Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I'd now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead. Thanks, operator. Thank you for joining us to discuss Sohu's first quarter 2024 results. On the call are Chairman and Chief Executive Officer, Dr. Charles Zhang, CFO, Joanna Lv, and Vice President of Finance, James Deng. Also with us are Changyou CEO, Darren Chen, and CFO, Bing Wang. Before management begin their prepared remarks, I would like to remind you of the company's safe harbor statement in connection with today's conference call. Except for the historical information contained here, the matters discussed on this call may contain 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. For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission, including the most recent annual report on Form 20-F. With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed. Thanks, Huang Pu, and thank you everyone for joining our call. In the first quarter of 2024, our top line performance was in line with our expectations, and our bottom line performance exceeded our guidance, despite the impact of seasonality. For Sohu Media and Sohu Video, we continue to enhance user experience by refining products and optimizing algorithms. We proactively integrated our product matrix and resources to stimulate content generation, consumption, and social distribution. Meanwhile, leveraging our unique IPs and differentiated advantages, we continued to host various events and campaigns, which not only stimulated users' interaction and content provision on our platforms, but also help us gain more monetization opportunities. Our games delivered stable performance, with revenues in line with our expectations. Before going through each business unit in more detail, let me first give you a quick overview of our financial performance. For the first quarter of 2024, total revenues were $139 million, down 14% year-over-year and 1% quarter-over-quarter. Brand advertising revenues were $16 million, down 29% year-over-year, and 20% over quarter-over-quarter. Online game revenues, $118 million, down 9% year-over-year and up 3% quarter-over-quarter. GAAP net loss attributable to Sohu.com Limited was $25 million, compared with a net loss of $18 million in the first quarter of last year, and a net loss of $13 million in the fourth quarter of last year. Non-GAAP net loss attributable to Sohu.com Limited was $22 million, compared with a net loss of $13 million in the first quarter of 2023, and a net loss of $11 million in the fourth quarter of 2023. Now, I will go through the... our key businesses in more detail. First, Sohu Media and Sohu Video. We continued to improve our products, upgrade algorithms, enhance the user experience during the quarter. We deeply integrated the Sohu News and Sohu Video apps to allow users to generate and distribute premium content across both platforms simultaneously. This resulted in a substantial addition of high quality content to our product matrix, which in turn drove even greater content consumption and distribution. We held a variety of offline campaigns and continued to refine operations of online interest clubs in various verticals. As a result, our user matrix and interactions have steadily increased. In this quarter, we hosted various events to improve user engagement and interactions, and further stood as vigorous in video social ecosystem, especially among the young generation. We successfully hosted the offline event, 2024 Spring Convention of Sohu Video Influencers, where users and live broadcasters in different verticals came together in person to share their perspectives and interact with each other. This event further fueled broadcasters' overall enthusiasms and the vitality on our platform. During this quarter, we also launched 2024 Sohu Video K-pop Master Class, which attracted a large number of K-pop fans and to participate in our events... generating lots of fascinating K-pop related content and widespread discussions and distributions across various social media platforms. Besides, we hosted several noteworthy events promoting Hanfu, the traditional Chinese culture, Chinese costumes, which also gained a lot of traction and recognition. We have consistently focused on building our unique IPs in the field of knowledge, live broadcasting, and kept exploring innovative monetization opportunities. For example, we integrated The Charles Physics Class, you know, my physics class for the last two years, into the 2024 Beijing International Automotive Exhibition, which further expanded our brand influence, while at the same time increasing our monetization capabilities. To cater to the needs of advertisers, we also adopted a new approach of live exhibition at the 2024 China Home Appliance and Consumer Electronics Expo in Shanghai. This not only allowed audiences to gain a deeper understanding of the product and helped advertisers to achieve better marketing outcomes, but it also highlighted the unique monetization value we offer. Going forward, we will continue to leverage the advantages of Sohu product matrix to provide differentiated marketing solutions for advertisers and drive advertising budgets. Next, turning to online game business. During the quarter, online game ad revenues were in line with our expectations. Within our PC games business, we rolled out holiday events around Chinese New Year