SOHU.COM REPORTS SECOND QUARTER 2022 UNAUDITED FINANCIAL RESULTS

Sohu.com Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), China's leading online media, video, and game business group, today reported unaudited financial results for the second quarter ended June 30, 2022.

Second Q uarter Highlights

Total revenues were US$195 million ^[1] , down 5% year-over-year and up 1% quarter-over-quarter.
Brand advertising revenues were US$25 million, down 32% year-over-year and up 5% quarter-over-quarter.
Online game revenues were US$157 million, up 4% year-over-year and flat quarter-over-quarter.
GAAP net income ^[2] attributable to Sohu.com Limited was US$9 million, compared with net income of US$22 million in the second quarter of 2021 and net income of US$3 million in the first quarter of 2022.
Non-GAAP ^[3] net income attributable to Sohu.com Limited was US$12 million, compared with net income of US$25million in the second quarter of 2021 and net income of US$9 million in the first quarter of 2022.

Dr. Charles Zhang , Chairman and CEO of Sohu.com Limited, commented, "In the second quarter of 2022, COVID-19 and related prevention measures disrupted normal economic activity nationwide. We met the challenge proactively, by refining our products and technology and exploring a range of monetization opportunities. Our brand advertising revenue met the high end of our previous guidance during the quarter. Thanks to the solid performance of our online game business, our profitability exceeded guidance. For Sohu Media Portal and Sohu Video, we continued to generate and distribute reliable news and premium content, reinforcing our competitiveness and credibility as a mainstream media platform. Leveraging the differentiated advantages of the Sohu product matrix, we extended our live broadcasting to a greater number of scientific fields and to various online and offline events. For online games, our performance was stable during the quarter, with revenues in line with our guidance."

Second Quarter Financial Results

Revenues

Total revenues were US$195 million , down 5% year-over-year and up 1% quarter-over-quarter.

Brand advertising revenues were US$25 million, down 32% year-over-year and up 5% quarter-over-quarter.

Online game revenues were US$157 million, up 4% year-over-year and flat quarter-over-quarter.

Gross Margin

Both GAAP and non-GAAP gross margin were 73%, compared with 76% in the second quarter of 2021 and 75% in the first quarter of 2022.

GAAP gross margin for the brand advertising business was 4%, compared with 27% in the second quarter of 2021 and 2% in the first quarter of 2022. Non-GAAP gross margin for the brand advertising business was 4%, compared with 28% in the second quarter of 2021 and 2% in the first quarter of 2022. The margin decrease was mainly due to the decrease in brand advertising revenues.

Both GAAP and non-GAAP gross margin for online games were 84%, compared with 89% in the second quarter of 2021 and 86% in the first quarter of 2022.

Operating Expenses

GAAP operating expenses were US$132 million, up 1% year-over-year and flat quarter-over-quarter. Non-GAAP operating expenses were US$130 million, up 2% year-over-year and flat quarter-over-quarter.

O perating Profit

GAAP operating profit was US$10 million, compared with an operating profit of US$25 million in the second quarter of 2021 and an operating profit of US$13 million in the first quarter of 2022.

Non-GAAP operating profit was US$11 million, compared with an operating profit of US$28 million in the second quarter of 2021 and an operating profit of US$14 million in the first quarter of 2022.

Income Tax Expense

GAAP income tax expense was US$17 million, compared with income tax expense of US$11 million in the second quarter of 2021 and income tax expense of US$17 million in the first quarter of 2022. Non-GAAP income tax expense was US$16 million , compared with income tax expense of US$9 million in the second quarter of 2021 and income tax expense of US$17 million in the first quarter of 2022. Income tax expense in the second quarter of 2021 included a one-time tax benefit of US$9 million recognized after final settlement of income tax due for 2020.

Net Income

GAAP net income attributable to Sohu.com Limited was US$9 million, or net income of US$0 .25 per fully-diluted ADS, compared with net income of US$22 million in the second quarter of 2021 and net income of US$3 million in the first quarter of 2022.

Non-GAAP net income attributable to Sohu.com Limited was US$12 million, or net income of US$0 .36 per fully-diluted ADS, compared with net income of US$25 million in the second quarter of 2021 and net income of US$9 million in the first quarter of 2022.

Liquidity and Capital Resources

As of June 30, 2022 , cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.46 billion .

