Q2 2022 Sohu.com Ltd Earnings Call
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Ladies and gentlemen, thank you for standing by for <unk>.
<unk> second quarter 2022 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.
This conference call is being recorded if you have any objections you may disconnect at this time I would now like.
They tend to contract so back to your host for today's conference call Huangpu Investor Relations Director of Sohu. Please go ahead.
Thanks, operator, thank you for joining us to discuss though we're still gonna until second quarter.
First up on the call are chairman and Chief Executive Officer, Dr. Charles Zhang.
So what you annually and the vice President of Finance gemstone.
I'd tell you to stay at the of insurance and they see how if at all been wrong before management begins their prepared remarks, I would like to remind you of the company's safe Harbor statement.
With todays conference call.
For the historical information contained herein the matters discussed on this call may contain forward looking statements. These statements are based on current plans I've made and our projections and therefore, you should not place undue it I saw that.
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 statements for more information about the potential risks and uncertainties. Please refer to the public filings with the Securities and Exchange Commission.
In our most recent annual report on Form 10-K as well.
With that I will now turn the call over to Dr. Charles Zhang Charles Please proceed.
Thanks, everyone for joining our call.
There's a second quarter of 2000.
On the <unk>.
Through COVID-19 related prevention measures disrupted normal.
Uh huh.
Activity nationwide.
We met the challenge proactively by refining our products and technology and exploring a range of monetization opportunities.
Our brand advertising revenue at the high end of our previous guidance during the quarter.
Thanks to the solid performance.
The group's profitability exceeded guidance.
For Sohu media portal and Sohu video, we continue 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 Sogou product matrix.
We extended our live broadcasting to a greater number of trended queues.
And to various online and offline events.
For online games, our performance was stable during the quarter.
Revenues in line with our guidance.
I will go into details about each of our business in a moment, but first I mean.
I have a quick overview of the financial performance.
For the second quarter of 2022.
Our total revenues.
195.
<unk>.
Down 5% year over year and up 1% in the quarter over quarter.
Brand advertising revenues.
$25 million down, 32% year over year, and up 5% quarter over quarter.
Online game revenues $157 million.
Up 4% year over year and flat quarter over quarter.
GAAP net income attributable to <unk> Dot Com limited.
<unk> million dollars.
Compare with $22 million.
In the second quarter of 2021.
$3 million in the first quarter of 2000.
'twenty two.
non-GAAP net income attributable to <unk> Dot Com limited.
Was $12 million.
Compared with a $25 million in the second quarter of 2021 and $9 million in the first quarter of this year.
Now I'll go through some of our key businesses.
First media portal and Sohu video.
So through either quarter.
Improving our product upgrading technology and refining our algorithms.
And their accuracy.
To enhance user experience, we stimulated content generation and user interaction to improve the features that drive content distribution.
During the quarter.
<unk> live broadcasting technology.
Strong operating track record and extensive media resources reinforced our credentials as a mainstream media platform helped us better capture advertising budget.
Video, we developed compelling long and short form content with our twin engine strategy.
We explored monetization opportunities by integrating the live broadcasting into unique and creative events.
Sure.
Through our continuous efforts, we have built a strong and incredible reputation as a science and knowledge based live broadcasting platform.
And attracted hundreds of leading professional broadcasters in various fields to our platform.
The long form.
Long form format content, we kept producing.
Producing original dramas reality shows.
Enrich our content library.
The second quarter, we completed shooting and enter the postal production stage of several original dramas such as the sequel of mysterious law.
And you're going to go back a big hit combining idol romance and crime scene.
Sure.
Yes.
Next turning to the online game business.
During the second quarter of 2022 online gaming revenues were in line with our guidance.
With lower than expected operating expenses.
Net income for the second quarter exceeded the high end of our guidance.
And our business line for PC game, we introduced a new <unk>.
A player versus player.
Event for our regular <unk>.
<unk> upgraded the artistic designs.
Great.
With COPD vintage, we introduced a new Duncan and upgraded character development system for its new expansion pack.
In addition in April we launched the <unk> vintage on the weekend platform, which brought some long term long time COPD players back to the game.
