Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | SOGOU INC. |
Entity Central Index Key | 0001713947 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38279 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Level 15, Sohu.com Internet PlazaNo. 1 Unit Zhongguancun East Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100084 |
Document Accounting Standard | U.S. GAAP |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Fion Zhou |
Entity Address, Address Line One | Level 15, Sohu.com Internet PlazaNo. 1 Unit Zhongguancun East Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100084 |
Country Region | 86 |
City Area Code | 10 |
Local Phone Number | 5689-9999 |
Contact Personnel Email Address | IR@sogou-inc.com |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing one Class A ordinary share, par value US$0.001 per share |
Trading Symbol | SOGO |
Security Exchange Name | NYSE |
Ordinary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | ordinary share |
No Trading Symbol Flag | true |
Class A Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 108,833,041 |
Class B Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 278,757,875 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 287,185 | $ 142,464 |
Restricted cash | 23,018 | 5,370 |
Short-term investments | 774,618 | 995,350 |
Accounts receivable and financing receivables, net | 71,186 | 131,813 |
Prepaid and other current assets | 28,947 | 26,888 |
Due from related parties | 2,471 | 2,837 |
Total current assets | 1,187,425 | 1,304,722 |
Long-term investments, net | 74,004 | 63,345 |
Fixed assets, net | 76,851 | 110,006 |
Goodwill | 6,527 | 5,534 |
Intangible assets, net | 1,226 | 1,514 |
Deferred tax assets, net | 13,249 | 16,306 |
Other assets (including due from related parties of US$2,253 and US$3,003, respectively, as of December 31, 2019 and 2020) | 35,850 | 20,975 |
Total assets | 1,395,132 | 1,522,402 |
Current liabilities: | ||
Accounts payable (including accounts payable of consolidated variable interest entities, or "VIEs", without recourse to the Company of US$66,186 and US$72,611, respectively, as of December 31, 2019 and 2020) | 106,889 | 111,587 |
Accrued and other short-term liabilities (including accrued and other short-term liabilities of consolidated VIEs without recourse to the Company of US$55,694 and US$39,502, respectively, as of December 31, 2019 and 2020) | 118,442 | 150,275 |
Receipts in advance (including receipts in advance of consolidated VIEs without recourse to the Company of US$8,981 and US$7,944, respectively, as of December 31, 2019 and 2020) | 64,414 | 67,902 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of US$1,250 and US$1,047, respectively, as of December 31, 2019 and 2020) | 25,350 | 24,167 |
Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of US$6,084 and US$2,159, respectively, as of December 31, 2019 and 2020) | 64,082 | 76,688 |
Due to related parties (including due to related parties of consolidated VIEs without recourse to the Company of US$108 and US$646, respectively, as of December 31, 2019 and 2020) | 27,102 | 22,594 |
Total current liabilities | 406,279 | 453,213 |
Long-term liabilities (including long-term liabilities of consolidated VIEs without recourse to the Company of US$1,130 and US$1,023, respectively, as of December 31, 2019 and 2020) | 10,721 | 5,686 |
Total liabilities | 417,000 | 458,899 |
Commitments and contingencies (Note 20) | ||
SHAREHOLDERS' EQUITY | ||
Additional paid-in capital | 906,236 | 945,719 |
Treasury stock (US$0.001 par value, 20,001,418 and 7,689,800 shares as of December 31, 2019 and 2020, respectively) | (27,870) | (69,886) |
Retained earnings | 103,573 | 215,064 |
Accumulated other comprehensive loss | (4,198) | (27,792) |
Total Sogou Inc. shareholders' equity | 978,132 | 1,063,503 |
Total shareholders' equity | 978,132 | 1,063,503 |
Total liabilities and shareholders' equity | 1,395,132 | 1,522,402 |
Class A Ordinary Shares [Member] | ||
SHAREHOLDERS' EQUITY | ||
Ordinary Shares | 112 | 119 |
Class B Ordinary Shares [Member] | ||
SHAREHOLDERS' EQUITY | ||
Ordinary Shares | $ 279 | $ 279 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Due from related parties | $ 3,003 | $ 2,253 |
Accounts payable | 106,889 | 111,587 |
Accrued and other short-term liabilities | 118,442 | 150,275 |
Receipts in advance | 64,414 | 67,902 |
Accrued salary and benefits | 25,350 | 24,167 |
Taxes payable | 64,082 | 76,688 |
Due to related parties | 27,102 | 22,594 |
Long-term liabilities | $ 10,721 | $ 5,686 |
Treasury stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Treasury stock, shares (in shares) | 7,689,800 | 20,001,418 |
Class A Ordinary Shares [Member] | ||
Ordinary Shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary Shares, shares authorized (in shares) | 571,242,125 | 571,242,125 |
Ordinary Shares, shares issued (in shares) | 114,623,841 | 124,454,683 |
Ordinary Shares, shares outstanding (in shares) | 106,934,041 | 104,453,265 |
Class B Ordinary Shares [Member] | ||
Ordinary Shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary Shares, shares authorized (in shares) | 278,757,875 | 278,757,875 |
Ordinary Shares, shares issued (in shares) | 278,757,875 | 278,757,875 |
Ordinary Shares, shares outstanding (in shares) | 278,757,875 | 278,757,875 |
VIEs [Member] | ||
Accounts payable | $ 72,611 | $ 66,186 |
Accrued and other short-term liabilities | 39,502 | 55,694 |
Receipts in advance | 7,944 | 8,981 |
Accrued salary and benefits | 1,047 | 1,250 |
Taxes payable | 2,159 | 6,084 |
Due to related parties | 646 | 108 |
Long-term liabilities | $ 1,023 | $ 1,130 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Revenues | $ 924,664 | $ 1,172,252 | $ 1,124,158 |
Cost of revenues (including transactions with related parties of US$115,993, US$95,320 and US$96,725, respectively, for 2018, 2019 and 2020) | 734,075 | 738,454 | 693,470 |
Gross profit | 190,589 | 433,798 | 430,688 |
Operating expenses: | |||
Research and development (including transactions with related parties of US$7,635, US$6,967 and US$8,647, respectively, for 2018, 2019 and 2020) | 197,176 | 190,402 | 201,739 |
Sales and marketing (including transactions with related parties of US$2,123, US$1,869 and US$1,414, respectively, for 2018, 2019 and 2020) | 103,154 | 138,291 | 146,194 |
General and administrative (including transactions with related parties of US$367, US$386 and US$422, respectively, for 2018, 2019 and 2020) | 30,418 | 40,670 | 38,072 |
Total operating expenses | 330,748 | 369,363 | 386,005 |
Operating income/(loss) | (140,159) | 64,435 | 44,683 |
Interest income | 2,807 | 4,443 | 8,037 |
Foreign currency exchange gain/(loss) | (7,767) | 1,849 | 5,725 |
Other income, net | 38,633 | 21,126 | 41,489 |
Income/(loss) before income tax expenses | (106,486) | 91,853 | 99,934 |
Income tax expenses | 2,346 | 2,748 | 1,153 |
Net income/(loss) | (108,832) | 89,105 | 98,781 |
Less: Net loss attributable to non-controlling interest shareholders | (611) | 0 | 0 |
Net income/(loss) attributable to Sogou Inc. | (108,221) | 89,105 | 98,781 |
Net income/(loss) | (108,832) | 89,105 | 98,781 |
Other comprehensive (loss)/income, net of nil tax: | |||
Foreign currency translation adjustment | 23,594 | (5,993) | (17,193) |
Comprehensive income/(loss) | $ (85,238) | $ 83,112 | $ 81,588 |
Net income/(loss) per ordinary share-basic (in dollars per share) | $ (0.28) | $ 0.23 | $ 0.25 |
Net income/(loss) per ordinary share-diluted (in dollars per share) | $ (0.28) | $ 0.23 | $ 0.25 |
Search and search-related advertising revenues [Member] | |||
Revenues: | |||
Revenues | $ 837,432 | $ 1,073,173 | $ 1,023,132 |
Other revenues [Member] | |||
Revenues: | |||
Revenues | $ 87,232 | $ 99,079 | $ 101,026 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of revenues from transactions with related parties | $ 96,725,000 | $ 95,320,000 | $ 115,993,000 |
Other comprehensive(loss)/income adjustment, tax | 0 | 0 | 0 |
Share-based compensation expense included in: | |||
Share-based compensation expense | 8,935,000 | 15,901,000 | 14,204,000 |
Cost of revenues [Member] | |||
Share-based compensation expense included in: | |||
Share-based compensation expense | 180,000 | 473,000 | 669,000 |
Research and development [Member] | |||
Operating expenses from transactions with related parties | 8,647,000 | 6,967,000 | 7,635,000 |
Share-based compensation expense included in: | |||
Share-based compensation expense | 6,280,000 | 10,697,000 | 10,313,000 |
Sales and marketing [Member] | |||
Operating expenses from transactions with related parties | 1,414,000 | 1,869,000 | 2,123,000 |
Share-based compensation expense included in: | |||
Share-based compensation expense | 1,555,000 | 3,726,000 | 1,327,000 |
General and administrative [Member] | |||
Operating expenses from transactions with related parties | 422,000 | 386,000 | 367,000 |
Share-based compensation expense included in: | |||
Share-based compensation expense | 920,000 | 1,005,000 | 1,895,000 |
Search and search-related advertising revenues [Member] | |||
Revenues from transactions with related parties | 25,775,000 | 25,447,000 | 32,735,000 |
Other revenues [Member] | |||
Revenues from transactions with related parties | $ 2,363,000 | $ 6,855,000 | $ 9,137,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Shares [Member]Class A Ordinary Shares [Member] | Ordinary Shares [Member]Sogou share-based awards [Member] | Ordinary Shares [Member]Soso search-related businesses employees transferred from Tencent [Member] | Ordinary Shares [Member] | Additional Paid-in Capital [Member]Class A Ordinary Shares [Member] | Additional Paid-in Capital [Member]Sogou share-based awards [Member] | Additional Paid-in Capital [Member]Soso search-related businesses employees transferred from Tencent [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member]Class A Ordinary Shares [Member] | Treasury Stock [Member]Sogou share-based awards [Member] | Treasury Stock [Member]Soso search-related businesses employees transferred from Tencent [Member] | Treasury Stock [Member] | Retained Earnings [Member]Class A Ordinary Shares [Member] | Retained Earnings [Member]Sogou share-based awards [Member] | Retained Earnings [Member]Soso search-related businesses employees transferred from Tencent [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member]Class A Ordinary Shares [Member] | Accumulated Other Comprehensive Loss [Member]Sogou share-based awards [Member] | Accumulated Other Comprehensive Loss [Member]Soso search-related businesses employees transferred from Tencent [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member]Class A Ordinary Shares [Member] | Non-controlling Interest [Member]Sogou share-based awards [Member] | Non-controlling Interest [Member] | Class A Ordinary Shares [Member] | Sogou share-based awards [Member] | Soso search-related businesses employees transferred from Tencent [Member] | Total |
Balance as of beginning of the year (in shares) at Dec. 31, 2017 | 386,838,812 | ||||||||||||||||||||||||||
Balance as of beginning of the year (in amount) at Dec. 31, 2017 | $ 391 | $ 913,147 | $ (27,869) | $ 27,178 | $ (4,606) | $ 908,241 | |||||||||||||||||||||
Share issuance from exercise of options (in shares) | 4,514,563 | ||||||||||||||||||||||||||
Share issuance from exercise of options (in amount) | $ 5 | 1,797 | 0 | 0 | 0 | 1,802 | |||||||||||||||||||||
Contribution from Sohu | 0 | 670 | 0 | 0 | 0 | 670 | |||||||||||||||||||||
Share-based compensation expense | $ 0 | $ 0 | $ 14,116 | $ 88 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 14,116 | $ 88 | |||||||||||||||
Net income/(loss) | 0 | 0 | 0 | 98,781 | 0 | 98,781 | |||||||||||||||||||||
Other comprehensive income/(loss), net of nil tax: foreign currency translation adjustment | 0 | 0 | 0 | 0 | (17,193) | (17,193) | |||||||||||||||||||||
Others | $ 1 | 0 | (1) | 0 | 0 | 0 | |||||||||||||||||||||
Balance as of ending of the year (in shares) at Dec. 31, 2018 | 391,353,375 | ||||||||||||||||||||||||||
Balance as of ending of the year (in amount) at Dec. 31, 2018 | $ 397 | 929,818 | (27,870) | 125,959 | (21,799) | 1,006,505 | |||||||||||||||||||||
Share issuance from exercise of options (in shares) | 548,383 | ||||||||||||||||||||||||||
Share issuance from exercise of options (in amount) | $ 1 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
Share-based compensation expense | 0 | 15,901 | 0 | 0 | 0 | 15,901 | |||||||||||||||||||||
Repurchase of Class A Ordinary Shares, represented by ADSs (in shares) | (8,690,618) | ||||||||||||||||||||||||||
Repurchase of Class A Ordinary Shares, represented by ADSs (in amount) | $ 0 | $ 0 | $ (42,016) | $ 0 | $ 0 | $ (42,016) | |||||||||||||||||||||
Net income/(loss) | 0 | 0 | 0 | 89,105 | 0 | 89,105 | |||||||||||||||||||||
Other comprehensive income/(loss), net of nil tax: foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | (5,993) | (5,993) | |||||||||||||||||||||
Balance as of ending of the year (in shares) at Dec. 31, 2019 | 383,211,140 | 104,453,265 | |||||||||||||||||||||||||
Balance as of ending of the year (in amount) at Dec. 31, 2019 | $ 398 | 945,719 | (69,886) | 215,064 | (27,792) | $ 0 | 1,063,503 | ||||||||||||||||||||
Share issuance from exercise of options (in shares) | 4,374,792 | ||||||||||||||||||||||||||
Share issuance from exercise of options (in amount) | $ 4 | 1,797 | 0 | 0 | 0 | 0 | 1,801 | ||||||||||||||||||||
Share-based compensation expense | $ 0 | $ 8,935 | $ 0 | $ 0 | $ 0 | $ 0 | $ 8,935 | ||||||||||||||||||||
Repurchase of Class A Ordinary Shares, represented by ADSs (in shares) | (1,894,016) | ||||||||||||||||||||||||||
Repurchase of Class A Ordinary Shares, represented by ADSs (in amount) | $ 0 | $ 0 | $ (8,302) | $ 0 | $ 0 | $ 0 | $ (8,302) | ||||||||||||||||||||
Retirement of Class A Ordinary Shares held in treasury stock (in amount) | (11) | (50,307) | 50,318 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Acquisition of a partially-held subsidiary | 0 | 0 | 0 | 0 | 0 | 611 | 611 | ||||||||||||||||||||
Net income/(loss) | 0 | 0 | 0 | (108,221) | 0 | (611) | (108,832) | ||||||||||||||||||||
Other comprehensive income/(loss), net of nil tax: foreign currency translation adjustment | 0 | 0 | 0 | 0 | 23,594 | 0 | 23,594 | ||||||||||||||||||||
Others | $ 0 | 92 | 0 | 0 | 0 | 0 | 92 | ||||||||||||||||||||
Balance as of ending of the year (in shares) at Dec. 31, 2020 | 385,691,916 | 106,934,041 | |||||||||||||||||||||||||
Balance as of ending of the year (in amount) (Impact of adoption of new accounting standards) at Dec. 31, 2020 | $ 0 | 0 | 0 | (3,270) | 0 | 0 | (3,270) | ||||||||||||||||||||
Balance as of ending of the year (in amount) at Dec. 31, 2020 | $ 391 | $ 906,236 | $ (27,870) | $ 103,573 | $ (4,198) | $ 0 | $ 978,132 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |||
Other comprehensive(loss)/income adjustment, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income/(loss) | $ (108,832) | $ 89,105 | $ 98,781 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 54,207 | 64,663 | 60,690 |
Amortization | 794 | 705 | 1,251 |
Gain on disposal of fixed assets | (1,092) | (1,209) | (882) |
Allowance for credit losses | 3,049 | 15,620 | 9,119 |
Provision for inventories | 4,316 | 6,060 | 2,547 |
Share-based compensation expense | 8,935 | 15,901 | 14,204 |
Research and development expenses undertaken by Sohu | 0 | 0 | 670 |
Impairment of long-term investment | 500 | 10,965 | 2,605 |
Gains from re-measurement of long-term equity investments | 0 | 0 | (18,013) |
Deferred tax expense/(benefit) | 4,094 | (2,732) | 691 |
Changes in assets and liabilities: | |||
Accounts receivable | 43,679 | 26,948 | (37,301) |
Interest on financing receivables | (455) | 1,778 | (5,828) |
Prepaid and other current assets | 762 | 3,600 | (41,324) |
Due from related parties | 8,298 | (2,076) | (5,634) |
Other assets | (12,739) | (13,908) | (2,613) |
Accounts payable | (16,373) | 7,567 | 40,777 |
Accrued and other short-term liabilities | (38,753) | (6,490) | (4,703) |
Receipts in advance | (8,244) | 3,526 | 2,920 |
Accrued salary and benefits | 17 | (7,796) | 3,217 |
Taxes payable | (16,643) | 16,962 | 6,284 |
Due to related parties | 2,326 | (15,698) | 17,500 |
Long-term liabilities | 3,898 | 6,019 | 0 |
Net cash provided by/(used in) operating activities | (68,256) | 219,510 | 144,958 |
Cash flows from investing activities | |||
Proceeds from disposal of fixed assets | 1,411 | 1,618 | 915 |
Purchase of fixed assets | (15,851) | (30,149) | (75,771) |
Purchase of intangible assets | (427) | (896) | (1,294) |
Purchase of long-term investments | (10,022) | (11,487) | (19,886) |
Proceeds from disposal of long-term investments | 3,162 | 0 | 0 |
Investment in financing receivables | (93,569) | (257,388) | (98,774) |
Collection of financing receivables | 113,506 | 226,086 | 59,967 |
Purchase of short-term investments | (1,990,790) | (2,024,533) | (1,678,042) |
Proceeds from short-term investments | 2,227,956 | 1,879,198 | 1,162,088 |
Net cash (used in)/provided by investing activities | 235,376 | (217,551) | (650,797) |
Cash flows from financing activities | |||
Proceeds from exercise of options | 0 | 1 | 1 |
Proceeds received by the Consolidated Trust from a third-party investor | 0 | 8,601 | 0 |
Repurchase of Class A Ordinary Shares, represented by ADSs | (8,302) | (42,016) | 0 |
Other proceeds relating to financing activities | 152 | 0 | 0 |
Net cash provided by/(used in) financing activities | (8,150) | (33,414) | 1 |
Effect of exchange rate changes on cash and cash equivalents | 3,399 | (5,886) | (3,194) |
Net (decrease)/ increase in cash, cash equivalents, and restricted cash | 162,369 | (37,341) | (509,032) |
Cash, cash equivalents, and restricted cash at beginning of the year | 147,834 | 185,175 | 694,207 |
Cash, cash equivalents, and restricted cash at end of the year | 310,203 | 147,834 | 185,175 |
Supplemental cash flow disclosure: | |||
Income tax paid | 4,992 | 3,335 | 14,410 |
Supplemental schedule of non-cash investing activity: | |||
Fixed assets in accrued liabilities and accounts payable | 213 | 233 | 1,409 |
Supplemental schedule of non-cash financing activity: | |||
Contribution from Sohu resulting from waived research and development expense paid by Sohu on behalf of the Sogou Group | $ 0 | $ 0 | $ 670 |
NATURE OF OPERATIONS AND ORGANI
NATURE OF OPERATIONS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
NATURE OF OPERATIONS AND ORGANIZATION | |
NATURE OF OPERATIONS AND ORGANIZATION | 1. NATURE OF OPERATIONS AND ORGANIZATION Sogou Inc. (“Sogou” or the “Company”) was incorporated in the Cayman Islands on December 23, 2005 as an indirect wholly-owned subsidiary of Sohu.com Inc., which was the Company’s ultimate parent company until its dissolution on May 31, 2018. Sohu.com Limited, which was a wholly-owned subsidiary of Sohu.com Inc., became the Company’s ultimate parent company as the successor-in-interest to Sohu.com Inc. upon Sohu.com Inc.’s dissolution. Sohu.com Limited (or its predecessor Sohu.com Inc., as applicable), together with its subsidiaries and consolidated VIEs, but, unless the context requires otherwise, excluding the businesses and the corresponding subsidiaries and VIEs of Sogou, are collectively referred to herein as “Sohu.” Sohu.com Limited (or its predecessor Sohu.com Inc., as applicable) and its subsidiaries and consolidated VIEs, including the Company and its subsidiaries and VIEs, are collectively referred to herein as the “Sohu Group.” The Company, together with its subsidiaries and VIEs, are collectively referred to herein as the “Sogou Group.” The Sogou Group is principally engaged in offering search and search-related advertising services which enable advertisers’ promotional links to be displayed on the Sogou Group’s search result pages and other properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. The Sogou Group’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. The search and search-related business also benefits from Sogou’s collaboration with Tencent Holdings Limited (together with its subsidiaries, “Tencent,” whose financial statements are prepared under International Financial Reporting Standards), which provides Sogou access to traffic and content generated from the products and services provided by Tencent. The Sogou Group also offers Internet value-added services (“IVAS”), primarily with respect to the operation of Web games and mobile games developed by third parties, and offers other products and services, including smart hardware products and online lending and microcredit services, which are collectively referred to as the “other business.” As of December 31, 2020, the Sogou Group’s principal subsidiaries and VIEs were as follows. Place of Date of Incorporation/ Effective Name of Entity Incorporation/Acquisition Acquisition Interest held Subsidiaries: Sogou (BVI) Limited (“Sogou BVI”) Incorporated on December 23, 2005 British Virgin Islands (“BVI”) 100 % Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”) Incorporated on February 8, 2006 The People’s Republic of China (“PRC”) 100 % Sogou Hong Kong Limited (“Sogou HK”) Incorporated on December 12, 2007 Hong Kong Special Administrative Region (“Hong Kong”) 100 % Vast Creation Advertising Media Services Limited (“Vast Creation”) Acquired on November 30, 2011 Hong Kong 100 % Beijing Sogou Network Technology Co., Ltd. (“Sogou Network”) Incorporated on March 29, 2012 PRC 100 % Sogou Technology Hong Kong Limited (“Sogou Technology HK”) Incorporated on August 25, 2015 Hong Kong 100 % Sogou (Shantou) Internet Microcredit Co., Ltd. (“Sogou Microcredit”) Incorporated on November 22, 2017 PRC 100 % Sogou (Hangzhou) Intelligent Technology Co., Ltd. (“Sogou Hangzhou”) Incorporated on April 28, 2018 PRC 100 % Shantou Ying Zhong Bai Fu Financing Guarantee Co., Ltd. (“Sogou Financing Guarantee”) Incorporated on July 24, 2019 PRC 100 % VIEs: Beijing Sogou Information Service Co., Ltd. (“Sogou Information”) Incorporated on December 28, 2005 PRC 100 % Beijing Shi Ji Si Su Technology Co., Ltd. (“Shi Ji Si Su”) Acquired on April 2, 2015 PRC 100 % Chengdu Easypay Technology Co., Ltd. (“Chengdu Easypay”) Incorporated on January 19, 2015 PRC 100 % Consolidated Trust (Note 2(f)—Accounts Receivable and Financing Receivables, Net) Incorporated on December 2, 2019 PRC 100 % The Company’s principal subsidiaries, Sogou Technology, Sogou Network, Sogou Microcredit, Sogou Hangzhou, and Sogou Financing Guarantee, are wholly foreign-owned enterprises (or “WFOEs”) established in the PRC. The Company’s principal VIEs, which consist of Sogou Information and its principal subsidiaries Shi Ji Si Su and Chengdu Easypay, and the Consolidated Trust, are controlled by Sogou Technology through a series of contractual agreements (see Note 21—VIEs). |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. a. Basis of Presentation, Principle of Consolidation and Use of Estimates Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and on a going concern basis. Principle of Consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which Sogou is the ultimate primary beneficiary. All significant intra-company balances and transactions within the Sogou Group have been eliminated upon consolidation. See Note 21—VIEs for discussion of the consolidation of the VIEs. Use of Estimates The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates. Identified below are the accounting policies that reflect the Sogou Group’s most significant estimates and judgments, and those that the Sogou Group believes are the most critical for fully understanding and evaluating its consolidated financial statements. b. Functional Currency and Foreign Currency Translation Functional Currency An entity’s functional currency is the currency of the primary economic environment in which it operates; normally that is the currency of the environment in which it primarily generates and expends cash. It is essential that management use its judgment to determine the functional currency by assessing various indicators, such as cash flows, product and service prices and markets, expenses, financing and intra-company transactions and arrangements. The functional currency of the Company and the Company’s subsidiaries in the BVI and Hong Kong is the United States dollar (the “U.S. dollar”), while the functional currency of the Company’s subsidiaries and VIEs in the PRC is the Renminbi (the “RMB”). Foreign Currency Translation The Sogou Group uses the U.S. dollar as its reporting currency. In the consolidated financial statements, the financial information of the Company’s subsidiaries and VIEs in the PRC, which use the RMB as their functional currency, has been translated into U.S. dollars. Assets and liabilities are translated from the functional currency at the exchange rates on the balance sheet date; equity amounts are translated at historical exchange rates; and revenues, expenses, gains, and losses are translated using the average rates in effect during the reporting period. Translation adjustments are reported as foreign currency translation adjustments and are shown as a separate component of other comprehensive income or loss in the consolidated statements of changes in shareholders’ equity. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from re-measurement at period end are recognized in the consolidated statements of comprehensive income/(loss). c. Cash and Cash Equivalents Cash and cash equivalents consist of cash, demand deposits, time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. d. Short-term Investments Short-term investments consist of time deposits with original maturities of more than three months and investments in financial instruments with a variable interest rate indexed to performance of underlying assets. In accordance with ASC 825, the Sogou Group elected the fair value method at the date of initial recognition and carried these investments at fair value. For both time deposits with original maturities of more than three months and financial instruments with a variable interest rate indexed to performance of underlying assets, fair values are determined based on the pervasive interest rates in the market. