(loss) | (238,424 | ) | 167,239 | (12 | ) | (71,197 | ) | |||||||||
Other income | 7,963 | |||||||||||||||
Interest income | 6,103 | |||||||||||||||
Interest expense | (14,370 | ) | ||||||||||||||
Exchange difference | 1,430 | |||||||||||||||
Loss before income tax expense | (70,071 | ) | ||||||||||||||
Income tax benefit | (28,428 | ) | ||||||||||||||
Net loss from continuing operations | (98,499 | ) | ||||||||||||||
Net income from discontinued operations | 55,108 | |||||||||||||||
Net loss | $ | (43,391 | ) | |||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 201,544 | $ | 548,346 | $ | 0 | $ | 749,890 | ||||||||
Segment cost of revenues (1) | (122,362 | ) | (94,362 | ) | 7 | (216,717 | ) | |||||||||
Segment gross profit | 79,182 | 453,984 | 7 | 533,173 | ||||||||||||
SBC in cost of revenues (2) | (177 | ) | (543 | ) | 0 | (720 | ) | |||||||||
Gross profit | 79,005 | 453,441 | 7 | 532,453 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (97,681 | ) | (136,934 | ) | 0 | (234,615 | ) | |||||||||
Sales and marketing (1) | (106,057 | ) | (53,272 | ) | 0 | (159,329 | ) | |||||||||
General and administrative (1) | (25,861 | ) | (25,517 | ) | 0 | (51,378 | ) | |||||||||
SBC in operating expenses (2) | (1,759 | ) | (12,001 | ) | 0 | (13,760 | ) | |||||||||
Total operating expenses | (231,358 | ) | (227,724 | ) | 0 | (459,082 | ) | |||||||||
Operating profit/(loss) | (152,353 | ) | 225,717 | 7 | 73,371 | |||||||||||
Other income | 25,993 | |||||||||||||||
Interest income | 7,369 | |||||||||||||||
Interest expense | (6,234 | ) | ||||||||||||||
Exchange difference | (3,800 | ) | ||||||||||||||
Loss before income tax expense | 96,699 | |||||||||||||||
Income tax expense | (133,226 | ) | ||||||||||||||
Net loss from continuing operations | (36,527 | ) | ||||||||||||||
Net income from discontinued operations | (91,793 | ) | ||||||||||||||
Net loss | $ | (128,320 | ) | |||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 186,606 | $ | 648,970 | $ | 0 | $ | 835,576 | ||||||||
Segment cost of revenues (1) | (113,881 | ) | (90,517 | ) | 4 | (204,394 | ) | |||||||||
Segment gross profit | 72,725 | 558,453 | 4 | 631,182 | ||||||||||||
SBC in cost of revenues (2) | (1 | ) | (276 | ) | 0 | (277 | ) | |||||||||
Gross profit | 72,724 | 558,177 | 4 | 630,905 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,186 | ) | (151,773 | ) | 0 | (264,959 | ) | |||||||||
Sales and marketing (1) | (126,126 | ) | (56,396 | ) | 0 | (182,522 | ) | |||||||||
General and administrative (1) | (36,949 | ) | (40,702 | ) | 0 | (77,651 | ) | |||||||||
SBC in operating expenses (2) | (804 | ) | (7,497 | ) | 0 | (8,301 | ) | |||||||||
Total operating expenses | (277,065 | ) | (256,368 | ) | 0 | (533,433 | ) | |||||||||
Operating profit/(loss) | (204,341 | ) | 301,809 | 4 | 97,472 | |||||||||||
Other income | 29,416 | |||||||||||||||
Interest income | 15,641 | |||||||||||||||
Interest expense | (7,500 | ) | ||||||||||||||
Exchange difference | (3,462 | ) | ||||||||||||||
Income before income tax expense | 131,567 | |||||||||||||||
Income tax expense | (62,296 | ) | ||||||||||||||
Net loss from continuing operations | 69,271 | |||||||||||||||
Net loss from discontinued operations | 864,902 | |||||||||||||||
Net loss | $ | 934,173 | ||||||||||||||
As of December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 56,977 | $ | 160,080 | $ | 0 | $ | 217,057 | ||||||||
Accounts receivable, net | 60,886 | 26,635 | 0 | 87,521 | ||||||||||||
Fixed assets, net | 174,700 | 162,976 | (2 | ) | 337,674 | |||||||||||
Total assets (1) | $ | 1,632,736 | $ | 2,478,705 | $ | (2,701,488 | ) | $ | 1,409,953 |
As of December 31, 202 1 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 929,851 | $ | 69,098 | $ | 0 | $ | 998,949 | ||||||||
Accounts receivable, net | 48,108 | 34,442 | 0 | 82,550 | ||||||||||||
Fixed assets, net | 170,213 | 159,784 | 0 | 329,997 | ||||||||||||
Total assets (1) | $ | 2,294,537 | $ | 2,610,964 | $ | (2,659,716 | ) | $ | 2,245,785 |
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
Cost of revenues | $ | 142 | $ | 720 | $ | 277 | ||||||
Product development expenses | 1,364 | 7,325 | 3,904 | |||||||||
Sales and marketing expenses | (326 | ) | 460 | 166 | ||||||||
General and administrative expenses | 1,170 | 5,975 | 4,231 | |||||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | 1,940 | $ | 2,633 | $ | 1,849 | ||||||
For Changyou share-based awards | 1,305 | 12,545 | 7,773 | |||||||||
For Sohu Video share-based awards | (895 | ) | (698 | ) | (1,044 | ) | ||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Rental income from Sogou (1) | 8,029 | 9,793 | 10,427 | |||||||||
Investment income | 3,004 | 3 | 6,352 | |||||||||
Income from investments in financial instruments (2) | 11,113 | 4,303 | 5,260 | |||||||||
Individual tax refund and additional deduction of PRC value-added tax | 907 | 6,169 | 4,827 | |||||||||
Write-down of unpaid long-term accounts payable | 0 | 47 | 1,276 | |||||||||
Gover nment grant | 5,763 | 5,928 | 418 | |||||||||
Impairment loss on equity investments ( 3 ) | (23,154 | ) | (384 | ) | (215 | ) | ||||||
Donations | (283 | ) | (1,460 | ) | (1,565 | ) | ||||||
Others | 2,584 | 1,594 | 2,636 | |||||||||
$ | 7,963 | $ | 25,993 | $ | 29,416 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | 94,908 | |||||
Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | 82,550 | ||||||
Balance at the beginning of year | Changes on initial application of ASU 2016-13 | Additional allowance for credit losses, net of recoveries | Write-offs | Exchange difference | Balance at the end of year | |||||||||||||||||||
2019 | 7,574 | 0 | 4,724 | (8,237 | ) | (105 | ) | 3,956 | ||||||||||||||||
2020 | 3,956 | 3,383 | 2,419 | (3,231 | ) | 480 | 7,007 | |||||||||||||||||
2021 | 7,007 | 0 | 6,292 | (1,155 | ) | 214 | 12,358 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Prepaid and other current assets | ||||||||
Matching loan due from a related party (See Note 9) | $ | 34,123 | $ | 34,123 | ||||
Prepaid taxes | 25,043 | 28,719 | ||||||
Prepaid revenue-sharing cost | 10,120 | 12,428 | ||||||
Prepaid content and license costs | 11,029 | 8,694 | ||||||
Prepaid advertising and promotion fee | 244 | 4,685 | ||||||
Interest receivable from bank deposits with original maturities of three months or less | 3,875 | 3,059 | ||||||
Receivables from third party payment platforms | 5,488 | 2,670 | ||||||
Prepaid professional fees | 2,365 | 2,432 | ||||||
Prepaid rental deposit s | 2,310 | 1,928 | ||||||
Emplo yee advances | 587 | 569 | ||||||
Prepaid office rent and facilities expenses | 696 | 338 | ||||||
Others | 10,710 | 7,666 | ||||||
$106,590 | $ | 107,311 | ||||||
Prepaid non-current assets | ||||||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | $ | 1,006 | $ | 0 | ||||
$ | 1,006 | $ | 0 | |||||
Other short-term liabilities | ||||||||
Matching loans due to a related party (See Note 9) | 34,123 | 34,123 | ||||||
Contingent liability related to Shanghai Jingmao liquidation (1) | 23,900 | 23,900 | ||||||
Deposits related to Focus | 21,936 | 10,387 | ||||||
Share-based awards in Changyou | 13,292 | 20,693 | ||||||
Other payables related to Shanghai Jingmao liquidation (2) | 0 | 9,380 | ||||||
Contract deposits from advertisers | 3,036 | 2,679 | ||||||
Lease liabilities | 1,107 | 1,999 | ||||||
Consideration payable for equity investment | 751 | 769 | ||||||
Others | 8,026 | 8,638 | ||||||
$ | 106,171 | $ | 112,568 | |||||
Receipts in advance and deferred revenue | ||||||||
Receipts in advance relating to: | ||||||||
brand advertising business | $ | 5,214 | $ | 4,297 | ||||
online game business | 7,869 | 9,310 | ||||||
other business | 6,029 | 5,286 | ||||||
Total receipts in advance | 19,112 | 18,893 | ||||||
Deferred revenue | 32,943 | 38,148 | ||||||
$52,055 | $57,041 | |||||||
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 173,655 | $ | 0 | $ | 173,655 | $ | 0 | ||||||||
Restricted cash | 330,791 | 0 | 330,791 | 0 | ||||||||||||
Restricted time deposits | 101,519 | 0 | 101,519 | 0 | ||||||||||||
Short-term investments | 100,745 | 0 | 100,745 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 9,457 | 9,457 | 0 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 949,884 | $ | 0 | $ | 949,884 | $ | 0 | ||||||||
Restricted cash | 1,969 | 0 | 1,969 | 0 | ||||||||||||
Short-term investments | 399,345 | 0 | 399,345 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 14,642 | 14,642 | 0 | 0 | ||||||||||||
Long-term time deposits | 189,007 | 0 | 189,007 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,585 | $ | 0 | $ | 0 | $ | 2,585 | ||||||||
Intangible assets, net | 4,842 | 0 | 0 | 4,842 | ||||||||||||
Goodwill | 48,434 | 0 | 0 | 48,434 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,555 | $ | 0 | $ | 0 | $ | 2,555 | ||||||||
Intangible assets, net | 9,136 | 0 | 0 | 9,136 | ||||||||||||
Goodwill | 48,811 | 0 | 0 | 48,811 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 3,115 | $ | 0 | $ | 0 | $ | 3,115 | ||||||||
Intangible assets, net | 9,922 | 0 | 0 | 9,922 | ||||||||||||
Goodwill | 47,390 | 0 | 0 | 47,390 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,585 | $ | 0 | $ | 0 | $ | 2,585 | ||||||||
Intangible assets, net | 4,842 | 0 | 0 | 4,842 | ||||||||||||
Goodwill | 48,434 | 0 | 0 | 48,434 |
Year ended December 31, | ||||||||
2019 | 2020 | |||||||
Operating lease expense | $ | 4,858 | $ | 3,985 | ||||
Short-term lease expense | 244 | 297 | ||||||
Total operating lease expense | $ | 5,102 | $ | 4,282 | ||||
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Operating lease expense | $ | 3,985 | $ | 2,952 | ||||
Short-term lease expense | 297 | 563 | ||||||
Total operating lease expense | $ | 4,282 | $ | 3,515 |
Year ended December 31, | ||||||||
2019 | 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 5,013 | $ | 3,206 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 3,206 | $ | 3,085 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Right-of-use | ||||||||
Operating leases | $ | 5,351 | $ | 2,620 |
Year ended December 31, | ||||||||
2019 | 2020 | |||||||
Right-of-use | ||||||||
Operating leases | $ | 134 | $ | 5,351 |
Year ended December 31, | ||||||||
2019 | 2020 | |||||||
Assets: | ||||||||
Operating lease right-of-use | $ | 3,323 | $ | 4,998 | ||||
Liabilities: | ||||||||
Current lease liabilities | 2,510 | 1,107 | ||||||
Non-current lease liabilities | 83 | 3,855 | ||||||
Total operating lease liabilities | $ | 2,593 | $ | 4,962 | ||||
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Assets: | ||||||||
Operating lease right-of-use assets | $ | 4,998 | $ | 5,207 | ||||
Liabilities: | ||||||||
Current lease liabilities | 1,107 | 1,999 | ||||||
Non-current lease liabilities | 3,855 | 3,142 | ||||||
Total operating lease liabilities | $ | 4,962 | $ | 5,141 | ||||
2021 | $ | 1,957 | ||
2022 | 1,785 | |||
2023 | 1,421 | |||
2024 | 191 | |||
2025 | 95 | |||
Thereafter | 0 | |||
Total future lease payments | 5,449 | |||
Less: imputed interest | (487 | ) | ||
Total present value of lease liabilities | $ | 4,962 | ||