With mobile games, we launched an expansion pack for the anniversary of legacy <unk> mobile with the addition of skills development system and its revenue and its revenue remained.
Stable on a sequential basis.
And next quarter, we will rock new compound <unk>.
Thanks.
Mobile obligations.
That's clear.
Against an even.
Our changing environment, we will stick to our top games strategy by promoting innovation, beating the capacity of our team and rolling out more high quality mobile game.
In terms of game pipeline.
Maintaining the core competitiveness of MMO RPG RPG game, we will also invest in games of multiple generics, including the cart Rpgs and casual games.
I will now turn the call over to John <unk>, Our CFO , who will walk you through our financial results.
Charles I will walk you through the key financials of our major segments for the second quarter of 2022.
The numbers on a non-GAAP basis, you'll find a reconciliation of non-GAAP to GAAP measures.
Our IR website.
For Sohu media portal quarterly revenues were $16 million.
27% year over year, and up 13% quarter over quarter.
The quarterly operating loss was $43 million.
Compared with an operating loss of $28 million in.
In the same quarter last year.
Video.
16.
$16 million.
Down, 31% year over year, and up 7% quarter over quarter.
The quarterly operating loss was $10 5 million.
Compared with an operating loss of $13 million in the same quarter last year.
So Charles all I gaming business and 171 73.
<unk> revenues.
$59 million.
Up 3% year over year and flat quarter over quarter.
The quarterly operating profit was $85 million.
Compared with an operating profit of $75 million in the same quarter last year.
For first quarter of 2022.
We expect.
Brand advertising revenue to be between $25 million and $28 million.
This implies annual decrease of 17% to 26%.
The sequential increase of Neil 212%.
Online game revenues to be between $138 million.
$148 million.
This implies annual decrease of 11% for <unk>.
17%.
A sequential decrease of 6% to 12%.
non-GAAP net loss attributable to Sohu Com limited to.
<unk> to be between $35 million and $25 million.
And GAAP net loss attributable to Sohu Com limited.
To be between $38 million and $28 million.
This forecast reflects our current and the preliminary view.
Which is subject to substantial uncertainty.
This concludes our prepared remarks.
Operator, we would now like to open the call to questions.
Thank you.
At this time, if you'd like to ask a question. Please press star one one on your telephone and wait for a name to be announced.
Once again to ask a question. Please press star one on your telephone and wait for a name to be announced.
Okay.
Thank you first question comes from July of Thomas Chong of Jefferies. Please go ahead.
Hi, Good evening, Thanks management for taking my questions.
I have two questions. The first one is on advertising.
Even that we reached the high end.
In Q2, and then I look into Q3.
Hi, Dennis.
But besides that one CLO to 12%.
Well I just wanted to get a sense about.
We also have we hit the low end and high end of the day.
And can you comment about.
The trend.
So far in the month of July if any as well as other trends while I've got the coast and then my second question is about the gaming business.
Given that we are going to launch expansion of attacks in the first quarter, but we are seeing some sequential softness just wanted to get some comment about.
Yes, Danny.
Uncertainties that may affect the aim.
<unk> spending in the second half thank you.
Alright.
<unk>.
The chart.
Advertising.
It really depends on weather.
The COVID-19 situation.
Whether it will allow us to be able to to offline.
Marketing events and some and some.
I will say content you bet.
Draw advertisers.
So we will dependent yes, but they are basically about whether the <unk>.
Pandemic situation, whether the lock down a lot.
So we see some uptick.
Advertisers.
And in fact try to.
<unk>.
Let's start marketing their products.
Entering.
And kind of June July .
And.
We'll see.
Hi, Tom.
Tom firm last regarding the online game business.
To your question or.
Yes.
Third quarter performance look weaker than the second quarter.
Yeah.
I guess we.
We saw some sequential but behind the guidance just wanted to get some color on definitely yes.
Yes, okay.
Youll see in Colombia, and central contractually retreating.
Sure.
Townsend shoveling Ngos to prevent either for cash or with our clients.
Yeah.
Jamie Thank you for this opportunity.
On costs.
Okay.
The seven inch ICL com women and has allowed us sort out payments and cost <unk>.