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as other income, net. To estimate fair value, the Sogou Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Sogou Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements (see Note 2(x)—Fair Value of Financial Instruments). e. Restricted Cash Restricted cash mainly consists of cash deposited and held in escrow accounts at certain banks as collateral and cash received through a consolidated trust that has not yet been distributed from the consolidated trust (see Note 2(f)—Accounts Receivable and Financing Receivables, Net). All restricted cash of the Sogou Group as of December 31, 2019 and 2020 are presented on the face of the consolidated balance sheets as “Restricted cash.” f. Accounts Receivable and Financing Receivables, Net Accounts Receivable Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Sogou Group has satisfied its performance obligations and has the unconditional right to payment. The carrying value of accounts receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. Financing Receivables Financing receivables consist primarily of small consumer loans to individual borrowers. The Sogou Group funded such loans either through its own capital or through a trust that was jointly established by the Sogou Group and a third-party investor, and is administered by a third-party trust company. As the trust only invested in loans facilitated by the Sogou Group, the Sogou Group has power to direct the activities of the trust. The Sogou Group also has the obligation to absorb losses and the right to receive benefits from the trust that could potentially be significant to the trust. As a result, the Sogou Group is considered the primary beneficiary of the trust and the trust is considered a consolidated VIE (the “Consolidated Trust”) under ASC 810. Financing receivables are recorded at the principal amount and interest accrued, net of allowance for credit losses that reflects the Sogou Group’s best estimate of the amounts that will not be collected. Interest on loans is accrued based on the contractual interest rates of the loans when earned. The loan periods granted by the Sogou Group to the borrowers related to the small consumer loans are generally within one year. Allowance for Credit Losses Effective on January 1, 2020, the Sogou Group adopted Accounting Standards Update (ASU) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) under a modified retrospective transition. This guidance replaces the existing “incurred loss” methodology, and introduces an expected loss approach with macroeconomic forecasts referred to as a current expected credit losses (“CECL”) methodology. Under the incurred loss methodology, credit losses are only recognized when the losses are probable of having been incurred. The CECL methodology requires that the full amount of expected credit losses for the lifetime of the financial instrument be recorded at the time it is originated or acquired, considering relevant historical experience, current conditions and reasonable and supportable macroeconomic forecasts that affect the collectability of financial assets, and adjusted for changes in expected lifetime credit losses subsequently, which may require earlier recognition of credit losses. The Sogou Group estimates the credit loss of accounts receivable mainly based on past collection experience as well as consideration of current and future economic conditions and changes in the Sogou Group's collection trends. The Sogou Group estimates the expected credit loss for accounts receivable with similar risk characteristics on a pool basis. For each pool, the Sogou Group first estimates its recovery period based on relevant historical accounts receivable collection information. Then the Sogou Group estimates the credit allowances based on the recovery period, the historical distribution of each aging bucket, and the impact of macroeconomic factors. The Sogou Group estimates its credit loss of financing receivables collectively, using a pooled basis within applicable credit risk classification levels of the underlying customers, mainly based on delinquency levels. The significant assumptions used in the process of estimating the allowance for credit losses include portfolio composition, loan delinquencies, loss severity and recoveries, and application of macroeconomic forecasts. The lifetime CECL allowance is measured as the product of the ending balance and two key parameters, the lifetime Probability of Default (“PD”) and Loss Given Default (“LGD”). PD represents the expected probability of payment and time to default of small consumer loans made by Sogou. LGD represents the percentage of the expected balance due at default that is not recoverable. The calibration of PD and LGD starts with the Sogou Group’s historical information, with PD considering vintage, recent performance, and macroeconomic factors and LGD being assessed based on portfolio delinquencies, loss severity, and future recoveries default. The estimated credit losses are further adjusted to incorporate the impact of macroeconomic conditions. To incorporate the impact based on Sogou’s macroeconomic forecasts, quantitative adjustments are applied to key parameters such as PD and LGD on a collective basis. Macroeconomic factors used in models include variables such as consumer price index and total retail sales of consumer goods. Accounts receivable and financing receivables are written off when there is no reasonable expectation of recovery. Allowance for credit losses is presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. g. Short-term Receivables and Payables Prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Accounts payable, receipts in advance and accrued liabilities are financial liabilities with carrying values that approximate fair value due to their short-term nature. h. Inventory Inventory, which mainly consists of smart hardware products, is recorded at the lower of cost or net realizable value. Cost of inventory is determined using the first-in-first-out cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs and disposal and transportation expenses. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value for obsolete and slow-moving goods. i. Long-term Investments Investments in entities are recorded as equity investments under long-term investments. For entities over which the Sogou Group can exercise significant influence but in which it does not own a majority equity interest or control, the equity method is applied. For entities over which the Sogou Group does not have significant influence, with the adoption of ASC 321 effective as of January 1, 2018, these investments should generally be measured at fair value with gains or losses resulting from changes in fair value recognized in earnings. Based on ASC 321, an entity may elect to record equity investments without readily determinable fair values and not accounted for by the equity method at cost, less impairment, adjusted for subsequent observable price changes. Entities that elect this measurement alternative will report in current earnings changes in the carrying value due to re-measurement based on observable price changes of the equity investments. As of December 31, 2020, all of the Sogou Group’s equity investments were accounted as equity investments without readily determinable fair values. j. Fixed Assets Fixed assets comprise computer equipment (including servers), leasehold improvements, office furniture, and vehicles. Fixed assets are recorded at cost less accumulated depreciation with no residual value. Depreciation is calculated on a straight-line basis over the estimated useful lives listed below: Fixed Assets Estimated Useful Lives (Years) Computer equipment (including servers) 4 - 5 Leasehold improvements The lesser of the term of the lease or the estimated useful lives of the assets Office furniture 5 Vehicles 4 Repairs and maintenance costs are expensed as incurred, whereas the cost of renewals and betterments that extend the useful lives of fixed assets are capitalized as additions to the related assets. Gains or losses on the disposal of fixed assets are the difference between the net sale proceeds and the carrying amounts of the relevant assets and are recognized in the consolidated statements of comprehensive income/(loss). k. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Sogou Group’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Under ASC 350-20-35, the Sogou Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The Sogou Group chooses to directly apply the quantitative impairment test, which consists of a one-step quantitative impairment test, comparing the carrying amount of the reporting unit to the fair value of the reporting unit. If the carrying value, including goodwill, of the reporting unit exceeds the fair value of the reporting unit, goodwill impairment is measured and recognized by the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The fair value of reporting units is determined based on the trading price of the Company’s ADSs in the public market. l. Intangible Assets Intangible assets primarily comprise copyright, computer software, domain names and trademarks and developed technologies. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Intangible Assets Lives (Years) Copyright 5 Computer software 3 Domain names and trademarks 5 - 10 Developed technologies 3 - 10 m. Impairment of Long-lived Assets The carrying values of long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Sogou Group compares the carrying amount of the long-lived asset group with the sum of undiscounted cash flows expected to result from the use and eventual disposal of the asset group. If the carrying amount exceeds the sum of undiscounted cash flows, the Sogou Group will measure any impairment of long-lived assets using the projected discounted cash flow method at the asset group level. The estimation of future cash flows requires significant management judgment based on the Sogou Group’s historical results and anticipated results and is subject to many factors. The discount rate that is commensurate with the risk inherent in the Sogou Group’s business model is determined by the Sogou Group’s management. An impairment charge would be recorded if the Sogou Group were to determine that the carrying value of long-lived assets may not be recoverable. The impairment to be recognized would be measured by the amount by which the carrying values of the assets exceeded the fair value of the assets. n. Treasury Stock Treasury stock consists of shares repurchased by the Company or that the Company is obligated to repurchase as of the reporting date. Shares included in treasury stock are no longer outstanding. Treasury stock is accounted for under the cost method. Treasury stock also includes ordinary shares that were issued upon the early exercise of options and transferred to trusts for the benefit of the holders, but remained subject to vesting in accordance with the requirements of the applicable option agreements (See “Option Modification” in Note 14—Share-based Compensation). o. Revenue Recognition On January 1, 2018, the Sogou Group adopted ASC 606, using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. The adoption did not have a material impact on retained earnings as of January 1, 2018 and the financial statements as of and for the year ended December 31, 2018. The adoption of ASC 606 mainly resulted in a change to the Sogou Group's accounting policy for advertising-for-advertising barter transactions. Under ASC 605, revenue and expense were recognized at fair value from an advertising barter transaction only if the fair value of the advertising surrendered in the transaction was determinable based on the entity's own historical practice of receiving cash, marketable securities, or other consideration that is readily convertible to a known amount of cash for similar advertising from buyers unrelated to the counterparty in the barter transaction. If the fair value of the advertising surrendered in the barter transaction was not determinable, the barter transaction was to be recorded based on the carrying amount of the advertising surrendered, which would likely be zero. ASC 606 has suspended the guidance of ASC 605 and provides that when the contract consideration from a customer is in forms other than cash, the revenue will be measured at the fair value of the noncash consideration, or indirectly measured by reference to the standalone selling price of the goods or services promised to the customer if the fair value of the non-cash consideration cannot be reasonably estimated. For the years ended December 31, 2018, 2019 and 2020, because of the adoption of ASC 606, the Sogou Group estimated the fair value of the advertising services received in barter transactions and recognized US$21,817, US$15,730 and US$14,327, respectively, in revenues, with corresponding increases in cost of revenues and sales and marketing expenses. The adoption of ASC 606 did not have a material impact on the Sogou Group's consolidated balance sheet, consolidated statement of cash flows, or consolidated statement of changes in equity for the years ended December 31, 2018, 2019 and 2020. Under Topic 606, the Sogou Group recognizes revenue when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Sogou Group expects to be entitled to in exchange for those goods or services. The Sogou Group determines revenue recognition through the following steps: Step 1: identification of the contract, or contracts, with a customer; Step 2: identification of the performance obligations in the contract; Step 3: determination of the transaction price; Step 4: allocation of the transaction price to the performance obligations in the contract; and Step 5: recognition of revenue when, or as, the Sogou Group satisfies a performance obligation. The Sogou Group is principally engaged in offering search and search-related advertising services including pay-for-click services and other online advertising services. The Sogou Group also offers IVAS, primarily with respect to the operation of Web games and mobile games developed by third parties, and offers other products and services, including smart hardware products, and online lending and microcredit services. The following table presents revenues disaggregated by revenue source, net of value-added tax (“VAT”). For the Year Ended December 31, 2018 2019 2020 Search and search-related advertising revenues $ 1,023,132 $ 1,073,173 $ 837,432 Other revenues 101,026 99,079 87,232 Total $ 1,124,158 $ 1,172,252 $ 924,664 Search and Search-related Advertising Revenues The Sogou Group procures a majority of its search and search-related advertisers through advertising agencies. Discounts, rebates, and other cash payments provided to the advertising agencies and advertisers not in exchange for distinct goods or services are accounted for as a reduction of revenues. Pay-for-click Services Pay-for-click services enable advertisers’ promotional links to be displayed on the Sogou Group’s search result pages and other Internet properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. For pay-for-click services, the Sogou Group introduces Internet users to its advertisers through the auction-based systems and charge advertisers on a per-click basis when the users click on the displayed links. The performance obligation of pay-for-click services is satisfied at the point in time when users click on the displayed links, and revenue for pay-for-click services is recognized on a per-click basis. Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers’ promotional links on the Sogou Group’s Internet properties. For time-based advertising services, the performance obligation is satisfied over time when the advertising links are displayed over the contract periods, and therefore revenue is normally recognized on a straight-line basis over the contracted display period. For performance-based advertising services, for example, the advertisers are charged based on the times that users download from the displayed links, the performance obligation is satisfied at the point in time when the promised performance is completed, and the revenue is recognized upon the completion of the promised performance. The Sogou Group’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. The Sogou Group is the principal in such arrangement because its promise to advertisers is to provide the advertising services itself rather than to arrange for the advertising services to be provided by third parties on their Internet properties. Payments made to operators of third-party Internet properties are included in the traffic acquisition costs. Other Revenues Other revenues consist of IVAS revenues, which are mainly from the operation of Web games and mobile games developed by third parties, as well as revenues from other products and services, including smart hardware products and online lending and microcredit services, offered by the Sogou Group. Other revenues are generally recognized when the Sogou Group’s performance obligations under the applicable agreements are satisfied, except for interest revenues generated from the Sogou Group’s online lending and microcredit services, which are recognized using the effective interest method. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Sogou Group has satisfied its performance obligations and has the unconditional right to payment. Receipts in advance relates to unsatisfied performance obligations at the end of the year and consists of cash payments received in advance from customers. The unused cash balances remaining in customers’ accounts are recorded as a liability of the Sogou Group. Due to the generally short-term duration of the Sogou Group’s contracts, the majority of the performance obligations are satisfied in one year. The amounts of revenues recognized that were included in the receipts in advance balances at the beginning of the year were US$62,191 and US$64,968, respectively, for the years ended December 31, 2019 and 2020. Revenues recognized in the current year from performance obligations related to prior years were not material. Practical Expedients The Sogou Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed, as substantially all of the Sogou Group’s contracts have a duration of one year or less ; (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Sogou Group has determined that its contracts generally do not include a significant financing component ; and (iii) The Sogou Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. p. Cost of Revenues Cost of revenues consists primarily of traffic acquisition costs, bandwidth costs, and server and Internet equipment depreciation associated with the operation of the Sogou Group’s Internet properties; salary and benefits expenses and share-based compensation expense for our staff employed in network operations; and costs related to the other business. Traffic acquisition costs represent the most significant portion of cost of revenues. The Sogou Group’s traffic acquisition costs consist primarily of payments to third parties that direct search queries of their users to Internet properties of the Sogou Group or distribute the Sogou Group’s advertisers’ promotional links through such third parties’ Internet properties. The traffic acquisitions costs for such arrangements consist primarily of fees that the Sogou Group pays to the third parties based on an agreed-upon unit price and revenue-sharing payments that the Sogou Group makes to such third parties based on an agreed-upon percentage of revenues generated from users’ clicks. q. Research and Development Expenses Research and development expenses primarily consist of salary and benefits expenses incurred in the research and development of new products and new functionality added to existing products. Costs incurred during the application development stage for software programs to be used solely to meet internal needs were not material in the years presented; therefore, no research and development expenses were capitalized as intangible assets. r. Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, and salary and benefits expenses. Advertising and promotional expenses generally represent the expenses incurred for promoting the Sogou Group’s products, services and brand. The Sogou Group recognizes advertising and promotional expenses as incurred. Total advertising and promotional expenses were US$102,098, US$87,035 and US$69,585, respectively, for the years ended December 31, 2018, 2019 and 2020. s. Leases The Sogou Group adopted ASU No. 2016-02, Leases (Topic 842), at the beginning of the first quarter of 2019 using the modified retrospective method, and did not restate prior comparable periods. Results and disclosure requirements for reporting periods beginning on and after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with the Group’s historical accounting under Topic 840. Under the old Topic 840, leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases, including rent concessions, are charged to the consolidated statements of comprehensive income/(loss) on a straight-line basis over the lease term. The Sogou Group elected the package of practical expedients permitted under the transition guidance, which allowed the Sogou Group to carry forward the historical classification of leases, the assessment of whether an existing or expired contract contains a lease, and the treatment of initial direct costs. The Sogou Group also elected to keep leases with an initial term of twelve months or less off the balance sheet. Under the new lease standard, the Sogou Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term. The Sogou Group considers only payments that are fixed and determinable at the time of the commencement of the lease. The adoption of the new leasing guidance resulted in recognition of right-of-use assets of $25.4 million and leasing liability t. Share-based Compensation Expense Share-based compensation expense arises from share-based awards, including share options for the purchase of Sogou ordinary shares, granted by the Sogou Group to its management and other key employees. In determining the fair value of share options granted, a binomial option-pricing model (the “BP Model”) is applied. The determination of the fair value is affected by the fair value of the underlying ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. The fair values of the underlying ordinary shares are determined based on the trading price of the Company’s ADSs in the public market. Share-based compensation expense for share options granted to employees is measured based on their grant-date fair values. In circumstances where the service inception date precedes the grant date, share-based compensation expense is measured beginning on the service inception date and is re-measured on each subsequent reporting date before the grant date, based on the estimated fair value of the related options. For options with only a service requirement, share-based compensation expense is recognized on an accelerated basis over the requisite service period. For options with both a service requirement and performance targets, share-based compensation expense is recognized over the estimated period during which both the service period requirement and the performance targets will be met. For options vesting subject to an IPO, share-based compensation expense is recognized on an accelerated basis over the requisite service period after the completion of Sogou’s IPO on November 13, 2017. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and the related compensation expense is not recorded for the number of awards so estimated. Before the Sogou Group’s adoption of ASU 2018-07 “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” effective for fiscal years beginning after December 15, 2018, share-based compensation expense for share options granted to non-employees |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 12 Months Ended |
Dec. 31, 2020 | |
CONCENTRATION OF RISK | |
CONCENTRATION OF RISK | 3. a. Concentration of Credit Risk Financial instruments that potentially expose the Sogou Group to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable, and financing receivables. Cash, Cash Equivalents, Restricted Cash, and Short-term Investments As of December 31, 2019, approximately 53% of the Sogou Group’s cash, cash equivalents, restricted cash, and short-term investments were held in seventeen financial institutions in mainland China; approximately 27% of the Sogou Group’s cash, cash equivalents, restricted cash, and short-term investments were held in four financial institutions in Hong Kong; and approximately 20% of the Sogou Group’s cash, cash equivalents, restricted cash, and short-term investments were held in one financial institution in Macau. The remaining cash, cash equivalents, restricted cash, and short-term investments were held in one financial institution in New York. As of December 31, 2020, approximately 49% of the Sogou Group’s cash, cash equivalents, restricted cash, and short-term investments were held in The Sogou Group holds its cash, cash equivalents, restricted cash, and short-term investments at financial institutions that are among the largest and most respected in the PRC and at international financial institutions with high ratings from internationally-recognized rating agencies. The Sogou Group’s management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Sogou Group uses for its cash, cash equivalents, restricted cash, and short-term investments will be chosen with similar criteria for soundness. As a further means of managing its credit risk, the Sogou Group holds its cash and bank deposits in a number of different financial institutions. As of December 31, 2019 and 2020, the Sogou Group held its cash, cash equivalents, restricted cash, and short-term investments in different financial institutions and held no more than approximately 27% and 28% of its total cash, cash equivalents, restricted cash, and short-term investments at any single institution. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositors’ rights over and interests in their deposited money; PRC banks are subject to a series of risk control regulatory standards; and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. Accounts Receivable As of December 31, 2019 and 2020, the Sogou Group’s accounts receivable from its top three customers represented 50% and 87%, respectively, of the Sogou Group’s aggregate accounts receivable balance, and a single customer accounted for 22% and 57%, respectively, of such balance. Management assesses the credit quality of and sets credit limits on the Sogou Group’s customers, taking into account their financial position, the availability of guarantees from third parties, their credit history, and other factors such as current market conditions. Financing Receivables Financing receivables consist of the principal amounts of small consumer loans made by the Sogou Group to individual borrowers and related interest accrued on these loans. As of December 31, 2019 and 2020, no borrower accounted for 10% or more of the financing receivables balance. The Sogou Group is subject to credit risks resulting from defaults by borrowers and records an allowance based on its estimated probable losses against its financing receivables. The Sogou Group manages the credit risk of financing receivables by performing credit assessments on its borrowers and ongoing monitoring of the outstanding balances. b. Foreign Currency Exchange Rate Risks While the reporting currency of the Sogou Group is the U.S. dollar, to date almost all of its revenues and costs, almost half of its assets, and almost all of its liabilities are denominated in RMB. As a result, the Sogou Group is exposed to foreign exchange risk, as its revenues and assets may be affected by fluctuations in the exchange rate between the U.S. dollar and the RMB. If the RMB depreciates against the U.S. dollar, the value of the Sogou Group’s RMB revenues and assets as expressed in its U.S. dollar financial statements will decline. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 4. As of December 31, 2019 2020 Cash $ 34,836 $ 40,512 Cash equivalents 107,628 246,673 Total $ 142,464 $ 287,185 |
ACCOUNTS RECEIVABLE AND FINANCI
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET | |
