BEIJING,Feb. 18,2025 -- Sohu.com Limited (NASDAQ: SOHU) ("Sohu" or the "Company"),a leading Chinese online media platform and game business group,today reported unaudited financial results for the fourthquarter and fiscal year ended December 31,2024.

FourthQuarter Highlights

Total revenues were US$135 million,down 5% year-over-year and 11% quarter-over-quarter.

Brand advertising revenues were US$19million,down 7% year-over-year and up 1% quarter-over-quarter.

Online game revenues were US$110million,down 4% year-over-year and 14% quarter-over-quarter.

GAAP net loss attributable to Sohu.com Limited was US$21 million,compared with a net loss of US$13million in the fourthquarter of 2023and a net loss of US$16 million in the thirdquarter of 2024.

Non-GAAP[1] net loss attributable to Sohu.com Limited was US$15 million,compared with a net loss of US$11million in the fourthquarter of 2023and a net loss of US$12 million in the third quarter of 2024.

Fiscal Year 2024 Highlights[2]

Total revenues were US$598 million,flat compared with 2023.

Brand advertising revenues were US$73 million,down 17% compared with 2023.

Online game revenues were US$502 million,up 5% compared with 2023.

GAAP net loss attributable to Sohu.com Limited was US$100 million,compared with a net loss of US$66 million in 2023.

Non-GAAP net loss attributable to Sohu.com Limited was US$83 million,compared witha net lossof US$51 million in 2023.

Dr. Charles Zhang,Chairman and CEO of Sohu.com Limited,commented,"In the fourth quarter of 2024,our brand advertising revenues hit the high end of our previous guidance,while both our online game revenues and bottom line performance were much better than expected. For Sohu media platform,we continued to refine our products,optimized algorithms,and strictly controlled budgets. By integrating the advantages of the Sohu product matrix with our unique IPs and high energy events,we were able to promote the generation and social distribution of premium content,effectively enhance user experience to attract more users,and further unlock monetization potential. The online games business delivered solid performance,thanks to relentless efforts to produce high-quality new games and revitalize legacy games."

Fourth Quarter Financial Results

Revenues

Total revenues were US$135 million,down7% year-over-year and up 1%quarter-over-quarter.

Online game revenues were US$110million,down 4% year-over-year and 14% quarter-over-quarter.

Gross Margin

Both GAAP and non-GAAP gross margin were 73%,compared with 76% in the fourthquarter of 2023and 74% in the thirdquarter of 2024.

Both GAAP and non-GAAP gross margin for the brand advertising business were 6%,compared with 16%in the fourthquarter of 2023and 9% in the third quarter of 2024.

Both GAAP and non-GAAP gross margin for online games were 83%,compared with 87% in the fourthquarter of 2023 and 84% in the thirdquarter of 2024.

Operating Expenses

Both GAAP and non-GAAPoperating expenses were US$123million,down 8% year-over-year and 2% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in Changyou's product development expenses.

Operating Loss

GAAP operating loss was US$25 million,compared with an operating loss of US$25 million in the fourth quarter of 2023 and an operating loss ofUS$13 million in the third quarter of 2024.

Non-GAAP operating loss wasUS$25million,compared withan operating loss of US$26 millionin the fourth quarter of 2023 and an operatingloss ofUS$13millioninthe third quarter of 2024.

Income Tax Expense

GAAP income tax expense was US$14million,compared withincome tax expense of US$14 million in the fourth quarter of 2023 andincome tax expense of US$15million in the third quarter of 2024.

Non-GAAP income tax expense was US$10 million,compared with income tax expense of US$10 million in the fourth quarter of 2023 andincome tax expense of US$11 million in the thirdquarter of 2024.

Net Loss

GAAP net loss attributable to Sohu.com Limited was US$21 million,ora net loss of US$0.69per fully-diluted American depositary share ("ADS," each ADS representing one Sohu ordinary share),compared witha net lossof US$13million in the fourth quarter of 2023 and a net loss of US$16millionin the thirdquarter of 2024.

Non-GAAP net loss attributable to Sohu.com Limited was US$15 million,or a net loss of US$0.49per fully-diluted ADS,compared with a net loss of US$11 million in thefourth quarter of 2023 and a net lossof US$12 million in the third quarter of 2024.

Liquidity and Capital Resources

As of December 31,2024,cash and cash equivalents,short-term investmentsand long-term time deposits totaled approximately US$1.2 billion.

Fiscal Year 2024Financial Results

Revenues

Total revenues were US$598 million,up 5% compared with 2023.

Gross Margin

Both GAAP and non-GAAP gross margin were 72%,compared with 76% in 2023.