2022 | $ | 2,853 | ||
2023 | 2,240 | |||
2024 | 277 | |||
2025 | 98 | |||
202 6 | 0 | |||
Thereafter | 0 | |||
Total future lease payments | 5,468 | |||
Less: imputed interest | 327 | |||
Total present value of lease liabilities | $ | 5,141 | ||
F-45 12. FIXED ASSETS |
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Office buildings | $ | 366,686 | $ | 392,045 | $ | 392,045 | $ | 401,223 | ||||||||
Computer equipment and hardware | 133,451 | 132,021 | 132,021 | 123,079 | ||||||||||||
Leasehold and building improvements | 34,251 | 36,649 | 36,649 | 37,753 | ||||||||||||
Office furniture | 6,609 | 6,841 | 6,841 | 6,960 | ||||||||||||
Vehicles | 3,239 | 3,729 | 3,729 | 3,515 | ||||||||||||
Fixed assets, gross | 544,236 | 571,285 | 571,285 | 572,530 | ||||||||||||
Accumulated depreciation | (206,554 | ) | (233,611 | ) | (233,611 | ) | (242,533 | ) | ||||||||
Fixed assets, net | $ | 337,682 | $ | 337,674 | $ | 337,674 | $ | 329,997 | ||||||||
Sohu | Changyou | Total | ||||||||||||||||||||||
Balance as of December 31, 2018 | ||||||||||||||||||||||||
Goodwill | 69,627 | 180,543 | 250,170 | |||||||||||||||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||||||||||||||
$ | 37,381 | $ | 10,257 | $ | 47,638 | |||||||||||||||||||
Transactions in 2019 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (248 | ) | 0 | (248 | ) | |||||||||||||||||||
Impairment losses | 0 | 0 | 0 | |||||||||||||||||||||
Balance as of December 31, 2019 | $ | 37,133 | $ | 10,257 | $ | 47,390 | ||||||||||||||||||
Sohu | Changyou | Total | ||||||||||||||||||||||
Balance as of December 31, 2019 | ||||||||||||||||||||||||
Goodwill | 69,379 | 180,543 | 249,922 | 69,379 | 180,543 | 249,922 | ||||||||||||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||||||||
$ | 37,133 | $ | 10,257 | $ | 47,390 | $ | 37,133 | $ | 10,257 | $ | 47,390 | |||||||||||||
Transactions in 2020 | ||||||||||||||||||||||||
Foreign currency translation adjustment | 1,044 | 0 | 1,044 | 1,044 | 0 | 1,044 | ||||||||||||||||||
Impairment losses | 0 | 0 | 0 | |||||||||||||||||||||
Balance as of December 31, 2020 | $ | 38,177 | $ | 10,257 | $ | 48,434 | $ | 38,177 | $ | 10,257 | $ | 48,434 | ||||||||||||
Balance as of December 31, 2020 | ||||||||||||||||||||||||
Goodwill | 70,423 | 180,543 | 250,966 | 70,423 | 180,543 | 250,966 | ||||||||||||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||||||||
$ | 38,177 | $ | 10,257 | $ | 48,434 | $ | 38,177 | $ | 10,257 | $ | 48,434 | |||||||||||||
Transactions in 2021 | ||||||||||||||||||||||||
Foreign currency translation adjustment | 377 | 0 | 377 | |||||||||||||||||||||
Balance as of December 31, 2021 | $ | 38,554 | $ | 10,257 | $ | 48,811 | ||||||||||||||||||
Balance as of December 31, 2021 | ||||||||||||||||||||||||
Goodwill | 70,800 | 180,543 | 251,343 | |||||||||||||||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||||||||||||||
$ | 38,554 | $ | 10,257 | $ | 48,811 | |||||||||||||||||||
As of December 31, 2020 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 212,999 | $ | (161,160 | ) | $ | (50,088 | ) | $ | 1,751 | ||||||
Operating rights for licensed games | 51,856 | (35,017 | ) | (14,026 | ) | 2,813 | ||||||||||
Domain names and trademarks | 27,536 | (10,243 | ) | (17,219 | ) | 74 | ||||||||||
Computer software | 11,749 | (11,545 | ) | 0 | 204 | |||||||||||
Developed technologies | 8,699 | (918 | ) | (7,781 | ) | 0 | ||||||||||
Others | 2,928 | (966 | ) | (1,962 | ) | 0 | ||||||||||
Total | $ | 315,767 | $ | (219,849 | ) | $ | (91,076 | ) | $ | 4,842 | ||||||
As of December 31, 2019 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 217,610 | $ | (179,167 | ) | $ | (35,940 | ) | $ | 2,503 | ||||||
Operating rights for licensed games | 47,227 | (27,992 | ) | (12,365 | ) | 6,870 | ||||||||||
Domain names and trademarks | 26,301 | (9,896 | ) | (16,176 | ) | 229 | ||||||||||
Computer software | 13,273 | (12,953 | ) | 0 | 320 | |||||||||||
Developed technologies | 8,200 | (868 | ) | (7,332 | ) | 0 | ||||||||||
Others | 2,738 | (903 | ) | (1,835 | ) | 0 | ||||||||||
Total | $ | 315,349 | $ | (231,779 | ) | $ | (73,648 | ) | $ | 9,922 | ||||||
As of December 31, 2021 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 138,902 | $ | (99,961 | ) | $ | (37,343 | ) | $ | 1,598 | ||||||
Operating rights for licensed games | 60,454 | (39,431 | ) | (13,895 | ) | 7,128 | ||||||||||
Domain names and trademarks | 26,766 | (10,240 | ) | (16,506 | ) | 20 | ||||||||||
Computer software | 12,474 | (12,084 | ) | 0 | 390 | |||||||||||
Developed technologies | 8,879 | (936 | ) | (7,943 | ) | 0 | ||||||||||
Others | 2,996 | (988 | ) | (2,008 | ) | 0 | ||||||||||
Total | $ | 250,471 | $ | (163,640 | ) | $ | (77,695 | ) | $ | 9,136 | ||||||
As of December 31, 2020 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 212,999 | $ | (161,160 | ) | $ | (50,088 | ) | $ | 1,751 | ||||||
Operating rights for licensed games | 51,856 | (35,017 | ) | (14,026 | ) | 2,813 | ||||||||||
Domain names and trademarks | 27,536 | (10,243 | ) | (17,219 | ) | 74 | ||||||||||
Computer software | 11,749 | (11,545 | ) | 0 | 204 | |||||||||||
Developed technologies | 8,699 | (918 | ) | (7,781 | ) | 0 | ||||||||||
Others | 2,928 | (966 | ) | (1,962 | ) | 0 | ||||||||||
Total | $ | 315,767 | $ | (219,849 | ) | $ | (91,076 | ) | $ | 4,842 | ||||||
For the year ended December 31, | (in thousands) | |||
2021 | 3,346 | |||
2022 | 1,177 | |||
2023 | 279 | |||
2024 | 40 | |||
2025 | 0 | |||
Thereafter | 0 | |||
Total expected amortization expense | $ | 4,842 | ||
For the year ended December 31, | (in thousands) | |||
2022 | 4,357 | |||
2023 | 3,761 | |||
2024 | 1,018 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 0 | |||
Total expected amortization expense | $ | 9,136 | ||
15. TAXATION |
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Income/(loss) before income tax expense | ||||||||||||
Income/(loss) from China operations | $ | (76,585 | ) | $ | (89,150 | ) | $ | 154,514 | ||||
Income/(loss) from non-China operations | (59,307 | ) | 19,079 | (57,815 | ) | |||||||
Total income/(loss) before income tax expense from continuing operations | $ | (135,892 | ) | $ | (70,071 | ) | $ | 96,699 | ||||
Income tax expense applicable to China operations | ||||||||||||
Current tax | $ | 14,578 | $ | 9,026 | $ | 24,255 | ||||||
Deferred tax | 48,907 | 11,191 | 102,652 | |||||||||
Subtotal income tax expense applicable to China operations | 63,485 | 20,217 | 126,907 | |||||||||
Non-China income tax expense/(benefit) | (78,540 | ) | 7,887 | 6,207 | ||||||||
Non-China withholding tax expense | 469 | 324 | 112 | |||||||||
Total income tax expense/(benefit) from continuing operations | $ | (14,586 | ) | $ | 28,428 | $ | 133,226 | |||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Income/(loss) before income tax expense | ||||||||||||
Income/(loss) from China operations | $ | (89,150 | ) | $ | 154,514 | $ | 153,708 | |||||
Income/(loss) from non-China operations | 19,079 | (57,815 | ) | (22,141 | ) | |||||||
Total income/(loss) before income tax expense from continuing operations | $ | (70,071 | ) | $ | 96,699 | $ | 131,567 | |||||
Income tax expense applicable to China operations | ||||||||||||
Current tax | $ | 9,026 | $ | 24,255 | $ | 31,089 | ||||||
Deferred tax | 11,191 | 102,652 | 26,207 | |||||||||
Subtotal income tax expense applicable to China operations | 20,217 | 126,907 | 57,296 | |||||||||
Non-China income tax expense | 7,887 | 6,207 | 4,817 | |||||||||
Non-China withholding tax expense | 324 | 112 | 183 | |||||||||
Total income tax expense from continuing operations | $ | 28,428 | $ | 133,226 | $ | 62,296 | ||||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Tax holiday effect | $ | 23,271 | $ | 7,981 | $ | 16,174 | ||||||
Basic net income per share effect | 0.60 | 0.20 | 0.41 |
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Tax holiday effect | $ | 7,981 | $ | 16,174 | $ | 1,635 | ||||||
Basic net income per share effect | 0.20 | 0.41 | 0.04 |
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) | 17 | % | 11 | % | (17 | %) | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | (1 | %) | 7 | % | 9 | % | ||||||
Effect of withholding taxes (2) | (39 | %) | (12 | %) | 109 | % | ||||||
Changes in valuation allowance for deferred tax assets | (29 | %) | (71 | %) | 27 | % | ||||||
Research and development super-deduction | 4 | % | 12 | % | (9 | %) | ||||||
Others | (24 | %) | (1 | %) | (13 | %) | ||||||
(47 | %) | (29 | %) | 131 | % | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) | 11 | % | (17 | %) | (1 | %) | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 7 | % | 9 | % | 3 | % | ||||||
Effect of withholding taxes (2) | (12 | %) | 109 | % | 19 | % | ||||||
Changes in valuation allowance for deferred tax assets | (71 | %) | 27 | % | 31 | % | ||||||
Research and development super-deduction | 12 | % | (9 | %) | (19 | %) | ||||||
Others | (1 | %) | (13 | %) | (14 | %) | ||||||
(29 | %) | 131 | % | 44 | % | |||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
Deferred tax assets: | ||||||||
Net operating loss from operations | $ | 277,478 | $ | 325,797 | ||||
Accrued bonus and commissions | 8,539 | 10,613 | ||||||
Intangible assets transfer | 916 | 690 | ||||||
Others | 10,947 | 8,692 | ||||||
Total deferred tax assets | 297,880 | 345,792 | ||||||
Less: Valuation allowance | (283,711 | ) | (326,755 | ) | ||||
Net deferred tax asset s | $ | 14,169 | $ | 19,037 | ||||
Deferred tax liabilities | ||||||||
Withholding tax for dividend | $ | (86,834 | ) | $ | (206,594 | ) | ||
Others | (9,070 | ) | (10,999 | ) | ||||
Total deferred tax liabilities | $ | (95,904 | ) | $ | (217,593 | ) | ||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Beginning balance | $ | 233,910 | 250,524 | 283,711 | ||||||||
Provision for the year | 34,496 | 44,634 | 36,363 | |||||||||
Reversal for the year | (6,891 | ) | (7,311 | ) | (12,637 | ) | ||||||
Foreign currency translation adjustment | (10,991 | ) | (4,136 | ) | 19,318 | |||||||
Ending balance | $ | 250,524 | 283,711 | 326,755 | ||||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | $ | 94,908 | ||||
Less: Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | $ | 82,550 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Less than 179 days | $ | 78,805 | $ | 79,155 | ||||
180-359 days | 7,569 | 7,437 | ||||||
360 days and greater | 8,154 | 8,316 | ||||||
Total | 94,528 | 94,908 |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 7,574 | $ | 3,956 | $ | 7,007 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 3,383 | 0 | |||||||||
Additional allowance for credit losses, net of recoveries | 4,724 | 2,419 | 6,292 | |||||||||
Write-offs | (8,237 | ) | (3,231 | ) | (1,155 | ) | ||||||
Exchange difference | (105 | ) | 480 | 214 | ||||||||
Balance at the end of year | 3,956 | 7,007 | 12,358 |
Fixed Assets | Estimated Useful Lives (years) | |
Office buildings | 36-47 | |
Leasehold improvements | Lesser of term of the lease or the estimated useful lives of the assets | |
Vehicles | 4 | |
Office furniture | 5 | |