Supplementary Information for Changyou Results ^[4]

Second Quarter 2022 Operating Results

For PC games, total average monthly active user accounts ^{^[5]} (MAU) were 2.3 million, an increase of 7% year-over-year and 13% quarter-over-quarter. Total quarterly aggregate active paying accounts ^{^[6]} (APA) were 1.0 million, an increase of 15% year-over-year and 6% quarter-over-quarter. The increases in both MAU and APA were mainly from TLBB Vintage, which was launched on the WeGame platform during the quarter.
For mobile games, total average MAU were 2.0 million, an increase of 7% year-over-year and a decrease of 14% quarter-over-quarter. The year-over-year increase was mainly from games launched during recent quarters, including Little Raccoon: Heroes and Bright Stars. The quarter-over-quarter decrease mainly resulted from the natural decline of Bright Stars. Total quarterly APA were 0.4 million, a decrease of 13% year-over-year and 20% quarter-over-quarter. The year-over-year decrease was mainly due to the natural decline of older games, including TLBB Honor and Legacy TLBB Mobile. The quarter-over-quarter decrease was mainly from Bright Stars.

Second Quarter 2022 Unaudited Financial Results

Total revenues were US$159 million , an increase of 3% year-over-year and flat quarter-over-quarter. Online game revenues were US$157 million , an increase of 4% year-over-year and flat quarter-over-quarter. Online advertising revenues were US$2 million , a decrease of 30% year-over-year and 2% quarter-over-quarter.

GAAP and non-GAAP gross profit were both US$133 million , a decrease of 2% year-over-year and 3% quarter-over-quarter.

GAAP operating expenses were US$49 million , a decrease of 23% year-over-year and 10% quarter-over-quarter. Non-GAAP operating expenses were US$48 million , a decrease of 23% year-over-year and 10% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in marketing and promotional spending for online games, as well as a decrease in bonus expenses. The quarter-over-quarter decrease was mainly due to a decrease in outsourcing and licensing fees related to product development.

GAAP operating profit was US$84 million , compared with an operating profit of US$73 million for the second quarter of 2021 and US$83 million for the first quarter of 2022.

Non-GAAP operating profit was US$85 million , compared with a non-GAAP operating profit of US$75 million for the second quarter of 2021 and US$85 million for the first quarter of 2022.

Business Outlook

For the third quarter of 2022, Sohu estimates:

Brand advertising revenues to be between US$25 million and US$28 million ; this implies an annual decrease of 17% to 26%, and a sequential increase of nil to 12%.
Online game revenues to be between US$138 million and US$148 million ; this implies an annual decrease of 11% to 17%, and a sequential decrease of 6% to 12%.
Non-GAAP net loss attributable to Sohu.com Limited to be between US$35 million and US$25 million ; and GAAP net loss attributable to Sohu.com Limited to be between US$38 million and US$28 million.

For the third quarter 2022 guidance, the Company has adopted a presumed exchange rate of RMB6.75 = US$1.00 , as compared with the actual exchange rate of approximately RMB6.47 = US$1.00 for the third quarter of 2021, and RMB6.61 = US$1.00 for the second quarter of 2022.

This forecast reflects Sohu's management's current and preliminary view, which is subject to substantial uncertainty, particularly in view of the potential ongoing impact of the worldwide COVID-19 pandemic, which remains difficult to predict.

Non-GAAP Disclosure

To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Sohu's management uses non-GAAP measures of gross profit, operating profit, net income, net income attributable to Sohu.com Limited and diluted net income attributable to Sohu.com Limited per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; an impairment charge recognized for an investment unrelated to the Company's core businesses; and interest expense recognized in connection with the Toll Charge imposed by the U.S. TCJA. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

Sohu's management believes excluding share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; the impairment charge recognized for an investment unrelated to the Company's core businesses; and interest expense recognized in connection with the Toll Charge from its non-GAAP financial measure is useful for itself and investors. Further, the impact of share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; the impairment charge recognized for an investment unrelated to the Company's core businesses; and interest expense recognized in connection with the Toll Charge cannot be anticipated by management and business line leaders and these expenses were not built into the annual budgets and quarterly forecasts that have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As the impact of share-based compensation expense, changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values, and the impairment charge recognized for an investment unrelated to the Company's core businesses does not involve subsequent cash outflow or is reflected in the cash flows at the equity transaction level, Sohu does not factor this impact in when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, in general, the monthly financial results for internal reporting and any performance measures for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense, changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values, and the impairment charge recognized for an investment unrelated to the Company's core businesses, and also excluded the interest expense recognized in connection with the Toll Charge.