<unk> tunnel Hydro one final hurricane things all the time <unk>, Peter Hutton and so that's it.
Shovel at a time.
So this is Jim.
Sure Sanjay.
Yes.
Second half the main focus will be on the.
Expansion pack.
They impact our revenue for the weaker guidance for the third quarter.
Because our NIM tell me the vintage funds to weekend platform in the second quarter.
<unk> revenue jumped up.
Up there.
It was up.
Near term for the game revenue.
Then last into the third quarter. So it will have.
Natural decline in the third quarter.
Thank you.
Thank you.
Alright.
Thank you for the questions as a reminder, if you would like to ask a question. Please press star one one and wait for a name to be announced.
Okay.
Our next question comes from July of Alicia Yap from Citi. Please go ahead.
Hi, Thank you.
Good evening, Charles and management, Thanks for taking my question first.
First I actually wanted to ask about the <unk> guidance on the net loss.
I'm just.
Management can share how you actually get into such a big loss is it really because of the.
Gaming revenues.
Any other reasons all of which expense line that we should expect.
It will become baked in the third quarter.
That's my first question.
Follow up on another question.
So.
I think that marketing expense, mostly for third quarter is a new game.
The major high human the Baton Murphy of Dol.
C C.
<unk>, yes, we've done the marketing expense for the third quarter, because actually the marketing event was.
It was postponed from Q2 to Q3, so thats contributes for the most part off of.
Marketing expenses for the third quarter.
Also on the prototype.
That's a small part but we do.
We expect.
We're planning.
To increase our two hour.
Marketing activities.
To promote our live streaming and <unk>.
Video view.
And yes, we will spend money it was tested as we as we said before but within the span.
As much in Q2.
So that both contribute to them.
Larger.
Net loss in Q3, but mostly the gain marketing expense.
Scott.
Yes.
Yes.
Any chance you can give us roughly a amount that you have budgeted for this game marketing spend.
I think we do but we don't.
Sure.
Okay.
I'll say that.
We are operating under.
E C.
CE with Allianz.
Hudson yard.
Youll see <unk> see seasonally telecom.
<unk>.
As we go into Iot and weather.
I see I see okay.
Thank you and then my follow up question.
I'm, sorry, I already have.
This is your operator im afraid that the management has disconnected.
Temporarily.
I'll stay on the line, we're just because we connect them for them to return the call before we take your next question.
Okay. Thanks.
Okay.
Do we have some early spend back please.
I think you may have accidently muted.
Yes.
Thank you do we have to manage bring back to the call. Please.
Yes, we are back.
Let's go there.
Yes. Thank you Brian much Alicia. Please go ahead with your next question. Thank you.
Alicia Thank you.
Do you hear what I said the last part.
Uh huh.
I only heard about until the games.
I mean, the budget would be pending on the game's performance and adjust accordingly.
Yes, yes.
So basically what's been like 15.
In.
$10 $15 $20 million that kind of thing.
Okay.
Okay.
My my follow up question.
On the overall underlying economy and also the advertising.
Sam Tinman.
I know you just now you mentioned that in some.
Returns after advertiser in June and July .
Is that.
In line with what you expected or the return needs that can be better or worse.
Worse than what you expect that so far.
You.
Yes.
Thank you.
So.
The Shanghai on the eastern market or at the very.
Important market for us so the law.
<unk> Shanghai in Q2 will have an impact and the Altra Shanghai was.
This.
Basically lifted lockup lockdown lifting.
Yes.
The company is the specialty auto companies are starting to start to.
Spending money and having activities marketing events, so we see it coming back of auto industry.
<unk>.
And some of.
For the Internet services for <unk>.
So it's as expected is basically because of the lifting of the lockdown.
And.
Okay.
I see and.
Regarding the remaining of the year is that really depends on.
The overall situation.
Yes so.
We see that for the current curve.
Current situations that.
Sure.
It depends but for now it seems that offline activities R. B.
Hell I being Howard.
Great.
With some disappointing.
Mask wearing and those kind of things so.
So companies that do having.
Having marketing events and we also have some activities planned or our comprehensive content comprehensive.
So.
We see the improvement in Q3.