Computer equipment and hardware | 4-5 |
Intangible Assets | Estimated Useful Lives (years) | |
Purchased video content | 1 month to 2 years | |
Computer software | 1-5 | |
Developed technologies | 3-10 | |
Domain names and trademarks | 4-30 | |
Operating rights for licensed games | over the contract terms |
As of December 31, 2020 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 287,185 | ||
Restricted cash | 23,018 | |||
Short-term investments | 774,618 | |||
Account and financing receivables, net | 73,656 | |||
Prepaid and other current assets | 28,946 | |||
Long-term investments, net | 74,004 | |||
Fixed assets, net | 89,089 | |||
Goodwill | 6,527 | |||
Intangible assets, net | 1,446 | |||
Other assets | 53,679 | |||
Total assets associated with discontinued operations | $ | 1,412,168 | ||
LIABILITIES | ||||
Accounts payable | $ | 122,695 | ||
Accrued liabilities | 68,582 | |||
Receipts in advance | 64,414 | |||
Accrued salary and benefits | 25,350 | |||
Taxes payable | 64,082 | |||
Other short-term liabilities | 61,154 | |||
Long-term liabilities | 10,721 | |||
Total liabilities associated with discontinued operations | $ | 416,998 | ||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Revenues | $ | 1,172,252 | $ | 924,664 | $ | 407,607 | ||||||
Cost of revenues | 738,454 | 722,614 | 274,408 | |||||||||
Gross profit | 433,798 | 202,050 | 133,199 | |||||||||
Operating expenses: | ||||||||||||
Research and development (2) | 190,402 | 193,376 | 141,506 | |||||||||
Sales and marketing (2) | 138,291 | 102,523 | 53,481 | |||||||||
General and administrative (2) | 40,670 | 29,271 | 11,854 | |||||||||
Total operating expenses | 369,363 | 325,170 | 206,841 | |||||||||
Operating profit/(loss) | 64,435 | (123,120 | ) | (73,642 | ) | |||||||
Interest income | 4,443 | 2,807 | 2,377 | |||||||||
Interest expense | 0 | 0 | (761 | ) | ||||||||
Foreign currency exchange gain/(loss) | 1,849 | (7,767 | ) | (848 | ) | |||||||
Other income, net | 21,127 | 38,633 | 81,655 | |||||||||
Income/(loss) from discontinued operations before income tax expense | 91,854 | (89,447 | ) | 8,781 | ||||||||
Income tax expense/(benefit) | 2,748 | 2,346 | (1,112 | ) | ||||||||
Results of operations from discontinued operations, net of tax | 89,106 | (91,793 | ) | 9,893 | ||||||||
Gain on disposal of discontinued operations | 0 | 0 | 855,009 | |||||||||
Net income/(loss) from discontinued operations, net of tax | 89,106 | (91,793 | ) | 864,902 | ||||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1)(3) | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | (2 | %) | (18 | %) | 127 | % | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 3 | % | (3 | %) | (90 | %) | ||||||
Changes in valuation allowance for deferred tax assets | 7 | % | (43 | %) | 349 | % | ||||||
Research and development super-deduction and other permanent book-tax differences | (25 | %) | 35 | % | (249 | %) | ||||||
Capital gains from equity investments | (5 | %) | 1 | % | (175 | %) | ||||||
3 | % | (3 | %) | (13 | %) | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Net cash provided by/(used in) discontinued operating activities | $ | 219,516 | $ | (68,187 | ) | $ | (175,888 | ) | ||||
Net cash provided by/(used in) discontinued investing activities | (217,598 | ) | 235,374 | 1,054,148 | ||||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) |
Note | (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Year Ended December 31, | ||||
2019 (1) | ||||
Revenues | $ | 37,323 | ||
Cost of revenues | 43,857 | |||
Gross loss | (6,534 | ) | ||
Operating expenses: | ||||
Sales and marketing | 8,807 | |||
General and administrative | 18,583 | |||
Total operating expenses | 27,390 | |||
Operating loss | (33,924 | ) | ||
Interest income | 7 | |||
Other income/(expense), net | 61 | |||
Loss from discontinued operations before income tax expense | (33,856 | ) | ||
Income tax expense | 142 | |||
Net loss from discontinued operations, net of tax | (33,998 | ) | ||
Year Ended December 31, | ||||
2019 (1) | ||||
Net cash provided by discontinued operating activities | $ | 9,341 | ||
Net cash used in discontinued investing activities | (10,808 | ) | ||
Net cash provided by discontinued financing activities | 0 |
Year Ended December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 218,442 | $ | 455,380 | $ | (19 | ) | $ | 673,803 | |||||||
Segment cost of revenues (1) | (148,258 | ) | (95,268 | ) | 21 | (243,505 | ) | |||||||||
Segment gross profit | 70,184 | 360,112 | 2 | 430,298 | ||||||||||||
SBC in cost of revenues (2) | (23 | ) | (120 | ) | 1 | (142 | ) | |||||||||
Gross profit | 70,161 | 359,992 | 3 | 430,156 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,761 | ) | (119,726 | ) | 0 | (233,487 | ) | |||||||||
Sales and marketing (1) | (155,226 | ) | (49,768 | ) | 2 | (204,992 | ) | |||||||||
General and administrative (1) | (31,330 | ) | (22,074 | ) | (17 | ) | (53,421 | ) | ||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245 | ) | 0 | 0 | (7,245 | ) | ||||||||||
SBC in operating expenses (2) | (1,023 | ) | (1,185 | ) | 0 | (2,208 | ) | |||||||||
Total operating expenses | (308,585 | ) | (192,753 | ) | (15 | ) | (501,353 | ) | ||||||||
Operating profit/(loss) | (238,424 | ) | 167,239 | (12 | ) | (71,197 | ) | |||||||||
Other income | 7,963 | |||||||||||||||
Interest income | 6,103 | |||||||||||||||
Interest expense | (14,370 | ) | ||||||||||||||
Exchange difference | 1,430 | |||||||||||||||
Loss before income tax expense | (70,071 | ) | ||||||||||||||
Income tax benefit | (28,428 | ) | ||||||||||||||
Net loss from continuing operations | (98,499 | ) | ||||||||||||||
Net income from discontinued operations | 55,108 | |||||||||||||||
Net loss | $ | (43,391 | ) | |||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 201,544 | $ | 548,346 | $ | 0 | $ | 749,890 | ||||||||
Segment cost of revenues (1) | (122,362 | ) | (94,362 | ) | 7 | (216,717 | ) | |||||||||
Segment gross profit | 79,182 | 453,984 | 7 | 533,173 | ||||||||||||
SBC in cost of revenues (2) | (177 | ) | (543 | ) | 0 | (720 | ) | |||||||||
Gross profit | 79,005 | 453,441 | 7 | 532,453 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (97,681 | ) | (136,934 | ) | 0 | (234,615 | ) | |||||||||
Sales and marketing (1) | (106,057 | ) | (53,272 | ) | 0 | (159,329 | ) | |||||||||
General and administrative (1) | (25,861 | ) | (25,517 | ) | 0 | (51,378 | ) | |||||||||
SBC in operating expenses (2) | (1,759 | ) | (12,001 | ) | 0 | (13,760 | ) | |||||||||
Total operating expenses | (231,358 | ) | (227,724 | ) | 0 | (459,082 | ) | |||||||||
Operating profit/(loss) | (152,353 | ) | 225,717 | 7 | 73,371 | |||||||||||
Other income | 25,993 | |||||||||||||||
Interest income | 7,369 | |||||||||||||||
Interest expense | (6,234 | ) | ||||||||||||||
Exchange difference | (3,800 | ) | ||||||||||||||
Loss before income tax expense | 96,699 | |||||||||||||||
Income tax expense | (133,226 | ) | ||||||||||||||
Net loss from continuing operations | (36,527 | ) | ||||||||||||||
Net income from discontinued operations | (91,793 | ) | ||||||||||||||
Net loss | $ | (128,320 | ) | |||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 186,606 | $ | 648,970 | $ | 0 | $ | 835,576 | ||||||||
Segment cost of revenues (1) | (113,881 | ) | (90,517 | ) | 4 | (204,394 | ) | |||||||||
Segment gross profit | 72,725 | 558,453 | 4 | 631,182 | ||||||||||||
SBC in cost of revenues (2) | (1 | ) | (276 | ) | 0 | (277 | ) | |||||||||
Gross profit | 72,724 | 558,177 | 4 | 630,905 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,186 | ) | (151,773 | ) | 0 | (264,959 | ) | |||||||||
Sales and marketing (1) | (126,126 | ) | (56,396 | ) | 0 | (182,522 | ) | |||||||||
General and administrative (1) | (36,949 | ) | (40,702 | ) | 0 | (77,651 | ) | |||||||||
SBC in operating expenses (2) | (804 | ) | (7,497 | ) | 0 | (8,301 | ) | |||||||||
Total operating expenses | (277,065 | ) | (256,368 | ) | 0 | (533,433 | ) | |||||||||
Operating profit/(loss) | (204,341 | ) | 301,809 | 4 | 97,472 | |||||||||||
Other income | 29,416 | |||||||||||||||
Interest income | 15,641 | |||||||||||||||
Interest expense | (7,500 | ) | ||||||||||||||
Exchange difference | (3,462 | ) | ||||||||||||||
Income before income tax expense | 131,567 | |||||||||||||||
Income tax expense | (62,296 | ) | ||||||||||||||
Net loss from continuing operations | 69,271 | |||||||||||||||
Net loss from discontinued operations | 864,902 | |||||||||||||||
Net loss | $ | 934,173 | ||||||||||||||
As of December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 56,977 | $ | 160,080 | $ | 0 | $ | 217,057 | ||||||||
Accounts receivable, net | 60,886 | 26,635 | 0 | 87,521 | ||||||||||||
Fixed assets, net | 174,700 | 162,976 | (2 | ) | 337,674 | |||||||||||
Total assets (1) | $ | 1,632,736 | $ | 2,478,705 | $ | (2,701,488 | ) | $ | 1,409,953 |
As of December 31, 202 1 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 929,851 | $ | 69,098 | $ | 0 | $ | 998,949 | ||||||||
Accounts receivable, net | 48,108 | 34,442 | 0 | 82,550 | ||||||||||||
Fixed assets, net | 170,213 | 159,784 | 0 | 329,997 | ||||||||||||
Total assets (1) | $ | 2,294,537 | $ | 2,610,964 | $ | (2,659,716 | ) | $ | 2,245,785 |
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
Cost of revenues | $ | 142 | $ | 720 | $ | 277 | ||||||
Product development expenses | 1,364 | 7,325 | 3,904 | |||||||||
Sales and marketing expenses | (326 | ) | 460 | 166 | ||||||||
General and administrative expenses | 1,170 | 5,975 | 4,231 | |||||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | 1,940 | $ | 2,633 | $ | 1,849 | ||||||
For Changyou share-based awards | 1,305 | 12,545 | 7,773 | |||||||||
For Sohu Video share-based awards | (895 | ) | (698 | ) | (1,044 | ) | ||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Rental income from Sogou (1) | 8,029 | 9,793 | 10,427 | |||||||||
Investment income | 3,004 | 3 | 6,352 | |||||||||
Income from investments in financial instruments (2) | 11,113 | 4,303 | 5,260 | |||||||||
Individual tax refund and additional deduction of PRC value-added tax | 907 | 6,169 | 4,827 | |||||||||
Write-down of unpaid long-term accounts payable | 0 | 47 | 1,276 | |||||||||
Gover nment grant | 5,763 | 5,928 | 418 | |||||||||
Impairment loss on equity investments ( 3 ) | (23,154 | ) | (384 | ) | (215 | ) | ||||||
Donations | (283 | ) | (1,460 | ) | (1,565 | ) | ||||||
Others | 2,584 | 1,594 | 2,636 | |||||||||
$ | 7,963 | $ | 25,993 | $ | 29,416 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | 94,908 | |||||
Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | 82,550 | ||||||
Balance at the beginning of year | Changes on initial application of ASU 2016-13 | Additional allowance for credit losses, net of recoveries | Write-offs | Exchange difference | Balance at the end of year | |||||||||||||||||||
2019 | 7,574 | 0 | 4,724 | (8,237 | ) | (105 | ) | 3,956 | ||||||||||||||||
2020 | 3,956 | 3,383 | 2,419 | (3,231 | ) | 480 | 7,007 | |||||||||||||||||
2021 | 7,007 | 0 | 6,292 | (1,155 | ) | 214 | 12,358 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Prepaid and other current assets | ||||||||