The non-GAAP financial measures are provided to enhance investors' overall understanding of Sohu's current financial performance and prospects for the future. A limitation of using non-GAAP gross profit, operating profit, net income, net income attributable to Sohu.com Limited and diluted net income attributable to Sohu.com Limited per ADS excluding share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; and interest expense recognized in connection with the Toll Charge is that these excluded items have been and will continue to be significant recurring expenses in Sohu's business for the foreseeable future and similar impairment charges may also recur. In order to mitigate these limitations Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between the GAAP financial measures that are most directly comparable to the non-GAAP financial measures that have been presented.

Notes to Financial Information

Financial information in this press release other than the information indicated as being non-GAAP is derived from Sohu's unaudited financial statements prepared in accordance with GAAP.

Safe Harbor Statement

This announcement contains forward-looking statements. It is currently expected that the Business Outlook will not be updated until release of Sohu's next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason. Statements that are not historical facts, including statements about Sohu's beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, instability in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations, including their potential impact on the Chinese economy and on Sohu's reported U.S. dollar results; recent slow-downs in the growth of the Chinese economy; the uncertain regulatory landscape in the People's Republic of China ; fluctuations in Sohu's quarterly operating results; the possibilities that Sohu will be unable to recoup its investment in video content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; Sohu's reliance on online advertising sales and online games for its revenues; the impact of the U.S. TCJA; the effects of the COVID-19 pandemic on the economy in China in general and on Sohu's business in particular; and the possibility that, unless an accommodation is reached between the SEC and the China Securities Regulatory Commission, the U.S. Holding Foreign Companies Accountable Act and rules of the SEC thereunder may cause the SEC to prohibit trading of Sohu's ADSs on Nasdaq, any other U.S. stock exchange, or the U.S. over-the-counter markets beginning in 2024 or, if currently pending legislation becomes law, 2023. Further information regarding these and other risks is included in Sohu's annual report on Form 20-F for the year ended December 31, 2021 , and other filings with and information furnished to the Securities and Exchange Commission.

Conference Call and Webcast

Sohu's management team will host a conference call at 7:30 a.m. U.S. Eastern Time, August 8, 2022 (7:30 p.m. Beijing / Hong Kong time, August 8, 2022 ) following the quarterly results announcement. Participants can register for the conference call by clicking here , which will lead them to the conference registration website. Upon registration, participants will receive details for the conference call, including the dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu's Website at https://investors.sohu.com/ .

About Sohu.com

Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang , one of China's internet pioneers, in the 1990s. As a mainstream media platform in China , Sohu is indispensable to the daily life of millions of Chinese, providing a network of web properties and community based products which continually offer a broad array of choices regarding information, entertainment and communication to the vast number of Sohu users. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of the leading online media destinations Sohu News App, mobile news portal m.sohu.com , PC portal www.sohu.com ; online video website tv.sohu.com ; and the online games platform www.changyou.com/en/ .

Sohu provides online brand advertising services as well as multiple news, information and content services on its matrix of websites and also on its mobile platforms. Sohu's online game business, conducted by its subsidiary Changyou, develops and operates a diverse portfolio of PC and mobile games, such as Tian Long Ba Bu ("TLBB"), one of the most popular PC games in China . Changyou also owns and operates the 17173.com Website, a game information portal in China .

For investor and media inquiries, please contact:

In China :

Ms. Pu Huang
Sohu.com Limited
Tel:	+86 (10) 627 2 -6645
E-mail:	ir@contact.sohu.com

In the United States :

Ms. Linda Bergkamp
Christensen
Tel:	+1 (480) 614-3004
E-mail:	lbergkamp@christensenir.com