Both GAAP and non-GAAP gross margin for the brand advertising business were 9%,compared with 20% in 2023.

Both GAAP and non-GAAP gross margin for online games were 82%,compared with 86% in 2023.

Operating Expenses

For 2024,both GAAP and non-GAAP operating expenses totaled US$542 million,flat compared with 2023.

Operating Loss

Both GAAP and non-GAAP operating loss were US$109 million,compared with an operating loss ofUS$87 million in 2023.

Income Tax Expense

GAAP income tax expense was US$52 million,compared with income tax expense of US$60 million in 2023.

Non-GAAP income tax expense was US$37 million,compared with income tax expense of US$48 million in 2023.

Net Loss

GAAP net loss attributable to Sohu.com Limited was US$100 million,or a net loss of US$3.13 per fully-diluted ADS,compared with a net lossof US$66 million in 2023.

Non-GAAP net loss attributable to Sohu.com Limited was US$83 million,or a net loss of US$2.60 per fully-diluted ADS,compared with anet lossof US$51 million in 2023.

Supplementary Information for Changyou Results[3]

Fourth Quarter 2024 Operating Results

For PC games,total average monthly active user accounts[4] (MAU) were 2.3 million,an increase of 2% year-over-year and 9% quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 1.0 million,an increase of 9% year-over-year and 14% quarter-over-quarter. The quarter-over-quarter increase in MAU,and the year-over-year and quarter-over-quarter increases in APA were mainly because the content updates that Changyou launched for TLBB PC during the quarter were well received by players.

For mobile games,total average MAU were 2.6 million,an increase of 53% year-over-year and a decrease of 20% quarter-over-quarter. Total quarterly APA were 0.4 million,an increase of 25% year-over-year and a decrease of 61% quarter-over-quarter. The year-over-year increases in MAU and APA were mainly from new games launched during recent quarters,including Journey Renewed: Fate Fantasy,which is the international version of New Westward Journey and was launched in Southeast Asia during the fourth quarter of 2024. The quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of New Westward Journey in the Chinese mainland market.

Fourth Quarter 2024 Unaudited Financial Results

Total revenueswere US$111 million,a decrease of 5% year-over-year and 14% quarter-over-quarter. Online game revenues were US$110 million,a decrease of 4% year-over-year and 14% quarter-over-quarter. Online advertising revenues were US$1 million,a decrease of 29% year-over-year and 8% quarter-over-quarter.

Both GAAP and non-GAAP gross profit were US$92 million,compared with US$100 million for the fourth quarter of 2023 and US$108 million for the third quarter of 2024.

GAAP operating expenseswere US$45 million,a decrease of 15% year-over-year and2% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in outsourcing and licensing fees related to product development.

Non-GAAP operating expenseswere US$44 million,a decrease of 17% year-over-year and 2% quarter-over-quarter.

GAAP operating profitwas US$48 million,compared with US$48 million for the fourth quarter of 2023 and US$62 million for the third quarter of 2024.

Non-GAAP operating profitwas US$48 million,compared with US$47 million for the fourth quarter of 2023 and US$62 million for the third quarter of 2024.

Fiscal Year 2024 Unaudited Financial Results

Total revenueswere US$506 million,an increase of 4% year-over-year. Online game revenues were US$502 million,an increase of 5% year-over-year. Online advertising revenues were US$4 million,a decrease of 25% year-over-year.

Both GAAP and non-GAAP gross profit were US$415 million,compared with US$418 million for 2023.

GAAP operating expenseswere US$219 million,an increase of 1% year-over-year.

Non-GAAP operating expenseswere US$219 million,an increase of 2% year-over-year.

GAAP operating profitwas US$196 million,compared with US$202 million for 2023.

Non-GAAP operating profitwas US$196 million,compared with US$203 million for 2023.

Recent Development

Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs,Sohu had repurchased 4,180,158 ADSs for an aggregate cost of approximately US$52 million as of February 13,2025.

Business Outlook

For the firstquarter of 2025,Sohu estimates:

Brand advertising revenues to be between US$13 million and US$14 million; this implies an annual decrease of 13% to 19%,and a sequential decrease of 26%to 31%.

Online game revenues to be between US$105million and US$115million; this implies an annual decrease of 2% to 11%,and a sequential decrease of 4%toa sequentialincrease of5%.

Non-GAAP net loss attributable to Sohu.com Limited to be between US$16millionand US$26million; and GAAP net loss attributable to Sohu.com Limited to be between US$20millionand US$30million.