Matching loan due from a related party (See Note 9) | $ | 34,123 | $ | 34,123 | ||||
Prepaid taxes | 25,043 | 28,719 | ||||||
Prepaid revenue-sharing cost | 10,120 | 12,428 | ||||||
Prepaid content and license costs | 11,029 | 8,694 | ||||||
Prepaid advertising and promotion fee | 244 | 4,685 | ||||||
Interest receivable from bank deposits with original maturities of three months or less | 3,875 | 3,059 | ||||||
Receivables from third party payment platforms | 5,488 | 2,670 | ||||||
Prepaid professional fees | 2,365 | 2,432 | ||||||
Prepaid rental deposit s | 2,310 | 1,928 | ||||||
Emplo yee advances | 587 | 569 | ||||||
Prepaid office rent and facilities expenses | 696 | 338 | ||||||
Others | 10,710 | 7,666 | ||||||
$106,590 | $ | 107,311 | ||||||
Prepaid non-current assets | ||||||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | $ | 1,006 | $ | 0 | ||||
$ | 1,006 | $ | 0 | |||||
Other short-term liabilities | ||||||||
Matching loans due to a related party (See Note 9) | 34,123 | 34,123 | ||||||
Contingent liability related to Shanghai Jingmao liquidation (1) | 23,900 | 23,900 | ||||||
Deposits related to Focus | 21,936 | 10,387 | ||||||
Share-based awards in Changyou | 13,292 | 20,693 | ||||||
Other payables related to Shanghai Jingmao liquidation (2) | 0 | 9,380 | ||||||
Contract deposits from advertisers | 3,036 | 2,679 | ||||||
Lease liabilities | 1,107 | 1,999 | ||||||
Consideration payable for equity investment | 751 | 769 | ||||||
Others | 8,026 | 8,638 | ||||||
$ | 106,171 | $ | 112,568 | |||||
Receipts in advance and deferred revenue | ||||||||
Receipts in advance relating to: | ||||||||
brand advertising business | $ | 5,214 | $ | 4,297 | ||||
online game business | 7,869 | 9,310 | ||||||
other business | 6,029 | 5,286 | ||||||
Total receipts in advance | 19,112 | 18,893 | ||||||
Deferred revenue | 32,943 | 38,148 | ||||||
$52,055 | $57,041 | |||||||
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 173,655 | $ | 0 | $ | 173,655 | $ | 0 | ||||||||
Restricted cash | 330,791 | 0 | 330,791 | 0 | ||||||||||||
Restricted time deposits | 101,519 | 0 | 101,519 | 0 | ||||||||||||
Short-term investments | 100,745 | 0 | 100,745 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 9,457 | 9,457 | 0 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 949,884 | $ | 0 | $ | 949,884 | $ | 0 | ||||||||
Restricted cash | 1,969 | 0 | 1,969 | 0 | ||||||||||||
Short-term investments | 399,345 | 0 | 399,345 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 14,642 | 14,642 | 0 | 0 | ||||||||||||
Long-term time deposits | 189,007 | 0 | 189,007 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,585 | $ | 0 | $ | 0 | $ | 2,585 | ||||||||
Intangible assets, net | 4,842 | 0 | 0 | 4,842 | ||||||||||||
Goodwill | 48,434 | 0 | 0 | 48,434 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,555 | $ | 0 | $ | 0 | $ | 2,555 | ||||||||
Intangible assets, net | 9,136 | 0 | 0 | 9,136 | ||||||||||||
Goodwill | 48,811 | 0 | 0 | 48,811 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Operating lease expense | $ | 3,985 | $ | 2,952 | ||||
Short-term lease expense | 297 | 563 | ||||||
Total operating lease expense | $ | 4,282 | $ | 3,515 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 3,206 | $ | 3,085 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Right-of-use | ||||||||
Operating leases | $ | 5,351 | $ | 2,620 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Assets: | ||||||||
Operating lease right-of-use assets | $ | 4,998 | $ | 5,207 | ||||
Liabilities: | ||||||||
Current lease liabilities | 1,107 | 1,999 | ||||||
Non-current lease liabilities | 3,855 | 3,142 | ||||||
Total operating lease liabilities | $ | 4,962 | $ | 5,141 | ||||
2022 | $ | 2,853 | ||
2023 | 2,240 | |||
2024 | 277 | |||
2025 | 98 | |||
202 6 | 0 | |||
Thereafter | 0 | |||
Total future lease payments | 5,468 | |||
Less: imputed interest | 327 | |||
Total present value of lease liabilities | $ | 5,141 | ||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Office buildings | $ | 392,045 | $ | 401,223 | ||||
Computer equipment and hardware | 132,021 | 123,079 | ||||||
Leasehold and building improvements | 36,649 | 37,753 | ||||||
Office furniture | 6,841 | 6,960 | ||||||
Vehicles | 3,729 | 3,515 | ||||||
Fixed assets, gross | 571,285 | 572,530 | ||||||
Accumulated depreciation | (233,611 | ) | (242,533 | ) | ||||
Fixed assets, net | $ | 337,674 | $ | 329,997 | ||||
Sohu | Changyou | Total | ||||||||||
Balance as of December 31, 2019 | ||||||||||||
Goodwill | 69,379 | 180,543 | 249,922 | |||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||
$ | 37,133 | $ | 10,257 | $ | 47,390 | |||||||
Transactions in 2020 | ||||||||||||
Foreign currency translation adjustment | 1,044 | 0 | 1,044 | |||||||||
Balance as of December 31, 2020 | $ | 38,177 | $ | 10,257 | $ | 48,434 | ||||||
Balance as of December 31, 2020 | ||||||||||||
Goodwill | 70,423 | 180,543 | 250,966 | |||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||
$ | 38,177 | $ | 10,257 | $ | 48,434 | |||||||
Transactions in 2021 | ||||||||||||
Foreign currency translation adjustment | 377 | 0 | 377 | |||||||||
Balance as of December 31, 2021 | $ | 38,554 | $ | 10,257 | $ | 48,811 | ||||||
Balance as of December 31, 2021 | ||||||||||||
Goodwill | 70,800 | 180,543 | 251,343 | |||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||
$ | 38,554 | $ | 10,257 | $ | 48,811 | |||||||
As of December 31, 2020 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 212,999 | $ | (161,160 | ) | $ | (50,088 | ) | $ | 1,751 | ||||||
Operating rights for licensed games | 51,856 | (35,017 | ) | (14,026 | ) | 2,813 | ||||||||||
Domain names and trademarks | 27,536 | (10,243 | ) | (17,219 | ) | 74 | ||||||||||
Computer software | 11,749 | (11,545 | ) | 0 | 204 | |||||||||||
Developed technologies | 8,699 | (918 | ) | (7,781 | ) | 0 | ||||||||||
Others | 2,928 | (966 | ) | (1,962 | ) | 0 | ||||||||||
Total | $ | 315,767 | $ | (219,849 | ) | $ | (91,076 | ) | $ | 4,842 | ||||||
As of December 31, 2021 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 138,902 | $ | (99,961 | ) | $ | (37,343 | ) | $ | 1,598 | ||||||
Operating rights for licensed games | 60,454 | (39,431 | ) | (13,895 | ) | 7,128 | ||||||||||
Domain names and trademarks | 26,766 | (10,240 | ) | (16,506 | ) | 20 | ||||||||||
Computer software | 12,474 | (12,084 | ) | 0 | 390 | |||||||||||
Developed technologies | 8,879 | (936 | ) | (7,943 | ) | 0 | ||||||||||
Others | 2,996 | (988 | ) | (2,008 | ) | 0 | ||||||||||
Total | $ | 250,471 | $ | (163,640 | ) | $ | (77,695 | ) | $ | 9,136 | ||||||
For the year ended December 31, | (in thousands) | |||
2022 | 4,357 | |||
2023 | 3,761 | |||
2024 | 1,018 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 0 | |||
Total expected amortization expense | $ | 9,136 | ||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Income/(loss) before income tax expense | ||||||||||||
Income/(loss) from China operations | $ | (89,150 | ) | $ | 154,514 | $ | 153,708 | |||||
Income/(loss) from non-China operations | 19,079 | (57,815 | ) | (22,141 | ) | |||||||
Total income/(loss) before income tax expense from continuing operations | $ | (70,071 | ) | $ | 96,699 | $ | 131,567 | |||||
Income tax expense applicable to China operations | ||||||||||||
Current tax | $ | 9,026 | $ | 24,255 | $ | 31,089 | ||||||
Deferred tax | 11,191 | 102,652 | 26,207 | |||||||||
Subtotal income tax expense applicable to China operations | 20,217 | 126,907 | 57,296 | |||||||||
Non-China income tax expense | 7,887 | 6,207 | 4,817 | |||||||||
Non-China withholding tax expense | 324 | 112 | 183 | |||||||||
Total income tax expense from continuing operations | $ | 28,428 | $ | 133,226 | $ | 62,296 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Tax holiday effect | $ | 7,981 | $ | 16,174 | $ | 1,635 | ||||||
Basic net income per share effect | 0.20 | 0.41 | 0.04 |
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) | 11 | % | (17 | %) | (1 | %) | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 7 | % | 9 | % | 3 | % | ||||||
Effect of withholding taxes (2) | (12 | %) | 109 | % | 19 | % | ||||||
Changes in valuation allowance for deferred tax assets | (71 | %) | 27 | % | 31 | % | ||||||
Research and development super-deduction | 12 | % | (9 | %) | (19 | %) | ||||||
Others | (1 | %) | (13 | %) | (14 | %) | ||||||
(29 | %) | 131 | % | 44 | % | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | $ | 94,908 | ||||
Less: Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | $ | 82,550 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Less than 179 days | $ | 78,805 | $ | 79,155 | ||||
180-359 days | 7,569 | 7,437 | ||||||
360 days and greater | 8,154 | 8,316 | ||||||
Total | 94,528 | 94,908 |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 7,574 | $ | 3,956 | $ | 7,007 | ||||||
Changes on initial application of ASU 2016-13 (1) | 0 | 3,383 | 0 | |||||||||
Additional allowance for credit losses, net of recoveries | 4,724 | 2,419 | 6,292 | |||||||||
Write-offs | (8,237 | ) | (3,231 | ) | (1,155 | ) | ||||||
Exchange difference | (105 | ) | 480 | 214 | ||||||||
Balance at the end of year | 3,956 | 7,007 | 12,358 |
Fixed Assets | Estimated Useful Lives (years) | |
Office buildings | 36-47 | |
Leasehold improvements | Lesser of term of the lease or the estimated useful lives of the assets | |
Vehicles | 4 | |
Office furniture | 5 | |
Computer equipment and hardware | 4-5 |
Intangible Assets | Estimated Useful Lives (years) | |
Purchased video content | 1 month to 2 years | |
Computer software | 1-5 | |
Developed technologies | 3-10 | |
Domain names and trademarks | 4-30 | |
Operating rights for licensed games | over the contract terms |
As of December 31, 2020 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 287,185 | ||
Restricted cash | 23,018 | |||
Short-term investments | 774,618 | |||
Account and financing receivables, net | 73,656 | |||
Prepaid and other current assets | 28,946 | |||
Long-term investments, net | 74,004 | |||
Fixed assets, net | 89,089 | |||
Goodwill | 6,527 | |||
Intangible assets, net | 1,446 | |||
Other assets | 53,679 | |||
Total assets associated with discontinued operations | $ | 1,412,168 | ||
LIABILITIES | ||||
Accounts payable | $ | 122,695 | ||
Accrued liabilities | 68,582 | |||
Receipts in advance | 64,414 | |||
Accrued salary and benefits | 25,350 | |||
Taxes payable | 64,082 | |||
Other short-term liabilities | 61,154 | |||
Long-term liabilities | 10,721 | |||
Total liabilities associated with discontinued operations | $ | 416,998 | ||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Revenues | $ | 1,172,252 | $ | 924,664 | $ | 407,607 | ||||||
Cost of revenues | 738,454 | 722,614 | 274,408 | |||||||||
Gross profit | 433,798 | 202,050 | 133,199 | |||||||||
Operating expenses: | ||||||||||||
Research and development (2) | 190,402 | 193,376 | 141,506 | |||||||||
Sales and marketing (2) | 138,291 | 102,523 | 53,481 | |||||||||
