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搜狐 SOHU.com Sohu.com Reports Third Quarter 2021 Unaudited Financial Results November 15 , 2021 BEIJING , Nov. 15 , 2021 / PRNewswire / -- Sohu.com Limited ( NASDAQ : SOHU ) , China's leading online media , video , gaming business group , today reported unaudited financial results for the third quarter ended September 30 , 2021 . 搜狐 SOHU.com Third Quarter Highlights • Total revenues were US $ 216 million [ ¹ ] , up 37 % year - over - year and 6 % quarter - over - quarter . • Brand advertising revenues were US $ 34 million , down 18 % year - over - year and 8 % quarter - over - quarter . • Online game revenues were US $ 167 million , up 65 % year - over - year and 10 % quarter - over - quarter . • GAAP net income from continuing operations [ 2 ] attributable to Sohu.com Limited was US $ 12 million , compared with a net loss of US $ 15 million in the third quarter of 2020 and net income of US $ 22 million in the second quarter of 2021 . • Non - GAAP [ ³ ] net income from continuing operations attributable to Sohu.com Limited was US $ 17 million , compared with a net loss of US $ 7 million in the third quarter of 2020 and net income of US $ 25 million in the second quarter of 2021 . Dr. Charles Zhang , Chairman and CEO of Sohu.com Limited , commented , " For the third quarter of 2021 , facing spot outbreaks of the COVID - 19 pandemic and uncertainties in the macroeconomic environment , we continued to focus on refining our technology and developing products . Overall , we delivered better than expected top line and bottom line performance thanks to the solid performance of our online game business . For Sohu Media , we kept improving our products while constantly expanding premium content and stimulating social network distributions , which further consolidated our influence as a mainstream media platform . For Sohu Video , we continued to focus on our " Twin engine " strategy . We applied our advanced live broadcasting technologies into various events and scenarios as an effective tool for generating even more video content . For Changyou , our online games performed well during the quarter , with its revenue exceeding the high end of our prior guidance . " Third Quarter Financial Results Revenues Total revenues were US $ 216 million , up 37 % year - over - year and 6 % quarter - over - quarter . Brand advertising revenues totaled US $ 34 million , down 18 % year - over - year and 8 % quarter - over - quarter . The decrease was mainly due to decreases in portal advertising revenues . Online game revenues were US $ 167 million , up 65 % year - over - year and 10 % quarter - over - quarter . The year - over - year increase was mainly contributed by TLBB Vintage , which was launched during the fourth quarter of 2020. The quarter - over - quarter increase was mainly from Little Raccoon : Heroes , which was launched during the third quarter of 2021 . Gross Margin Both GAAP and non - GAAP gross margin was 74 % , compared with 66 % in the third quarter of 2020 and 76 % in the second quarter of 2021 . GAAP gross margin for the brand advertising business was 29 % , compared with 31 % in the third quarter of 2020 and 27 % in the second quarter of 2021. Non - GAAP gross margin for the brand advertising business was 29 % , compared with 31 % in the third quarter of 2020 and 28 % in the second quarter of 2021 . Both GAAP and non - GAAP gross margin for online games was 83 % , compared with 80 % in the third quarter of 2020 and 89 % in the second quarter of 2021. The quarter - over - quarter decrease in gross margin was mainly due to a higher percentage revenue contribution from mobile games , which typically require higher revenue - sharing payments . Operating Expenses For the third quarter of 2021 , GAAP operating expenses totaled US $ 135 million , up 17 % year - over - year and 3 % quarter - over - quarter . Non - GAAP operating expenses were US $ 132 million , up 20 % year - over - year and 4 % quarter - over - quarter . The year - over - year increase was mainly due to increases in salary and benefits expenses and the accrual of credit loss expenses . Operating Profit / ( Loss ) GAAP operating profit was US $ 25 million , compared with an operating loss of US $ 11 million in the third quarter of 2020 and an operating profit of US $ 25 million in the second quarter of 2021 . Non - GAAP operating profit was US $ 28 million , compared with an operating loss of US $ 5 million in the third quarter of 2020 and an operating profit of US $ 28 million in the second quarter of 2021 . Income Tax Expense GAAP income tax expense was US $ 20 million , compared with income tax expense of US $ 11 million in the third quarter of 2020 and income tax expense of US $ 11 million in the second quarter of 2021. Non - GAAP income tax expense was US $ 19 million , compared with income tax expense of US $ 10 million in the third quarter of 2020 and income tax expense of US $ 9 million in the second quarter of 2021. The income tax expense in the second quarter of 2021 included a one - time tax benefit of US $ 9 million recognized by Changyou after final settlement of its income tax due for 2020 . Net Income / ( Loss ) GAAP net income from continuing operations attributable to Sohu.com Limited was US $ 12 million , or net income of US $ 0.31 per fully - diluted ADS , compared with a net loss of US $ 15 million in the third quarter of 2020 and net income of US $ 22 million in the second quarter of 2021 . Non - GAAP net income from continuing operations attributable to Sohu.com Limited was US $ 17 million , or net income of US $ 0.44 per fully - diluted ADS , compared with a net loss of US $ 7 million in the third quarter of 2020 and net income of US $ 25 million in the second quarter of 2021 . Liquidity As of September 30 , 2021 , cash and cash equivalents and short - term investments were US $ 1.57 billion . Supplementary Information for Changyou Results Third Quarter 2021 Operating Results • For PC games , total average monthly active user accounts [ 4 ] ( MAU ) were 2.0 million , an increase of 3 % year - over - year and a decrease of 5 % quarter - over - quarter . Total quarterly aggregate active paying accounts [ 5 ] ( APA ) were 1.0 million , an increase of 4 % year - over - year and 14 % quarter - over - quarter . The quarter - over - quarter increase in APA