Okay alright. Thank you so much I'll go back to the queue. Thank you.
Alright.
Yes.
Okay.
As a reminder, if you would like to ask question you can press star one one Alicia do you have any follow up questions.
And I would go back to the Q auto.
Thank you.
At this time, we don't have any more questions. You may go ahead.
I'll take your question first last question.
Oh, Okay alright.
Thank you so I guess, maybe any update in terms of.
The latest.
Share buyback.
Management can comment on.
And also overall.
Does the cough.
Optimization effect, because I think a lot of auto Internet peers has done many different sort of schwab cost optimization effort. So wondering.
<unk> will need to do any for the remaining of the year and also the share buyback update thank you.
So the share buyback.
Almost finished.
Over $100.
Finished 90 meeting within <unk>.
U S dollar share buyback already.
Okay.
And for cost cutting actually over the last few years, we've been constantly doing that so basically we left we only focused on.
Media portal and video business.
A lot of other.
Business.
Over the last few years, so we don't have a lot of them.
Much.
Optimization to do.
Unlike some of our peers will be great.
And then.
And then maybe comment.
In the downturn and they are doing.
But we don't need to do that.
Thank you.
Ajay can actually in the last one given the current capital market and given we still have.
Pretty decent size of cash.
Eddie merging.
In comes from Sam Boston attractive potential targets.
Given the valuation has come down quite a lot in both the public and private space. So not sure if there's anything that trigger.
You use some of your cash.
Balance that you can actually beef up some of the businesses going forward. Thank you.
Yes, we are.
Sure.
Myself I'm, a believer organic growth.
When you hear our company's view by them and by some products or by some companies.
Integration in these.
Sure.
And also the.
Forming a new.
Gaining new competitive has been very hard but we.
We do have a good.
Our sizeable capital.
So we will.
In a more focused.
Sure.
Basically beefing up our current products.
And spending more channels of marketing.
Our video.
News App and it's a social network.
Live streaming so we do not have any acquisition or the nonorganic.
We don't see any health care.
Those kind of opportunities.
Okay, great. Thank you Joe.
Alright.
Thank you for your questions.
That does conclude today's conference call, ladies and gentlemen, thank you for participating you may now disconnect.
The conference for today.
Thank you.
Sure.
Okay Alright.
Alright.
The conference will begin shortly.
As Johan during Q&A, you can dial star one one.
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Ladies and gentlemen, thank you for standing by for <unk>.
<unk> second quarter 2022 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.
Any objections you may disconnect at this time.
Now I'd like to turn the conference over to your host for today's conference call.
Investor Relations director of Sohu. Please go ahead.
Thanks, operator, thank you for joining us to discuss so we're still going into second quarter clinical staff on the call are chairman and Chief Executive Officer, Dr. Charles Zhang CFO , John Andy and Vice President of Finance Gemstone also reserve Charlie is the stay order Lin Chen our CFO will Meanwhile, before management begins.
In 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 telecom information content.
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 content any forward looking statements.
For more information about the potential of it.
Uncertainties. Please refer to the Companys bodies with the Securities and Exchange Commission, including our most recent annual report on form 20-F.
I will now turn the call over to Dr. Charles Zhang Charles Please proceed.
Thank you everyone for joining our call.
In the second quarter of 2000.
Two COVID-19 related prevention measures disrupted normal.
Holly.
Activity nationwide.
Well, we met the challenge proactively by refining our products and technology and exploring a range of monetization opportunities.
Our brand advertising revenue at the high end of our previous guidance during the quarter.
Thanks to the solid performance of our online game business.
Profitability exceeded guidance.
For Sohu media portal and video, we continue to generate and distribute reliable news and premium content.
Reinforcing our competitiveness and the credibility at the mainstream media platform.
Leveraging the differentiated advantages of this total product matrix.
We extended our live broadcasting to a greater number of branded queued.
Thank you and to various online and offline events.
Yes.
For online games, our performance was stable during the quarter with revenue in line with our guidance.
I'll go into details about each of our business in a moment, but Kurt I mean.
I have a quick overview of the financial performance.
For the second quarter of 2022.
Total revenues.
195.
Million.
