Sogou’s total revenue in the second quarter exceeded 2 billion yuan, up 8% year-on-year.

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On August 5, Tencent Technological News announced unaudited earnings for the second quarter of 2009. According to the financial report, the total revenue of Sogou Company reached 2.07 billion yuan in the second quarter, an increase of 8% over the same period last year, and the related revenue of search business reached 1.88 billion yuan, an increase of 9% over the same period last year.
Wang Xiaochuan, CEO of Sogou, said: “In the second quarter, our business maintained steady growth and made important progress in key areas. Search revenue continues to grow at a rate higher than the industry average. At the same time, by using the huge user base of search and mobile input methods, we have gradually established large data and recommendation services at the corporate level, and focused on releasing their business value.
Wang Xiaochuan also said: “We have also increased our efforts to promote the innovation of language-centered artificial intelligence technology and continue to promote the leading position in the field of voice and computer vision. In addition, with our core AI capabilities, we have made great progress in upgrading the business of intelligent hardware. We have launched new AI products, and more products are being developed. Looking ahead, we believe that the steady growth of the company’s core search business, together with the steady development of big data and recommendation services and smart hardware, will support the sustainable expansion of the business. ”
Zhou Yi, chief financial officer of Sogou, said: “We continued to promote revenue growth in the second quarter. It is noteworthy that revenue generated by big data and recommendation services has increased rapidly over the same period of last year. Although we expect that the external environment will remain challenging in the second half of 2019, we expect that the new growth drivers will bring positive momentum.
Performance summary
Sogou’s total revenue in the second quarter was $303.6 million, an increase of 1% over the same period last year (8% in terms of RMB).
Sogou’s net profit in the second quarter was $21.3 million, down 35.8% from the same period last year; Sogou’s net profit in the second quarter was $27.8 million, not in accordance with the General Accounting Standards of the United States.
The average daily user of Sogou Mobile Input Method was 453 million in the second quarter, up 17% from the same period last year. As China’s largest voice application, it handles up to 680 million voice requests per day.
Second quarter performance analysis:
Search dog search and search related business revenue growth, mainly due to the growth of pay-per-click services. Pay-per-click search services accounted for 88.2% of search and search-related revenue, compared with 84.7% in the same period last year.
Other revenue was $27.5 million, down 11% from the same period last year. Sogou’s other revenue declined in the second quarter, mainly due to the company’s continuous efforts to upgrade its smart hardware strategy, smart hardware sales declined.
Sogou’s revenue cost in the second quarter was $195.9 million, an increase of 9% over the same period last year. Sogou’s traffic acquisition cost in the second quarter was $146.3 million, an 8% increase over the same period last year, accounting for 48.2% of the company’s total revenue and 45.0% over the same period last year.
Sogou’s gross profit in the second quarter was $107.8 billion, down 11% compared with the same period last year; Sogou’s gross profit in the second quarter was $107.9 billion, down 12%.
Sogou’s total operating expenditure in the second quarter was $96.1 million, almost the same as the same period last year.
Sogou’s R&D expenditure in the second quarter was $50.6 million, down 10% from the same period last year, accounting for 16.7% of total revenue and 18.7% of the same period last year. Sogou’s R&D expenditure declined in the second quarter, mainly due to the reduction of professional expenses.
Sogou’s sales and marketing expenditure in the second quarter was $36.7 million, an 8% increase over the same period last year, accounting for 12.1% of total revenue and 11.2% over the same period last year. The comparative growth of sales and marketing expenditure in the second quarter of Sogou was mainly due to the increase of employees’related expenditure.
Sogou’s total business and administrative expenditure in the second quarter was $8.8 million, up 31% from the same period last year, accounting for 2.9% of total revenue and 2.2% of the same period last year. The comparative growth of headquarters and administrative expenditure in Sogou in the second quarter was mainly due to the increase in expenditure related to non-core business.
Sogou’s operating profit in the second quarter was $11.6 million, compared with $24.8 million in the same period last year. In the second quarter, Sogou’s operating profit was 18.1 million US dollars, compared with 29.9 million US dollars in the same period last year.
Sogou earned $4.2 million in income tax in the second quarter and $3.4 million in income tax in the same period last year.
Net profit attributable to Sogou in the second quarter was $21.3 million, down 35.8% from $33.2 million in the same period last year. In the second quarter, the net profit attributable to Sogou was $27.8 million, which was less than $38.2 million in the same period last year.
The basic and diluted earnings of each U.S. depository receipt attributable to Sogou in the second quarter were $0.05. In the second quarter, the basic and diluted earnings of every U.S. depository receipt attributable to Sogou were $0.07, not in accordance with the U.S. General Accounting Standards.
As of June 30, 2019, the total cash, cash equivalents and short-term investments held by Sogou were $1.1 billion, up from $1 billion as of December 31, 2018. Sogou’s net operating cash flow in the second quarter was $56.2 million. Sogou’s capital expenditure in the second quarter was $12.1 million.
Performance outlook:
Sogou expects its total revenue to reach $304 million to $314 million in the third quarter of 2019, an increase of 10% to 14% year-on-year, and an increase of 11% to 15% year-on-year in RMB terms. (Tencent Science and Technology Compilation/Mingxuan)