General and administrative (2) | 40,670 | 29,271 | 11,854 | |||||||||
Total operating expenses | 369,363 | 325,170 | 206,841 | |||||||||
Operating profit/(loss) | 64,435 | (123,120 | ) | (73,642 | ) | |||||||
Interest income | 4,443 | 2,807 | 2,377 | |||||||||
Interest expense | 0 | 0 | (761 | ) | ||||||||
Foreign currency exchange gain/(loss) | 1,849 | (7,767 | ) | (848 | ) | |||||||
Other income, net | 21,127 | 38,633 | 81,655 | |||||||||
Income/(loss) from discontinued operations before income tax expense | 91,854 | (89,447 | ) | 8,781 | ||||||||
Income tax expense/(benefit) | 2,748 | 2,346 | (1,112 | ) | ||||||||
Results of operations from discontinued operations, net of tax | 89,106 | (91,793 | ) | 9,893 | ||||||||
Gain on disposal of discontinued operations | 0 | 0 | 855,009 | |||||||||
Net income/(loss) from discontinued operations, net of tax | 89,106 | (91,793 | ) | 864,902 | ||||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1)(3) | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | (2 | %) | (18 | %) | 127 | % | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 3 | % | (3 | %) | (90 | %) | ||||||
Changes in valuation allowance for deferred tax assets | 7 | % | (43 | %) | 349 | % | ||||||
Research and development super-deduction and other permanent book-tax differences | (25 | %) | 35 | % | (249 | %) | ||||||
Capital gains from equity investments | (5 | %) | 1 | % | (175 | %) | ||||||
3 | % | (3 | %) | (13 | %) | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 (1) | ||||||||||
Net cash provided by/(used in) discontinued operating activities | $ | 219,516 | $ | (68,187 | ) | $ | (175,888 | ) | ||||
Net cash provided by/(used in) discontinued investing activities | (217,598 | ) | 235,374 | 1,054,148 | ||||||||
Net cash used in discontinued financing activities | (33,415 | ) | (8,209 | ) | (9,132 | ) |
Note | (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Year Ended December 31, | ||||
2019 (1) | ||||
Revenues | $ | 37,323 | ||
Cost of revenues | 43,857 | |||
Gross loss | (6,534 | ) | ||
Operating expenses: | ||||
Sales and marketing | 8,807 | |||
General and administrative | 18,583 | |||
Total operating expenses | 27,390 | |||
Operating loss | (33,924 | ) | ||
Interest income | 7 | |||
Other income/(expense), net | 61 | |||
Loss from discontinued operations before income tax expense | (33,856 | ) | ||
Income tax expense | 142 | |||
Net loss from discontinued operations, net of tax | (33,998 | ) | ||
Year Ended December 31, | ||||
2019 (1) | ||||
Net cash provided by discontinued operating activities | $ | 9,341 | ||
Net cash used in discontinued investing activities | (10,808 | ) | ||
Net cash provided by discontinued financing activities | 0 |
Year Ended December 31, 2019 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 218,442 | $ | 455,380 | $ | (19 | ) | $ | 673,803 | |||||||
Segment cost of revenues (1) | (148,258 | ) | (95,268 | ) | 21 | (243,505 | ) | |||||||||
Segment gross profit | 70,184 | 360,112 | 2 | 430,298 | ||||||||||||
SBC in cost of revenues (2) | (23 | ) | (120 | ) | 1 | (142 | ) | |||||||||
Gross profit | 70,161 | 359,992 | 3 | 430,156 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,761 | ) | (119,726 | ) | 0 | (233,487 | ) | |||||||||
Sales and marketing (1) | (155,226 | ) | (49,768 | ) | 2 | (204,992 | ) | |||||||||
General and administrative (1) | (31,330 | ) | (22,074 | ) | (17 | ) | (53,421 | ) | ||||||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245 | ) | 0 | 0 | (7,245 | ) | ||||||||||
SBC in operating expenses (2) | (1,023 | ) | (1,185 | ) | 0 | (2,208 | ) | |||||||||
Total operating expenses | (308,585 | ) | (192,753 | ) | (15 | ) | (501,353 | ) | ||||||||
Operating profit/(loss) | (238,424 | ) | 167,239 | (12 | ) | (71,197 | ) | |||||||||
Other income | 7,963 | |||||||||||||||
Interest income | 6,103 | |||||||||||||||
Interest expense | (14,370 | ) | ||||||||||||||
Exchange difference | 1,430 | |||||||||||||||
Loss before income tax expense | (70,071 | ) | ||||||||||||||
Income tax benefit | (28,428 | ) | ||||||||||||||
Net loss from continuing operations | (98,499 | ) | ||||||||||||||
Net income from discontinued operations | 55,108 | |||||||||||||||
Net loss | $ | (43,391 | ) | |||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 201,544 | $ | 548,346 | $ | 0 | $ | 749,890 | ||||||||
Segment cost of revenues (1) | (122,362 | ) | (94,362 | ) | 7 | (216,717 | ) | |||||||||
Segment gross profit | 79,182 | 453,984 | 7 | 533,173 | ||||||||||||
SBC in cost of revenues (2) | (177 | ) | (543 | ) | 0 | (720 | ) | |||||||||
Gross profit | 79,005 | 453,441 | 7 | 532,453 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (97,681 | ) | (136,934 | ) | 0 | (234,615 | ) | |||||||||
Sales and marketing (1) | (106,057 | ) | (53,272 | ) | 0 | (159,329 | ) | |||||||||
General and administrative (1) | (25,861 | ) | (25,517 | ) | 0 | (51,378 | ) | |||||||||
SBC in operating expenses (2) | (1,759 | ) | (12,001 | ) | 0 | (13,760 | ) | |||||||||
Total operating expenses | (231,358 | ) | (227,724 | ) | 0 | (459,082 | ) | |||||||||
Operating profit/(loss) | (152,353 | ) | 225,717 | 7 | 73,371 | |||||||||||
Other income | 25,993 | |||||||||||||||
Interest income | 7,369 | |||||||||||||||
Interest expense | (6,234 | ) | ||||||||||||||
Exchange difference | (3,800 | ) | ||||||||||||||
Loss before income tax expense | 96,699 | |||||||||||||||
Income tax expense | (133,226 | ) | ||||||||||||||
Net loss from continuing operations | (36,527 | ) | ||||||||||||||
Net income from discontinued operations | (91,793 | ) | ||||||||||||||
Net loss | $ | (128,320 | ) | |||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Revenues | $ | 186,606 | $ | 648,970 | $ | 0 | $ | 835,576 | ||||||||
Segment cost of revenues (1) | (113,881 | ) | (90,517 | ) | 4 | (204,394 | ) | |||||||||
Segment gross profit | 72,725 | 558,453 | 4 | 631,182 | ||||||||||||
SBC in cost of revenues (2) | (1 | ) | (276 | ) | 0 | (277 | ) | |||||||||
Gross profit | 72,724 | 558,177 | 4 | 630,905 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development (1) | (113,186 | ) | (151,773 | ) | 0 | (264,959 | ) | |||||||||
Sales and marketing (1) | (126,126 | ) | (56,396 | ) | 0 | (182,522 | ) | |||||||||
General and administrative (1) | (36,949 | ) | (40,702 | ) | 0 | (77,651 | ) | |||||||||
SBC in operating expenses (2) | (804 | ) | (7,497 | ) | 0 | (8,301 | ) | |||||||||
Total operating expenses | (277,065 | ) | (256,368 | ) | 0 | (533,433 | ) | |||||||||
Operating profit/(loss) | (204,341 | ) | 301,809 | 4 | 97,472 | |||||||||||
Other income | 29,416 | |||||||||||||||
Interest income | 15,641 | |||||||||||||||
Interest expense | (7,500 | ) | ||||||||||||||
Exchange difference | (3,462 | ) | ||||||||||||||
Income before income tax expense | 131,567 | |||||||||||||||
Income tax expense | (62,296 | ) | ||||||||||||||
Net loss from continuing operations | 69,271 | |||||||||||||||
Net loss from discontinued operations | 864,902 | |||||||||||||||
Net loss | $ | 934,173 | ||||||||||||||
As of December 31, 2020 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 56,977 | $ | 160,080 | $ | 0 | $ | 217,057 | ||||||||
Accounts receivable, net | 60,886 | 26,635 | 0 | 87,521 | ||||||||||||
Fixed assets, net | 174,700 | 162,976 | (2 | ) | 337,674 | |||||||||||
Total assets (1) | $ | 1,632,736 | $ | 2,478,705 | $ | (2,701,488 | ) | $ | 1,409,953 |
As of December 31, 202 1 | ||||||||||||||||
Sohu | Changyou | Eliminations | Consolidated | |||||||||||||
Cash and cash equivalents | $ | 929,851 | $ | 69,098 | $ | 0 | $ | 998,949 | ||||||||
Accounts receivable, net | 48,108 | 34,442 | 0 | 82,550 | ||||||||||||
Fixed assets, net | 170,213 | 159,784 | 0 | 329,997 | ||||||||||||
Total assets (1) | $ | 2,294,537 | $ | 2,610,964 | $ | (2,659,716 | ) | $ | 2,245,785 |
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
Cost of revenues | $ | 142 | $ | 720 | $ | 277 | ||||||
Product development expenses | 1,364 | 7,325 | 3,904 | |||||||||
Sales and marketing expenses | (326 | ) | 460 | 166 | ||||||||
General and administrative expenses | 1,170 | 5,975 | 4,231 | |||||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
Share-based compensation expense | 2019 | 2020 | 2021 | |||||||||
For Sohu (excluding Sohu Video) share-based awards | $ | 1,940 | $ | 2,633 | $ | 1,849 | ||||||
For Changyou share-based awards | 1,305 | 12,545 | 7,773 | |||||||||
For Sohu Video share-based awards | (895 | ) | (698 | ) | (1,044 | ) | ||||||
$ | 2,350 | $ | 14,480 | $ | 8,578 | |||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Rental income from Sogou (1) | 8,029 | 9,793 | 10,427 | |||||||||
Investment income | 3,004 | 3 | 6,352 | |||||||||
Income from investments in financial instruments (2) | 11,113 | 4,303 | 5,260 | |||||||||
Individual tax refund and additional deduction of PRC value-added tax | 907 | 6,169 | 4,827 | |||||||||
Write-down of unpaid long-term accounts payable | 0 | 47 | 1,276 | |||||||||
Gover nment grant | 5,763 | 5,928 | 418 | |||||||||
Impairment loss on equity investments ( 3 ) | (23,154 | ) | (384 | ) | (215 | ) | ||||||
Donations | (283 | ) | (1,460 | ) | (1,565 | ) | ||||||
Others | 2,584 | 1,594 | 2,636 | |||||||||
$ | 7,963 | $ | 25,993 | $ | 29,416 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 94,528 | 94,908 | |||||
Allowance for credit losses | (7,007 | ) | (12,358 | ) | ||||
$ | 87,521 | 82,550 | ||||||
Balance at the beginning of year | Changes on initial application of ASU 2016-13 | Additional allowance for credit losses, net of recoveries | Write-offs | Exchange difference | Balance at the end of year | |||||||||||||||||||
2019 | 7,574 | 0 | 4,724 | (8,237 | ) | (105 | ) | 3,956 | ||||||||||||||||
2020 | 3,956 | 3,383 | 2,419 | (3,231 | ) | 480 | 7,007 | |||||||||||||||||
2021 | 7,007 | 0 | 6,292 | (1,155 | ) | 214 | 12,358 |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Prepaid and other current assets | ||||||||
Matching loan due from a related party (See Note 9) | $ | 34,123 | $ | 34,123 | ||||
Prepaid taxes | 25,043 | 28,719 | ||||||
Prepaid revenue-sharing cost | 10,120 | 12,428 | ||||||
Prepaid content and license costs | 11,029 | 8,694 | ||||||
Prepaid advertising and promotion fee | 244 | 4,685 | ||||||
Interest receivable from bank deposits with original maturities of three months or less | 3,875 | 3,059 | ||||||
Receivables from third party payment platforms | 5,488 | 2,670 | ||||||
Prepaid professional fees | 2,365 | 2,432 | ||||||
Prepaid rental deposit s | 2,310 | 1,928 | ||||||
Emplo yee advances | 587 | 569 | ||||||
Prepaid office rent and facilities expenses | 696 | 338 | ||||||
Others | 10,710 | 7,666 | ||||||
$106,590 | $ | 107,311 | ||||||
Prepaid non-current assets | ||||||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | $ | 1,006 | $ | 0 | ||||
$ | 1,006 | $ | 0 | |||||
Other short-term liabilities | ||||||||
Matching loans due to a related party (See Note 9) | 34,123 | 34,123 | ||||||
Contingent liability related to Shanghai Jingmao liquidation (1) | 23,900 | 23,900 | ||||||
Deposits related to Focus | 21,936 | 10,387 | ||||||