and Valentine's Day, as well as promotional events for regular TLBB PC, which increased players' willingness to play, to pay. In addition to holiday events, we fully upgraded simulation gameplay for TLBB Vintage, which was quite popular among players. In our mobile games business, we launched an expansion pack for Legacy TLBB Mobile to celebrate the Chinese New Year and continue to optimize the skills of each clan, which resulted in user engagement stabilizing. Next quarter, we will launch expansion packs and content updates for the TLBB series and other titles to keep the players engaged. For new games, we launched a licensed card-based RPG, New Westward Journey, in the Chinese mainland on May 16th this month. It's current performance is in line with our expectations. As gaming technology rapidly advances and the market demand becomes deeper and more diversified, under our top game strategy, we will creatively explore new ways to better meet players' needs, expand our portfolio for international markets, and continue to invest in professional talent development, as well as content and technology innovation, in order to bring more high-quality games to the market. We'll maintain our core competitiveness in developing MMORPGs going forward. We are also producing multiple types of games, including card-based RPGs, sports games, and casual games, et cetera. Now, I'd like to give an update on the ongoing share repurchase program. As of May 16, 2024, Sohu had repurchased 1.7 million ADS for an aggregate cost of approximately $17 million. With that, I will now turn the call to Joanna Lv. Thank you, Charles. I will now walk you through the key financials of our major segments for the first quarter of 2024. All the numbers are on a non-GAAP basis. You may find a reconciliation of non-GAAP to GAAP measures on our IR website. For Sohu Media and Sohu Video, quarterly revenues were $20 million, compared with revenues $30 million in the same quarter last year. The quarterly operating loss was $74 million, compared with an operating loss of $67 million in the same quarter last year. For Changyou's online game business and the one segment service fee, quarterly revenues $119 million, compared with revenues $131 million in the same quarter last year. Quarterly operating profit was $55 million, flat with the same quarter last year. For the second quarter of 2024, we expect brand advertising revenues to be between $18 million and $20 million. This implies an annual decrease of 16%-25%, and a sequential increase of 12%-24%.... online game revenues to be between $133 million and $143 million. This implies annual increase of 12%-21%, and a sequential increase of 13%-21%. Non-GAAP net loss attributable to Sohu.com Limited, to be between $27 million and $37 million, and a GAAP net loss attributable to Sohu.com Limited, to be between $30 million and $40 million. This forecast reflects Sohu's management's current and the preliminary view, which is subject to substantial uncertainties. This concludes our prepared remarks. Operator, we would now like to open the call to questions. Thank you. We will now begin the question-and-answer session. To ask a question, please press star one one on your telephone keypad. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Once again, that's star one one for questions. Our first question comes from Thomas Chong from Jefferies. Please ask your question, Thomas. Hi, good evening. Thanks management for taking my question. My first question is about our advertising business. How should we think about the advertising sentiment in coming quarters? In particular, we have Olympics in Q3. Should we expect our advertising back to positive year-on-year growth in the second half? That's my first question. My second question is about our online game guidance in Q2. Should we assume the sequential growth is mainly coming from our new licensed game? Or can we actually break out the contribution from our licensed game in Q2? That would be grateful. My third question is more about our capital allocation strategy. I think, Charles, you also mentioned that the aggregate amount that will be purchased is about $17 million. Sure. Sure. Sure. Just want to get some color with regard to our full-year plan. Should we assume that? Any color about how much share repurchase we will do in the remainder of the year? Or should we think about the $150 million share repurchase program should be fully used up in two years' time? Thank you. Well, let me answer your third question first, okay? So we've been bought $17 million, and we have $150 million because of the daily volume that we can buy. So our plan is to finish all the, you know, $150 million buyback, and probably takes 2 years. So... And so limited by daily volume, daily volume trade. And so the first question of advertising, I think the, well, the macroeconomic situation is still kind of with a lot of uncertainty. So economy... Yeah, so there's some recovery in certain sectors in Q2, but not very strong, and advertisers are spending kind of cautious. So we do have, in Q2, we do have a Q-to-Q increase for brand advertising, compared with Q1. But compared with last year, I'm not sure we can, you know Compared with last year. Compared with 2023, we'll achieve a growth or? Uh, no. How much? Uh, decrease. Yeah, still decrease, yeah. It all depends on, you know, we are able to, because