For the firstquarter 2025 guidance,the Company has adopted a presumed exchange rate of RMB7.18=US$1.00,as compared with the actual exchange rate of approximately RMB7.10=US$1.00 for the firstquarter of 2024,and RMB7.15=US$1.00 for the fourthquarter of 2024.

This forecast reflects Sohu's management's current and preliminary view,which is subject to substantial uncertainty.

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/(loss),net income/(loss),net income/(loss) attributable to Sohu.com Limited and diluted net income/(loss) 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 the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; 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 the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; 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 the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; 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 share-based compensation expense,changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments,and the impact of income tax related to changes in the fair value of the Company's investments do not involve subsequent cash outflow or are reflected in the cash flows at the equity transaction level,Sohu does not factor in their impact 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,the impact of income tax related to changes in the fair value of the Company's investments,and 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,net income/(loss) attributable to Sohu.com Limited,and diluted net income/(loss) attributable to Sohu.com Limited per ADS excluding share-based compensation expense and interest expense recognized in connection with the Toll Charge is that share-based compensation expense and interest expense recognized in connection with the Toll Charge have been and can be expected to continue to be significant recurring expenses in Sohu's business. It is also possible that changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments,and the impact of income tax related to changes in the fair value of the Company's investments,will recur in the future. 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; 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; and the impact of the U.S. TCJA. Further information regarding these and other risks is included in Sohu's annual report on Form 20-F for the year ended December 31,2023,and other filings with and information furnished to the U.S. Securities and Exchange Commission.

Conference Call and Webcast

Sohu's management team will host a conference call at 4:30 a.m. U.S. Eastern Time,February 18,2025 (5:30p.m. Beijing/Hong Kong time,2025) following the quarterlyresults 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

Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang,one of China's internet pioneers,in the 1990s. Sohu operates one of the leading Chinese online media platforms and alsoengages in the online game business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties,consisting of Sohu News App,Sohu Video App,the mobile portal m.sohu.com,the PC portal www.sohu.com,and the online games platform www.changyou.com/en/.

As a mainstream media platform with social features,Sohu is indispensable to the daily life of millions of Chinese,providing to a vast number of users a network of web properties and community based products,which offer a broad array of content such as news,information,text,picture,video and live broadcasting. Sohu also attracts users to be highly engaged in content generation and distribution,and actively interact with each other on the platform. Sohu's online game business is conducted by its subsidiary Changyou which develops and operates a diverse portfolio of PC and mobile games,such as the well-known Tian Long Ba Bu ("TLBB") PC and Legacy TLBB Mobile.

For investor and media inquiries,please contact:

In China:

Ms.Huang,Pu

Sohu.com Limited

Tel: +86 (10) 6272-6645

E-mail: ir@contact.sohu.comIn the United States:Ms. Bergkamp,Linda

Christensen

Tel: +1 (480) 614-3004

E-mail: linda.bergkamp@christensencomms.com[1] Non-GAAP results exclude share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; 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."[2] The bankruptcy proceedings of Changyou's wholly-owned subsidiary Shanghai Jingmao Culture Communication Co.,Ltd. ("Shanghai Jingmao"),which operated Changyou's cinema advertising business,were concluded by a Chinese mainland bankruptcy court in the third quarter of 2023. The Company recognized a US$35 million disposal gain within discontinued operations in the condensed consolidated statements of operations for the third quarter of 2023. Unless indicated otherwise,results presented in this press release are related to continuing operations only,and exclude the disposal gain related to Shanghai Jingmao.[3] "Changyou Results" consist of the results of Changyou's online game business and its 17173.com Website.[4]Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month.[5]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 LIMITEDCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED,IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

Three Months Ended

Twelve Months Ended

Dec. 31,2024

Sep. 30,2024

Dec. 31,2023

Dec. 31,2023Revenues:

Brand advertising$18,865$18,677$20,195

$73,465$88,689Online games

109,859

127,721

114,759

502,389

479,697Others

5,960

5,594

6,405

22,545

32,286Total revenues

134,684

151,992

141,359

598,399

600,672

Cost of revenues:

Brand advertising (includes share-based compensation

expense of nil,nil,$1,and $7,respectively)

17,787

17,040

16,966

66,579

71,103Online games (includes share-based compensation

expense of nil,$-44,and $10,respectively)

18,133

20,292

15,123

88,495

65,029Others

1,113

2,283

1,733

10,759

9,625Total cost of revenues

37,033

39,615

33,822

165,833

145,757

Gross profit

97,651

112,377

107,537

432,566

454,915

Operating expenses:

Product development (includes share-based

compensation expense of nil,$6,$-572,$19,and $156,

respectively)