^{[1] On a constant currency (non-GAAP) basis, if the exchange rate in the second quarter of 2022 had been the same as it was in the second quarter of 2021, or RMB6.46 = US$1.00 , US$ total revenues in the second quarter of 2022 would have been US$199 million , or US$4 million more than GAAP total revenues, and down 3% year-over-year.}^{[2] Following the completion on September 23, 2021 of the transaction with Tencent related to Sogou, Sohu no longer has any ownership interest in Sogou. Unless indicated otherwise, results presented in this release exclude results from Sogou operations. For historical statements, the results of operations of Sogou and the gain from its disposal are presented in separate line items as discontinued operations.}
^{[3] Non-GAAP results exclude share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to equity investments with readily determinable fair values; an impairment charge recognized for an investment unrelated to the Company's core businesses; and interest expense recognized in connection with the one-time transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017 (the "U.S. TCJA"). Explanation of the Company's non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures."}
^{[4] "Changyou Results" consist of the results of Changyou's online game business and its 17173.com Website.}
^{[5] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month.}
^{[6] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter.}

SOHU.COM LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

		Three Months Ended
		Jun. 30, 2022		Mar. 31, 2022		Jun. 30, 2021
Revenues:
Brand advertising	$	24,923	$	23,770	$	36,840
Online games		157,294		157,854		151,272
Others		12,563		11,794		16,290
Total revenues		194,780		193,418		204,402

Cost of revenues:
Brand advertising (includes share-based compensation expense of $14, $23, and $90, respectively)		23,964		23,413		26,770
Online games (includes share-based compensation expense of $42, $41, and $78, respectively)		25,691		21,971		17,026
Others		3,345		3,725		5,518
Total cost of revenues		53,000		49,109		49,314

Gross profit		141,780		144,309		155,088

Operating expenses:
Product development (includes share-based compensation expense of $589, $607, and $1,228, respectively)		65,098		63,839		65,254
Sales and marketing (includes share-based compensation expense of $33, $58, and $212, respectively)		53,359		51,707		45,560
General and administrative (includes share-based compensation expense of $708, $834, and $1,658, respectively)		13,229		16,092		19,493
Total operating expenses		131,686		131,638		130,307

Operating profit		10,094		12,671		24,781

Other income, net		7,235		4,879		7,509
Interest income		3,720		2,593		4,221
Interest expense		-		-		(2,488)
Exchange difference		4,943		(477)		(1,325)
Income before income tax expense		25,992		19,666		32,698

Income tax expense		17,323		16,997		10,847
Net income from continuing operations		8,669		2,669		21,851
Net income from discontinued operations, net of tax ^[7]		-		-		55,882
Net income		8,669		2,669		77,733

Less: Net income from continuing operations attributable to the noncontrolling interest shareholders		1		3		-
Less: Net income from discontinued operations attributable to the noncontrolling interest shareholders		-		-		36,994

Net income from continuing operations attributable to Sohu.com Limited		8,668		2,666		21,851
Net income from discontinued operations attributable to Sohu.com Limited		-		-		18,888
Net income attributable to Sohu.com Limited		8,668		2,666		40,739

Basic net income from continuing operations per share/ADS attributable to Sohu.com Limited ^[8]	$	0.25		0.07	$	0.55
Basic net income from discontinued operations per share/ADS attributable to Sohu.com Limited	$	-		-	$	0.48
Basic net income per share/ADS attributable to Sohu.com Limited	$	0.25	$	0.07	$	1.03
Shares/ADSs used in computing basic net income per share/ADS attributable to Sohu.com Limited		34,535		36,802		39,509

Diluted net income from continuing operations per share/ADS attributable to Sohu.com Limited	$	0.25		0.07	$	0.55
Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited	$	-		-	$	0.48
Diluted net income per share/ADS attributable to Sohu.com Limited	$	0.25	$	0.07	$	1.03
Shares/ADSs used in computing diluted net income per share/ADS attributable to Sohu.com Limited		34,535		36,802		39,509


^[7] Following the completion on September 23, 2021 of the transaction with Tencent related to Sogou, Sohu no longer has any ownership interest in Sogou. Unless indicated otherwise, results presented in this release exclude results from Sogou operations. For historical statements, the results of operations of Sogou and the gain from its disposal are presented in separate line items as discontinued operations.
^[8] Each ADS represents one ordinary share.