we, we need to, you know, you know, continue to, develop our user base, so that when we have a, you know, scale up our user base, that's the time when we, can achieve, a, you know, advertising, growth. Yeah, then the second question is about online gaming and, about whether, you know, the sequential increase. Because of the game or? The sequential increase of our revenue is mainly from Haikyu!! FLY HIGH, which we launched in Japan and South Korea at the end of March, and also from a New Westward Journey that we launched in May 16th in the Chinese mainland. And at the same time, there will be some decrease of our older games. Hi, Thomas. Got it. Thank you. I think I missed the second, Yeah. So the allocation of capital, besides the buyback, we will, you know, we still need to have the cash level to, you know, fight the battle, right? To market our products and to develop our products. Yeah. Got it. Thank y ou, Charles. Okay. Thank you. Our next question comes from the line of Alicia Yap from Citi. Please ask your question, Alicia. Hi. Yes, thank you. Good evening, Charles, Joanna, and management team. Thanks for taking my questions. I have a couple follow-up questions. So number one is the follow-up on the guidance. So I understand the sequential growth in the gaming guidance, but however, I think given gaming is a high margins and profitable business, the sequential increase in revenue and profit from gaming should support overall group profitability. And why is your 2Q net loss guidance is actually wider than you deliver for the first quarter? So any colors you can share with us on the expense side, that would be great. And the follow-up questions on the buyback, just wanted to make sure I got it correct. So I think last quarter, you mentioned, you bought back about 12 million as of February, you know, the end of February, and now that you have 17 million. So is that true that you actually executed about 5 million, over the last, like, three months or so? And is it just because of the daily, volume that is the limitations, or is there anything on the, the money transfer or, kind of like moving out the money? Is there any restrictions on that? Thank you. Oh, just, I think the last question is just the daily limit. We would like to, you know, buy them all, right? Buy back all the to carry out all the $150 million buyback, but we can't because of daily volume limit. So, yes, I think your calculation is right, right? The last 2 months, we bought $5 million back. Sure. Right? Sure. Yeah, we are trying to. We hope that in the future, the volume will improve so that we can buy more, so that we'll finish this $150 million as early as possible. Yeah. As to the Q2 expense, right? Because in Q2, the net loss, the guidance is lower than Q1. It's because of, we spend more on the marketing expense for China's new game. Yes. Mm. Oh, I see. So it's only for the game promotion, but nothing on, like a step up for the video or the media business? The media, we would a few TV drama, right? That already spent, the money already spent in Q1, right? Yes. Yeah, so no, no increase in media side spending. I see. Okay, helpful. Maybe can I treat my last questions on, also the follow-up? I think, Charles, you mentioned, while the macro, you know, kind of remain a little bit uncertain, but you did see a little bit, some recovery in certain sector in the second quarter. Can you share, with us which vertical or industry vertical that you actually see a little bit, improvement in the second quarter? I think FMCG is getting better with beverage and the food and. Also, the electric vehicle, I mean, electric vehicle industry, is- Mm. Competition is very, very intensified, and people are... Yeah, people are, because of the competition, people are forced to spend some money, although, you know, they're spending much less, less than before, but still there is some spending in the car, auto industry, right? Mm. But overall, still, advertisers are still very cautious. I see. Because of the- So maybe I see. I see. Thank you, Charles. Maybe just a quick follow-up: With recent positive policy measure from the government, especially on the real estate side, do you think overall sentiment from advertiser will be improving in, maybe in the second half? I think that is particular. That's, it's about real estate industry, right? It has nothing to do with other, right? The recent policy is about the real estate. But that real estate does not, well, does not reflect any. I don't think the people, consumers, you know, income will be improved. So consumers spending will not be, you know, no, will not increase. So that's That's when consumers are not spending, but they do have I mean, it seems they are spending a lot on traveling, you know, the travel business coming back a little bit. But overall spending willingness is not as strong. So the product, that means when people are not buying things, then the company's products will not, you will not expect sales, then advertising will not, you know. So it's not direct. The recent policy does not have a direct, positive impact on the advertising market. I see. Okay, that's very helpful. Thank you, Charles. All right. Thank you. Well, I'm showing no further questions. Thank you very much for all your questions. With that, we conclude today's conference call. Thank you for participating. You may now disconnect. Okay. Thank you.