61,584

62,231

69,553

255,233

279,842Sales and marketing (includes share-based

compensation expense of $-1,$9,$4,$22,and $26,

respectively)

48,588

48,494

50,813

235,824

213,449General and administrative (includes share-based

compensation expense of $243,$29,$-393,$-72,and

$509,respectively)

12,672

14,692

12,450

50,910

48,934Total operating expenses

122,844

125,417

132,816

541,967

542,225

Operating loss

(25,193)

(13,040)

(25,279)

(109,401)

(87,310)

Other income,net

8,448

3,635

15,949

22,144

35,746Interest income

8,632

9,074

11,578

38,625

45,222Exchange difference

1,240

(988)

(823)

464

692Income/(loss) before income tax expense

(6,873)

(1,319)

1,425

(48,168)

(5,650)

Income tax expense14,387

15,028

14,044

52,070

60,420Net loss from continuing operations

(21,260)

(16,347)

(12,619)

(100,238)

(66,070)Net income from discontinued operations,net of tax [6]

-

-

-

-

35,426Net loss

(21,238)

(30,644)

Less: Net income/(loss) from continuing operations

attributable to the noncontrolling interest shareholders

31

-

(1)

31

(265)

Net loss from continuing operations attributable to

Sohu.com Limited

(21,291)

(16,618)

(100,269)

(65,805)Net income from discontinued operations attributable to

Sohu.com Limited

-

-

-

-

35,426Net loss attributable to Sohu.com Limited

(21,269)

(30,379)

Basic net loss from continuing operations per share/ADS

attributable to Sohu.com Limited [7]$(0.69)$(0.52)$(0.37)

(3.13)$(1.93)Basic net income from discontinued operations per

share/ADS attributable to Sohu.com Limited$-$-$-

-$1.04Basic net loss per share/ADS attributable to Sohu.com

Limited$(0.69)$(0.52)$(0.37)

(3.13)$(0.89)Shares/ADSs used in computing basic net income/(loss)

per share/ADS attributable to Sohu.com Limited

30,799

31,729

34,061

32,009

34,109

Diluted net loss from continuing operations per share/ADS

attributable to Sohu.com Limited$(0.69)$(0.52)$(0.37)

(3.13)$(1.93)Diluted net income from discontinued operations per

share/ADS attributable to Sohu.com Limited$-$-$-

-$1.04Diluted net loss per share/ADS attributable to Sohu.com

Limited$(0.69)$(0.52)$(0.37)

(3.13)$(0.89)Shares/ADSs used in computing diluted net income/(loss)

per share/ADS attributable to Sohu.com Limited

30,109

[6] See Footnote 2.

[7] Each ADS represents one ordinary share.

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

As of Dec. 31,2024

As of Dec. 31,2023ASSETS

Current assets:

Cash and cash equivalents$159,927$362,504Restricted cash

-

3,184Short-term investments

744,498

597,770Accounts receivable,net

53,762

71,618Prepaid and other current assets

83,575

81,971Total current assets

1,041,762

1,117,047Fixed assets,net

252,860

269,058Goodwill

46,944

47,163Long-term investments,net

43,120

45,198Intangible assets,net

7,695

2,226Long-term time deposits

331,290

388,613Other assets

10,995

12,793Total assets$1,734,666$1,882,098

LIABILITIES

Current liabilities:

Accounts payable$36,043$44,609Accrued liabilities

97,138

103,779Receipts in advance and deferred revenue

51,007

50,829Accrued salary and benefits

47,232

50,330Taxes payables

14,225

11,363Other short-term liabilities

76,322

81,482Total current liabilities$321,967$342,392

Long-term other payables

2,807

3,924Long-term tax liabilities

485,545

474,374Other long-term liabilities

1,659

2,130Total long-term liabilities$490,011$480,428Total liabilities$811,978$822,820

SHAREHOLDERS' EQUITY:

Sohu.com Limited shareholders' equity

922,335

1,058,956Noncontrolling interest

353

322Total shareholders' equity$922,688$1,059,278

Total liabilities and shareholders' equity$1,098SOHU.COM LIMITEDRECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES(UNAUDITED,IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

Three Months Ended Dec. 31,2024

Three Months Ended Sep. 30,2024

Three Months Ended Dec. 31,2023

GAAP

Non-GAAP

Adjustment

Non-GAAP

GAAP

Non-GAAP

Adjustment

Non-GAAP

GAAP

Non-GAAP

Adjustment

Non-GAAP

-(a)

-(a)

-(a)

Brand advertising gross profit$1,078$-$1,078$1,637$-$1,637$3,229$-$3,229Brand advertising gross margin