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET | 5. The Group adopted ASU 2016-13 using the modified retrospective transition approach and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the consolidated financial statements. Results for reporting periods beginning after January 1, 2020 are presented using the CECL methodology while comparative information continues to be reported in accordance with the incurred loss methodology in effect for prior periods. The following table shows the overall adjustments recognized for each individual line item. December 31, ASU 2016-13 January 1, Consolidated Balance Sheet (extract) 2019 adjustment 2020 (Unaudited) Accounts receivable and financing receivables, net (1) $ 131,813 $ (3,270) $ 128,543 Current assets 1,304,722 (3,270) 1,301,452 Total assets 1,522,402 (3,270) 1,519,132 Shareholders’ equity 1,063,503 (3,270) 1,060,233 Retained earnings 215,064 (3,270) 211,794 Total liabilities and shareholders’ equity 1,522,402 (3,270) 1,519,132 (1) Accounts receivable and financing receivables, net, as of December 31, 2019 and 2020 consisted of the following: As of December 31, 2019 2020 Accounts receivable $ 77,210 $ 35,975 Financing receivables 66,858 41,911 Less: Allowance for credit losses (12,255) (6,700) (1) Total $ 131,813 $ 71,186 (1) The following table summarizes the past-due status of the principal of financing receivables as of December 31, 2019 and 2020: December 31, 2019 Greater than 1 - 30 Days 31 - 60 Days 61 - 90 Days 90 Days Total Past Due Past Due Past Due Past Due Past Due Current Total Financing receivables by origination year 2018 $ — $ — $ — $ — $ — $ 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 $ — $ — $ — $ — $ — $ 1,081 $ 1,081 2019 1 1 2 — 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 The movement of allowance for credit losses for the years ended December 31, 2018, 2019 and 2020 was as follows: For the year ended December 31, 2018 2019 2020 Beginning balance $ 384 $ 7,511 $ 12,255 ASU 2016-13 adjustment (1) — — 3,270 Provision for credit losses 9,119 15,620 3,049 Write-off (1,908) (11,741) (12,517) Foreign currency translation adjustment (84) 865 643 Ending balance $ 7,511 $ 12,255 $ 6,700 (1) T he Sogou Group adopted ASU 2016-13 using the modified retrospective transition approach. The adjustments arising from the new CECL model were recognized in the opening consolidated balance sheet on January 1, 2020. |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
PREPAID AND OTHER CURRENT ASSETS | |
PREPAID AND OTHER CURRENT ASSETS | 6. As of December 31, 2019 2020 Inventories (1) $ 4,132 $ 12,710 Advances to suppliers 4,424 6,155 Deductible input VAT 3,976 3,778 Collaboration deposits 1,175 2,361 Receivables from third party payment service providers 10,748 2,218 Prepaid content and licenses 375 423 Interest receivable from bank deposits with original maturities of three months or less 1,252 322 Employee advances 445 93 Others 361 887 Total $ 26,888 $ 28,947 (1) |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 7. LONG-TERM INVESTMENTS As of December 31, 2019 and 2020, the aggregate carrying value of all equity investments was US$63,345 and US$74,004, respectively. The Sogou Group’s equity investments mainly consisted of equity interests held by the Sogou Group in Zhihu Technology Limited, a company that engages primarily in the business of operating an online question and answer-based knowledge and information sharing platform. Impairment losses were recorded at US$ 2,605 , US$ 10,965 and US$ 500 , respectively, in other income, net, for the years ended December 31, 2018, 2019 and 2020, and a cumulative impairment loss of US$ 14,300 was recognized as of December 31, 2020. Upward adjustments in accordance with ASC 321 for the years ended December 31, 2018, 2019 and 2020 were US$ 18,013 , nil and nil , respectively. |
FIXED ASSETS, NET
FIXED ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
FIXED ASSETS, NET | |
FIXED ASSETS, NET | 8. As of December 31, 2019 2020 Computer equipment (including servers) $ 281,081 $ 301,405 Leasehold improvements 13,011 8,532 Office furniture 2,482 2,561 Vehicles 356 301 Fixed assets, gross 296,930 312,799 Less: Accumulated depreciation (186,924) (235,948) Fixed assets, net $ 110,006 $ 76,851 For the years ended December 31, 2018, 2019 and 2020, depreciation expenses were US$ 60,690 , US$ 64,663 and US$ 54,207 , respectively. No impairment loss was recognized for the years ended December 31, 2018, 2019 and 2020. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL | |
GOODWILL | 9. As of December 31, 2019 2020 Beginning balance $ 5,625 $ 5,534 Goodwill associated with an acquisition — 611 Foreign currency translation adjustment (91) 382 Ending balance $ 5,534 $ 6,527 No impairment loss was recognized for the years ended December 31, 2018, 2019 and 2020. No accumulated goodwill impairment has been provided as of December 31, 2020. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 10. As of December 31, 2019 Accumulated Items Cost Amortization Net Value Copyright $ 3,161 $ (3,161) $ — Computer software 2,958 (1,563) 1,395 Domain names and trademarks 1,344 (1,314) 30 Developed technologies 573 (573) — Others 143 (54) 89 Total $ 8,179 $ (6,665) $ 1,514 As of December 31, 2020 Accumulated Items Cost Amortization Net Value Copyright $ 3,379 $ (3,379) $ — Computer software 2,636 (1,572) 1,064 Domain names and trademarks 1,508 (1,428) 80 Developed technologies 613 (613) — Others 154 (72) 82 Total $ 8,290 $ (7,064) $ 1,226 For the years ended December 31, 2018, 2019 and 2020, amortization expenses were US$1,251, US$705 and US$794, respectively. No impairment loss was recognized for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2020, intangible assets amortization expense for future years is expected to be as follows: Intangible Assets Amortization Expense 2021 $ 828 2022 341 2023 35 2024 10 2025 3 Thereafter 9 Total expected amortization expense $ 1,226 |
ACCRUED AND OTHER SHORT-TERM LI
ACCRUED AND OTHER SHORT-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED AND OTHER SHORT-TERM LIABILITIES | |
ACCRUED AND OTHER SHORT-TERM LIABILITIES | 11. As of December 31, 2019 2020 Accrued advertising and promotion expenses $ 51,344 $ 35,536 Contract deposits from customers 31,399 24,254 Accrued professional fees 19,235 18,708 Payable to a third-party investor in the Consolidated Trust 8,601 9,466 Accrued bandwidth costs 7,532 5,112 Contingent litigation liabilities (See “Litigation” in Note 20—Commitments and Contingencies) 6,476 4,050 Lease liabilities 4,877 4,891 Payable to Web game and mobile game developers 2,209 2,932 Deferred ADS deposit income 3,697 2,462 Payable for government project 1,736 1,845 Accrued content and license fees 2,103 1,342 Early exercise of Sogou share options with trust arrangements (See “Option Modification” in Note 14—Share-based Compensation) 2,702 901 Accrual for fixed assets purchases 274 247 Others 8,090 6,696 Total $ 150,275 $ 118,442 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 12. The following table sets forth the financial instruments, measured at fair value on a recurring basis, by level within the fair value hierarchy as of December 31, 2019 and 2020: Fair Value Measurements at Reporting Date Using Significant Quoted Prices Other Significant As of in Active Markets Observable Unobservable December 31, for Identical Assets Inputs Inputs Items 2019 (Level 1) (Level 2) (Level 3) Cash equivalents $ 107,628 $ — $ 107,628 $ — Short-term investments 995,350 — 995,350 — Total $ 1,102,978 $ — $ 1,102,978 $ — Fair Value Measurements at Reporting Date Using Significant Quoted Prices Other Significant As of in Active Markets Observable Unobservable December 31, for Identical Assets Inputs Inputs Items 2020 (Level 1) (Level 2) (Level 3) Cash equivalents $ 246,673 $ — $ 246,673 $ — Short-term investments 774,618 — 774,618 — Total $ 1,021,291 $ — $ 1,021,291 $ — Cash Equivalents The Sogou Group’s cash equivalents consist of demand deposits, time deposits with original maturities of three months or less, and highly-liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Sogou Group classifies the valuation techniques that use the pervasive interest rates input as Level 2 of fair value measurements. Short-term Investments The Sogou Group invested in time deposits with original maturities of more than three months and financial instruments issued by commercial banks in China which had variable interest rates indexed to the performance of underlying assets. Since the investments’ maturity dates are within one year, they are classified as short-term investments. In accordance with ASC 825, the Sogou Group elected the fair value method at the date of initial recognition and carried these investments at fair value. For both time deposits with original maturities of more than three months and financial instruments with a variable interest rate indexed to performance of underlying assets, the fair values are determined based on the pervasive interest rates in the market. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as other income, net. To estimate fair value, the Sogou Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Sogou Group classifies the fair value measurements as Level 2 of fair value measurements. The Sogou Group recorded gains resulting from changes in the fair value of short-term investments of US$22,058, US$29,900 and US$24,018, respectively, in other income, net, for the years ended December 31, 2018, 2019 and 2020. Long-term Investments Since the adoption of ASC 321 in 2018, all of the Sogou Group’s long-term equity investments are accounted for at cost less impairments, adjusted by observable price changes as these investments do not have readily determinable market values. When observable price changes are identified, with the assistance of a qualified professional appraiser, the Sogou Group uses the back-solve method to re-measure the fair value of the investments and to determine the amount that should be recorded as upward or downward adjustments. The back-solve method requires considering the rights and preferences of each classes of equity and solving for the total equity value that is consistent with a recent transaction of the subject company’s securities. This method requires making assumptions on future outcomes available to the subject company, the probability of each scenario, expected time to liquidity events, volatility and risk-free rate. The Sogou Group classifies these non-recurring fair value measurement as Level 3 of fair value measurement. The Sogou Group recorded gains resulting from upward adjustment of US$18,013, nil and nil in other income for the years ended December 31, 2018, 2019 and 2020, respectively. The Sogou Group also measures equity investments without readily determinable fair values at fair value on a non-recurring basis when an impairment loss is to be recognized. These investments were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to their fair values, considering the stage of development, the business plan, the financial condition, the sufficiency of funding and the operating performance of the investee companies, with impairment charges incurred and recorded in other income, net, for a particular year. The Sogou Group recognized an impairment loss of US$2,605, US$10,965 and US$500, respectively, for those investments without readily determinable fair values in 2018, 2019 and 2020. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Dec. 31, 2020 | |
TREASURY STOCK | |
TREASURY STOCK | 13. On August 3, 2019, the Company’s board of directors authorized a repurchase program of up to US$50 million of the Company’s outstanding ADSs over a twelve-month period from August 3, 2019 to August 2, 2020. As of December 31, 2020, the Company had repurchased under the program an aggregate of 10,584,634 ADSs, representing 10,584,634 Class A ordinary shares, at an average price of US$4.72 per ADS, or US$4.72 per Class A ordinary share, for aggregate consideration of US$50,318, including trading commissions. The repurchased shares were recorded at their historical cost of US$50,318 and were retired in October 2020. The retirement was accounted for by recognizing a decline of US$11 in Class A ordinary shares and a decline of US$50,307 decline in additional paid-in capital, in the Sogou Group’s consolidated balance sheet. The treasury stock account also includes 5,520,000 and 1,899,000 Class A ordinary shares that were issued upon the early exercise of options (See “Option Modification” in Note 14—Share-based Compensation), but remained subject to original vesting restrictions both before and after exercise, and remained unvested as of December 31, 2019 and 2020, respectively. Although the Class A Ordinary Shares have been determined to be treasury stock for accounting purposes, they are outstanding for legal purposes, given that the underlying shares were placed in trusts with the original option grantees as beneficiaries. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 14. Sogou 2010 Share Incentive Plan The Company adopted a share incentive plan on October 20, 2010 and adopted an amendment to the plan effective August 22, 2014 that increased the aggregate number of Sogou Class A Ordinary Shares issuable under the plan to 41,500,000 (as amended to date, the “Sogou 2010 Share Incentive Plan”). Awards of share rights granted under the Sogou 2010 Share Incentive Plan were made to management and other key employees of the Sogou Group and of the parent of the Sogou Group. The Sogou 2010 Share Incentive Plan expired on October 19, 2020 and is no longer available for making new grants. The maximum term of any share incentive award granted under the Sogou 2010 Share Incentive Plan is ten years from the grant date. The options contractually granted under the Sogou 2010 Share Incentive Plan were placed in one of the following three categories: (1) Performance-based options, which vest and become exercisable either in four equal installments or in two to four installments of specified share numbers over their specified vesting periods, with each installment vesting upon a service period requirement being met, as well as the employee grantee’s achievement, as determined by the Company’s chief executive officer, of performance targets for the corresponding period specified by the Company’s chief executive officer. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance targets have been set; or (2) Service-based options, which vest and become exercisable either in four equal installments or in two to four installments of specified share numbers over their specified vesting periods, with each installment vesting only upon a service period requirement being met; or (3) IPO-based options, which were subject to completion of an IPO and vesting/exercisability in five equal installments , with (i) the first installment vesting upon the expiration of all underwriters’ lockup periods applicable to the Company’s IPO and (ii) each of the four subsequent installments vesting on the first, second, third, and fourth anniversary dates of the completion of the IPO. A summary of each of the above three categories of options as of December 31, 2020 is presented below ( ) Granted (For Purposes of Share-based Contractually Granted 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 A summary of share option activity under the Sogou 2010 Share Incentive Plan as of and for the year ended December 31, 2020 is presented below: Weighted Weighted Average Number Average Remaining Aggregate of Shares Exercise Contractual Intrinsic (In thousands) Price Life (Years) Value (1) Outstanding as of January 1, 2020 7,162 $ 0.377 4.45 Granted 1,099 0.001 Exercised (4,233) 0.426 Forfeited/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 (1) For the years ended December 31, 2018, 2019 and 2020, total share-based compensation expense recognized for share options under the Sogou 2010 Share Incentive Plan was US$12,547, US$13,465 and US$7,374, respectively. As of December 31, 2020, there was US$849 of unrecognized compensation expense related to unvested share options granted under the Sogou 2010 Share Incentive Plan, which is expected to be recognized over a weighted average period of 1.37 years. For the years ended December 31, 2018, 2019 and 2020, the total fair values of the share options vested on their respective vesting dates were US$28,530, US$11,893 and US$21,251, respectively, and the total intrinsic values of options exercised were US$33,180, US$1,635 and US$23,102, respectively. The fair value of the share options granted under the Sogou 2010 Incentive Plan was estimated on the date of grant with the assistance of a qualified professional appraiser, using the BP Model with the following assumptions used: 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 The Sogou Group estimated the risk-free rate based on the market yields of U.S. Treasury securities with an estimated country-risk differential as of the valuation date. An exercise multiple was estimated as the ratio of the fair value of the Class A Ordinary Shares over the exercise prices as of the time the options would be expected to be exercised, based on consideration of research studies regarding exercise patterns based on historical statistical data. In the Sogou Group’s valuation analysis, a multiple of three was applied for management and a multiple of two was applied for other key employees. The Sogou Group estimated the forfeiture rate to be 0% for share options granted to management and 12% for share options granted to other key employees. As the Company’s ordinary shares had been publicly traded for only slightly more than three years as of December 31, 2020, the expected volatility at the valuation date was estimated based on the historical volatility of specified comparable companies and Sogou for the periods before the grant dates with length commensurate with the expected term of the options. The Company has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield was estimated to be 0%. Sogou 2017 Share Incentive Plan In October 2017, the Company adopted a share incentive plan (the “Sogou 2017 Share Incentive Plan”), which provides that the aggregate number of Sogou Class A Ordinary Shares issuable under the plan is 28,000,000. Share incentive awards may be granted under the Sogou 2017 Share Incentive Plan to our management and employees and of any of our present or future parents or subsidiaries. The maximum term of any share incentive award granted under the Sogou 2017 Share Incentive Plan is ten years from the grant date. The options contractually granted under Sogou 2017 Share Incentive Plan may be placed in one of the following categories: (1) Performance-based options, which vest and become exercisable in four equal installments , with each installment vesting upon a service period requirement being met, as well as the employee grantee’s achievement, as determined by the Company’s chief executive officer, of performance targets for the corresponding period specified by the Company’s chief executive officer. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance targets have been set; or (2) Service-based options, which vest and become exercisable in four equal installments , with each installment vesting only upon a service period requirement being met. A summary of the above two categories of options as of December 31, 2020 is presented below ( ) Granted (For Purposes of Share-based Contractually Granted 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 A summary of share option activity under the Sogou 2017 Share Incentive Plan as of and for the year ended December 31, 2020 is presented below: Weighted Weighted Average Number Average Remaining Aggregate of Shares Exercise Contractual Intrinsic (In thousands) Price Life (Years) Value (1) Outstanding as of January 1, 2020 798 $ 0.001 8.90 Granted 425 0.001 Exercised (142) 0.001 Forfeited/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 (1) For the years ended December 31, 2018, 2019 and 2020, total share-based compensation expense recognized for share options under the Sogou 2017 Share Incentive Plan was US$1,569, US$2,436 and US$1,561, respectively. As of December 31, 2020, there was US$1,463 of unrecognized compensation expense related to unvested share options granted under the Sogou 2017 Share Incentive Plan, which is expected to be recognized over a weighted average period of 1.74 years. Share options granted under Sogou 2017 Share Incentive Plan began to vest and become exercisable in 2019. For the years ended December 31, 2019 and 2020, the total fair values of the share options vested on their respective vesting dates were US$723 and US$1,069, respectively, and the total intrinsic values of share options exercised were US$940 and US$1,007, respectively. The method used to determine the fair value of share options granted under the Sogou 2017 Share Incentive Plan was the same as the method used for the share options granted under the Sogou 2010 Incentive Plan as described above, except for the assumptions used in the BP Model as presented below. 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 Sohu Management Sogou Share Option Arrangement Under an arrangement (the “Sohu Management Sogou Share Option Arrangement”) that was approved by the board of directors of Sohu and the Company in March 2011, Sohu has the right to provide to members of Sohu’s Board of Directors, management and other key employees of Sohu, and certain management and other key employees of the Sogou Group the opportunity to purchase from Sohu up to 12,000,000 Class A Ordinary Shares of Sogou at a fixed exercise price of US$0.625 or US$0.001 per share. Of these 12,000,000 Class A Ordinary Shares, 8,800,000 are Sogou Class A Ordinary Shares previously held by Sohu and 3,200,000 are Sogou Class A Ordinary Shares that were newly-issued on April 14, 2011 by the Company to Sohu at a price of US$0.625 per share, or a total of US$2.0 million. The options contractually granted under the Sohu Management Sogou Share Option Arrangement may be placed in one of the following categories: (1) Performance-based options, which vest and become exercisable in four equal installments , with each installment vesting upon a service period requirement being met, as well as the Sogou Group’s achievement of performance targets for the corresponding period. All of these options vested and became exercisable before January 1, 2017. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance targets have been set; or (2) Service-based options, which were granted to members of Sohu’s Board of Directors. All of these share options vested and became exercisable in 2015, as the service period requirement had been met. As the requisite service was provided by members of Sohu’s Board of Directors to Sohu and not to the Sogou Group, no share-based compensation expense related to these options was recognized in the Sogou Group’s consolidated statements of comprehensive income/(loss). A summary of the above two categories of options as of December 31, 2020 is presented below ( ) Granted (For Purposes of Share-based Contractually Granted 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 A summary of share option activity as of and for the year ended December 31, 2020 is presented below: Weighted Weighted Average Number Average Remaining Aggregate of Shares Exercise Contractual Intrinsic (In thousands) Price Life (Years) Value (1) Outstanding as of January 1, 2020 9 $ 0.001 5.38 Granted — Exercised — Forfeited/Expired — Outstanding as of December 31, 2020 9 $ 0.001 4.38 $ 73 Vested as of December 31, 2020 and expected to vest thereafter 9 $ 0.001 4.38 $ 73 Exercisable as of December 31, 2020 9 $ 0.001 4.38 $ 73 (1) As all options granted under the Sohu Management Sogou Share Option Arrangement vested before January 1, 2017, no share-based compensation expense was recognized for the years ended December 31, 2018, 2019 and 2020. Option Modification In the first and second quarter of 2013, a portion of the share options granted under the Sogou 2010 Share Incentive Plan and the Sohu Management Sogou Share Option Arrangement were exercised early, and the resulting Sogou ordinary shares were transferred to trusts with the original option grantees as beneficiaries. The trusts will distribute the ordinary shares to those beneficiaries in instalments based on the vesting requirements under the original option agreements. Although these trust arrangements caused a modification of the terms of these share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these ordinary shares resulted from the modification, and the remaining share-based compensation expense for these ordinary shares continued to be recognized over the original remaining vesting period. As of December 31, 2020, 1,899,000 Class A Ordinary Shares issued upon the early exercise of options granted under the Sogou 2010 Share Incentive Plan remained unvested in accordance with the vesting requirements under the original option agreements. All of the Class A Ordinary Shares issued upon such early exercise that have become vested have been included in the disclosures under the headings “Sogou 2010 Share Incentive Plan” and “Sohu Management Sogou Share Option Arrangement” above. In the first quarter of 2018, the Company changed the vesting conditions of options for the purchase of 2,181,192 Class A Ordinary Shares contractually granted under the Sogou 2010 Share Incentive Plan by removing as a condition of vesting Sogou Group’s achievement of performance targets for the period corresponding to the vesting schedule. Of these options, options for the purchase of 1,601,427 Class A Ordinary Shares had not been deemed granted, because their performance targets for the current period had not been set, so the removal of the performance targets resulted in these options becoming subject to vesting only upon service-period requirements being met and being deemed granted immediately upon the effectiveness of the changes. For the remaining options for the purchase of 579,765 Class A Ordinary Shares, which had been deemed granted, the removal of the performance targets constituted a modification. The modification was not considered substantive, because the performance targets had been achieved before the modification. Based on valuation results, no incremental fair value related to these Sogou ordinary shares was recognized in connection with the modification, and the remaining share-based compensation expense for these options continued to be recognized over their remaining vesting periods. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2020 | |
TAXATION | |
