Chinese online media company Sohu.com Inc. today reported its unaudited financial results for the third quarter ended September 30, 2010, and showed total revenues were USD164.1 million, up 20% year-on-year, and 12% quarter-over-quarter.
Brand advertising revenues for the third quarter of 2010 totaled a record high of USD59.1 million, up 22% year-over-year and 11% quarter-over-quarter. Search revenues for the third quarter of 2010 were USD5.4 million, up 134% year-over-year and 38% quarter-over-quarter. Online game revenues for the third quarter of 2010 were USD85.6 million, up 25% year-over-year and 10% quarter-over-quarter. Wireless revenues for the third quarter of 2010 were USD13.6 million, down 19% year-over-year and up 23% quarter-over-quarter.
Gross margin was 74% for the third quarter of 2010, compared with 73% in the second quarter of 2010 and 76% in the third quarter of 2009. Non-GAAP gross margin for the third quarter of 2010 was 74%, compared with 74% in the second quarter of 2010 and 76% in the third quarter of 2009.
Sohu maintained a strong cash position of USD534.7 million as of September 30, 2010.
For the third quarter of 2010, Sohu's operating expenses totaled USD55.6 million. Non-GAAP operating expenses totaled USD50.1 million, down 1% sequentially from USD50.8 million and up 7% year-over-year.
For the third quarter of 2010, excluding non-cash income tax expense of USD0.7 million recorded for tax benefits from share-based awards, non-GAAP income tax expense was USD10.6 million, compared with USD5.7 million in the previous quarter.
Carol Yu, co-president and chief financial officer of Sohu, commented, "We achieved a strong third quarter with record revenues in each of our major business categories, and strong growth in our operations. The strategic investment from Alibaba gives our search business a great opportunity to compete and capture market share."