6%

6%

9%

9%

16%

16%

-(a)

-(a)

(44)(a)

Online games gross profit$91,726$-$91,726$107,429$-$107,429$99,636$(44)$99,592Online games gross margin

83%

83%

84%

84%

87%

87%

-(a)

-(a)

-(a)

Others gross profit$4,847$-$4,847$3,311$-$3,311$4,672$-$4,672Others gross margin

81%

81%

59%

59%

73%

73%

-(a)

-(a)

(44)(a)

Gross profit$97,651$-$97,651$112,377$-$112,377$107,537$(44)$107,493Gross margin

73%

73%

74%

74%

76%

76%

Operating expenses$122,844$(242)(a) $122,602$125,417$(44)(a) $125,373$132,816$961(a) $133,777

242(a)

44(a)

(1,005)(a)

Operating loss$(25,193)$242$(24,951)$(13,040)$44$(12,996)$(25,279)$(1,005)$(26,284)Operating margin

-19%

-19%

-9%

-9%

-18%

-19%

Income tax expense$14,387$(3,961)(c)$10,426$15,028$(3,883)(c)$11,145$14,044$(3,667)(c)$10,377

242(a)

44(a)

(1,005)(a)

2,087(b)

-

(827)(b)

3,961(c)

3,883(c)

3,667(c)

Net loss before non-controlling

interest$(21,260)$6,290$(14,970)$(16,347)$3,927$(12,420)$(12,619)$1,835$(10,784)

242(a)

44(a)

(1,667(c)

Net loss attributable to Sohu.com

Limited for diluted net loss per

share/ADS$(21,291)

6,290

(15,001)$(16,347)

3,927

(12,618)

1,835

(10,783)Diluted net loss per share/ADS

attributable to Sohu.com Limited$(0.69)

(0.49)$(0.52)

(0.39)$(0.37)

(0.32)Shares/ADSs used in computing

diluted net loss per share/ADS

attributable to Sohu.com Limited

30,799

30,729

31,061

34,061

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.

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

Twelve Months Ended Dec. 31,2024

Twelve Months Ended Dec. 31,2023

GAAP

Non-GAAP

Adjustments

Non-GAAP

GAAP

Non-GAAP

Adjustments

Non-GAAP

1(a)

7(a)

Brand advertising gross profit$6,886$1$6,887$17,586$7$17,593Brand advertising gross margin

9%

9%

20%

20%

-(a)

10(a)

Online games gross profit$413,894$-$413,894$414,668$10$414,678Online games gross margin

82%

82%

86%

86%

-(a)

-(a)

Others gross profit$11,786$-$11,786$22,661$-$22,661Others gross margin

52%

52%

70%

70%

1(a)

17(a)

Gross profit$432,566$1$432,567$454,915$17$454,932Gross margin

72%

72%

76%

76%

Operating expenses$541,967$31(a)$541,998$542,225$(691)(a)$541,534

(30)(a)

708(a)

Operating loss$(109,401)$(30)$(109,431)$(87,310)$708$(86,602)Operating margin

-18%

-18%

-15%

-14%

Income tax expense$52,070$(15,299)(d)$36,771$60,420$(12,297)(c,d)$48,123

(30)(a)

708(a)

1,820(b)

1,391(b)

-

(555)(c)

15,299(d)

12,852(d)

Net loss before non-controlling interest$(100,238)

17,089

(83,149)$(66,070)$14,396$(51,674)

(30)(a)

708(a)

1,852(d)

Net loss from continuing operations

attributable to Sohu.com Limited for

diluted net loss per share/ADS$(100,269)$17,089$(83,180)$(65,805)$14,409)Net income from discontinued operations

attributable to Sohu.com Limited for

diluted net income per share/ADS [9]$-

-

-$35,426

-

35,426Net loss attributable to Sohu.com Limited

for diluted net loss per share/ADS$(100,269)

17,180)$(30,379)

14,396

(15,983)Diluted net loss from continuing operations

per share/ADS attributable to Sohu.com

Limited$(3.13)

$(2.60)$(1.93)

$(1.51)Diluted net income from discontinued

operations per share/ADS attributable to

Sohu.com Limited$-

-$1.04

1.04Diluted net loss per share/ADS attributable

to Sohu.com Limited.$(3.13)

(2.60)$(0.89)

(0.47)Share/ADS used in computing diluted net

income/(loss) per share/ADS attributable to

Sohu.com Limited

32,009

32,109

34,109

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 impact of income tax related to changes in the fair value of the Company's investments.(d) To adjust for the effect of the U.S. TCJA.

[9] See Footnote 2.