SOHU.COM LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)

		As of Jun. 30, 2022		As of Dec. 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	394,421	$	998,949
Restricted cash		3,398		1,969
Short-term investments		795,557		399,345
Accounts receivable, net		79,762		82,550
Prepaid and other current assets		109,606		107,311
Total current assets		1,382,744		1,590,124
Fixed assets, net		304,124		329,997
Goodwill		47,985		48,811
Long-term investments, net		43,857		53,121
Intangible assets, net		6,948		9,136
Long-term time deposits		271,980		189,007
Other assets		21,677		25,589
Total assets	$	2,079,315	$	2,245,785

LIABILITIES
Current liabilities:
Accounts payable	$	79,315	$	87,447
Accrued liabilities		128,032		138,196
Receipts in advance and deferred revenue		52,054		57,041
Accrued salary and benefits		57,056		91,485
Taxes payables		12,249		16,714
Other short-term liabilities		118,153		112,568
Total current liabilities	$	446,859	$	503,451

Long-term other payables		5,484		3,922
Long-term tax liabilities		443,701		443,083
Other long-term liabilities		1,898		3,142
Total long-term liabilities	$	451,083	$	450,147
Total liabilities	$	897,942	$	953,598


SHAREHOLDERS' EQUITY:
Sohu.com Limited shareholders' equity		1,180,051		1,290,869
Noncontrolling interest		1,322		1,318
Total shareholders' equity	$	1,181,373	$	1,292,187

Total liabilities and shareholders' equity	$	2,079,315	$	2,245,785

SOHU.COM LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

		Three Months Ended Jun. 30, 2022						Three Months Ended Mar. 31, 2022						Three Months Ended Jun. 30, 2021
		GAAP		Non-GAAP Adjustments		Non-GAAP		GAAP		Non-GAAP Adjustments		Non-GAAP		GAAP		Non-GAAP Adjustments		Non-GAAP

				14	(a)					23	(a)					90	(a)
Brand advertising gross profit	$	959	$	14	$	973	$	357	$	23	$	380	$	10,070	$	90	$	10,160
Brand advertising gross margin		4 %				4 %		2 %				2 %		27 %				28 %

				42	(a)					41	(a)					78	(a)
Online games gross profit	$	131,603	$	42	$	131,645	$	135,883	$	41	$	135,924	$	134,246	$	78	$	134,324
Online games gross margin		84 %				84 %		86 %				86 %		89 %				89 %

				-	(a)					-	(a)					-	(a)
Others gross profit	$	9,218	$	-	$	9,218	$	8,069	$	-	$	8,069	$	10,772	$	-	$	10,772
Others gross margin		73 %				73 %		68 %				68 %		66 %				66 %

				56	(a)					64	(a)					168	(a)
Gross profit	$	141,780	$	56	$	141,836	$	144,309	$	64	$	144,373	$	155,088	$	168	$	155,256
Gross margin		73 %				73 %		75 %				75 %		76 %				76 %


Operating expenses	$	131,686	$	(1,330)	(a) $	130,356	$	131,638	$	(1,499)	(a) $	130,139	$	130,307	$	(3,098)	(a) $	127,209

				1,386	(a)					1,563	(a)					3,266	(a)
Operating profit	$	10,094	$	1,386	$	11,480	$	12,671	$	1,563	$	14,234	$	24,781	$	3,266	$	28,047
Operating margin		5 %				6 %		7 %				7 %		12 %				14 %

Income tax expense	$	17,323	$	(1,405)	(b,c)$	15,918	$	16,997	$	125	(b,c)$	17,122	$	10,847	$	(1,755)	(b,c)$	9,092

				1,386	(a)					1,563	(a)					3,266	(a)
				734	(b)					4,010	(b)					(1,673)	(b)
				1,649	(c)					1,213	(c)					1,198	(c)
				-	(d)					-	(d)					156	(d)
Net income before non-controlling interest	$	8,669	$	3,769	$	12,438	$	2,669	$	6,786	$	9,455	$	21,851	$	2,947	$	24,798

				1,386	(a)					1,563	(a)					3,266	(a)
				734	(b)					4,010	(b)					(1,673)	(b)
				1,649	(c)					1,213	(c)					1,198	(c)
				-	(d)					-	(d)					156	(d)
Net income from continuing operations attributable to Sohu.com Limited for diluted net income per share/ADS	$	8,668	$	3,769	$	12,437	$	2,666	$	6,786	$	9,452	$	21,851	$	2,947	$	24,798
Net income from discontinued operations attributable to Sohu.com Limited for diluted net income per share/ADS ^[9]	$	-	$	-	$	-	$	-	$	-	$	-	$	18,776	$	493	$	19,269
Net income attributable to Sohu.com Limited for diluted net income per share/ADS	$	8,668	$	3,769	$	12,437	$	2,666	$	6,786	$	9,452	$	40,627	$	3,440	$	44,067
Diluted net income from continuing operations per share/ADS attributable to Sohu.com Limited	$	0.25			$	0.36	$	0.07			$	0.26	$	0.55			$	0.63
Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited	$	-			$	-	$	-			$	-	$	0.48			$	0.49
Diluted net income per share/ADS attributable to Sohu.com Limited	$	0.25			$	0.36	$	0.07			$	0.26	$	1.03			$	1.12
Shares/ADSs used in computing diluted net income per share/ADS attributable to Sohu.com Limited		34,535				34,535		36,802				36,802		39,509				39,509