TAXATION | 15. a. PRC Value-added Tax The Company’s subsidiaries and VIEs in China are subject to VAT. The Sogou Group’s revenues were subject to VAT at a rate of 6% or 17% for the period from January 1, 2018 to April 30, 2018; at a rate of 6% or 16% for the period from May 1, 2018 to March 31, 2019; and at a rate of 6% or 13% commencing April 1, 2019, in each case depending on the type of service or product offered. b. Income Taxes Cayman Islands Under the current laws of Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon any payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands Under the current laws of British Virgin Islands, Sogou BVI is not subject to tax on income or capital gains. Hong Kong The Company’s subsidiaries in Hong Kong are subject to income tax at a rate of 16.5% for the years ended December 31, 2018, 2019 and 2020. Hong Kong does not impose a withholding tax on dividends. PRC The PRC Corporate Income Tax Law (the “CIT Law”) generally applies an income tax rate of 25% to all enterprises, but grants preferential tax treatment to qualified “High and New Technology Enterprises” (“HNTEs”) and “Key National Software Enterprises” (“KNSEs”). Entities Qualified as HNTEs HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. During this three-year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% CIT rate. Sogou Technology, Sogou Information Network Entities Qualified as Software Enterprises and KNSEs The CIT Law and its implementing regulations provide that a “Software Enterprise” is entitled to an income tax exemption for two years beginning with its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. An entity that qualified as a KNSE is entitled to a further reduced preferential income tax rate of 10%. Enterprises wishing to enjoy the status of a Software Enterprise or a KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before using the preferential CIT rates. These enterprises will be subject to the tax authorities’ assessment each year as to whether they are entitled to use the relevant preferential CIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential CIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprise’s Software Enterprise/KNSE status. Sogou Technology performed a self-assessment and filed the required supporting documents and passed the relevant government authorities’ assessment in 2018, and thus was qualified as a KNSE and entitled to a preferential income tax rate of 10% for 2017. As a result, a reversal of income tax of US$ PRC Withholding Tax on Dividends Under the CIT Law and its implementation rules, the profits of a foreign-invested enterprise arising in 2008 and thereafter that are distributed to its immediate holding company outside the PRC are subject to withholding tax at a rate of 10%. A lower withholding tax rate will be applied if there is a beneficial tax treaty between the PRC and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be eligible, with approval of the PRC local tax authority, to be subject to a 5% withholding tax rate under the Arrangement Between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income if such holding company is considered to be a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign-invested enterprise distributing the dividends. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to withholding tax at a rate of 10%. Aggregate undistributed profits of certain of the Company’s subsidiaries and VIEs located in PRC were approximately US$359,177 as of December 31, 2020. The Company does not intend to have any of its subsidiaries and VIEs located in PRC distribute any of their undistributed profits in the foreseeable future, but rather expects that such profits will be reinvested by such subsidiaries and VIEs for their PRC operations. Accordingly, no withholding tax was recorded as of December 31, 2020. If those profits were to be distributed or they were determined to be no longer permanently reinvested, the Company would have to record a deferred income tax liability in respect of those undistributed profits of approximately US$35,918 as of December 31, 2020 if those profits were subject to withholding tax at a rate of 10%. Composition of Income Tax Expense All income tax expense for the years ended December 31, 2018, 2019 and 2020 was PRC corporate income tax for PRC entities. The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income/(loss) are as follows: For the Year Ended December 31, 2018 2019 2020 Income/(loss) from PRC entities $ 73,720 $ 84,760 $ (99,960) Income/(loss) from non-PRC entities 26,214 7,093 (6,526) Income/(loss) before income tax expenses 99,934 91,853 (106,486) Current income tax expense/(benefit) 462 5,480 (1,748) Deferred tax expense/(benefit) 691 (2,732) 4,094 Income tax expense $ 1,153 $ 2,748 $ 2,346 Effective Tax Rate Reconciliation of the PRC CIT tax rate of 25% to the Sogou Group’s effective tax rate for the years of 2018, 2019 and 2020 is as follows: For the Year Ended December 31, 2018 2019 2020 PRC statutory tax rate 25.0 % 25.0 % 25.0 % Tax differential from statutory rate in other jurisdictions 0.4 % 2.6 % (2.6) % Effect of tax holidays (5.1) % (2.3) % (14.9) % Permanent book-tax differences (1) (18.5) % (25.3) % 25.7 % Tax-exempt income (2) (7.0) % (4.6) % 1.1 % Changes in deferred tax asset allowance 6.4 % 7.6 % (36.5) % Effective income tax rate 1.2 % 3.0 % (2.2) % (1) (2) The combined effects of the income tax expense exemptions and reductions available to the Sogou Group are as follows: For the year ended December 31, 2018 2019 2020 Tax holiday effect $ 5,097 $ 2,113 $ (15,851) Basic income/(loss) per share $ 0.01 $ 0.01 $ (0.04) c. Deferred Tax As of December 31, 2019 and 2020, the significant temporary differences between the tax and financial statement bases of assets and liabilities that gave rise to deferred tax balances were principally related to the following: As of December 31, 2019 2020 Deferred tax assets: Net operating loss carry forwards $ 12,788 $ 49,349 Temporary non-deductible advertising cost carried forward 965 1,008 Accrued expenses 22,810 19,970 Accrued payroll expense 3,229 3,752 Provision for inventory impairment and credit losses of receivables 7,517 7,382 Provision for long-term investments 2,050 3,346 Total deferred tax assets 49,359 84,807 Deferred tax liabilities: Depreciation of fixed assets (4,925) (4,339) Others (26) — Total deferred tax liabilities (4,951) (4,339) Less: valuation allowance (28,102) (67,219) Deferred tax assets, net $ 16,306 $ 13,249 As of December 31, 2019 and 2020, the Sogou Group made a valuation allowance against its deferred tax assets to the extent that such deferred tax assets were not expected to be realized by each individual entity within the Sogou Group. The Sogou Group evaluated a variety of factors in determining the amount of the valuation allowance, including each individual entity’s operating history and financial forecast. As of December 31, 2020, the Sogou Group had net operating losses from PRC entities of approximately US$275,768 available to offset against future net profit for income tax purposes. The Sogou Group anticipated that it was more likely than not that these net operating losses would not be utilized based on its estimate of the operating performance of these PRC entities. Therefore, US$49,349 in deferred tax assets generated from net operating losses were offset by a valuation allowance. These net operating losses of entities not qualified as HNTEs are expected to expire during periods between December 31, 2021 and December 31, 2025 and those of entities qualified as HNTEs are expected to expire during periods between December 31, 2021 and December 31, 2030. The following table sets forth the movement of the valuation allowance for net deferred tax assets for the periods presented: For the Year Ended December 31, 2018 2019 2020 Beginning balance $ 16,186 $ 21,484 $ 28,102 Additions 6,852 8,305 37,882 Reversals (779) (1,339) (709) Foreign currency translation adjustment (775) (348) 1,944 Ending balance $ 21,484 $ 28,102 $ 67,219 |
CHINA CONTRIBUTION PLAN
CHINA CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2020 | |
CHINA CONTRIBUTION PLAN | |
CHINA CONTRIBUTION PLAN | 16. The Company’s subsidiaries and VIEs in the PRC participate in a government-mandated multi-employer defined contribution plan, pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s PRC based subsidiaries and VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The Sogou Group has no further legal obligation beyond its monthly contribution. For the years ended December 31, 2018, 2019 and 2020, the Sogou Group contributed a total of approximately US$40,094, US$39,990 and US$23,235, respectively. |
NET INCOME PER ORDINARY SHARE
NET INCOME PER ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2020 | |
NET INCOME PER ORDINARY SHARE | |
NET INCOME PER ORDINARY SHARE | 17. The following table sets forth the basic and diluted net income per ordinary share computation and provides a reconciliation of the numerator and denominator for the periods presented (in thousands except per share data): For the Year Ended December 31, 2018 2019 2020 Numerator: Net income/(loss) attributable to Sogou Inc. $ 98,781 $ 89,105 $ (108,221) Numerator for net income/(loss) per ordinary share—basic and diluted $ 98,781 $ 89,105 $ (108,221) Denominator Weighted average number of ordinary shares outstanding—basic 388,731 389,797 385,365 Incremental shares from treasury stock method 7,167 5,436 — Weighted average number of ordinary shares outstanding—diluted 395,898 395,233 385,365 Net income/(loss) per ordinary share—basic $ 0.25 $ 0.23 $ (0.28) Net income/(loss) per ordinary share—diluted $ 0.25 $ 0.23 $ (0.28) Options for the purchase of 30,000 and 12,500 Class A Ordinary Shares, respectively, were excluded from the computation of diluted net income per ordinary share for the years ended December 31, 2018 and 2019 because of their anti-dilutive effect. The dilutive effects of share options were calculated using the treasury share method. Because of the anti-dilutive effect, none of the options for the purchase of Class A Ordinary Shares was included in the computation of diluted net income per ordinary share for the year ended December 31, 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 18. The table below sets forth the significant related parties of the Sogou Group and their relationship to the Sogou Group: Related Party’s Name Relationship with the Sogou Group Sohu Under common control of Sohu.com Limited with the Sogou Group Tencent Holder of Class B Ordinary Shares The table below sets forth the significant related party transactions of the Sogou Group: For the Year Ended December 31, 2018 2019 2020 Transactions with Sohu: Expenses of research and development undertaken by Sohu $ 670 $ — $ — Online marketing activities provided to Sohu 677 311 54 Online marketing activities provided by Sohu 393 191 113 Rental of Sohu.com Internet Plaza paid to Sohu 8,369 8,318 9,763 Others 464 61 59 Transactions with Tencent: Share-based compensation expense related to Soso search-related businesses employees undertaken by Tencent 88 — — Online marketing activities provided to Tencent 40,758 31,943 28,048 Online marketing activities provided by Tencent 108,542 86,902 85,668 Bandwidth services provided by Tencent 4,183 6,364 9,463 Rental paid to Tencent 383 500 594 Others 3,463 2,254 1,582 The Sogou Group provided online marketing services to Sohu and Tencent, and received similar online marketing services from Sohu and Tencent. Related revenues and expenses are measured at the amount of consideration agreed to and paid by the related parties, which approximates amounts charged to third parties. The table below sets forth the amounts due to related parties: As of December 31, 2019 2020 Due from/to related parties—current Due from Sohu $ 15 $ 9 Due from Tencent 2,822 2,462 Total $ 2,837 $ 2,471 Due to Sohu $ 101 $ 9,619 Due to Tencent 22,493 17,483 Total $ 22,594 $ 27,102 Due from/to related parties—non current Due from Sohu $ 2,074 $ 2,812 Due from Tencent 179 191 Total $ 2,253 $ 3,003 Due to Sohu $ — $ 9,217 Due to Tencent 715 201 Total $ 715 $ 9,418 The balances due from/to Sohu mainly consist of lease liabilities due to Sohu, lease deposits prepaid to Sohu, and online marketing services provided by or to Sohu. The balances due from/to Tencent mainly consist of online marketing services provided to or by Tencent and lease obligations due to Tencent. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 19. The Sogou Group has entered into operating lease agreements, primarily for office space in China, with lease periods expiring between 2021 and 2023. The determination of whether an arrangement is or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Sogou Group obtains substantially all of the economic benefit from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included on the Sogou Group’s consolidated balance sheets beginning January 1, 2019. Right-of-use assets are included in due from related parties and other assets, while the current portion of the operating lease liabilities is included in due to related parties and other short-term liabilities and the long term portion is included in long-term liabilities. The Sogou Group has elected to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the consolidated balance sheets. Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Sogou Group uses its incremental borrowing rate in determining the present value of the future lease payments, because the interest rate implicit in most of the leases is not readily determinable. The Sogou Group estimates its incremental borrowing rate for each leased asset based on the interest rate the Sogou Group would incur to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. The Sogou Group’s lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Certain of the Sogou Group’s leases contain free or escalating rent payment terms. Operating lease expense is recognized on a straight-line basis over the lease term. The Sogou Group’s lease agreements generally contain lease and non-lease components. Non-lease components consist primarily of payments for property management. The Sogou Group combines fixed payments for non-lease components with the lease payments and accounts for them together as a single lease component, which increases the amount of the Sogou Group’s lease assets and liabilities. Payments under the lease arrangements are primarily fixed, with no variable payments. Components of operating lease expense were as follows: For the Year Ended December 31, 2019 2020 Operating lease cost $ 15,760 $ 16,724 Short-term lease cost 19 48 Total operating lease cost $ 15,779 $ 16,772 Supplemental cash flow information related to leases is as follows: For the Year Ended December 31, 2019 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 15,146 $ 17,221 For the Year Ended December 31, 2019 2020 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 11,198 $ 29,693 The following table presents supplemental balance sheet information related to the operating leases: As of December 31, 2019 2020 Assets: Operating lease right-of-use assets $ 13,333 $ 28,006 Liabilities: Current portion of lease liabilities 6,106 15,072 Non-current portion of lease liabilities 5,686 10,721 Total operating lease liabilities $ 11,792 $ 25,793 Maturities of lease liabilities under operating leases as of December 31, 2020 were as follows: Maturities of lease liabilities 2021 $ 15,629 2022 10,735 2023 64 2024 — 2025 — Thereafter — Total future lease payments 26,428 Less: imputed interest 635 Total present value of lease liabilities 25,793 As of December 31, 2020, operating leases recognized in lease liabilities had a weighted average remaining lease term of 1.87 years and a weighted average discount rate of 4.75 %. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 20. Contractual obligations Operating Commitments As of December 31, 2020, the Sogou Group had operating commitments related to bandwidth purchase obligations, fixed assets purchases, and miscellaneous items as follows: Bandwidth Fixed Assets As of December 31, Purchase Purchases Others Total 2021 $ 28,503 $ 5,007 $ 2,614 $ 36,124 2022 — — — — 2023 — — — — 2024 — — — — 2025 — — — — Thereafter — — — — Total $ 28,503 $ 5,007 $ 2,614 $ 36,124 Litigation The Sogou Group is a party to various legal proceedings which it considers routine and incidental to its business, and is currently involved in several lawsuits in PRC courts where its competitors instituted proceedings or asserted counterclaims against the Sogou Group or the Sogou Group instituted proceedings or asserted counterclaims against its competitors. For example, there are a number of legal proceedings currently pending between the Sogou Group and affiliates of Baidu, Inc. (“Baidu”) in which the Sogou Group alleges that Baidu’s input method infringes certain of its patents relating to Sogou Input Method and seeks monetary damages, while Baidu has asserted in counterclaims or in legal proceedings that it has initiated against the Sogou Group that Sogou Input Method infringes certain of its patents, and seeks monetary damages. There is also a lawsuit pending against us in which Shanghai Cishu Publications Ltd. has alleged that the Sogou Group used vocabulary content without permission and seeks monetary damages. In addition, PRC courts decided in Baidu’s favor a case in which Baidu had alleged that certain functions of Sogou Input Method unfairly divert users to the Sogou Group. There are also two putative class action lawsuits that were filed against the Company in the United States, one in a State court in the State of California and one in the United States District Court for the Southern District of New York, that alleged violations of U.S. securities laws in connection with the Company’s IPO in 2017. Although the plaintiffs’ complaint filed in the United States District Court in New York was found by the court to be without merit, and the lawsuit was dismissed with prejudice, the lawsuit in state court in California remains pending. The Sogou Group records a liability when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. As of December 31, 2020, the Sogou Group estimated the range of reasonably possible outcomes and recorded liabilities for the most probable outcome within that range. The Sogou Group also evaluates, on a regular basis, developments in litigation matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Based on the information currently available, management believes that the total liabilities to the Sogou Group that may arise as a result of currently pending legal proceedings are not reasonably likely to have a material adverse effect on the Sogou Group’s business, results of operations, financial condition, and cash flows. As of December 31, 2019 and 2020, the Sogou Group had recorded estimated liabilities of US$ 6,476 and US$ 4,050 , respectively, as a component of accrued and other short-term liabilities related to litigation contingencies. |
VIEs
VIEs | 12 Months Ended |
Dec. 31, 2020 | |
VIEs | |
VIEs | 21. Sogou consolidates in its consolidated financial statements the VIEs, of which Sogou is the primary beneficiary. a. VIEs Consolidated within the Sogou Group (excluding the Consolidated Trust) PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, value-added telecommunications, and certain other businesses in which the Sogou Group is engaged or could be deemed to be engaged. Consequently, the Sogou Group conducts certain of its operations and businesses in the PRC through its VIEs. The Sogou Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by their primary beneficiary. Management evaluated the relationships between Sogou and its VIEs and the flow of economic benefits under contractual arrangements with its VIE Sogou Information and its shareholders. Sogou Information is the parent company of the Sogou Group’s other VIEs. In connection with such evaluation, management also took into account the fact that, as a result of contractual arrangements with Sogou Information and its shareholders, Sogou controls the shareholders’ voting interests in the VIEs. As a result of such evaluation, management concluded that Sogou is the primary beneficiary of the VIEs consolidated. Under the contractual agreements with Sogou Information and its shareholders, Sogou has power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without any restrictions. Therefore Sogou considers that there are no assets of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and statutory surplus reserves of the VIEs. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of Sogou. Currently there is no contractual arrangement that could require Sogou to provide additional financial support to the VIEs. As the Sogou Group is conducting certain business in the PRC mainly through the VIEs, Sogou may provide such support on a discretionary basis in the future, which could expose Sogou to a loss. The following is a summary of the Sogou Group’s principal VIEs: Basic Information Sogou Information Sogou Information was incorporated in December 2005. As of December 31, 2020, the registered capital of Sogou Information was US$2.5 million and the Company’s Chief Executive Officer Xiaochuan Wang, Sohu, and Tencent (collectively the “Nominee Shareholders”) held 10%, 45%, and 45% interests, respectively, in Sogou Information. Shi Ji Si Su Shi Ji Si Su was acquired in April 2015 for cash consideration of US$30. As of December 31, 2020, the registered capital of Shi Ji Si Su was US$10.5 million and Sogou Information held 100% of the equity interest in this entity. Chengdu Easypay Chengdu Easypay was incorporated in January 2015. As of December 31, 2020, the registered capital of Chengdu Easypay was US$16.3 million and Sogou Information held 100% of the equity interest in this entity. Summary of VIE Agreements Currently in Effect Agreements between Sogou Technology and Nominee Shareholders of Sogou Information Loan and share pledge agreements Equity interest purchase rights agreement Business operation agreement Powers of attorney Business Arrangements between Sogou Technology and Sogou Information Technology consulting and service agreement b. Consolidated Trust As disclosed in Note 2(f) Accounts Receivable and Financing Receivables, Net, the Sogou Group has jointly established the Consolidated Trust with a third-party investor, and the trust is administered by a trust company. As the Consolidated Trust only invests in loans facilitated by the Sogou Group, the Sogou Group has power to direct the activities of the Consolidated Trust. The Sogou Group also has the obligation to absorb losses or the right to receive benefits from the trust that could potentially be significant to the Consolidated Trust. As a result, the Sogou Group is considered the primary beneficiary of the Consolidated Trust and the Consolidated Trust is considered a consolidated VIE under ASC 810. As of December 31, 2020, the registered capital of the Consolidated Trust was US$2.9 million, and Chengdu Easypay consolidated 100% of the equity interest in the trust. c. Financial Information The following table sets forth the assets, liabilities, results of operations, and cash flows of the VIEs, taken as a whole, that were included in the Sogou Group’s consolidated balance sheets, statements of comprehensive income/(loss), and statements of cash flows: As of December 31, 2019 2020 ASSETS Cash and cash equivalents $ 12,209 $ 6,573 Restricted cash 5,342 20,981 Short-term investments 7,192 — Accounts receivable and financing receivables, net 72,214 28,397 Prepaid and other current assets 3,942 10,946 Intra-Sogou Group receivable due from the Company and the Company’s subsidiaries 19,765 — Due from related parties of the Sogou Group 683 — Total current assets 121,347 66,897 Long-term investments 26,169 37,328 Fixed assets, net 761 1,652 Intangible assets, net — 5 Goodwill 3,412 4,259 Other assets 1,902 2,870 Total assets $ 153,591 $ 113,011 LIABILITIES Accounts payable $ 66,186 $ 72,611 Accrued and other short-term liabilities 55,694 39,502 Receipts in advance 8,981 7,944 Accrued salary and benefits 1,250 1,047 Taxes payable 6,084 2,159 Intra-Sogou Group receivable due to the Company and the Company’s subsidiaries — 62,780 Due to related parties of the Sogou Group 108 646 Total current liabilities 138,303 186,689 Long-term liabilities 1,130 1,023 Total liabilities $ 139,433 $ 187,712 For the Year Ended December 31, 2018 2019 2020 Net revenue $ 423,270 $ 501,495 $ 375,093 Net loss $ (19,534) $ (1,491) $ (82,329) For the Year Ended December 31, Cash flows of the VIEs 2018 2019 2020 Net cash provided by/(used in) operating activities $ 51,657 $ (5,046) $ (13,244) Net cash (used in)/ provided by investing activities $ (48,161) $ (18,040) $ 7,797 Net cash provided by financing activities $ — $ 8,601 $ 152 There is no VIE where the Sogou Group has a variable interest but is not the primary beneficiary. d. Risks in Relation to the VIE Structure It is possible that the Sogou Group’s conduct of certain of its operations and businesses through its VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If such a finding were made by PRC authorities, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Sogou Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Sogou Group to restructure its ownership structure or operations, or requiring the Sogou Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Sogou Group’s business operations, and have a severe adverse impact on the Sogou Group’s cash flows, financial position, and operating performance. The Sogou Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote. In addition, it is possible that the contracts among Sogou Technology, Sogou Information, and the nominee shareholders of Sogou Information would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sogou Group was unable to enforce these contractual arrangements, the Sogou Group would not be able to exert effective control over its VIEs. Consequently, the VIEs’ results of operations, assets and liabilities would not be included in the Sogou Group’s consolidated financial statements. If such were the case, the Sogou Group’s cash flows, financial position, and operating performance would be materially adversely affected. The Sogou Group’s contractual arrangements Sogou Technology, Sogou Information, and the nominee shareholders of Sogou Information are approved and in place. Management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sogou Group’s operations and contractual relationships would find the contracts to be unenforceable. The Sogou Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include goodwill and intangible assets acquired through business acquisitions. Goodwill primarily represents the expected synergies from combining an acquired business with the Sogou Group. Intangible assets acquired through business acquisitions mainly consist of copyrights, domain names and trademarks, and developed technologies. Unrecognized revenue-producing assets held by the VIEs include certain licenses for the provision of content over the Internet and other licenses, patents, trademarks, copyrights, domain names, and trade secrets. The VIEs also have an assembled workforce, focused primarily on research and development, whose costs are expensed as incurred. The Sogou Group’s operations and businesses may be adversely impacted if the Sogou Group loses the ability to use and enjoy assets held by its VIEs. |
PROFIT APPROPRIATION
PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2020 | |
PROFIT APPROPRIATION | |