Share-based awards in Changyou | 13,292 | 20,693 | ||||||
Other payables related to Shanghai Jingmao liquidation (2) | 0 | 9,380 | ||||||
Contract deposits from advertisers | 3,036 | 2,679 | ||||||
Lease liabilities | 1,107 | 1,999 | ||||||
Consideration payable for equity investment | 751 | 769 | ||||||
Others | 8,026 | 8,638 | ||||||
$ | 106,171 | $ | 112,568 | |||||
Receipts in advance and deferred revenue | ||||||||
Receipts in advance relating to: | ||||||||
brand advertising business | $ | 5,214 | $ | 4,297 | ||||
online game business | 7,869 | 9,310 | ||||||
other business | 6,029 | 5,286 | ||||||
Total receipts in advance | 19,112 | 18,893 | ||||||
Deferred revenue | 32,943 | 38,148 | ||||||
$52,055 | $57,041 | |||||||
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 173,655 | $ | 0 | $ | 173,655 | $ | 0 | ||||||||
Restricted cash | 330,791 | 0 | 330,791 | 0 | ||||||||||||
Restricted time deposits | 101,519 | 0 | 101,519 | 0 | ||||||||||||
Short-term investments | 100,745 | 0 | 100,745 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 9,457 | 9,457 | 0 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents | $ | 949,884 | $ | 0 | $ | 949,884 | $ | 0 | ||||||||
Restricted cash | 1,969 | 0 | 1,969 | 0 | ||||||||||||
Short-term investments | 399,345 | 0 | 399,345 | 0 | ||||||||||||
Equity investments with readily determinable fair values | 14,642 | 14,642 | 0 | 0 | ||||||||||||
Long-term time deposits | 189,007 | 0 | 189,007 | 0 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,585 | $ | 0 | $ | 0 | $ | 2,585 | ||||||||
Intangible assets, net | 4,842 | 0 | 0 | 4,842 | ||||||||||||
Goodwill | 48,434 | 0 | 0 | 48,434 |
Fair value measurements at reporting date using | ||||||||||||||||
Items | As of December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Purchased video content recorded in prepaid and other assets | $ | 2,555 | $ | 0 | $ | 0 | $ | 2,555 | ||||||||
Intangible assets, net | 9,136 | 0 | 0 | 9,136 | ||||||||||||
Goodwill | 48,811 | 0 | 0 | 48,811 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Operating lease expense | $ | 3,985 | $ | 2,952 | ||||
Short-term lease expense | 297 | 563 | ||||||
Total operating lease expense | $ | 4,282 | $ | 3,515 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 3,206 | $ | 3,085 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Right-of-use | ||||||||
Operating leases | $ | 5,351 | $ | 2,620 |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Assets: | ||||||||
Operating lease right-of-use assets | $ | 4,998 | $ | 5,207 | ||||
Liabilities: | ||||||||
Current lease liabilities | 1,107 | 1,999 | ||||||
Non-current lease liabilities | 3,855 | 3,142 | ||||||
Total operating lease liabilities | $ | 4,962 | $ | 5,141 | ||||
2022 | $ | 2,853 | ||
2023 | 2,240 | |||
2024 | 277 | |||
2025 | 98 | |||
202 6 | 0 | |||
Thereafter | 0 | |||
Total future lease payments | 5,468 | |||
Less: imputed interest | 327 | |||
Total present value of lease liabilities | $ | 5,141 | ||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Office buildings | $ | 392,045 | $ | 401,223 | ||||
Computer equipment and hardware | 132,021 | 123,079 | ||||||
Leasehold and building improvements | 36,649 | 37,753 | ||||||
Office furniture | 6,841 | 6,960 | ||||||
Vehicles | 3,729 | 3,515 | ||||||
Fixed assets, gross | 571,285 | 572,530 | ||||||
Accumulated depreciation | (233,611 | ) | (242,533 | ) | ||||
Fixed assets, net | $ | 337,674 | $ | 329,997 | ||||
Sohu | Changyou | Total | ||||||||||
Balance as of December 31, 2019 | ||||||||||||
Goodwill | 69,379 | 180,543 | 249,922 | |||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||
$ | 37,133 | $ | 10,257 | $ | 47,390 | |||||||
Transactions in 2020 | ||||||||||||
Foreign currency translation adjustment | 1,044 | 0 | 1,044 | |||||||||
Balance as of December 31, 2020 | $ | 38,177 | $ | 10,257 | $ | 48,434 | ||||||
Balance as of December 31, 2020 | ||||||||||||
Goodwill | 70,423 | 180,543 | 250,966 | |||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||
$ | 38,177 | $ | 10,257 | $ | 48,434 | |||||||
Transactions in 2021 | ||||||||||||
Foreign currency translation adjustment | 377 | 0 | 377 | |||||||||
Balance as of December 31, 2021 | $ | 38,554 | $ | 10,257 | $ | 48,811 | ||||||
Balance as of December 31, 2021 | ||||||||||||
Goodwill | 70,800 | 180,543 | 251,343 | |||||||||
Accumulated impairment losses | (32,246 | ) | (170,286 | ) | (202,532 | ) | ||||||
$ | 38,554 | $ | 10,257 | $ | 48,811 | |||||||
As of December 31, 2020 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 212,999 | $ | (161,160 | ) | $ | (50,088 | ) | $ | 1,751 | ||||||
Operating rights for licensed games | 51,856 | (35,017 | ) | (14,026 | ) | 2,813 | ||||||||||
Domain names and trademarks | 27,536 | (10,243 | ) | (17,219 | ) | 74 | ||||||||||
Computer software | 11,749 | (11,545 | ) | 0 | 204 | |||||||||||
Developed technologies | 8,699 | (918 | ) | (7,781 | ) | 0 | ||||||||||
Others | 2,928 | (966 | ) | (1,962 | ) | 0 | ||||||||||
Total | $ | 315,767 | $ | (219,849 | ) | $ | (91,076 | ) | $ | 4,842 | ||||||
As of December 31, 2021 | ||||||||||||||||
Items | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||
Purchased video content | $ | 138,902 | $ | (99,961 | ) | $ | (37,343 | ) | $ | 1,598 | ||||||
Operating rights for licensed games | 60,454 | (39,431 | ) | (13,895 | ) | 7,128 | ||||||||||
Domain names and trademarks | 26,766 | (10,240 | ) | (16,506 | ) | 20 | ||||||||||
Computer software | 12,474 | (12,084 | ) | 0 | 390 | |||||||||||
Developed technologies | 8,879 | (936 | ) | (7,943 | ) | 0 | ||||||||||
Others | 2,996 | (988 | ) | (2,008 | ) | 0 | ||||||||||
Total | $ | 250,471 | $ | (163,640 | ) | $ | (77,695 | ) | $ | 9,136 | ||||||
For the year ended December 31, | (in thousands) | |||
2022 | 4,357 | |||
2023 | 3,761 | |||
2024 | 1,018 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 0 | |||
Total expected amortization expense | $ | 9,136 | ||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Income/(loss) before income tax expense | ||||||||||||
Income/(loss) from China operations | $ | (89,150 | ) | $ | 154,514 | $ | 153,708 | |||||
Income/(loss) from non-China operations | 19,079 | (57,815 | ) | (22,141 | ) | |||||||
Total income/(loss) before income tax expense from continuing operations | $ | (70,071 | ) | $ | 96,699 | $ | 131,567 | |||||
Income tax expense applicable to China operations | ||||||||||||
Current tax | $ | 9,026 | $ | 24,255 | $ | 31,089 | ||||||
Deferred tax | 11,191 | 102,652 | 26,207 | |||||||||
Subtotal income tax expense applicable to China operations | 20,217 | 126,907 | 57,296 | |||||||||
Non-China income tax expense | 7,887 | 6,207 | 4,817 | |||||||||
Non-China withholding tax expense | 324 | 112 | 183 | |||||||||
Total income tax expense from continuing operations | $ | 28,428 | $ | 133,226 | $ | 62,296 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Tax holiday effect | $ | 7,981 | $ | 16,174 | $ | 1,635 | ||||||
Basic net income per share effect | 0.20 | 0.41 | 0.04 |
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Statutory Rate: | 25 | % | 25 | % | 25 | % | ||||||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) | 11 | % | (17 | %) | (1 | %) | ||||||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 7 | % | 9 | % | 3 | % | ||||||
Effect of withholding taxes (2) | (12 | %) | 109 | % | 19 | % | ||||||
Changes in valuation allowance for deferred tax assets | (71 | %) | 27 | % | 31 | % | ||||||
Research and development super-deduction | 12 | % | (9 | %) | (19 | %) | ||||||
Others | (1 | %) | (13 | %) | (14 | %) | ||||||
(29 | %) | 131 | % | 44 | % | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Deferred tax assets: | ||||||||
Net operating loss from operations | $ | 325,797 | $ | 291,380 | ||||
Accrued bonus and commissions | 10,613 | 9,101 | ||||||
Intangible assets transfer | 690 | 485 | ||||||
Others | 8,692 | 7,489 | ||||||
Total deferred tax assets | 345,792 | 308,455 | ||||||
Less: Valuation allowance | (326,755 | ) | (289,097 | ) | ||||
Net deferred tax assets | $ | 19,037 | $ | 19,358 | ||||
Deferred tax liabilities | ||||||||
Withholding tax for dividend | $ | (206,594 | ) | $ | (237,116 | ) | ||
Others | (10,999 | ) | (12,049 | ) | ||||
Total deferred tax liabilities | $ | (217,593 | ) | $ | (249,165 | ) | ||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Beginning balance | $ | 250,524 | 283,711 | 326,755 | ||||||||
Provision for the year | 44,634 | 36,363 | 45,787 | |||||||||
Reversal for the year | (7,311 | ) | (12,637 | ) | (91,019 | ) | ||||||
Foreign currency translation adjustment | (4,136 | ) | 19,318 | 7,574 | ||||||||
Ending balance | $ | 283,711 | 326,755 | 289,097 | ||||||||
As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Beginning balance | $ | 31,138 | $ | 174,363 | $ | 181,640 | ||||||
Increases /(decreases) related to prior year tax positions | (1,190 | ) | 7,277 | 7,120 | ||||||||
Increases related to current year tax positions | 144,415 | 0 | 0 | |||||||||
Ending balance | $ | 174,363 | $ | 181,640 | $ | 188,760 | ||||||
As of December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Beginning balance | $ | 174,363 | $ | 181,640 | $ | 188,760 | ||||||
Increases/(decreases) related to prior year tax positions | 7,277 | 7,120 | 5,158 | |||||||||
Increases related to current year tax positions | 0 | 0 | 0 | |||||||||
Ending balance | $ | 181,640 | $ | 188,760 | $ | 193,918 | ||||||
16. COMMITMENTS AND CONTINGENCIES |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total Payments Required | ||||||||||||||||||||||
Royalties and expenditures for licensed content of games | $ | 28,423 | 7,870 | 0 | 0 | 0 | 0 | 36,293 | ||||||||||||||||||||
Purchase of bandwidth | 14,084 | 150 | 102 | 0 | 0 | 0 | 14,336 | |||||||||||||||||||||
Interest payment commitment | 6,623 | 1,458 | 1,334 | 628 | 0 | 0 | 10,043 | |||||||||||||||||||||
Operating lease obligations | 4,144 | 3,647 | 1,165 | 73 | 37 | 0 | 9,066 | |||||||||||||||||||||
Purchase of content and services — others | 6,715 | 236 | 19 | 0 | 0 | 0 | 6,970 | |||||||||||||||||||||
Purchase of content and services — video | 5,398 | 1,006 | 0 | 0 | 0 | 0 | 6,404 | |||||||||||||||||||||
Others | 518 | 24 | 0 | 0 | 0 | 0 | 542 | |||||||||||||||||||||
Total Payments Required | $ | 65,905 | 14,391 | 2,620 | 701 | 37 | 0 | 83,654 | ||||||||||||||||||||
2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total Payments Required | ||||||||||||||||||||||
Royalties and expenditures for licensed content of games | $ | 15,976 | 13,512 | 2,746 | 0 | 0 | 0 | 32,234 | ||||||||||||||||||||
Purchase of bandwidth | 14,418 | 1,029 | 455 | 0 | 0 | 0 | 15,902 | |||||||||||||||||||||
Purchase of content and services - others | 7,530 | 389 | 43 | 0 | 0 | 0 | 7,962 | |||||||||||||||||||||
Purchase of content and services - video | 6,387 | 0 | 0 | 0 | 0 | 0 | 6,387 | |||||||||||||||||||||
Operating lease obligations | 3,355 | 660 | 103 | 37 | 0 | 0 | 4,155 | |||||||||||||||||||||
Others | 3,796 | 0 | 0 | 0 | 0 | 0 | 3,796 | |||||||||||||||||||||