Note:
(a) To eliminate the impact of share-based awards.
(b) To adjust for changes in the fair value of the Company's investments.
(c) To adjust for the effect of the Toll Charge.
(d) To adjust for an impairment charge recognized for an investment unrelated to the Company's core businesses
^[9] Following the completion on September 23, 2021 of the transaction with Tencent related to Sogou, Sohu no longer has any ownership interest in Sogou. Unless indicated otherwise, results presented in this release exclude results from Sogou operations. For historical statements, the results of operations of Sogou and the gain from its disposal are presented in separate line items as discontinued operations.

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NorthStar Gaming Announces Revocation of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") is pleased to announce that effective May 16, 2025, the Ontario Securities Commission has revoked the temporary management cease trade order ("MCTO") it had previously granted to the Company on May 8, 2025 under National Policy 12-203 Management Cease Trade Orders, as the Company successfully completed the filing of its annual audited financial statements, management's discussion and analysis, and related certifications for the year ended December 31, 2024 (collectively, the "Annual Filings") on May 14, 2025.

The revocation of the MCTO means members of management are no longer prevented from trading the Company's securities. All of the Annual Filings are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

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NorthStar Gaming Reports Year-End 2024 Results

Annual Revenue Growth of 57%, Gross Margin up 91%

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three months and year ended December 31, 2024. The Company also announced that it will discuss the results on an investor webinar to be held Thursday, May 15, 2025 at 11:00am (please see below for details). All dollar figures are quoted in Canadian dollars.

"We delivered strong financial results in 2024, highlighted by 57% growth in revenue and a 91% increase in gross margin. At the same time, we held marketing expense to a 10% increase and reduced G&A expense, demonstrating the continually improving operating leverage built into our business model," said Michael Moskowitz, Chair and CEO of NorthStar. "Equally important, our team rolled out innovations in both our sportsbook and casino that have further differentiated NorthStar Bets as a premium offering and helped drive the retention of, and engagement with, our loyal customers."

Restatement of Results

The comparative results for the three months and twelve months ended December 31, 2023 have been restated in the financial statements and management's discussion & analysis ("FY2024 MD&A") for the year ended December 31, 2024 to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements (note 2 of the Financial Statements for the year ended December 31, 2024). The Company's payment processor deducted the additional merchant fee from the daily remittances to the Company, and the deductions were not accounted for by the Company. These additional fees were identified as part of the year-end reconciliation of the amount due from the payment processor, and the financial statements and FY2024 MD&A have been adjusted accordingly. These restatements did not impact the cash balances reported for the years ended December 31, 2022, 2023, or 2024. However, they did result in adjustments to the reported current asset balances for those periods.

Financial Highlights for the Fourth Quarter Ended December 31, 2024 ("Q4 2024"):

Total Wagers¹ at Northstarbets.ca were $303.0 million in Q4 2024, a 42% increase compared to $213.3 million in Q4 2023.
Gross Gaming Revenue² at Northstarbets.ca was $10.0 million in Q4 2024, a 31.6% increase from $7.6 million in Q4 2023.
Revenue² was $9.5 million in Q4 2024, a 51% increase from $6.3 million in Q4 2023. Revenue in Q4 2024 includes $1.5 million of managed services revenue, which compares to $0.2 million in Q4 2023.
Gross Margin was $3.6 million, a 71% increase from $2.1 million in Q4 2023, while the Gross Margin percentage increased to 38.1%, up from 33.6% in Q4 2023.
Profit/(loss) before marketing and other expenses¹ was $0.6 million in Q4 2024 compared to a loss of $2.5 million in Q4 2023, indicating that gross margin is now sufficient to cover the Company's overhead expenses.