PROFIT APPROPRIATION | 22. The Company’s China-based subsidiaries and VIEs are required to make appropriations to certain non-distributable reserve funds. Under the China Foreign Investment Enterprises laws, those of the Company’s China-based subsidiaries that are considered under PRC law to be WFOEs are required to make appropriations from their after-tax profit as determined under generally accepted accounting principles in the PRC (the “after-tax-profit under PRC GAAP”) to non-distributable reserve funds, including (i) a general reserve fund, (ii) an enterprise expansion fund, and (iii) a staff bonus and welfare fund. Each year, at least 10% of the after-tax-profit under PRC GAAP is required to be set aside as a general reserve fund until such appropriations for the fund equal 50% of the registered capital of the applicable entity. The appropriation for the other two reserve funds is at the Company’s discretion as determined by the Board of Directors of each entity. Pursuant to the China Company Laws, those of the Company’s China-based subsidiaries that are considered under PRC law to be domestically funded enterprises, as well as the Company’s VIEs, are required to make appropriations from their after-tax-profit under PRC GAAP to non-distributable reserve funds, including a statutory surplus fund and a discretionary surplus fund. Each year, at least 10% of the after-tax-profit under PRC GAAP is required to be set aside as statutory surplus fund until such appropriations for the fund equal 50% of the registered capital of the applicable entity. The appropriation for the discretionary surplus fund is at the Company’s discretion as determined by the Board of Directors of each entity. Upon certain regulatory approvals and subject to certain limitations, the general reserve fund and the statutory surplus fund can be used to offset prior year losses, if any, and can be converted into paid-in capital of the applicable entity. For the years ended December 31, 2018, 2019 and 2020, the total amount of profits contributed to these funds by the Sogou Group was US$2,662, US$108 and US$42, respectively. As of December 31, 2019 and 2020, the total balance of profits contributed to these funds by the Sogou Group was US$23,913 and US$23,955, respectively. As a result of these and other restrictions under PRC laws and regulations, the Company’s China-based subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets in the form of non-distributable reserve funds to the Company in the form of dividends, loans, or advances. Even though the Company currently does not require any such dividends, loans, or advances from its China-based subsidiaries and VIEs for working capital and other funding purposes, the Company may in the future require additional cash resources from its China-based subsidiaries and VIEs due to changes in business conditions, to fund future acquisitions and development, or to declare and pay dividends to or make distributions to its shareholders. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 23. Relevant PRC law and regulations permit payment of dividends by PRC-based operating entities only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, a PRC-based operating entity is required to annually appropriate 10% of net after-tax income to the statutory surplus reserve fund prior to payment of any dividends, unless the amount of the reserve fund has reached 50% of the entity’s registered capital. As a result of these and other restrictions under PRC law and regulations, PRC-based operating entities are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends, loans or advances. Even though the Company currently does not require any such dividends, loans or advances from PRC-based operating entities for working capital and other funding purposes, the Company may in the future require additional cash resources from PRC-based operating entities due to changes in business conditions, to fund future acquisitions and development, or to declare and pay dividends to its shareholders. The balance of restricted net assets was $63,188, or 6.5% of the Company’s total consolidated net assets, as of December 31, 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 24. The Company performed an evaluation of subsequent events through March 18, 2021, which is the date the financial statements were issued, and did not identify any material events or transactions that would require adjustment to or disclosure in the financial statements. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation, Principle of Consolidation and Use of Estimates | a. Basis of Presentation, Principle of Consolidation and Use of Estimates Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and on a going concern basis. Principle of Consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which Sogou is the ultimate primary beneficiary. All significant intra-company balances and transactions within the Sogou Group have been eliminated upon consolidation. See Note 21—VIEs for discussion of the consolidation of the VIEs. Use of Estimates The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates. Identified below are the accounting policies that reflect the Sogou Group’s most significant estimates and judgments, and those that the Sogou Group believes are the most critical for fully understanding and evaluating its consolidated financial statements. |
Functional Currency and Foreign Currency Translation | b. Functional Currency and Foreign Currency Translation Functional Currency An entity’s functional currency is the currency of the primary economic environment in which it operates; normally that is the currency of the environment in which it primarily generates and expends cash. It is essential that management use its judgment to determine the functional currency by assessing various indicators, such as cash flows, product and service prices and markets, expenses, financing and intra-company transactions and arrangements. The functional currency of the Company and the Company’s subsidiaries in the BVI and Hong Kong is the United States dollar (the “U.S. dollar”), while the functional currency of the Company’s subsidiaries and VIEs in the PRC is the Renminbi (the “RMB”). Foreign Currency Translation The Sogou Group uses the U.S. dollar as its reporting currency. In the consolidated financial statements, the financial information of the Company’s subsidiaries and VIEs in the PRC, which use the RMB as their functional currency, has been translated into U.S. dollars. Assets and liabilities are translated from the functional currency at the exchange rates on the balance sheet date; equity amounts are translated at historical exchange rates; and revenues, expenses, gains, and losses are translated using the average rates in effect during the reporting period. Translation adjustments are reported as foreign currency translation adjustments and are shown as a separate component of other comprehensive income or loss in the consolidated statements of changes in shareholders’ equity. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from re-measurement at period end are recognized in the consolidated statements of comprehensive income/(loss). |
Cash and Cash Equivalents | c. Cash and Cash Equivalents Cash and cash equivalents consist of cash, demand deposits, time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. |
Short-term Investments | d. Short-term Investments Short-term investments consist of time deposits with original maturities of more than three months and investments in financial instruments with a variable interest rate indexed to performance of underlying assets. In accordance with ASC 825, the Sogou Group elected the fair value method at the date of initial recognition and carried these investments at fair value. For both time deposits with original maturities of more than three months and financial instruments with a variable interest rate indexed to performance of underlying assets, fair values are determined based on the pervasive interest rates in the market. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as other income, net. To estimate fair value, the Sogou Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Sogou Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements (see Note 2(x)—Fair Value of Financial Instruments). |
Restricted Cash | e. Restricted Cash Restricted cash mainly consists of cash deposited and held in escrow accounts at certain banks as collateral and cash received through a consolidated trust that has not yet been distributed from the consolidated trust (see Note 2(f)—Accounts Receivable and Financing Receivables, Net). All restricted cash of the Sogou Group as of December 31, 2019 and 2020 are presented on the face of the consolidated balance sheets as “Restricted cash.” |
Accounts Receivable and Financing Receivables, Net | f. Accounts Receivable and Financing Receivables, Net Accounts Receivable Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Sogou Group has satisfied its performance obligations and has the unconditional right to payment. The carrying value of accounts receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. Financing Receivables Financing receivables consist primarily of small consumer loans to individual borrowers. The Sogou Group funded such loans either through its own capital or through a trust that was jointly established by the Sogou Group and a third-party investor, and is administered by a third-party trust company. As the trust only invested in loans facilitated by the Sogou Group, the Sogou Group has power to direct the activities of the trust. The Sogou Group also has the obligation to absorb losses and the right to receive benefits from the trust that could potentially be significant to the trust. As a result, the Sogou Group is considered the primary beneficiary of the trust and the trust is considered a consolidated VIE (the “Consolidated Trust”) under ASC 810. Financing receivables are recorded at the principal amount and interest accrued, net of allowance for credit losses that reflects the Sogou Group’s best estimate of the amounts that will not be collected. Interest on loans is accrued based on the contractual interest rates of the loans when earned. The loan periods granted by the Sogou Group to the borrowers related to the small consumer loans are generally within one year. Allowance for Credit Losses Effective on January 1, 2020, the Sogou Group adopted Accounting Standards Update (ASU) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) under a modified retrospective transition. This guidance replaces the existing “incurred loss” methodology, and introduces an expected loss approach with macroeconomic forecasts referred to as a current expected credit losses (“CECL”) methodology. Under the incurred loss methodology, credit losses are only recognized when the losses are probable of having been incurred. The CECL methodology requires that the full amount of expected credit losses for the lifetime of the financial instrument be recorded at the time it is originated or acquired, considering relevant historical experience, current conditions and reasonable and supportable macroeconomic forecasts that affect the collectability of financial assets, and adjusted for changes in expected lifetime credit losses subsequently, which may require earlier recognition of credit losses. The Sogou Group estimates the credit loss of accounts receivable mainly based on past collection experience as well as consideration of current and future economic conditions and changes in the Sogou Group's collection trends. The Sogou Group estimates the expected credit loss for accounts receivable with similar risk characteristics on a pool basis. For each pool, the Sogou Group first estimates its recovery period based on relevant historical accounts receivable collection information. Then the Sogou Group estimates the credit allowances based on the recovery period, the historical distribution of each aging bucket, and the impact of macroeconomic factors. The Sogou Group estimates its credit loss of financing receivables collectively, using a pooled basis within applicable credit risk classification levels of the underlying customers, mainly based on delinquency levels. The significant assumptions used in the process of estimating the allowance for credit losses include portfolio composition, loan delinquencies, loss severity and recoveries, and application of macroeconomic forecasts. The lifetime CECL allowance is measured as the product of the ending balance and two key parameters, the lifetime Probability of Default (“PD”) and Loss Given Default (“LGD”). PD represents the expected probability of payment and time to default of small consumer loans made by Sogou. LGD represents the percentage of the expected balance due at default that is not recoverable. The calibration of PD and LGD starts with the Sogou Group’s historical information, with PD considering vintage, recent performance, and macroeconomic factors and LGD being assessed based on portfolio delinquencies, loss severity, and future recoveries default. The estimated credit losses are further adjusted to incorporate the impact of macroeconomic conditions. To incorporate the impact based on Sogou’s macroeconomic forecasts, quantitative adjustments are applied to key parameters such as PD and LGD on a collective basis. Macroeconomic factors used in models include variables such as consumer price index and total retail sales of consumer goods. Accounts receivable and financing receivables are written off when there is no reasonable expectation of recovery. Allowance for credit losses is presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. |
Short-term Receivables and Payables | g. Short-term Receivables and Payables Prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Accounts payable, receipts in advance and accrued liabilities are financial liabilities with carrying values that approximate fair value due to their short-term nature. |
Inventory | h. Inventory Inventory, which mainly consists of smart hardware products, is recorded at the lower of cost or net realizable value. Cost of inventory is determined using the first-in-first-out cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs and disposal and transportation expenses. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value for obsolete and slow-moving goods. |
Long-term Investments | i. Long-term Investments Investments in entities are recorded as equity investments under long-term investments. For entities over which the Sogou Group can exercise significant influence but in which it does not own a majority equity interest or control, the equity method is applied. For entities over which the Sogou Group does not have significant influence, with the adoption of ASC 321 effective as of January 1, 2018, these investments should generally be measured at fair value with gains or losses resulting from changes in fair value recognized in earnings. Based on ASC 321, an entity may elect to record equity investments without readily determinable fair values and not accounted for by the equity method at cost, less impairment, adjusted for subsequent observable price changes. Entities that elect this measurement alternative will report in current earnings changes in the carrying value due to re-measurement based on observable price changes of the equity investments. As of December 31, 2020, all of the Sogou Group’s equity investments were accounted as equity investments without readily determinable fair values. |
Fixed Assets | j. Fixed Assets Fixed assets comprise computer equipment (including servers), leasehold improvements, office furniture, and vehicles. Fixed assets are recorded at cost less accumulated depreciation with no residual value. Depreciation is calculated on a straight-line basis over the estimated useful lives listed below: Fixed Assets Estimated Useful Lives (Years) Computer equipment (including servers) 4 - 5 Leasehold improvements The lesser of the term of the lease or the estimated useful lives of the assets Office furniture 5 Vehicles 4 Repairs and maintenance costs are expensed as incurred, whereas the cost of renewals and betterments that extend the useful lives of fixed assets are capitalized as additions to the related assets. Gains or losses on the disposal of fixed assets are the difference between the net sale proceeds and the carrying amounts of the relevant assets and are recognized in the consolidated statements of comprehensive income/(loss). |
Goodwill | k. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Sogou Group’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Under ASC 350-20-35, the Sogou Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The Sogou Group chooses to directly apply the quantitative impairment test, which consists of a one-step quantitative impairment test, comparing the carrying amount of the reporting unit to the fair value of the reporting unit. If the carrying value, including goodwill, of the reporting unit exceeds the fair value of the reporting unit, goodwill impairment is measured and recognized by the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The fair value of reporting units is determined based on the trading price of the Company’s ADSs in the public market. |
Intangible Assets | l. Intangible Assets Intangible assets primarily comprise copyright, computer software, domain names and trademarks and developed technologies. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Intangible Assets Lives (Years) Copyright 5 Computer software 3 Domain names and trademarks 5 - 10 Developed technologies 3 - 10 |
Impairment of Long-lived Assets | m. Impairment of Long-lived Assets The carrying values of long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Sogou Group compares the carrying amount of the long-lived asset group with the sum of undiscounted cash flows expected to result from the use and eventual disposal of the asset group. If the carrying amount exceeds the sum of undiscounted cash flows, the Sogou Group will measure any impairment of long-lived assets using the projected discounted cash flow method at the asset group level. The estimation of future cash flows requires significant management judgment based on the Sogou Group’s historical results and anticipated results and is subject to many factors. The discount rate that is commensurate with the risk inherent in the Sogou Group’s business model is determined by the Sogou Group’s management. An impairment charge would be recorded if the Sogou Group were to determine that the carrying value of long-lived assets may not be recoverable. The impairment to be recognized would be measured by the amount by which the carrying values of the assets exceeded the fair value of the assets. |
Treasury Stock | n. Treasury Stock Treasury stock consists of shares repurchased by the Company or that the Company is obligated to repurchase as of the reporting date. Shares included in treasury stock are no longer outstanding. Treasury stock is accounted for under the cost method. Treasury stock also includes ordinary shares that were issued upon the early exercise of options and transferred to trusts for the benefit of the holders, but remained subject to vesting in accordance with the requirements of the applicable option agreements (See “Option Modification” in Note 14—Share-based Compensation). |
Revenue Recognition | o. Revenue Recognition On January 1, 2018, the Sogou Group adopted ASC 606, using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. The adoption did not have a material impact on retained earnings as of January 1, 2018 and the financial statements as of and for the year ended December 31, 2018. The adoption of ASC 606 mainly resulted in a change to the Sogou Group's accounting policy for advertising-for-advertising barter transactions. Under ASC 605, revenue and expense were recognized at fair value from an advertising barter transaction only if the fair value of the advertising surrendered in the transaction was determinable based on the entity's own historical practice of receiving cash, marketable securities, or other consideration that is readily convertible to a known amount of cash for similar advertising from buyers unrelated to the counterparty in the barter transaction. If the fair value of the advertising surrendered in the barter transaction was not determinable, the barter transaction was to be recorded based on the carrying amount of the advertising surrendered, which would likely be zero. ASC 606 has suspended the guidance of ASC 605 and provides that when the contract consideration from a customer is in forms other than cash, the revenue will be measured at the fair value of the noncash consideration, or indirectly measured by reference to the standalone selling price of the goods or services promised to the customer if the fair value of the non-cash consideration cannot be reasonably estimated. For the years ended December 31, 2018, 2019 and 2020, because of the adoption of ASC 606, the Sogou Group estimated the fair value of the advertising services received in barter transactions and recognized US$21,817, US$15,730 and US$14,327, respectively, in revenues, with corresponding increases in cost of revenues and sales and marketing expenses. The adoption of ASC 606 did not have a material impact on the Sogou Group's consolidated balance sheet, consolidated statement of cash flows, or consolidated statement of changes in equity for the years ended December 31, 2018, 2019 and 2020. Under Topic 606, the Sogou Group recognizes revenue when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Sogou Group expects to be entitled to in exchange for those goods or services. The Sogou Group determines revenue recognition through the following steps: Step 1: identification of the contract, or contracts, with a customer; Step 2: identification of the performance obligations in the contract; Step 3: determination of the transaction price; Step 4: allocation of the transaction price to the performance obligations in the contract; and Step 5: recognition of revenue when, or as, the Sogou Group satisfies a performance obligation. The Sogou Group is principally engaged in offering search and search-related advertising services including pay-for-click services and other online advertising services. The Sogou Group also offers IVAS, primarily with respect to the operation of Web games and mobile games developed by third parties, and offers other products and services, including smart hardware products, and online lending and microcredit services. The following table presents revenues disaggregated by revenue source, net of value-added tax (“VAT”). For the Year Ended December 31, 2018 2019 2020 Search and search-related advertising revenues $ 1,023,132 $ 1,073,173 $ 837,432 Other revenues 101,026 99,079 87,232 Total $ 1,124,158 $ 1,172,252 $ 924,664 Search and Search-related Advertising Revenues The Sogou Group procures a majority of its search and search-related advertisers through advertising agencies. Discounts, rebates, and other cash payments provided to the advertising agencies and advertisers not in exchange for distinct goods or services are accounted for as a reduction of revenues. Pay-for-click Services Pay-for-click services enable advertisers’ promotional links to be displayed on the Sogou Group’s search result pages and other Internet properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. For pay-for-click services, the Sogou Group introduces Internet users to its advertisers through the auction-based systems and charge advertisers on a per-click basis when the users click on the displayed links. The performance obligation of pay-for-click services is satisfied at the point in time when users click on the displayed links, and revenue for pay-for-click services is recognized on a per-click basis. Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers’ promotional links on the Sogou Group’s Internet properties. For time-based advertising services, the performance obligation is satisfied over time when the advertising links are displayed over the contract periods, and therefore revenue is normally recognized on a straight-line basis over the contracted display period. For performance-based advertising services, for example, the advertisers are charged based on the times that users download from the displayed links, the performance obligation is satisfied at the point in time when the promised performance is completed, and the revenue is recognized upon the completion of the promised performance. The Sogou Group’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. The Sogou Group is the principal in such arrangement because its promise to advertisers is to provide the advertising services itself rather than to arrange for the advertising services to be provided by third parties on their Internet properties. Payments made to operators of third-party Internet properties are included in the traffic acquisition costs. Other Revenues Other revenues consist of IVAS revenues, which are mainly from the operation of Web games and mobile games developed by third parties, as well as revenues from other products and services, including smart hardware products and online lending and microcredit services, offered by the Sogou Group. Other revenues are generally recognized when the Sogou Group’s performance obligations under the applicable agreements are satisfied, except for interest revenues generated from the Sogou Group’s online lending and microcredit services, which are recognized using the effective interest method. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Sogou Group has satisfied its performance obligations and has the unconditional right to payment. Receipts in advance relates to unsatisfied performance obligations at the end of the year and consists of cash payments received in advance from customers. The unused cash balances remaining in customers’ accounts are recorded as a liability of the Sogou Group. Due to the generally short-term duration of the Sogou Group’s contracts, the majority of the performance obligations are satisfied in one year. The amounts of revenues recognized that were included in the receipts in advance balances at the beginning of the year were US$62,191 and US$64,968, respectively, for the years ended December 31, 2019 and 2020. Revenues recognized in the current year from performance obligations related to prior years were not material. Practical Expedients The Sogou Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed, as substantially all of the Sogou Group’s contracts have a duration of one year or less ; (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Sogou Group has determined that its contracts generally do not include a significant financing component ; and (iii) The Sogou Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Cost of Revenues | p. Cost of Revenues Cost of revenues consists primarily of traffic acquisition costs, bandwidth costs, and server and Internet equipment depreciation associated with the operation of the Sogou Group’s Internet properties; salary and benefits expenses and share-based compensation expense for our staff employed in network operations; and costs related to the other business. Traffic acquisition costs represent the most significant portion of cost of revenues. The Sogou Group’s traffic acquisition costs consist primarily of payments to third parties that direct search queries of their users to Internet properties of the Sogou Group or distribute the Sogou Group’s advertisers’ promotional links through such third parties’ Internet properties. The traffic acquisitions costs for such arrangements consist primarily of fees that the Sogou Group pays to the third parties based on an agreed-upon unit price and revenue-sharing payments that the Sogou Group makes to such third parties based on an agreed-upon percentage of revenues generated from users’ clicks. |
Research and Development Expenses | q. Research and Development Expenses Research and development expenses primarily consist of salary and benefits expenses incurred in the research and development of new products and new functionality added to existing products. Costs incurred during the application development stage for software programs to be used solely to meet internal needs were not material in the years presented; therefore, no research and development expenses were capitalized as intangible assets. |
Sales and Marketing Expenses | r. Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, and salary and benefits expenses. Advertising and promotional expenses generally represent the expenses incurred for promoting the Sogou Group’s products, services and brand. The Sogou Group recognizes advertising and promotional expenses as incurred. Total advertising and promotional expenses were US$102,098, US$87,035 and US$69,585, respectively, for the years ended December 31, 2018, 2019 and 2020. |