Total Payments Required | $ | 51,462 | 15,590 | 3,347 | 37 | 0 | 0 | 70,436 | ||||||||||||||||||||
17. VIEs |
As of December 31, | ||||||||
2019 | 2020 | |||||||
ASSETS: | ||||||||
Cash and cash equivalent s | $ | 40,535 | $ | 47,028 | ||||
Restricted cash | 1,132 | 1,211 | ||||||
Accounts receivable, net | 67,403 | 47,234 | ||||||
Prepaid and other current assets | 13,586 | 15,385 | ||||||
Short-term investments | 0 | 153 | ||||||
Intra-Group receivables due from the Company’s subsidiaries | 400,338 | 506,659 | ||||||
Assets held for sale (current) | 121,347 | 113,011 | ||||||
Total current assets | 644,341 | 730,681 | ||||||
Long-term investments, net | 17,488 | 17,307 | ||||||
Fixed assets, net | 639 | 295 | ||||||
Intangible assets, net | 6,832 | 3,173 | ||||||
Goodwill | 32,782 | 33,670 | ||||||
Other non-current assets | 14,754 | 15,134 | ||||||
Assets held for sale (non-current) | 32,244 | 0 | ||||||
Total assets | $ | 749,080 | $ | 800,260 | ||||
LIABILITIES: | ||||||||
Accounts payable | $ | 8,595 | $ | 11,145 | ||||
Accrued liabilities | 50,913 | 46,888 | ||||||
Receipts in advance and deferred revenue | 38,754 | 43,076 | ||||||
Other current liabilities | 31,684 | 37,148 | ||||||
Intra-Group payables due to the Company’s subsidiaries | 300,601 | 332,794 | ||||||
Liabilities held for sale (current) | 138,303 | 187,712 | ||||||
Total current liabilities | 568,850 | 658,763 | ||||||
Long-term tax liabilities | 13,220 | 14,134 | ||||||
Deferred tax liabilities | 1,998 | 2,014 | ||||||
Intra-Group payables due to the Company’s subsidiaries | 18,599 | 19,338 | ||||||
Other long-term liabilities | 0 | 286 | ||||||
Liabilities held for sale (non-current) | 1,130 | 0 | ||||||
Total liabilities | $ | 603,797 | $ | 694,535 | ||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
ASSETS: | ||||||||
Cash and cash equivalents | $ | 47,028 | $ | 32,513 | ||||
Restricted cash | 1,211 | 0 | ||||||
Short-term investments | 153 | 0 | ||||||
Accounts receivable, net | 47,234 | 36,027 | ||||||
Prepaid and other current assets | 15,385 | 18,836 | ||||||
Intra-Group receivables due from the Company’s subsidiaries | 506,659 | 647,330 | ||||||
Assets held for sale (current) | 113,011 | 0 | ||||||
Total current assets | 730,681 | 734,706 | ||||||
Fixed assets, net | 295 | 427 | ||||||
Other non-current assets | 69,284 | 86,744 | ||||||
Total assets | $ | 800,260 | $ | 821,877 | ||||
LIABILITIES: | ||||||||
Accounts payable | $ | 11,145 | $ | 12,325 | ||||
Accrued liabilities | 46,888 | 43,695 | ||||||
Receipts in advance and deferred revenue | 43,076 | 45,844 | ||||||
Other current liabilities | 37,148 | 24,026 | ||||||
Intra-Group payables due to the Company’s subsidiaries | 350,599 | 462,487 | ||||||
Liabilities held for sale (current) | 187,712 | 0 | ||||||
Total current liabilities | 676,568 | 588,377 | ||||||
Long-term tax liabilities | 14,134 | 14,465 | ||||||
Deferred tax liabilities | 2,014 | 3,323 | ||||||
Other non-current liabilities | 1,819 | 1,750 | ||||||
Total liabilities | $ | 694,535 | $ | 607,915 | ||||
As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Net revenue | $ | 499,861 | $ | 511,957 | $ | 583,187 | ||||||
Net income from continuing operations | 1,098 | 19,607 | 41,756 | |||||||||
Net loss from discontinued operations | $ | (19,534 | ) | $ | (1,491 | ) | $ | (82,329 | ) | |||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Revenues: | ||||||||||||
Third-party revenues | $ | 482,283 | $ | 552,980 | $ | 664,823 | ||||||
Intra-Group revenues | 29,674 | 30,207 | 21,488 | |||||||||
Total revenues | 511,957 | 583,187 | 686,311 | |||||||||
Cost of revenues: | ||||||||||||
Third-party cost of revenues | 101,044 | 93,333 | 81,725 | |||||||||
Intra-Group cost of revenues | 139,765 | 141,717 | 136,221 | |||||||||
Total cost of revenues | 240,809 | 235,050 | 217,946 | |||||||||
Operating expenses: | ||||||||||||
Third-party operating expenses | 69,131 | 50,983 | 72,126 | |||||||||
Intra-Group operating expenses | 184,799 | 254,796 | 366,762 | |||||||||
Total operating expenses | 253,930 | 305,779 | 438,888 | |||||||||
Net income from continuing operations | 19,607 | 41,756 | 35,805 | |||||||||
Net loss from discontinued operations | (1,491 | ) | (82,329 | ) | (47,924 | ) |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net cash provided by transactions with external parties | $ | 334,903 | $ | 459,263 | $ | 541,172 | ||||||
Net cash used in transactions with intra-Group entities | (310,243 | ) | (379,649 | ) | (505,553 | ) | ||||||
Net cash provided by continuing operating activities | 24,660 | 79,614 | 35,619 | |||||||||
Net cash used in discontinued operating activities | (5,046 | ) | (13,244 | ) | (1,789 | ) | ||||||
Net cash provided by operating activities | 19,614 | 66,370 | 33,830 | |||||||||
Cash flows from investing activities: | ||||||||||||
Net cash used in transactions with external parties | (13,272 | ) | (773 | ) | (23,887 | ) | ||||||
Net cash used in transactions with intra-Group entities | (40,426 | ) | (106,321 | ) | (140,671 | ) | ||||||
Net cash used in continuing investing activities | (53,698 | ) | (107,094 | ) | (164,558 | ) | ||||||
Net cash provided by/(used in) discontinued investing activities | (18,040 | ) | 7,797 | 12,116 | ||||||||
Net cash used in investing activities | (71,738 | ) | (99,297 | ) | (152,442 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net cash provided by transactions with intra-Group entities | 26,559 | 32,751 | 111,888 | |||||||||
Net cash provided by continuing financing activities | 26,559 | 32,751 | 111,888 | |||||||||
Net cash provided by/(used in) discontinued financing activities | 8,601 | 152 | (9,131 | ) | ||||||||
Net cash provided by financing activities | 35,160 | 32,903 | 102,757 | |||||||||
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Net cash provided by/(used in) continuing operating activities | $ | 18,268 | $ | (2,038 | ) | $ | 5,224 | |||||
Net cash provided by/(used in) discontinued operating activities | 51,657 | (5,046 | ) | (13,244 | ) | |||||||
Net cash provided by/(used in) operating activities | 69,925 | (7,084 | ) | (8,020 | ) | |||||||
Net cash provided by/(used in) investing activities | (1,110 | ) | (441 | ) | 47 | |||||||
Net cash provided by/(used in) discontinued investing activities | (48,161 | ) | (18,040 | ) | 7,797 | |||||||
Net cash provided by/(used in) investing activities | (49,271 | ) | (18,481 | ) | 7,844 | |||||||
Net cash provided by continuing financing activities | 650 | 0 | 0 | |||||||||
Net cash provided by discontinued financing activities | 0 | 8,601 | 152 | |||||||||
Net cash provided by financing activities | $ | 650 | $ | 8,601 | $ | 152 | ||||||
Number of Outstanding Shares As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Balance, beginning of year | 38,898 | 39,229 | 39,269 | |||||||||
Issuance: | 331 | 40 | 37 | |||||||||
Balance, end of year | 39,229 | 39,269 | 39,306 | |||||||||
Number of Outstanding Shares As of December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance, beginning of year | 39,229 | 39,269 | 39,306 | |||||||||
Issuances: | 40 | 37 | 44 | |||||||||
Repurchases: | 0 | 0 | (1,129 | ) | ||||||||
Balance, end of year | 39,269 | 39,306 | 38,221 | |||||||||
Options | Number Of Shares (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (1) (in thousands) | ||||||||||||
Outstanding as of January 1, 2020 | 128 | $ | 0.001 | $ | ||||||||||||
Granted | 112 | 0.001 | ||||||||||||||
Exercised | (43 | ) | 0.001 | |||||||||||||
Forfeited or expired | 0 | |||||||||||||||
Outstanding as of December 31, 2020 | 197 | 0.001 | 6.09 | 3,147 | ||||||||||||
Vested as of December 31, 2020 | 197 | 0.001 | 6.09 | 3,147 | ||||||||||||
Exercisable as of December 31, 2020 | 197 | 0.001 | 6.09 | 3,147 | ||||||||||||
Weighted | ||||||||||||||||
Number | Weighted | Average | Aggregate | |||||||||||||
Of | Average | Remaining | Intrinsic | |||||||||||||
Shares | Exercise | Contractual | Value (1) | |||||||||||||
Options | (in thousands) | Price | Life (Years) | (in thousands) | ||||||||||||
Outstanding as of January 1, 2021 | 197 | $ | 0.001 | $ | ||||||||||||
Granted | 113 | 0.001 | ||||||||||||||
Exercised | (39 | ) | 0.001 | |||||||||||||
Forfeited or expired | 0 | |||||||||||||||
Outstanding as of December 31, 2021 | 271 | 0.001 | 5.87 | 4,412 | ||||||||||||
Vested as of December 31, 2021 | 271 | 0.001 | 5.87 | 4,412 | ||||||||||||
Exercisable as of December 31, 2021 | 271 | 0.001 | 5.87 | 4,412 | ||||||||||||
Contractually Granted | Granted (For Purposes of Share- based Compensation Expense) | Vested and Exercisable | Exercised | |||||||||||||
Performance-based options | 30,912 | 29,169 | 28,761 | 27,772 | ||||||||||||
Service-based options | 1,888 | 1,888 | 1,410 | 829 | ||||||||||||
IPO-based options | 7,250 | 7,250 | 5,810 | 5,810 | ||||||||||||
Total | 40,050 | 38,307 | 35,981 | 34,411 | ||||||||||||
Options | Number Of Shares (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (1) (in thousands) | ||||||||||||
Outstanding as of January 1, 2020 | 7,162 | $ | 0.377 | 4.45 | $ | |||||||||||
Granted | 1,099 | 0.001 | ||||||||||||||
Exercised | (4,233 | ) | 0.426 | |||||||||||||
Forfeited or expired | (132 | ) | 0.001 | |||||||||||||
Outstanding as of December 31, 2020 | 3,896 | 0.232 | 4.38 | 30,850 | ||||||||||||
Vested as of December 31, 2020 and expected to vest thereafter | 3,395 | 0.266 | 4.46 | 26,767 | ||||||||||||
Exercisable as of December 31, 2020 | 1,570 | 0.001 | 5.77 | 12,794 | ||||||||||||
Assumptions Adopted | 2018 | 2019 | 2020 | |||||||||
Average risk-free interest rate | 3.36%~3.51% | 2.60%~2.86% | 1.21%~1.66% | |||||||||
Exercise multiple | 2 | 2~3 | 2~3 | |||||||||
Expected forfeiture rate (post-vesting) | 12% | 0%~12% | 0% | |||||||||
Weighted average expected option life | 9 | 7 | 4 | |||||||||
Volatility rate | 40%~46% | 36%~41% | 38%~44% | |||||||||
Dividend yield | 0% | 0% | 0% | |||||||||
Weighted average fair value of share options | 12.26 | 4.05 | 4.48 |
Contractually Granted | Granted (For Purposes of Share- based Compensation Expense) | Vested and Exercisable | Exercised | |||||||||||||
Performance-based options | 192 | 55 | 44 | 17 | ||||||||||||
Service-based options | 994 | 994 | 324 | 173 | ||||||||||||
Total | 1,186 | 1,049 | 368 | 190 | ||||||||||||
Options | Number Of Shares (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (1) (in thousands) | ||||||||||||
Outstanding as of January 1, 2020 | 798 | $ | 0.001 | 8.90 | $ | |||||||||||
Granted | 425 | 0.001 | ||||||||||||||
Exercised | (142 | ) | 0.001 | |||||||||||||
Forfeited or expired | (222 | ) | 0.001 | |||||||||||||
Outstanding as of December 31, 2020 | 859 | 0.001 | 8.51 | 7,000 | ||||||||||||
Vested as of December 31, 2020 and expected to vest thereafter | 680 | 0.001 | 8.46 | 5,541 | ||||||||||||
Exercisable as of December 31, 2020 | 178 | 0.001 | 7.95 | 1,451 | ||||||||||||
Assumptions Adopted | 2018 | 2019 | 2020 | |||||||||
Average risk-free interest rate | 3.41%~3.95% | 2.37%~3.45% | 1.20%~2.47% | |||||||||