Financial Highlights for the Year Ended December 31, 2024 ("FY 2024"):

Total Wagers² at Northstarbets.ca were $980.0 million in FY 2024, a 51% increase compared to $648.8 million in the year ended December 31, 2023.
Gross Gaming Revenue² at Northstarbets.ca was $34.0 million in FY 2024, a 51% increase from $22.5 million in FY 2023.
Revenue² was $29.6 million in FY 2024, a 57% increase from $18.8 million in FY 2023. Revenue in FY 2024 includes $2.3 million of managed services revenue, which compares to $0.5 million in FY 2023.³
Gross Margin was $10.5 million, marking a 91% increase from $5.5 million in FY 2023, with the Gross Margin increasing to 35.7%, up from 29.3% in FY 2023.
Profit/(loss) before marketing and other expenses¹ was $0.1 million in FY 2024 compared to a loss of $6.7 million in YTD 2023, an improvement of $6.8 million.

"Early in 2025, we completed our most significant fund-raising to date, with a $43.4 million debt financing. This capital gives us a long runway on which to continue our trajectory of growth in wagering, gross margins and improving operating leverage. This was a milestone event for our business," added Mr. Moskowitz.

2024 Operating Highlights:

Completed the inaugural Blackjack Championship tournament, an innovative online competition that helped drive the acquisition of new high-value players and engagement for existing customers while increasing Blackjack wagering activity.
Implemented a series of enhancements to the NorthStar Bets platform, highlighted by streamlined navigation in both the Casino and Sportsbook sections, a doubling of Casino game selection since the start of 2024, personalized prop bets and intelligent parlay suggestions.
Introduced the "NorthStar Elite" program and branded tables to help secure the loyalty and satisfaction of our most active players and reinforcing the Company's positioning as a premium offering.
Launched "Sports Insights 2.0," a robust suite of enhancements to our content vertical that includes a redesigned home page, comprehensive team and player statistics, injury and player news feeds, added coverage of popular sports and strengthened casino content.
Gained significant traction outside the Ontario market with managed services revenue from Northstarbets.com site, owned by the Abenaki Council of Wolinak, increasing from $0.5 million in FY 2023 to $2.3 million in FY 2024.
Outpaced the industry growth rates reported by iGaming Ontario in 2024 in both Total Wagers (51% for NorthStar vs. 33% for the industry) and Gross Gaming Revenue (51% for NorthStar vs. 31.5% for the industry).

Outlook

"We expect our consistent pattern of year-over-year revenue increases to continue throughout 2025, based on our ongoing success in attracting and engaging high-value players," said Mr. Moskowitz. "We will maintain disciplined control over costs so that incremental gross margin falls primarily to the bottom line. As we continue to focus on operational excellence, we remain confident that we have the capital necessary to reach profitability based on our current business platform."

FY 2024 Corporate Update Webinar

On May 15, 2025, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's FY 2024 Earnings, current operations and strategic priorities. All investors and other interested parties are invited to register for the webinar at the link below.

Date: Thursday, May 15, 2025
Time: 11:00 am EDT
Register: Webinar Registration

Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.

Extension of Strategic Marketing Agreement

The Company also announced that its wholly owned subsidiary, NorthStar Gaming (Ontario) Inc. ("NorthStar Ontario"), has extended its strategic partnership with Playtech Software Limited ("Playtech Software") through the renewal of their previously announced strategic marketing agreement. Under the agreement, Playtech Software contributes services designed to accelerate NorthStar Ontario's player acquisition strategy in the province. The agreement was first implemented in June 2023 and has since been renewed several times. Pursuant to the latest renewal, Playtech Software will reimburse marketing expenses valued at a total of up to $1.5 million over a 3-month period through to March 31, 2025. Playtech Software will be compensated through a share of revenue from the income generated in connection with the marketing initiatives to which it contributes. The Transaction between Playtech and NorthStar Ontario is exempted from Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions.

"We are very pleased to renew the marketing services agreement with Playtech Software," said Michael Moskowitz, Chair and CEO of NorthStar. "The agreement serves to extend our marketing budget and has contributed to our tremendous growth in Ontario. Playtech plc continues to be a valuable strategic partner and we look forward to further collaboration."