Leases | s. Leases The Sogou Group adopted ASU No. 2016-02, Leases (Topic 842), at the beginning of the first quarter of 2019 using the modified retrospective method, and did not restate prior comparable periods. Results and disclosure requirements for reporting periods beginning on and after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with the Group’s historical accounting under Topic 840. Under the old Topic 840, leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases, including rent concessions, are charged to the consolidated statements of comprehensive income/(loss) on a straight-line basis over the lease term. The Sogou Group elected the package of practical expedients permitted under the transition guidance, which allowed the Sogou Group to carry forward the historical classification of leases, the assessment of whether an existing or expired contract contains a lease, and the treatment of initial direct costs. The Sogou Group also elected to keep leases with an initial term of twelve months or less off the balance sheet. Under the new lease standard, the Sogou Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term. The Sogou Group considers only payments that are fixed and determinable at the time of the commencement of the lease. The adoption of the new leasing guidance resulted in recognition of right-of-use assets of $25.4 million and leasing liability |
Share-based Compensation Expense | t. Share-based Compensation Expense Share-based compensation expense arises from share-based awards, including share options for the purchase of Sogou ordinary shares, granted by the Sogou Group to its management and other key employees. In determining the fair value of share options granted, a binomial option-pricing model (the “BP Model”) is applied. The determination of the fair value is affected by the fair value of the underlying ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. The fair values of the underlying ordinary shares are determined based on the trading price of the Company’s ADSs in the public market. Share-based compensation expense for share options granted to employees is measured based on their grant-date fair values. In circumstances where the service inception date precedes the grant date, share-based compensation expense is measured beginning on the service inception date and is re-measured on each subsequent reporting date before the grant date, based on the estimated fair value of the related options. For options with only a service requirement, share-based compensation expense is recognized on an accelerated basis over the requisite service period. For options with both a service requirement and performance targets, share-based compensation expense is recognized over the estimated period during which both the service period requirement and the performance targets will be met. For options vesting subject to an IPO, share-based compensation expense is recognized on an accelerated basis over the requisite service period after the completion of Sogou’s IPO on November 13, 2017. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and the related compensation expense is not recorded for the number of awards so estimated. Before the Sogou Group’s adoption of ASU 2018-07 “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” effective for fiscal years beginning after December 15, 2018, share-based compensation expense for share options granted to non-employees was measured at fair value at the earlier of the performance commitment date or the date service was completed and recognized over the period during which the service was provided. The Sogou Group applies the guidance in ASC 505-50 to measure share options granted to non-employees based on the then-current fair value at each reporting date until the service has been provided and the performance targets have been met. After the Sogou Group’s adoption of ASU 2018-07, share-based compensation expense for share options granted to non-employees is recognized in accordance with the requirements of ASC 718 for employee share-based compensation awards. |
Income Taxes and Uncertain Tax Positions | u. Income Taxes and Uncertain Tax Positions Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Sogou Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using tax rates and tax laws in effect as of the measurement date. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is considered more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Sogou Group considers factors including (i) future reversals of existing taxable temporary differences, (ii) future profitability, and (iii) tax planning strategies. Uncertain Tax Positions In order to assess uncertain tax positions, the Sogou Group applies a more likely than not threshold and a two-step approach for financial statement recognition and measurement of its tax position. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related litigation processes and appeals, if any. The second step is to measure the tax benefit as the largest amount that is more likely than not to be realized upon settlement. Significant judgment is required in evaluating the Sogou Group’s uncertain tax positions and determining its provision for income taxes. The Sogou Group did not have any significant interest or penalties associated with tax positions for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the Sogou Group did not have any significant unrecognized uncertain tax positions, and did not recognize any liability for unrecognized tax benefits or any significant interest or penalties associated with such uncertain tax positions. |
Comprehensive Income/(Loss) | v. Comprehensive Income/(Loss) Comprehensive income/(loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive (loss)/income, as presented in the Sogou Group’s consolidated balance sheets, consists of the Sogou Group’s cumulative foreign currency translation adjustment. |
Net Income per Ordinary Share | w. Net Income per Ordinary Share Basic net income per ordinary share is computed using the weighted average number of ordinary shares outstanding during the year. Diluted net income per ordinary share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the year. Potential ordinary shares consist of shares issuable upon the exercise of share options. Potential ordinary shares issuable upon the exercise of share options are accounted for in the computation of diluted net income per ordinary share using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. Potential ordinary shares are not included in the denominator of the diluted net income per share calculation when inclusion of such shares would be anti-dilutive. |
Fair Value of Financial Instruments | x. Fair Value of Financial Instruments U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Sogou Group considers the principal or most advantageous market in which a transaction would be expected to occur and considers assumptions that market participants would use when pricing the asset or liability. U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1—observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—other inputs that are directly or indirectly observable in the marketplace. Level 3—unobservable inputs that are supported by little or no market activity. The Sogou Group’s financial instruments primarily include cash equivalents, restricted cash, short-term investments, accounts receivable, financing receivables, accounts payables, accrued and other short-term liabilities, and amounts due from/to related parties. The carrying value of these balances approximates their fair value due to the current and short-term nature of the balances. |
Segment Reporting | y. Segment Reporting Based on the criteria established by ASC 280 “Segment Reporting”, the Sogou Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing the performance of the Sogou Group. The Sogou Group does not distinguish between markets or segments for the purpose of internal reporting. Hence, the Sogou Group has only one operating segment. As the Sogou Group’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. |
Recently Issued Accounting Pronouncements | z. Recently Issued Accounting Pronouncements In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity securities (Topic 321), Investments—Equity method and joint ventures (Topic 323), and Derivatives and hedging (Topic 815)—Clarifying the interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the interaction of the accounting for equity investments under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Sogou Group does not expect to adopt ASU 2020-01 early and is currently evaluating the impact of adopting this standard on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU No. 2019-12 removes certain exceptions to the general principles in Topic 740 and provides for consistent application of and simplifies generally accepted accounting principles for other areas of Topic 740 by clarifying and amending existing guidance. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The method of adoption varies depending on the component of the new rule that is being adopted. Early application is permitted. The Sogou Group does not expect to adopt ASU 2019-12 early and is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
NATURE OF OPERATIONS AND ORGA_2
NATURE OF OPERATIONS AND ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
NATURE OF OPERATIONS AND ORGANIZATION | |
Information of all subsidiaries and VIEs | Place of Date of Incorporation/ Effective Name of Entity Incorporation/Acquisition Acquisition Interest held Subsidiaries: Sogou (BVI) Limited (“Sogou BVI”) Incorporated on December 23, 2005 British Virgin Islands (“BVI”) 100 % Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”) Incorporated on February 8, 2006 The People’s Republic of China (“PRC”) 100 % Sogou Hong Kong Limited (“Sogou HK”) Incorporated on December 12, 2007 Hong Kong Special Administrative Region (“Hong Kong”) 100 % Vast Creation Advertising Media Services Limited (“Vast Creation”) Acquired on November 30, 2011 Hong Kong 100 % Beijing Sogou Network Technology Co., Ltd. (“Sogou Network”) Incorporated on March 29, 2012 PRC 100 % Sogou Technology Hong Kong Limited (“Sogou Technology HK”) Incorporated on August 25, 2015 Hong Kong 100 % Sogou (Shantou) Internet Microcredit Co., Ltd. (“Sogou Microcredit”) Incorporated on November 22, 2017 PRC 100 % Sogou (Hangzhou) Intelligent Technology Co., Ltd. (“Sogou Hangzhou”) Incorporated on April 28, 2018 PRC 100 % Shantou Ying Zhong Bai Fu Financing Guarantee Co., Ltd. (“Sogou Financing Guarantee”) Incorporated on July 24, 2019 PRC 100 % VIEs: Beijing Sogou Information Service Co., Ltd. (“Sogou Information”) Incorporated on December 28, 2005 PRC 100 % Beijing Shi Ji Si Su Technology Co., Ltd. (“Shi Ji Si Su”) Acquired on April 2, 2015 PRC 100 % Chengdu Easypay Technology Co., Ltd. (“Chengdu Easypay”) Incorporated on January 19, 2015 PRC 100 % Consolidated Trust (Note 2(f)—Accounts Receivable and Financing Receivables, Net) Incorporated on December 2, 2019 PRC 100 % |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful lives of fixed assets | Fixed Assets Estimated Useful Lives (Years) Computer equipment (including servers) 4 - 5 Leasehold improvements The lesser of the term of the lease or the estimated useful lives of the assets Office furniture 5 Vehicles 4 |
Estimated useful lives of intangible assets | Estimated Useful Intangible Assets Lives (Years) Copyright 5 Computer software 3 Domain names and trademarks 5 - 10 Developed technologies 3 - 10 |
Revenues disaggregated by revenue source, net of value-added tax ("VAT") | For the Year Ended December 31, 2018 2019 2020 Search and search-related advertising revenues $ 1,023,132 $ 1,073,173 $ 837,432 Other revenues 101,026 99,079 87,232 Total $ 1,124,158 $ 1,172,252 $ 924,664 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS | |
Cash and Cash Equivalents | As of December 31, 2019 2020 Cash $ 34,836 $ 40,512 Cash equivalents 107,628 246,673 Total $ 142,464 $ 287,185 |
ACCOUNTS RECEIVABLE AND FINAN_2
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET | |
Summary of overall adjustments recognized for each individual line item by adopting ASU 2016-13 | December 31, ASU 2016-13 January 1, Consolidated Balance Sheet (extract) 2019 adjustment 2020 (Unaudited) Accounts receivable and financing receivables, net (1) $ 131,813 $ (3,270) $ 128,543 Current assets 1,304,722 (3,270) 1,301,452 Total assets 1,522,402 (3,270) 1,519,132 Shareholders’ equity 1,063,503 (3,270) 1,060,233 Retained earnings 215,064 (3,270) 211,794 Total liabilities and shareholders’ equity 1,522,402 (3,270) 1,519,132 (1) |
Account and financing receivables | As of December 31, 2019 2020 Accounts receivable $ 77,210 $ 35,975 Financing receivables 66,858 41,911 Less: Allowance for credit losses (12,255) (6,700) (1) Total $ 131,813 $ 71,186 (1) |
Summary of past-due status of the principle of financing receivables | December 31, 2019 Greater than 1 - 30 Days 31 - 60 Days 61 - 90 Days 90 Days Total Past Due Past Due Past Due Past Due Past Due Current Total Financing receivables by origination year 2018 $ — $ — $ — $ — $ — $ 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 $ — $ — $ — $ — $ — $ 1,081 $ 1,081 2019 1 1 2 — 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 |
Movement of the allowance for doubtful accounts and credit losses | For the year ended December 31, 2018 2019 2020 Beginning balance $ 384 $ 7,511 $ 12,255 ASU 2016-13 adjustment (1) — — 3,270 Provision for credit losses 9,119 15,620 3,049 Write-off (1,908) (11,741) (12,517) Foreign currency translation adjustment (84) 865 643 Ending balance $ 7,511 $ 12,255 $ 6,700 (1) T he Sogou Group adopted ASU 2016-13 using the modified retrospective transition approach. The adjustments arising from the new CECL model were recognized in the opening consolidated balance sheet on January 1, 2020. |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREPAID AND OTHER CURRENT ASSETS | |
Prepaid and other current assets | As of December 31, 2019 2020 Inventories (1) $ 4,132 $ 12,710 Advances to suppliers 4,424 6,155 Deductible input VAT 3,976 3,778 Collaboration deposits 1,175 2,361 Receivables from third party payment service providers 10,748 2,218 Prepaid content and licenses 375 423 Interest receivable from bank deposits with original maturities of three months or less 1,252 322 Employee advances 445 93 Others 361 887 Total $ 26,888 $ 28,947 (1) |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FIXED ASSETS, NET | |
Fixed Assets, Net | As of December 31, 2019 2020 Computer equipment (including servers) $ 281,081 $ 301,405 Leasehold improvements 13,011 8,532 Office furniture 2,482 2,561 Vehicles 356 301 Fixed assets, gross 296,930 312,799 Less: Accumulated depreciation (186,924) (235,948) Fixed assets, net $ 110,006 $ 76,851 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL | |
Goodwill | As of December 31, 2019 2020 Beginning balance $ 5,625 $ 5,534 Goodwill associated with an acquisition — 611 Foreign currency translation adjustment (91) 382 Ending balance $ 5,534 $ 6,527 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
Finite-lived intangible assets by major class | As of December 31, 2019 Accumulated Items Cost Amortization Net Value Copyright $ 3,161 $ (3,161) $ — Computer software 2,958 (1,563) 1,395 Domain names and trademarks 1,344 (1,314) 30 Developed technologies 573 (573) — Others 143 (54) 89 Total $ 8,179 $ (6,665) $ 1,514 As of December 31, 2020 Accumulated Items Cost Amortization Net Value Copyright $ 3,379 $ (3,379) $ — Computer software 2,636 (1,572) 1,064 Domain names and trademarks 1,508 (1,428) 80 Developed technologies 613 (613) — Others 154 (72) 82 Total $ 8,290 $ (7,064) $ 1,226 |
Expected amortization expense | Intangible Assets Amortization Expense 2021 $ 828 2022 341 2023 35 2024 10 2025 3 Thereafter 9 Total expected amortization expense $ 1,226 |
ACCRUED AND OTHER SHORT-TERM _2
ACCRUED AND OTHER SHORT-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED AND OTHER SHORT-TERM LIABILITIES | |
Accrued and other short-term liabilities | As of December 31, 2019 2020 Accrued advertising and promotion expenses $ 51,344 $ 35,536 Contract deposits from customers 31,399 24,254 Accrued professional fees 19,235 18,708 Payable to a third-party investor in the Consolidated Trust 8,601 9,466 Accrued bandwidth costs 7,532 5,112 Contingent litigation liabilities (See “Litigation” in Note 20—Commitments and Contingencies) 6,476 4,050 Lease liabilities 4,877 4,891 Payable to Web game and mobile game developers 2,209 2,932 Deferred ADS deposit income 3,697 2,462 Payable for government project 1,736 1,845 Accrued content and license fees 2,103 1,342 Early exercise of Sogou share options with trust arrangements (See “Option Modification” in Note 14—Share-based Compensation) 2,702 901 Accrual for fixed assets purchases 274 247 Others 8,090 6,696 Total $ 150,275 $ 118,442 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENT | |
Financial instruments, measured at fair value | Fair Value Measurements at Reporting Date Using Significant Quoted Prices Other Significant As of in Active Markets Observable Unobservable December 31, for Identical Assets Inputs Inputs Items 2019 (Level 1) (Level 2) (Level 3) Cash equivalents $ 107,628 $ — $ 107,628 $ — Short-term investments 995,350 — 995,350 — Total $ 1,102,978 $ — $ 1,102,978 $ — Fair Value Measurements at Reporting Date Using Significant Quoted Prices Other Significant As of in Active Markets Observable Unobservable December 31, for Identical Assets Inputs Inputs Items 2020 (Level 1) (Level 2) (Level 3) Cash equivalents $ 246,673 $ — $ 246,673 $ — Short-term investments 774,618 — 774,618 — Total $ 1,021,291 $ — $ 1,021,291 $ — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Categories of Share Options | Granted (For Purposes of Share-based Contractually Granted 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 |
Share option activity | Weighted Weighted Average Number Average Remaining Aggregate of Shares Exercise Contractual Intrinsic (In thousands) Price Life (Years) Value (1) Outstanding as of January 1, 2020 7,162 $ 0.377 4.45 Granted 1,099 0.001 Exercised (4,233) 0.426 Forfeited/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 (1) |
Share option assumptions | 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 |
Sogou 2017 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Categories of Share Options | Granted (For Purposes of Share-based Contractually Granted 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 |
Share option activity | Weighted Weighted Average Number Average Remaining Aggregate of Shares Exercise Contractual Intrinsic (In thousands) Price Life (Years) Value (1) Outstanding as of January 1, 2020 798 $ 0.001 8.90 Granted 425 0.001 Exercised (142) 0.001 Forfeited/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 (1) |
Share option assumptions | 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 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Categories of Share Options | Granted (For Purposes of Share-based Contractually Granted 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 |
Share option activity | Weighted Weighted Average Number Average Remaining Aggregate of Shares Exercise Contractual Intrinsic (In thousands) Price Life (Years) Value (1) Outstanding as of January 1, 2020 9 $ 0.001 5.38 Granted — Exercised — Forfeited/Expired — Outstanding as of December 31, 2020 9 $ 0.001 4.38 $ 73 Vested as of December 31, 2020 and expected to vest thereafter 9 $ 0.001 4.38 $ 73 Exercisable as of December 31, 2020 9 $ 0.001 4.38 $ 73 (1) |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
TAXATION | |
Composition of Income Tax Expense | For the Year Ended December 31, 2018 2019 2020 Income/(loss) from PRC entities $ 73,720 $ 84,760 $ (99,960) Income/(loss) from non-PRC entities 26,214 7,093 (6,526) Income/(loss) before income tax expenses 99,934 91,853 (106,486) Current income tax expense/(benefit) 462 5,480 (1,748) Deferred tax expense/(benefit) 691 (2,732) 4,094 Income tax expense $ 1,153 $ 2,748 $ 2,346 |
Reconciliation of the PRC CIT tax rate to the Group's effective tax rate | For the Year Ended December 31, 2018 2019 2020 PRC statutory tax rate 25.0 % 25.0 % 25.0 % Tax differential from statutory rate in other jurisdictions 0.4 % 2.6 % (2.6) % Effect of tax holidays (5.1) % (2.3) % (14.9) % Permanent book-tax differences (1) (18.5) % (25.3) % 25.7 % Tax-exempt income (2) (7.0) % (4.6) % 1.1 % Changes in deferred tax asset allowance 6.4 % 7.6 % (36.5) % Effective income tax rate 1.2 % 3.0 % (2.2) % (1) (2) |
Combined effects of the income tax expense exemptions and reductions available | For the year ended December 31, 2018 2019 2020 Tax holiday effect $ 5,097 $ 2,113 $ (15,851) Basic income/(loss) per share $ 0.01 $ 0.01 $ (0.04) |
Deferred tax assets and liabilities | As of December 31, 2019 2020 Deferred tax assets: Net operating loss carry forwards $ 12,788 $ 49,349 Temporary non-deductible advertising cost carried forward 965 1,008 Accrued expenses 22,810 19,970 Accrued payroll expense 3,229 3,752 Provision for inventory impairment and credit losses of receivables 7,517 7,382 Provision for long-term investments 2,050 3,346 Total deferred tax assets 49,359 84,807 Deferred tax liabilities: Depreciation of fixed assets (4,925) (4,339) Others (26) — Total deferred tax liabilities (4,951) (4,339) Less: valuation allowance (28,102) (67,219) Deferred tax assets, net $ 16,306 $ 13,249 |
Movement of valuation allowance for net deferred tax assets | For the Year Ended December 31, 2018 2019 2020 Beginning balance $ 16,186 $ 21,484 $ 28,102 Additions 6,852 8,305 37,882 Reversals (779) (1,339) (709) Foreign currency translation adjustment (775) (348) 1,944 Ending balance $ 21,484 $ 28,102 $ 67,219 |
NET INCOME PER ORDINARY SHARE (
NET INCOME PER ORDINARY SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
NET INCOME PER ORDINARY SHARE | |
Calculation of basic and diluted net income per ordinary share | For the Year Ended December 31, 2018 2019 2020 Numerator: Net income/(loss) attributable to Sogou Inc. $ 98,781 $ 89,105 $ (108,221) Numerator for net income/(loss) per ordinary share—basic and diluted $ 98,781 $ 89,105 $ (108,221) Denominator Weighted average number of ordinary shares outstanding—basic 388,731 389,797 385,365 Incremental shares from treasury stock method 7,167 5,436 — Weighted average number of ordinary shares outstanding—diluted 395,898 395,233 385,365 Net income/(loss) per ordinary share—basic $ 0.25 $ 0.23 $ (0.28) Net income/(loss) per ordinary share—diluted $ 0.25 $ 0.23 $ (0.28) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Significant related parties and relationship to Group | Related Party’s Name Relationship with the Sogou Group Sohu Under common control of Sohu.com Limited with the Sogou Group Tencent Holder of Class B Ordinary Shares |
Significant related party transactions | For the Year Ended December 31, 2018 2019 2020 Transactions with Sohu: Expenses of research and development undertaken by Sohu $ 670 $ — $ — Online marketing activities provided to Sohu 677 311 54 Online marketing activities provided by Sohu 393 191 113 Rental of Sohu.com Internet Plaza paid to Sohu 8,369 8,318 9,763 Others 464 61 59 Transactions with Tencent: Share-based compensation expense related to Soso search-related businesses employees undertaken by Tencent 88 — — Online marketing activities provided to Tencent 40,758 31,943 28,048 Online marketing activities provided by Tencent 108,542 86,902 85,668 Bandwidth services provided by Tencent 4,183 6,364 9,463 Rental paid to Tencent 383 500 594 Others 3,463 2,254 1,582 |
Due from and to Related Parties | As of December 31, 2019 2020 Due from/to related parties—current Due from Sohu $ 15 $ 9 Due from Tencent 2,822 2,462 Total $ 2,837 $ 2,471 Due to Sohu $ 101 $ 9,619 Due to Tencent 22,493 17,483 Total $ 22,594 $ 27,102 Due from/to related parties—non current Due from Sohu $ 2,074 $ 2,812 Due from Tencent 179 191 Total $ 2,253 $ 3,003 Due to Sohu $ — $ 9,217 Due to Tencent 715 201 Total $ 715 $ 9,418 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Components of operating lease expense | For the Year Ended December 31, 2019 2020 Operating lease cost $ 15,760 $ 16,724 Short-term lease cost 19 48 Total operating lease cost $ 15,779 $ 16,772 |
Cash paid for amounts included in the measurement of lease liabilities | For the Year Ended December 31, 2019 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 15,146 $ 17,221 |
Right-of-use assets obtained in exchange for lease liabilities | For the Year Ended December 31, 2019 2020 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 11,198 $ 29,693 |
Supplemental Balance Sheet Information Related to Operating Leases | As of December 31, 2019 2020 Assets: Operating lease right-of-use assets $ 13,333 $ 28,006 Liabilities: Current portion of lease liabilities 6,106 15,072 Non-current portion of lease liabilities 5,686 10,721 Total operating lease liabilities $ 11,792 $ 25,793 |
Maturities of lease liabilities under operating leases | Maturities of lease liabilities 2021 $ 15,629 2022 10,735 2023 64 2024 — 2025 — Thereafter — Total future lease payments 26,428 Less: imputed interest 635 Total present value of lease liabilities 25,793 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Operating commitments related to future payment arrangement | Bandwidth Fixed Assets As of December 31, Purchase Purchases Others Total 2021 $ 28,503 $ 5,007 $ 2,614 $ 36,124 2022 — — — — 2023 — — — — 2024 — — — — 2025 — — — — Thereafter — — — — Total $ 28,503 $ 5,007 $ 2,614 $ 36,124 |
VIEs (Tables)
VIEs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
VIEs | |
Financial information of consolidated VIEs | As of December 31, 2019 2020 ASSETS Cash and cash equivalents $ 12,209 $ 6,573 Restricted cash 5,342 20,981 Short-term investments 7,192 — Accounts receivable and financing receivables, net 72,214 28,397 Prepaid and other current assets 3,942 10,946 Intra-Sogou Group receivable due from the Company and the Company’s subsidiaries 19,765 — Due from related parties of the Sogou Group 683 — Total current assets 121,347 66,897 Long-term investments 26,169 37,328 Fixed assets, net 761 1,652 Intangible assets, net — 5 Goodwill 3,412 4,259 Other assets 1,902 2,870 Total assets $ 153,591 $ 113,011 LIABILITIES Accounts payable $ 66,186 $ 72,611 Accrued and other short-term liabilities 55,694 39,502 Receipts in advance 8,981 7,944 Accrued salary and benefits 1,250 1,047 Taxes payable 6,084 2,159 Intra-Sogou Group receivable due to the Company and the Company’s subsidiaries — 62,780 Due to related parties of the Sogou Group 108 646 Total current liabilities 138,303 186,689 Long-term liabilities 1,130 1,023 Total liabilities $ 139,433 $ 187,712 For the Year Ended December 31, 2018 2019 2020 Net revenue $ 423,270 $ 501,495 $ 375,093 Net loss $ (19,534) $ (1,491) $ (82,329) For the Year Ended December 31, Cash flows of the VIEs 2018 2019 2020 Net cash provided by/(used in) operating activities $ 51,657 $ (5,046) $ (13,244) Net cash (used in)/ provided by investing activities $ (48,161) $ (18,040) $ 7,797 Net cash provided by financing activities $ — $ 8,601 $ 152 |
NATURE OF OPERATIONS AND ORGA_3
NATURE OF OPERATIONS AND ORGANIZATION (Information of Subsidiaries and VIEs) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Sogou (BVI) Limited ("Sogou BVI") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Dec. 23, 2005 |
Place of Incorporation/Acquisition | British Virgin Islands (“BVI”) |
Effective Interest held | 100.00% |
Sogou Technology [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Feb. 8, 2006 |
Place of Incorporation/Acquisition | The People’s Republic of China (“PRC”) |
Effective Interest held | 100.00% |
Sogou Hong Kong Limited ("Sogou HK") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Dec. 12, 2007 |
Place of Incorporation/Acquisition | Hong Kong Special Administrative Region (“Hong Kong”) |
Effective Interest held | 100.00% |
Vast Creation Advertising Media Services Limited ("Vast Creation") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Nov. 30, 2011 |
Place of Incorporation/Acquisition | Hong Kong |
Effective Interest held | 100.00% |