Exercise multiple | 2 | 2~3 | 2~3 | |||||||||
Expected forfeiture rate (post-vesting) | 12% | 0%~12% | 0%~12% | |||||||||
Weighted average expected option life | 10 | 10 | 9 | |||||||||
Volatility rate | 40%~46% | 41%~42% | 39%~42% | |||||||||
Dividend yield | 0% | 0% | 0% | |||||||||
Weighted average fair value of share options | 10.09 | 4.87 | 4.95 |
Contractually Granted | Granted (For Purposes of Share- based Compensation Expense) | Vested and Exercisable | Exercised | |||||||||||||
Performance-based options | 8,290 | 8,290 | 8,290 | 8,290 | ||||||||||||
Service-based options | 15 | 15 | 15 | 6 | ||||||||||||
Total | 8,305 | 8,305 | 8,305 | 8,296 | ||||||||||||
Number Of Shares (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (1) (in thousands) | |||||||||||||
Outstanding as of January 1, 2020 | 9 | $ | 0.001 | 5.38 | $ | |||||||||||
Granted | 0 | |||||||||||||||
Exercised | 0 | |||||||||||||||
Forfeited or expired | 0 | |||||||||||||||
Outstanding as of December 31, 2020 | 9 | 0.001 | 4.38 | 73 | ||||||||||||
Vested as of December 31, 2020 | 9 | 0.001 | 4.38 | 73 | ||||||||||||
Exercisable as of December 31, 2020 | 9 | 0.001 | 4.38 | 73 | ||||||||||||
Assumptions Adopted | 2019 | 2020 | 2020 | 2021 | ||||||||||||
Average risk-free interest rate | 2.44 | % | 1.11 | % | 1.11 | % | 0.59 | % | ||||||||
Exercise multiple | 2.8 | 2.8 | 2.8 | 2.8 | ||||||||||||
Expected forfeiture rate (post-vesting) | 14 | % | 5 | % | 5 | % | 2 | % | ||||||||
Weighted average expected option life | 2.0 | 1.0 | 1.0 | 0 | ||||||||||||
Volatility rate | 53.9 | % | 57.3 | % | 57.3 | % | 97.3 | % | ||||||||
Dividend yield | 0 | 0 | 0 | 0 | ||||||||||||
Fair value | 0.35 | 0.21 | 0.21 | 0 |
As of December 31, | ||||||||||||||||
As of December 31, | 2020 | 2021 | ||||||||||||||
2019 | 2020 | |||||||||||||||
Changyou | $ | 151,503 | $ | 1,321 | $ | 1,321 | $ | 1,318 | ||||||||
Sogou | 726,960 | 683,291 | 683,291 | 0 | ||||||||||||
Total | $ | 878,463 | $ | 684,612 | $ | 684,612 | $ | 1,318 | ||||||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Changyou | $ | 27,137 | $ | 46,990 | $ | 18,448 | ||||||
Sogou | 65,586 | 58,955 | (60,656 | ) | ||||||||
Total | $ | 92,723 | $ | 105,945 | $ | (42,208 | ) | |||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Net income from continuing operations attributable to noncontrolling shareholders | $ | 41,732 | $ | 58,223 | $ | 18,448 | ||||||
Net income/(loss) from discontinued operations attributable to noncontrolling shareholders | 50,991 | 47,722 | (60,656 | ) | ||||||||
Net income/(loss) attributable to noncontrolling interest shareholders | $ | 92,723 | $ | 105,945 | $ | (42,208 | ) | |||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Changyou | $ | 46,990 | $ | 18,448 | $ | (3 | ) | |||||
Sogou | 58,955 | (60,656 | ) | 6,451 | ||||||||
Total | $ | 105,945 | $ | (42,208 | ) | $ | 6,448 | |||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Net income /(loss) from continuing operations attributable to noncontrolling shareholders | $ | 58,223 | $ | 18,448 | $ | (3 | ) | |||||
Net income/(loss) from discontinued operations attributable to noncontrolling shareholders | 47,722 | (60,656 | ) | 6,451 | ||||||||
Net income/(loss) attributable to noncontrolling interest shareholders | $ | 105,945 | $ | (42,208 | ) | $ | 6,448 | |||||
20. NET INCOME/(LOSS) PER SHARE |
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Numerator: | ||||||||||||
Net loss from continuing operations attributable to Sohu.com Limited, basic | $ | (163,038 | ) | $ | (156,722 | ) | $ | (54,975 | ) | |||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited, basic | 2,956 | 7,386 | (31,137 | ) | ||||||||
Net loss attributable to Sohu.com Limited, basic | (160,082 | ) | $ | (149,336 | ) | (86,112 | ) | |||||
Effect of dilutive securities: | ||||||||||||
Incremental dilution from Changyou | (381 | ) | (507 | ) | (392 | ) | ||||||
Incremental dilution from Sogou | (496 | ) | (606 | ) | 0 | |||||||
Net loss from continuing operations attributable to Sohu.com Limited, diluted | (163,659 | ) | (157,282 | ) | (55,365 | ) | ||||||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited, diluted | 2,700 | 6,833 | (31,139 | ) | ||||||||
Net loss attributable to Sohu.com Limited, diluted | $ | (160,959 | ) | $ | (150,449 | ) | (86,504 | ) | ||||
Denominator: | ||||||||||||
Weighted average basic ordinary shares outstanding | 38,959 | 39,249 | 39,452 | |||||||||
Effect of dilutive securities: | ||||||||||||
Share options and restricted share units | 0 | 0 | 0 | |||||||||
Weighted average diluted ordinary shares outstanding | $ | 38,959 | $ | 39,249 | $ | 39,452 | ||||||
Basic net loss per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (4.18 | ) | $ | (3.99 | ) | $ | (1.39 | ) | |||
Discontinued operations | 0.07 | 0.19 | (0.79 | ) | ||||||||
Net loss per share | (4.11 | ) | (3.80 | ) | (2.18 | ) | ||||||
Diluted net loss per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (4.20 | ) | $ | (4.01 | ) | $ | (1.40 | ) | |||
Discontinued operations | 0.07 | 0.18 | (0.79 | ) | ||||||||
Net loss per share | (4.13 | ) | (3.83 | ) | (2.19 | ) | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Numerator: | ||||||||||||
Net income/(loss) from continuing operations attributable to Sohu.com Limited, basic | $ | (156,722 | ) | $ | (54,975 | ) | $ | 69,274 | ||||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited, basic | 7,386 | (31,137 | ) | 858,451 | ||||||||
Net income/(loss) attributable to Sohu.com Limited, basic | (149,336 | ) | (86,112 | ) | 927,725 | |||||||
Effect of dilutive securities: | ||||||||||||
Incremental dilution from Changyou | (507 | ) | (392 | ) | 0 | |||||||
Incremental dilution from Sogou | (606 | ) | 0 | (20 | ) | |||||||
Net income/(loss) from continuing operations attributable to Sohu.com Limited, diluted | (157,282 | ) | (55,365 | ) | 69,274 | |||||||
Net income/(loss) from discontinued operations attributable to Sohu.com Limited, diluted | 6,833 | (31,139 | ) | 858,431 | ||||||||
Net income/(loss) attributable to Sohu.com Limited, diluted | $ | (150,449 | ) | $ | (86,504 | ) | $ | 927,705 | ||||
Denominator: | ||||||||||||
Weighted average basic ordinary shares outstanding | 39,249 | 39,452 | 39,501 | |||||||||
Effect of dilutive securities: | ||||||||||||
Share options and restricted share units | 0 | 0 | 0 | |||||||||
Weighted average diluted ordinary shares outstanding | $ | 39,249 | $ | 39,452 | $ | 39,501 | ||||||
Basic net income/(loss) per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (3.99 | ) | $ | (1.39 | ) | $ | 1.75 | ||||
Discontinued operations | 0.19 | (0.79 | ) | 21.74 | ||||||||
Net income/(loss) per share | (3.80 | ) | (2.18 | ) | 23.49 | |||||||
Diluted net income/(loss) per share attributable to Sohu.com Limited | ||||||||||||
Continuing operations | $ | (4.01 | ) | $ | (1.40 | ) | $ | 1.75 | ||||
Discontinued operations | 0.18 | (0.79 | ) | 21.74 | ||||||||
Net income/(loss) per share | (3.83 | ) | (2.19 | ) | 23.49 | |||||||
22. PROFIT APPROPRIATION |
23. CONCENTRATION RISKS |
24. RESTRICTED NET ASSETS |
As of December 31, | ||||||||
2019 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,756 | $ | 586 | ||||
Prepaid and other current assets | 744 | 1,609 | ||||||
Due from subsidiaries and VIEs | 530,182 | 528,218 | ||||||
Total current assets | 534,682 | 530,413 | ||||||
Interests in subsidiaries and VIEs | 22,093 | 0 | ||||||
Other assets, net | 27,736 | 27,496 | ||||||
Total assets | $ | 584,511 | $ | 557,909 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | 3,757 | 1,932 | ||||||
Deficit of investment in subsidiaries and VIEs | 0 | 50,101 | ||||||
Long-term liabilities | 152,300 | 158,507 | ||||||
Total liabilities | 156,057 | 210,540 | ||||||
Shareholders’ equity: | ||||||||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,269 shares and 39,306 shares, respectively, issued and outstanding as of December 31, 2019 and 2020) | 39 | 39 | ||||||
Additional paid-in capital | 948,201 | 952,733 | ||||||
Accumulated other comprehensive income | 24,351 | 29,189 | ||||||
Accumulated deficit | (544,137 | ) | (634,592 | ) | ||||
Total shareholders’ equity | 428,454 | 347,369 | ||||||
Total liabilities and shareholders’ equity | $ | 584,511 | $ | 557,909 | ||||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Revenues | $ | 0 | $ | 0 | $ | 0 | ||||||
Cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Operating expenses: | ||||||||||||
General and administrative | 12,206 | 2,320 | 1,613 | |||||||||
Operating loss | (12,206 | ) | (2,320 | ) | (1,613 | ) | ||||||
Share of loss of subsidiaries and VIEs | (232,307 | ) | (184,092 | ) | (77,221 | ) | ||||||
Other income/(expense) | 22 | 44,738 | (1,083 | ) | ||||||||
Interest income | 5,865 | 225 | 12 | |||||||||
Loss before income tax expense/(benefit) | (238,626 | ) | (141,449 | ) | (79,905 | ) | ||||||
Income tax expense/(benefit) | (78,544 | ) | 7,887 | 6,207 | ||||||||
Net loss | (160,082 | ) | (149,336 | ) | (86,112 | ) | ||||||
Other comprehensive income/(loss) | (13,494 | ) | 24,351 | 29,189 | ||||||||
Comprehensive loss | $ | (173,576 | ) | $ | (124,985 | ) | $ | (56,923 | ) | |||
Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (160,082 | ) | $ | (149,336 | ) | $ | (86,112 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Investment loss from subsidiaries and VIEs | 232,307 | 184,092 | 77,221 | |||||||||
Share-based compensation expense/(benefit) | (1,916 | ) | 395 | 0 | ||||||||
Others | (993 | ) | 0 | 0 | ||||||||
Changes in current assets and liabilities: | ||||||||||||
Due from subsidiaries and VIEs | (2,963 | ) | (59,533 | ) | 1,964 | |||||||
Prepaid and other current assets | (3,996 | ) | 425 | (865 | ) | |||||||
Tax liabilities | (79,569 | ) | 7,886 | 6,207 | ||||||||
Accrued liabilities | 1,892 | (3,715 | ) | (1,825 | ) | |||||||
Net cash used in operating activities | (15,320 | ) | (19,786 | ) | (3,410 | ) | ||||||
Cash flows from investing activities: | ||||||||||||
Dividend received | 0 | 7,050 | 0 | |||||||||
Net cash used in operating activities | 0 | 7,050 | 0 | |||||||||
Net decrease in cash, cash equivalents, restricted cash and restricted time deposits | (15,320 | ) | (12,736 | ) | (3,410 | ) | ||||||
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year | 2,845 | 16,732 | 3,996 | |||||||||
Cash and cash equivalents, restricted cash and restricted time deposits of Sohu.com Limited at the date of the liquidation of Sohu.com Inc. | 29,207 | 0 | 0 | |||||||||
Cash, cash equivalents, restricted cash and restricted time deposits at end of year | $ | 16,732 | $ | 3,996 | $ | 586 | ||||||
Reconciliation of cash, cash equivalents, and restricted time deposits to the condensed balance sheets: | ||||||||||||
Cash and cash equivalents | $ | 16,492 | $ | 3,756 | $ | 586 | ||||||
Restricted time deposits included in other assets | 240 | 240 | 0 | |||||||||
Total cash, cash equivalents, restricted cash and restricted time deposits at end of year | $ | 16,732 | $ | 3,996 | $ | 586 | ||||||