Continuous Disclosure

Further to a review by the staff of the Ontario Securities Commission (the "OSC") of the Company's continuous disclosure, the FY2024 MD&A includes enhanced disclosures with respect to:

the Company's regulatory framework, licensing regimes applicable to its business operations and the legal authorizations necessary to conduct its business operations;
specific risk factors relating to the Company's business operations which include risks relating to operating in a heavily regulated industry, cyber security risks and risks relating to conflicts of interest with respect to directors and officers of the Company; and
the relationship between the Abenaki Council of Wolinak and the Company as well as its subsidiary, Slapshot Media Inc.

Such amended disclosure is being included in the FY2024 MD&A to address comments received from the OSC on its management's discussion & analysis, for the period ended September 30, 2024, and to improve the Company's disclosure.

As a result of having to include such enhanced disclosure after the OSC review, the Company will be placed on the public list of Refilings and Errors in accordance with OSC Staff Notice 51-711 (Revised) - Refilings and Corrections of Errors for a period of three (3) years.

Additional Information

For additional information, please refer to the Company's condensed consolidated financial statements for the year ended December 31, 2024, and the corresponding FY2024 MD&A. These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.

About NorthStar

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-IFRS Financial Measures [/ Reconciliation of Non-IFRS Measures to IFRS Measures]

Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" "Total Wagers" and "Profit/(Loss) before marketing and other expenses" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.

Total Wagers

Total Wagers are calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.

Gross Gaming Revenue

Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

Reconciliation of Non-IFRS Measures to IFRS Measures

In Q4 2024, the Company reported $10.0 million of Gross Gaming Revenue ($34.0 million in FY 2024) and has provided a reconciliation to the most comparable IFRS financial measure (Revenue) as follows: $ Millions (unaudited)	Unaudited Three months ended		Year ended
	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Gross gaming revenue from wagered games	$10.0	$ 7.6	$ 34.0	$22.5
Bonuses, promotional costs and free bets	(2.0)	(1.5)	(6.7)	(4.2)
Sub-total Gaming revenue	8.0	6.1	27.3	18.3
Other revenue from managed services	1.5	0.2	2.3	0.5
Revenue	$ 9.5	$ 6.3	$ 29.6	$ 18.8

Operating Results

Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.

$ Millions (unaudited)	Unaudited Three months ended		Year ended
$ Millions (unaudited)	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Revenue	$ 9,478	$ 6,275	$ 29,556	$ 18,845
Cost of Revenues	5,868	4,167	19,013	13,317
Gross Margin	3,610	2,108	10,543	5,528
General and administrative expenses	3,033	4,452	10,453	12,277
Profit/(Loss) before marketing and other expenses (1)	577	(2,344)	90	(6,749)
Marketing	5,249	5,472	15,456	14,094
Loss before other expenses (1)	(4,672)	(7,816)	(15,366)	(20,843)
Other expenses	(1,070)	149	3,645	6,547
Net loss	$ (3,602)	$ (7,965)	$ (19,011)	$ (27,390)

(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.

Cautionary Note Regarding Forward-Looking Information and Statements

This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities, and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Company Contact:

Corey Goodman
Chief Development Officer 647-530-2387
investorrelations@northstargaming.ca

Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com

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NorthStar Gaming Announces Receipt of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces that its principal regulator, the Ontario Securities Commission, has granted its request for a management cease trade order ("MCTO") effective May 8, 2025.

As previously announced on April 29, 2025, the Company applied for the MCTO due to a delay in filing its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (the "Annual Filings") which were required to be filed by April 30, 2025.

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NorthStar Gaming Announces Delay of Annual Filings

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces an anticipated delay in the filing of its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (collectively, the "Annual Filings"). The Company does not expect to file its Annual Filings by the regular filing deadline of April 30, 2025, as required, due to an unanticipated delay relating to the audit of the Annual Filings. The Company is working diligently with its auditor to finalize the Annual Filings and expects to file the Annual Filings no later than May 15, 2025.

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Investor Insight

Overview

Financial Performance

Company Highlights

Key Brands

NorthStarBets.ca

NorthStarBets.com

Management Team

Michael Moskowitz – CEO and Chairman

Corey Goodman – Chief Development Officer, Counsel and Corporate Secretary

Chin Dhushenthen – Chief Financial Officer

Barry Shafran – Lead Director

Vic Bertrand – Director

Brian Cooper – Director

Sylvia Prentice – Director

Dean MacDonald – Director

Chris McGinnis – Director

Alex Latner – Director, General Counsel, Playtech

Mike Cormack – Head of Content & Integrations

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