Sogou Network [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Mar. 29, 2012 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Sogou Technology Hong Kong Limited ("Sogou Technology HK") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Aug. 25, 2015 |
Place of Incorporation/Acquisition | Hong Kong |
Effective Interest held | 100.00% |
Sogou (Shantou) Internet Microcredit Co., Ltd. ("Sogou Microcredit") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Nov. 22, 2017 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Sogou (Hangzhou) Intelligent Technology Co., Ltd. ("Sogou Hangzhou") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Apr. 28, 2018 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Shantou Ying Zhong Bai Fu Financing Guarantee Co., Ltd. ("Sogou Financing Guarantee") [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Jul. 24, 2019 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Sogou Information [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Dec. 28, 2005 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Shi Ji Si Su [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Apr. 2, 2015 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Chengdu Easypay [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Jan. 19, 2015 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
Consolidated Trust [Member] | |
Nature of Operations and Organization [Line Items] | |
Date of Incorporation/Acquisition | Dec. 2, 2019 |
Place of Incorporation/Acquisition | PRC |
Effective Interest held | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Fixed Assets) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (Years) | The lesser of the term of the lease or the estimated useful lives of the assets |
Office furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (Years) | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (Years) | 4 years |
Minimum [Member] | Computer equipment (including servers) [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (Years) | 4 years |
Maximum [Member] | Computer equipment (including servers) [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (Years) | 5 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Copyright [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 5 years |
Computer software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 3 years |
Minimum [Member] | Domain names and trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 5 years |
Minimum [Member] | Developed technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 3 years |
Maximum [Member] | Domain names and trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 10 years |
Maximum [Member] | Developed technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 10 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 924,664 | $ 1,172,252 | $ 1,124,158 |
Search and search-related advertising revenues [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 837,432 | 1,073,173 | 1,023,132 |
Other revenues [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 87,232 | $ 99,079 | $ 101,026 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed assets, residual value | $ 0 | |||
Intangible assets, residual value | 0 | |||
Recognized revenues of advertising services received in barter transactions | 14,327,000 | $ 15,730,000 | $ 21,817,000 | |
Amount of revenue recognized that was included in the receipts in advance balance at the beginning of the year | 64,968,000 | 62,191,000 | ||
Research and development expenses | 197,176,000 | 190,402,000 | 201,739,000 | |
Advertising and promotional expenses | 69,585,000 | 87,035,000 | $ 102,098,000 | |
Amount of right-of-use asset recognized | 28,006,000 | 13,333,000 | ||
Amount of lease liability recognized | $ 25,793,000 | $ 11,792,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Amount of lease liability recognized | Amount of lease liability recognized | Amount of lease liability recognized | |
Number of operating segments | segment | 1 | |||
Capitalized Cost [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Research and development expenses | $ 0 | |||
With adoption of ASC 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Practical expedient of performance obligations | true | |||
Practical expedient of financing component | true | |||
Practical expedient of amortization period | true | |||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amount of right-of-use asset recognized | $ 25,400,000 | |||
Amount of lease liability recognized | $ 23,100,000 |
CONCENTRATION OF RISK (Concentr
CONCENTRATION OF RISK (Concentration of Credit Risk, Cash, Cash Equivalent, Restricted Cash, and Short-term Investments) (Details) - Concentration of Credit Risk [Member] - Cash, Cash Equivalents, Restricted Cash, and Short-term Investments [Member] | Dec. 31, 2020 | Dec. 31, 2019 |
Concentration Risk [Line Items] | ||
Maximum percentage of cash, cash equivalents, restricted cash, and short-term investments in any single financial institution | 28.00% | 27.00% |
Mainland China [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of cash, cash equivalents, restricted cash, and short-term investments held in financial institutions | 49.00% | 53.00% |
Number of financial institutions | 19 | 17 |
Hong Kong [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of cash, cash equivalents, restricted cash, and short-term investments held in financial institutions | 28.00% | 27.00% |
Number of financial institutions | 4 | 4 |
Macao [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of cash, cash equivalents, restricted cash, and short-term investments held in financial institutions | 23.00% | 20.00% |
Number of financial institutions | 1 | 1 |
New York [Member] | ||
Concentration Risk [Line Items] | ||
Number of financial institutions | 1 |
CONCENTRATION OF RISK (Concen_2
CONCENTRATION OF RISK (Concentration of Credit Risk, Accounts Receivable) (Details) - Concentration of Credit Risk [Member] - Accounts Receivable [Member] | Dec. 31, 2020 | Dec. 31, 2019 |
Top three customers [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk from accounts receivable | 87.00% | 50.00% |
Single customer [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk from accounts receivable | 57.00% | 22.00% |
CONCENTRATION OF RISK (Concen_3
CONCENTRATION OF RISK (Concentration of Credit Risk, Financing Receivables) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration of Credit Risk [Member] | Financing Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Description of concentration risk for financing receivables | As of December 31, 2019 and 2020, no borrower accounted for 10% or more of the financing receivables balance. | As of December 31, 2019 and 2020, no borrower accounted for 10% or more of the financing receivables balance. |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CASH AND CASH EQUIVALENTS | ||
Cash | $ 40,512 | $ 34,836 |
Cash equivalents | 246,673 | 107,628 |
Total | $ 287,185 | $ 142,464 |
ACCOUNTS RECEIVABLE AND FINAN_3
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET (Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets | ||||||
Accounts receivable and financing receivables, net | $ 71,186 | $ 131,813 | ||||
Current assets | 1,187,425 | 1,304,722 | ||||
Total assets | 1,395,132 | 1,522,402 | ||||
Shareholders' equity | 978,132 | 1,063,503 | $ 1,006,505 | $ 908,241 | ||
Retained earnings | 103,573 | 215,064 | ||||
Total liabilities and shareholders' equity | $ 1,395,132 | $ 1,522,402 | ||||
Financing receivable | ||||||
Current assets | ||||||
Accounts receivable and financing receivables, net | $ 2,531 | |||||
ASU 2016-13 adjustment | ASU 2016-13 | ||||||
Current assets | ||||||
Accounts receivable and financing receivables, net | [1] | (3,270) | ||||
Current assets | (3,270) | |||||
Total assets | (3,270) | |||||
Shareholders' equity | (3,270) | |||||
Retained earnings | (3,270) | |||||
Total liabilities and shareholders' equity | (3,270) | |||||
Adjusted balance | ||||||
Current assets | ||||||
Accounts receivable and financing receivables, net | [1] | 128,543 | ||||
Current assets | 1,301,452 | |||||
Total assets | 1,519,132 | |||||
Shareholders' equity | 1,060,233 | |||||
Retained earnings | 211,794 | |||||
Total liabilities and shareholders' equity | $ 1,519,132 | |||||
[1] | Of the total adjustment of US$3,270, US$2,531 was related to financing receivables. |
ACCOUNTS RECEIVABLE AND FINAN_4
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | $ 35,975 | $ 77,210 | ||||
Financing receivables | 41,911 | 66,858 | ||||
Less: Allowance for credit losses | (6,700) | [1] | (12,255) | $ (7,511) | $ (384) | |
Total | 71,186 | $ 131,813 | ||||
Financing receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: Allowance for credit losses | $ (6,395) | |||||
Total | $ 2,531 | |||||
[1] | The allowance for credit losses related to financing receivables was US$6,395. |
ACCOUNTS RECEIVABLE AND FINAN_5
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET (Summarizes Past-Due Status of Principle of Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 8,666 | $ 15,126 |
Current | 33,245 | 51,732 |
Total | 41,911 | 66,858 |
1 - 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,038 | 10,606 |
31 - 60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 577 | 1,635 |
61 - 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 550 | 1,176 |
Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 501 | 1,709 |
2018 | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 1,081 | 1,744 |
Total | 1,081 | 1,744 |
2018 | 1 - 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
2018 | 31 - 60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
2018 | 61 - 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
2018 | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
2019 | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4 | 15,126 |
Current | 182 | 49,988 |
Total | 186 | 65,114 |
2019 | 1 - 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 10,606 |
2019 | 31 - 60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 1,635 |
2019 | 61 - 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2 | 1,176 |
2019 | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | $ 1,709 |
2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 8,662 | |
Current | 31,982 | |
Total | 40,644 | |
2020 | 1 - 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,037 | |
2020 | 31 - 60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 576 | |
2020 | 61 - 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 548 | |
2020 | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 501 |
ACCOUNTS RECEIVABLE AND FINAN_6
ACCOUNTS RECEIVABLE AND FINANCING RECEIVABLES, NET (Movement of Allowance for Doubtful Accounts and Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Beginning balance | $ 12,255 | $ 7,511 | $ 384 | |
Provision for credit losses | 3,049 | 15,620 | 9,119 | |
Write-off | (12,517) | (11,741) | (1,908) | |
Foreign currency translation adjustment | 643 | 865 | (84) | |
Ending balance | 6,700 | [1] | 12,255 | 7,511 |
ASU 2016-13 adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Beginning balance | 0 | 0 | ||
Ending balance | $ 3,270 | [2] | $ 0 | $ 0 |
[1] | The allowance for credit losses related to financing receivables was US$6,395. | |||
[2] | T he Sogou Group adopted ASU 2016-13 using the modified retrospective transition approach. The adjustments arising from the new CECL model were recognized in the opening consolidated balance sheet on January 1, 2020. |
PREPAID AND OTHER CURRENT ASS_3
PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
PREPAID AND OTHER CURRENT ASSETS | |||
Inventories | [1] | $ 12,710 | $ 4,132 |
Advances to suppliers | 6,155 | 4,424 | |
Deductible input VAT | 3,778 | 3,976 | |
Collaboration deposits | 2,361 | 1,175 | |
Receivables from third party payment service providers | 2,218 | 10,748 | |
Prepaid content and licenses | 423 | 375 | |
Interest receivable from bank deposits with original maturities of three months or less | 322 | 1,252 | |
Employee advances | 93 | 445 | |
Others | 887 | 361 | |
Total | 28,947 | 26,888 | |
Provisions of inventory impairment | $ 10,067 | $ 6,756 | |
[1] | The inventory balances as of December 31, 2019 and 2020 were offset by provisions for impairment of US$6,756 and US$10,067, respectively. |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LONG-TERM INVESTMENTS | |||
Aggregate carrying value of all equity investments | $ 74,004 | $ 63,345 | |
Impairment losses | 500 | 10,965 | $ 2,605 |
Cumulative impairment loss | 14,300 | ||
Upward adjustment | $ 0 | $ 0 | $ 18,013 |
FIXED ASSETS, NET (Details)
FIXED ASSETS, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 312,799,000 | $ 296,930,000 | |
Less: Accumulated depreciation | (235,948,000) | (186,924,000) | |
Fixed assets, net | 76,851,000 | 110,006,000 | |
Depreciation expenses | 54,207,000 | 64,663,000 | $ 60,690,000 |
Impairment loss | 0 | 0 | $ 0 |
Computer equipment (including servers) [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 301,405,000 | 281,081,000 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 8,532,000 | 13,011,000 | |
Office furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 2,561,000 | 2,482,000 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 301,000 | $ 356,000 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
GOODWILL | |||
Beginning balance | $ 5,534,000 | $ 5,625,000 | |
Goodwill associated with an acquisition | 611,000 | 0 | |
Foreign currency translation adjustment | 382,000 | (91,000) | |
Ending balance | 6,527,000 | 5,534,000 | $ 5,625,000 |
Impairment loss | 0 | $ 0 | $ 0 |
Accumulated goodwill impairment | $ 0 |
INTANGIBLE ASSETS, NET (Finite-
INTANGIBLE ASSETS, NET (Finite-lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 8,290 | $ 8,179 |
Accumulated Amortization | (7,064) | (6,665) |
Net Value | 1,226 | 1,514 |
Copyright [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,379 | 3,161 |
Accumulated Amortization | (3,379) | (3,161) |
Net Value | 0 | 0 |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,636 | 2,958 |
Accumulated Amortization | (1,572) | (1,563) |
Net Value | 1,064 | 1,395 |
Domain names and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,508 | 1,344 |
Accumulated Amortization | (1,428) | (1,314) |
Net Value | 80 | 30 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 613 | 573 |
Accumulated Amortization | (613) | (573) |
Net Value | 0 | 0 |
Others [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 154 | 143 |
Accumulated Amortization | (72) | (54) |
Net Value | $ 82 | $ 89 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTANGIBLE ASSETS, NET | |||
Amortization expenses | $ 794,000 | $ 705,000 | $ 1,251,000 |
Impairment loss | $ 0 | $ 0 | $ 0 |
INTANGIBLE ASSETS, NET (Estimat
INTANGIBLE ASSETS, NET (Estimated Amortization Expenses for Future Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
INTANGIBLE ASSETS, NET | ||
2021 | $ 828 | |
2022 | 341 | |
2023 | 35 | |
2024 | 10 | |
2025 | 3 | |
Thereafter | 9 | |
Total expected amortization expense | $ 1,226 | $ 1,514 |
ACCRUED AND OTHER SHORT-TERM _3
ACCRUED AND OTHER SHORT-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ACCRUED AND OTHER SHORT-TERM LIABILITIES | ||
Accrued advertising and promotion expenses | $ 35,536 | $ 51,344 |
Contract deposits from customers | 24,254 | 31,399 |
Accrued professional fees | 18,708 | 19,235 |
Payable to a third-party investor in the Consolidated Trust | 9,466 | 8,601 |
Accrued bandwidth costs | 5,112 | 7,532 |
Contingent litigation liabilities | 4,050 | 6,476 |
Lease liabilities | 4,891 | 4,877 |
Payable to Web game and mobile game developers | 2,932 | 2,209 |
Deferred ADS deposit income | 2,462 | 3,697 |
Payable for government project | 1,845 | 1,736 |
Accrued content and license fees | 1,342 | 2,103 |
Early exercise of Sogou share options with trust arrangements | 901 | 2,702 |
Accrual for fixed assets purchases | 247 | 274 |
Others | 6,696 | 8,090 |
Total | $ 118,442 | $ 150,275 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 774,618 | $ 995,350 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 246,673 | 107,628 |
Short-term investments | 774,618 | 995,350 |
Total | 1,021,291 | 1,102,978 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 246,673 | 107,628 |
Short-term investments | 774,618 | 995,350 |
Total | 1,021,291 | 1,102,978 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT (Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
FAIR VALUE MEASUREMENT | |||
Change in fair value of short-term investments | $ 24,018 | $ 29,900 | $ 22,058 |
Gains resulting from upward adjustment recorded as other income | 0 | 0 | 18,013 |
Impairment losses | $ 500 | $ 10,965 | $ 2,605 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Feb. 14, 2020 | Dec. 31, 2020 | Aug. 02, 2020 | Dec. 31, 2019 | Aug. 03, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
The historical cost of the repurchased shares, recorded in treasury stock | $ 27,870 | $ 69,886 | |||
Retirement of Class A Ordinary Shares | 0 | ||||
Additional Paid-in Capital [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Retirement of Class A Ordinary Shares | $ 50,307 | ||||
Class A Ordinary Shares [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury stock remained unvested | 1,899,000 | 5,520,000 | |||
Sogou Inc. [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Aggregate consideration | $ 50,318 | ||||
The historical cost of the repurchased shares, recorded in treasury stock | $ 50,318 | ||||
Sogou Inc. [Member] | Class A Ordinary Shares [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | 10,584,634 | ||||
Repurchase price per share | $ 4.72 | ||||
Retirement of Class A Ordinary Shares | $ 11 | ||||
Sogou Inc. [Member] | Class A Ordinary Shares [Member] | Additional Paid-in Capital [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Retirement of Class A Ordinary Shares | $ 50,307 | ||||
Sogou Inc. [Member] | American Depositary Shares [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchase program period | 12 months | ||||
Shares repurchased | 10,584,634 | ||||
Repurchase price per share | $ 4.72 | ||||
Sogou Inc. [Member] | American Depositary Shares [Member] | Maximum [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Amount of outstanding ADSs authorized to be repurchased | $ 50,000 |
SHARE-BASED COMPENSATION (Sogou
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2010 Share Incentive Plan, Narrative) (Details) - Sogou 2010 Share Incentive Plan [Member] - shares | 12 Months Ended | |
Dec. 31, 2020 | Aug. 22, 2014 | |
Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of share incentive award granted from grant date | 10 years | |
Performance-based options [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Performance-based options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | two to four installments | |
Service-based options [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Service-based options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | two to four installments | |
IPO-based options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | five equal installments | |
Class A Ordinary Shares [Member] | Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 41,500,000 |
SHARE-BASED COMPENSATION (Sog_2
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2010 Share Incentive Plan, Summary of Categories of Share Options) (Details) - Sogou 2010 Share Incentive Plan [Member] shares in Thousands | Dec. 31, 2020shares |
Share Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 40,050 |
Number of shares under granted share options for purposes of share-based compensation expense | 38,307 |
Number of shares under vested and exercisable share options | 35,981 |
Number of shares under exercised share options | 34,411 |
Performance-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 30,912 |
Number of shares under granted share options for purposes of share-based compensation expense | 29,169 |
Number of shares under vested and exercisable share options | 28,761 |
Number of shares under exercised share options | 27,772 |
Service-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 1,888 |
Number of shares under granted share options for purposes of share-based compensation expense | 1,888 |
Number of shares under vested and exercisable share options | 1,410 |
Number of shares under exercised share options | 829 |
IPO-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 7,250 |
Number of shares under granted share options for purposes of share-based compensation expense | 7,250 |
Number of shares under vested and exercisable share options | 5,810 |
Number of shares under exercised share options | 5,810 |
SHARE-BASED COMPENSATION (Sog_3
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] - Class A Ordinary Shares [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 7,162 | ||
Number of Shares, Granted | 1,099 | ||
Number of Shares, Exercised | (4,233) | ||
Number of Shares, Forfeited/Expired | (132) | ||
Number of Shares, Outstanding, Ending Balance | 3,896 | 7,162 | |
Number of Shares, Vested, Ending Balance, and expected to vest thereafter | 3,395 | ||
Number of Shares, Exercisable, Ending Balance | 1,570 | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 0.377 | ||
Weighted Average Exercise Price, Granted | 0.001 | ||
Weighted Average Exercise Price, Exercised | 0.426 | ||
Weighted Average Exercise Price, Forfeited/Expired | 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance | 0.232 | $ 0.377 | |
Weighted Average Exercise Price, Vested, Ending balance, and expected to vest thereafter | 0.266 | ||
Weighted Average Exercise Price, Exercisable, Ending balance, and expected to vest thereafter | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning Balance | 4 years 4 months 17 days | 4 years 5 months 12 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending Balance | 4 years 4 months 17 days | 4 years 5 months 12 days | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance, and expected to vest thereafter | 4 years 5 months 15 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 5 years 9 months 7 days | ||
Aggregate Intrinsic Value, Outstanding, Ending Balance | [1] | $ 30,850 | |
Aggregate Intrinsic Value, Vested, Ending balance, and expected to vest thereafter | [1] | 26,767 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | [1] | $ 12,794 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between the closing price of Sogou Class A Ordinary Shares of $8.15 on the last trading day in 2020 and the exercise price of the options. |
SHARE-BASED COMPENSATION (Sog_4
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2010 Share Incentive Plan, Share Option Activity, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8,935 | $ 15,901 | $ 14,204 |
Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 8.15 | ||
Share-based compensation expense | $ 7,374 | 13,465 | 12,547 |
Unrecognized compensation expenses | $ 849 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 1 year 4 months 13 days | ||
Total fair values of share options vested | $ 21,251 | 11,893 | 28,530 |
Total intrinsic value of options exercised | $ 23,102 | $ 1,635 | $ 33,180 |
SHARE-BASED COMPENSATION (Sog_5
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Expected forfeiture rate (post-vesting) | 0.00% | 12.00% | |
Weighted average expected option life | 4 years | 7 years | 9 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average fair value of share options | $ 4.48 | $ 4.05 | $ 12.26 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 1.21% | 2.60% | 3.36% |
Exercise multiple | 2 | 2 | |
Expected forfeiture rate (post-vesting) | 0.00% | ||
Volatility rate | 38.00% | 36.00% | 40.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 1.66% | 2.86% | 3.51% |
Exercise multiple | 3 | 3 | |
Expected forfeiture rate (post-vesting) | 12.00% | ||
Volatility rate | 44.00% | 41.00% | 46.00% |
SHARE-BASED COMPENSATION (Sog_6
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2010 Share Incentive Plan, Share Option Assumptions, Narrative) (Details) - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 0.00% | 12.00% | |
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Management [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Estimated forfeiture rate | 0.00% | ||
Other Key Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% |
SHARE-BASED COMPENSATION (Sog_7
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2017 Share Incentive Plan, Narrative) (Details) - Sogou 2017 Share Incentive Plan [Member] - shares | 12 Months Ended | |
Dec. 31, 2020 | Oct. 31, 2017 | |
Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of share rights granted under share incentive plan | 10 years | |
Share Options [Member] | Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 28,000,000 | |
Performance-based options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Service-based options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments |
SHARE-BASED COMPENSATION (Sog_8
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2017 Share Incentive Plan, Summary of Categories of Share Options) (Details) - Sogou 2017 Share Incentive Plan [Member] shares in Thousands | Dec. 31, 2020shares |
Share Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 1,186 |
Number of shares under granted share options for purposes of share-based compensation expense | 1,049 |
Number of shares under vested and exercisable share options | 368 |
Number of shares under exercised share options | 190 |
Performance-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 192 |
Number of shares under granted share options for purposes of share-based compensation expense | 55 |
Number of shares under vested and exercisable share options | 44 |
Number of shares under exercised share options | 17 |
Service-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 994 |
Number of shares under granted share options for purposes of share-based compensation expense | 994 |
Number of shares under vested and exercisable share options | 324 |
Number of shares under exercised share options | 173 |
SHARE-BASED COMPENSATION (Sog_9
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2017 Share Incentive Plan, Share Option Activity) (Details) - Sogou 2017 Share Incentive Plan [Member] - Share Options [Member] - Class A Ordinary Shares [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 798 | ||
Number of Shares, Granted | 425 | ||
Number of Shares, Exercised | (142) | ||
Number of Shares, Forfeited/Expired | (222) | ||
Number of Shares, Outstanding, Ending Balance | 859 | 798 | |
Number of Shares, Vested, Ending Balance, and expected to vest thereafter | 680 | ||
Number of Shares, Exercisable, Ending Balance | 178 | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 0.001 | ||
Weighted Average Exercise Price, Granted | 0.001 | ||
Weighted Average Exercise Price, Exercised | 0.001 | ||
Weighted Average Exercise Price, Forfeited/Expired | 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance | 0.001 | $ 0.001 | |
Weighted Average Exercise Price, Vested, Ending balance, and expected to vest thereafter | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning Balance | 8 years 6 months 3 days | 8 years 10 months 24 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending Balance | 8 years 6 months 3 days | 8 years 10 months 24 days | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance, and expected to vest thereafter | 8 years 5 months 15 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 7 years 11 months 12 days | ||
Aggregate Intrinsic Value, Outstanding, Ending Balance | [1] | $ 7,000 | |
Aggregate Intrinsic Value, Vested, Ending balance, and expected to vest thereafter | [1] | 5,541 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | [1] | $ 1,451 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between the closing price of Sogou Class A Ordinary Shares of $8.15 on the last trading day in 2020 and the exercise price of the options. |
SHARE-BASED COMPENSATION (So_10
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2017 Share Incentive Plan, Share Option Activity, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8,935 | $ 15,901 | $ 14,204 |
Sogou 2017 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 8.15 | ||
Share-based compensation expense | $ 1,561 | 2,436 | $ 1,569 |
Unrecognized compensation expenses | $ 1,463 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 1 year 8 months 26 days | ||
Total fair values of the share options vested | $ 1,069 | 723 | |
Total intrinsic value of options exercised | $ 1,007 | $ 940 |
SHARE-BASED COMPENSATION (So_11
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sogou 2017 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou 2017 Share Incentive Plan [Member] - Share Options [Member] | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Expected forfeiture rate (post-vesting) | 12.00% | ||
Weighted average expected option life | 9 years | 10 years | 10 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average fair value of share options | $ 4.95 | $ 4.87 | $ 10.09 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 1.20% | 2.37% | 3.41% |
Exercise multiple | 2 | 2 | |
Expected forfeiture rate (post-vesting) | 0.00% | 0.00% | |
Volatility rate | 39.00% | 41.00% | 40.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.47% | 3.45% | 3.95% |
Exercise multiple | 3 | 3 | |
Expected forfeiture rate (post-vesting) | 12.00% | 12.00% | |
Volatility rate | 42.00% | 42.00% | 46.00% |
SHARE-BASED COMPENSATION (So_12
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sohu Management Sogou Share Option Arrangement, Narrative) (Details) - Sohu Management Sogou Share Option Arrangement [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 14, 2011 | Dec. 31, 2020 | Mar. 31, 2011 |
Performance-based options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Installments of share options granted | four equal installments | ||
Sohu [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 12,000,000 | ||
Ordinary shares previously held by Sohu | 8,800,000 | ||
Newly-issued shares | 3,200,000 | ||
Newly-issued shares, price per share | $ 0.625 | ||
Newly-issued shares, value | $ 2 | ||
Sohu [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option exercise price | $ 0.625 | ||
Sohu [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option exercise price | $ 0.001 |
SHARE-BASED COMPENSATION (So_13
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sohu Management Sogou Share Option Arrangement, Summary of Categories of Share Options) (Details) - Sohu Management Sogou Share Option Arrangement [Member] shares in Thousands | Dec. 31, 2020shares |
Share Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 8,305 |
Number of shares under granted share options for purposes of share-based compensation expense | 8,305 |
Number of shares under vested and exercisable share options | 8,305 |
Number of shares under exercised share options | 8,296 |
Performance-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 8,290 |
Number of shares under granted share options for purposes of share-based compensation expense | 8,290 |
Number of shares under vested and exercisable share options | 8,290 |
Number of shares under exercised share options | 8,290 |
Service-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 15 |
Number of shares under granted share options for purposes of share-based compensation expense | 15 |
Number of shares under vested and exercisable share options | 15 |
Number of shares under exercised share options | 6 |
SHARE-BASED COMPENSATION (So_14
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sohu Management Sogou Share Option Arrangement, Share Option Activity) (Details) - Sohu Management Sogou Share Option Arrangement [Member] - Share Options [Member] - Class A Ordinary Shares [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 9 | ||
Number of Shares, Granted | 0 | ||
Number of Shares, Exercised | 0 | ||
Number of Shares, Forfeited/Expired | 0 | ||
Number of Shares, Outstanding, Ending Balance | 9 | 9 | |
Number of Shares, Vested, Ending Balance, and expected to vest thereafter | 9 | ||
Number of Shares, Exercisable, Ending Balance | 9 | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance | 0.001 | $ 0.001 | |
Weighted Average Exercise Price, Vested, Ending balance, and expected to vest thereafter | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning Balance | 4 years 4 months 17 days | 5 years 4 months 17 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending Balance | 4 years 4 months 17 days | 5 years 4 months 17 days | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance, and expected to vest thereafter | 4 years 4 months 17 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 4 years 4 months 17 days | ||
Aggregate Intrinsic Value, Outstanding, Ending Balance | [1] | $ 73 | |
Aggregate Intrinsic Value, Vested, Ending balance, and expected to vest thereafter | [1] | 73 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | [1] | $ 73 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between the closing price of Sogou Class A Ordinary Shares of $8.15 on the last trading day in 2020 and the exercise price of the options. |
SHARE-BASED COMPENSATION (So_15
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Sohu Management Sogou Share Option Arrangement, Share Option Activity, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8,935,000 | $ 15,901,000 | $ 14,204,000 |
Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 8.15 | ||
Share-based compensation expense | $ 0 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION (So_16
SHARE-BASED COMPENSATION (Sogou Share-based Awards, Option Modification) (Details) - Share Options [Member] - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2020 | |
Sogou 2010 Share Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares under contractually granted share options | 40,050,000 | |||
Number of Class A ordinary shares deemed granted under share options | 38,307,000 | |||
Sogou 2010 Share Incentive Plan [Member] | Vesting Condition Change of Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incremental fair value | $ 0 | |||
Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Early Exercise of Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remained unvested Class A ordinary shares | 1,899,000 | |||
Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Vesting Condition Change of Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares under contractually granted share options | 2,181,192 | |||
Number of Class A ordinary shares not deemed granted under share options | 1,601,427 | |||
Number of Class A ordinary shares deemed granted under share options | 579,765 | |||
Sohu Management Sogou Share Option Arrangement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares under contractually granted share options | 8,305,000 | |||
Number of Class A ordinary shares deemed granted under share options | 8,305,000 | |||
Sohu Management Sogou Share Option Arrangement [Member] | Early Exercise of Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incremental fair value | $ 0 | $ 0 |
TAXATION (PRC Value-added Tax)
TAXATION (PRC Value-added Tax) (Details) | 4 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended |
Apr. 30, 2018 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | |
Minimum [Member] | ||||
Summary of Value-added Tax [Line Items] | ||||
Value-added tax rate | 6.00% | 6.00% | 6.00% | 6.00% |
Maximum [Member] | ||||
Summary of Value-added Tax [Line Items] | ||||
Value-added tax rate | 17.00% | 13.00% | 16.00% | 13.00% |
TAXATION (Income Taxes, Descrip
TAXATION (Income Taxes, Description by Tax Authorities, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
Income Tax and Tax Rate [Line Items] | |||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | ||
Hong Kong [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Statutory income tax rate | 16.50% | 16.50% | 16.50% | ||
PRC [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Statutory income tax rate | 25.00% | ||||
PRC [Member] | HNTEs [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate | 15.00% | 15.00% | |||
Preferential income tax rate period (years) | 3 years | ||||
PRC [Member] | HNTEs [Member] | Sogou Technology [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate period (years) | 3 years | ||||
PRC [Member] | HNTEs [Member] | Sogou Information [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate period (years) | 3 years | ||||
PRC [Member] | HNTEs [Member] | Sogou Network [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate period (years) | 3 years | ||||
PRC [Member] | Software Enterprises [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate | 12.50% | ||||
Preferential income tax rate period (years) | 3 years | ||||
Income tax exemption period beginning with first profitable year | 2 years | ||||
Tax rate reduction rate | 50.00% | ||||
PRC [Member] | KNSEs [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate | 10.00% | ||||
PRC [Member] | KNSEs [Member] | Sogou Technology [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Preferential income tax rate | 10.00% | ||||
Reversal amount of income tax for the preferential income tax rate | $ 3,773 |
TAXATION (Income Taxes, PRC Wit
TAXATION (Income Taxes, PRC Withholding Tax on Dividends, Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Withholding Tax on Dividends [Line Items] | |
Aggregate undistributed profits of certain of the Company's subsidiaries and the VIEs located in PRC | $ 359,177,000 |
Expected amount of deferred income tax liability in respect of those undistributed profits | $ 35,918,000 |
PRC [Member] | |
Withholding Tax on Dividends [Line Items] | |
Withholding income tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% |
Withholding tax | $ 0 |
PRC [Member] | Hong Kong [Member] | |
Withholding Tax on Dividends [Line Items] | |
Minimum percentage of ownership interests held by foreign investors for lower withholding tax rate | 25.00% |
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
TAXATION (Income Taxes, Composi
TAXATION (Income Taxes, Composition of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TAXATION | |||
Income/(loss) from PRC entities | $ (99,960) | $ 84,760 | $ 73,720 |
Income/(loss) from non-PRC entities | (6,526) | 7,093 | 26,214 |
Income/(loss) before income tax expenses | (106,486) | 91,853 | 99,934 |
Current income tax expense/(benefit) | (1,748) | 5,480 | 462 |
Deferred tax expense/(benefit) | 4,094 | (2,732) | 691 |
Income tax expense | $ 2,346 | $ 2,748 | $ 1,153 |
TAXATION (Income Taxes, Effecti
TAXATION (Income Taxes, Effective Tax Rate, Reconciliation to Effective Tax Rate) (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
TAXATION | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | |
Tax differential from statutory rate in other jurisdictions | (2.60%) | 2.60% | 0.40% | |
Effect of tax holidays | (14.90%) | (2.30%) | (5.10%) | |
Permanent book-tax differences | [1] | 25.70% | (25.30%) | (18.50%) |
Tax-exempt income | [2] | 1.10% | (4.60%) | (7.00%) |
Changes in deferred tax asset allowance | (36.50%) | 7.60% | 6.40% | |
Effective income tax rate | (2.20%) | 3.00% | 1.20% | |
[1] | The permanent book-tax differences mainly consisted of R&D expenses super deductions. Under PRC regulations issued in September 2018 that are applicable retroactively beginning January 1, 2018, additional R&D expenses have become eligible for deduction from taxable income. | |||
[2] | Tax-exempt income consisted of interest on financial instruments and capital gains from long-term investments. The aforementioned financial instruments and long-term investments were held by the Company’s subsidiaries located in Hong Kong. |
TAXATION (Income Taxes, Effec_2
TAXATION (Income Taxes, Effective Tax Rate, Combined Effects of Income Tax Expense Exemptions and Reductions Available) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
TAXATION | |||
Tax holiday effect | $ | $ (15,851) | $ 2,113 | $ 5,097 |
Basic income/(loss) per share | $ / shares | (0.04) | 0.01 | 0.01 |
TAXATION (Deferred Tax, Signifi
TAXATION (Deferred Tax, Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
Net operating loss carry forwards | $ 49,349 | $ 12,788 | ||
Temporary non-deductible advertising cost carried forward | 1,008 | 965 | ||
Accrued expenses | 19,970 | 22,810 | ||
Accrued payroll expense | 3,752 | 3,229 | ||
Provision for inventory impairment and credit losses of receivables | 7,382 | 7,517 | ||
Provision for long-term investments | 3,346 | 2,050 | ||
Total deferred tax assets | 84,807 | 49,359 | ||
Deferred tax liabilities: | ||||
Depreciation of fixed assets | (4,339) | (4,925) | ||
Others | 0 | (26) | ||
Total deferred tax liabilities | (4,339) | (4,951) | ||
Less: valuation allowance | (67,219) | (28,102) | $ (21,484) | $ (16,186) |
Deferred tax assets, net | $ 13,249 | $ 16,306 |
TAXATION (Deferred Tax, Narrati
TAXATION (Deferred Tax, Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
TAXATION | |
Net operating losses from PRC entities available to offset against future net profit for income tax purposes | $ 275,768 |
Deferred tax assets generated from net operating losses offset by a valuation allowance | $ 49,349 |
TAXATION (Deferred Tax, Movemen
TAXATION (Deferred Tax, Movement of Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TAXATION | |||
Beginning balance | $ 28,102 | $ 21,484 | $ 16,186 |
Additions | 37,882 | 8,305 | 6,852 |
Reversals | (709) | (1,339) | (779) |
Foreign currency translation adjustment | 1,944 | (348) | (775) |
Ending balance | $ 67,219 | $ 28,102 | $ 21,484 |
CHINA CONTRIBUTION PLAN (Detail
CHINA CONTRIBUTION PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multi-employer Defined Contribution Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Annual Contributions | $ 23,235 | $ 39,990 | $ 40,094 |
NET INCOME PER ORDINARY SHARE_2
NET INCOME PER ORDINARY SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net income/(loss) attributable to Sogou Inc. | $ (108,221) | $ 89,105 | $ 98,781 |
Numerator for net income/(loss) per ordinary share-basic and diluted | $ (108,221) | $ 89,105 | $ 98,781 |
Denominator | |||
Weighted average number of ordinary shares outstanding-basic | 385,365 | 389,797 | 388,731 |
Incremental shares from treasury stock method | 0 | 5,436 | 7,167 |
Weighted average number of ordinary shares outstanding-diluted | 385,365 | 395,233 | 395,898 |
Net income/(loss) per ordinary share-basic (in dollars per share) | $ (0.28) | $ 0.23 | $ 0.25 |
Net income/(loss) per ordinary share-diluted (in dollars per share) | $ (0.28) | $ 0.23 | $ 0.25 |
NET INCOME PER ORDINARY SHARE_3
NET INCOME PER ORDINARY SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class A Ordinary Shares [Member] | Share Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Amount of shares excluded from the computation of diluted net income per ordinary share | 0 | 12,500 | 30,000 |
RELATED PARTY TRANSACTIONS (Sig
RELATED PARTY TRANSACTIONS (Significant Related Parties and Relationship with the Sogou Group) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Sohu [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Sogou Group | Under common control of Sohu.com Limited with the Sogou Group |
Tencent [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Sogou Group | Holder of Class B Ordinary Shares |
RELATED PARTY TRANSACTIONS (S_2
RELATED PARTY TRANSACTIONS (Significant Related Party Transactions with the Sogou Group) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Expenses of research and development undertaken by Sohu | $ 0 | $ 0 | $ 670 |
Cost of revenues from transactions with related parties | 96,725 | 95,320 | 115,993 |
Sohu [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses of research and development undertaken by Sohu | 0 | 0 | 670 |
Others | 59 | 61 | 464 |
Tencent [Member] | |||
Related Party Transaction [Line Items] | |||
Share-based compensation expense undertaken by related party | 0 | 0 | 88 |
Others | 1,582 | 2,254 | 3,463 |
Sales and marketing [Member] | |||
Related Party Transaction [Line Items] | |||
Expense from transactions with related party | 1,414 | 1,869 | 2,123 |
Sales and marketing [Member] | Sohu [Member] | |||
Related Party Transaction [Line Items] | |||
Expense from transactions with related party | 113 | 191 | 393 |
Online Marketing Service Revenue [Member] | Sohu [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from transactions with related party | 54 | 311 | 677 |
Online Marketing Service Cost [Member] | Tencent [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from transactions with related party | 28,048 | 31,943 | 40,758 |
Cost of revenues from transactions with related parties | 85,668 | 86,902 | 108,542 |
Bandwidth Purchase [Member] | Tencent [Member] | |||
Related Party Transaction [Line Items] | |||
Expense from transactions with related party | 9,463 | 6,364 | 4,183 |
Rental Expense [Member] | Sohu [Member] | |||
Related Party Transaction [Line Items] | |||
Expense from transactions with related party | 9,763 | 8,318 | 8,369 |
Rental Expense [Member] | Tencent [Member] | |||
Related Party Transaction [Line Items] | |||
Expense from transactions with related party | $ 594 | $ 500 | $ 383 |
RELATED PARTY TRANSACTIONS (Due
RELATED PARTY TRANSACTIONS (Due from/to Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Due from/to related parties-current | ||
Due from related parties | $ 2,471 | $ 2,837 |
Due to related parties | 27,102 | 22,594 |
Due from/to related parties-non current | ||
Due from related parties | 3,003 | 2,253 |
Due to related parties | 9,418 | 715 |
Sohu [Member] | ||
Due from/to related parties-current | ||
Due from related parties | 9 | 15 |
Due to related parties | 9,619 | 101 |
Due from/to related parties-non current | ||
Due from related parties | 2,812 | 2,074 |
Due to related parties | 9,217 | 0 |
Tencent [Member] | ||
Due from/to related parties-current | ||
Due from related parties | 2,462 | 2,822 |
Due to related parties | 17,483 | 22,493 |
Due from/to related parties-non current | ||
Due from related parties | 191 | 179 |
Due to related parties | $ 201 | $ 715 |
LEASES (Components of Operating
LEASES (Components of Operating Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | ||
Operating lease cost | $ 16,724 | $ 15,760 |
Short-term lease cost | 48 | 19 |
Total operating lease cost | $ 16,772 | $ 15,779 |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information Related to Leases, Cash Paid for Amounts Included in Measurement of Lease Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | ||
Operating cash flows from operating leases | $ 17,221 | $ 15,146 |
LEASES (Supplemental Cash Flo_2
LEASES (Supplemental Cash Flow Information Related to Leases, Right-of-use Assets Obtained in Exchange for Lease Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | ||
Operating leases | $ 29,693 | $ 11,198 |
LEASES (Supplemental Balance Sh
LEASES (Supplemental Balance Sheet Information Related to Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Assets: | |||
Operating lease right-of-use assets | $ 28,006 | $ 13,333 | |
Liabilities: | |||
Current portion of lease liabilities | 15,072 | 6,106 | |
Non-current portion of lease liabilities | 10,721 | 5,686 | |
Total operating lease liabilities | $ 25,793 | $ 11,792 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total operating lease liabilities | Total operating lease liabilities | Total operating lease liabilities |
LEASES (Maturities of Lease Lia
LEASES (Maturities of Lease Liabilities under Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
LEASES | |||
2021 | $ 15,629 | ||
2022 | 10,735 | ||
2023 | 64 | ||
2024 | 0 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Total future lease payments | 26,428 | ||
Less: imputed interest | 635 | ||
Total present value of lease liabilities | $ 25,793 | $ 11,792 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total present value of lease liabilities | Total present value of lease liabilities | Total present value of lease liabilities |
Weighted average remaining lease term | 1 year 10 months 13 days | ||
Weighted average discount rate | 4.75% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Contractual Obligation) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Contractual Obligation [Line Items] | |
2021 | $ 36,124 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total | 36,124 |
Bandwidth Purchase [Member] | |
Contractual Obligation [Line Items] | |
2021 | 28,503 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total | 28,503 |
Fixed Assets Purchases [Member] | |
Contractual Obligation [Line Items] | |
2021 | 5,007 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total | 5,007 |
Others [Member] | |
Contractual Obligation [Line Items] | |
2021 | 2,614 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total | $ 2,614 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |||
Estimated accrued and other short term liabilities related to litigation contingencies | $ 4,050 | $ 6,476 | |
United States [Member] | Sogou Inc. [Member] | |||
Loss Contingencies [Line Items] | |||
Putative class action lawsuits filed against the Company | 2 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sogou Group, Basic Information, Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Dec. 31, 2020 | |
Sogou Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 2,500 | |
Sogou Information [Member] | Xiaochuan Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 10.00% | |
Sogou Information [Member] | Sohu [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Sogou Information [Member] | Tencent [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Shi Ji Si Su [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 10,500 | |
Cash consideration paid for acquisition of VIEs | $ 30 | |
Shi Ji Si Su [Member] | Sogou Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Chengdu Easypay [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 16,300 | |
Chengdu Easypay [Member] | Sogou Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Consolidated Trust [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 2,900 | |
Consolidated Trust [Member] | Chengdu Easypay [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% |
VIEs (VIEs Consolidated withi_2
VIEs (VIEs Consolidated within Sogou Group, Summary of VIE Agreements Currently in Effect, Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Xiaochuan Wang [Member] | Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 10.00% |
Sogou Technology [Member] | Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Technology consulting and service agreement term | 10 years |
Sogou Technology [Member] | Shareholders of Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Powers of attorney term | 10 years |
Sogou Technology [Member] | Shareholders of Sogou Information [Member] | Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
VIEs (VIEs Consolidated withi_3
VIEs (VIEs Consolidated within Sogou Group, Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 287,185 | $ 142,464 | |
Restricted cash | 23,018 | 5,370 | |
Short-term investments | 774,618 | 995,350 | |
Accounts receivable and financing receivables, net | 71,186 | 131,813 | |
Prepaid and other current assets | 28,947 | 26,888 | |
Due from related parties | 2,471 | 2,837 | |
Total current assets | 1,187,425 | 1,304,722 | |
Long-term investments, net | 74,004 | 63,345 | |
Fixed assets, net | 76,851 | 110,006 | |
Intangible assets, net | 1,226 | 1,514 | |
Goodwill | 6,527 | 5,534 | $ 5,625 |
Other assets | 35,850 | 20,975 | |
Total assets | 1,395,132 | 1,522,402 | |
LIABILITIES | |||
Accounts payable | 106,889 | 111,587 | |
Accrued and other short-term liabilities | 118,442 | 150,275 | |
Receipts in advance | 64,414 | 67,902 | |
Accrued salary and benefits | 25,350 | 24,167 | |
Taxes payable | 64,082 | 76,688 | |
Due to related parties | 27,102 | 22,594 | |
Total current liabilities | 406,279 | 453,213 | |
Long-term liabilities | 10,721 | 5,686 | |
Total liabilities | 417,000 | 458,899 | |
Net revenue | 924,664 | 1,172,252 | 1,124,158 |
Net loss | (108,832) | 89,105 | 98,781 |
Cash flows of the VIEs | |||
Net cash provided by/(used in) operating activities | (68,256) | 219,510 | 144,958 |
Net cash (used in)/ provided by investing activities | 235,376 | (217,551) | (650,797) |
Net cash provided by financing activities | (8,150) | (33,414) | 1 |
VIEs [Member] | |||
ASSETS | |||
Cash and cash equivalents | 6,573 | 12,209 | |
Restricted cash | 20,981 | 5,342 | |
Short-term investments | 0 | 7,192 | |
Accounts receivable and financing receivables, net | 28,397 | 72,214 | |
Prepaid and other current assets | 10,946 | 3,942 | |
Intra-Sogou Group receivable due from the Company and the Company's subsidiaries | 0 | 19,765 | |
Due from related parties | 0 | 683 | |
Total current assets | 66,897 | 121,347 | |
Long-term investments, net | 37,328 | 26,169 | |
Fixed assets, net | 1,652 | 761 | |
Intangible assets, net | 5 | 0 | |
Goodwill | 4,259 | 3,412 | |
Other assets | 2,870 | 1,902 | |
Total assets | 113,011 | 153,591 | |
LIABILITIES | |||
Accounts payable | 72,611 | 66,186 | |
Accrued and other short-term liabilities | 39,502 | 55,694 | |
Receipts in advance | 7,944 | 8,981 | |
Accrued salary and benefits | 1,047 | 1,250 | |
Taxes payable | 2,159 | 6,084 | |
Intra-Sogou Group receivable due to the Company and the Company's subsidiaries | 62,780 | 0 | |
Due to related parties | 646 | 108 | |
Total current liabilities | 186,689 | 138,303 | |
Long-term liabilities | 1,023 | 1,130 | |
Total liabilities | 187,712 | 139,433 | |
Net revenue | 375,093 | 501,495 | 423,270 |
Net loss | (82,329) | (1,491) | (19,534) |
Cash flows of the VIEs | |||
Net cash provided by/(used in) operating activities | (13,244) | (5,046) | 51,657 |
Net cash (used in)/ provided by investing activities | 7,797 | (18,040) | (48,161) |
Net cash provided by financing activities | $ 152 | $ 8,601 | $ 0 |
PROFIT APPROPRIATION (Details)
PROFIT APPROPRIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit Appropriation [Line Items] | |||
Total amount of profits contributed to funds | $ 42 | $ 108 | $ 2,662 |
Total balance of profits contributed to funds | $ 23,955 | $ 23,913 | |
China Foreign Investment Enterprises Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required registered capital ratio to de-force compulsory net profit allocation to general reserve fund | 50.00% | ||
China Foreign Investment Enterprises Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as a general reserve fund | 10.00% | ||
China Company Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as statutory surplus fund | 10.00% | ||
Required registered capital ratio to de-force compulsory net profit allocation to statutory surplus fund | 50.00% | ||
China Company Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as statutory surplus fund | 10.00% |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restricted Net Assets [Line Items] | |
Restricted net assets | $ 63,188 |
Restricted net assets as a percentage of total consolidated net assets | 6.50% |
China Company Law [Member] | |
Restricted Net Assets [Line Items] | |
Required percentage of net after-tax income to be appropriated to statutory surplus reserve fund | 10.00% |
Required registered capital ratio to de-force compulsory net profit allocation to statutory surplus fund | 50.00% |