Down, 5% year over year, and up 1% quarter over quarter.
Brand advertising revenues.
$25 million down, 32% year over year, and up 5% quarter over quarter.
Our in game revenues, a $157 million.
Up 4% year over year and flat quarter over quarter.
GAAP net income attributable to <unk> Dot Com limited.
<unk> million dollars.
Compare with 22 million.
In the second quarter of 2021.
$3 million in the first quarter of 2000.
'twenty two.
non-GAAP net income attributable to <unk> Dot Com limited.
Was $12 million.
Compared with a.
$25 million in the second quarter of 2021 and $9 million.
First quarter of this year.
Now I will go through some of our key businesses.
First media portal and Sohu video.
So either quarter.
Improving our product upgrading technology and refining our algorithms.
And their accuracy.
Pre enhanced user experience with stimulated content generation and user interaction to improve the features that drive content distribution.
During the quarter.
Advanced live broadcasting technology strong operating track record and extensive media resources reinforced.
Credential at <unk>.
Mainstream media platform helped us better capture advertising partner.
Video, we developed a compelling long form content with our twin engine strategy and explored monetization opportunity.
By integrating the live broadcasting into unique and creative content.
Dan.
Okay.
Through our continuous efforts, we have built a strong and incredible reputation.
Science and knowledge base live broadcasting platform.
And attracted hundreds of leading professional broadcasters you're skewed to our platform.
And longhorn longhorn format content, we cap.
Producing original drama reality shows.
A rich content library.
Second quarter, we completed shooting and enter the postal production stage of several original dramas.
As a sequel of mysterious law.
And you're going to go back a big hit combining idol romance and crime scene.
Next turning to online game business.
During the second quarter of 2022 online gaming revenues were in line with our guidance.
With lower than expected operating expenses the group's net income for the second quarter exceeded the high end of our guidance.
And our business line for PC game, we introduced a new.
Pvp player versus player.
Event or regular <unk>.
<unk> upgraded the artistic designs.
Great.
With <unk> vintage, we introduced a new Duncan and upgraded character development system for its new expansion pack.
In addition in April we launched the <unk> vintage on the Wii game platform, which brought some long term long time COPD players back to the game.
With mobile games, we launched an expansion pack for the anniversary.
Legacy <unk> mobile with the addition of skills development system and its revenue.
And its revenue will rebound.
Stable.
Sequential basis.
And next quarter, we will rock new comprehensive <unk> PC.
Thanks.
Mobile obligations.
Sure.
Against that even ever changing environment.
Two our top games strategy by promoting innovation, beating the capacity of our team and rolling out more high quality mobile game.
In terms of game pipeline.
Maintaining the core competitiveness of <unk>.
Oh.
RPG RPG game, we will also invest in games of multiple generics, including the cart Rpgs and casual games.
I will now turn the call over to John Our CFO , who will walk you through our financial results.
Thank you Chuck.
I'll walk you through the key financials of our major segments for the second quarter of 2022, all the numbers on a non-GAAP basis, you'll find a reconciliation of non-GAAP to GAAP measures.
Our IR website.
For Sohu media portal.
<unk> revenues were $16 million down <unk>, 7% year over year and up 13% quarter over quarter.
The quarterly operating loss was $43 million.
Compared with an operating loss of $28 million in the same quarter last year.
Yes.
Video.
Quarterly revenues were $16 million.
Down, 31% year over year, and up 7% quarter over quarter.
Quarterly operating loss was $25 million.
Compared with operating loss of $13 million in the same quarter last year.
So trials online game business and <unk> III.
Today revenues.
$59 million.
Up 3% year over year and flat quarter over quarter.
The quarterly operating profit was $85 million.
Compared with an operating profit of $75 million in the same quarter last year.
The third quarter of 2022.
We expect.
Brand advertising revenue to be between $25 million.
And $10 8 million.
This implies annual decrease of 17% to 26%.
The sequential increase of Neil to 12%.
Online game revenue to be between $138 million.
And the $148 million.
This implies annual decrease of 11% to 17%.
A sequential decrease of 6% to 12%.
non-GAAP net loss attributable to Sohu Com limited to.
<unk> to be between $35 million.
And $10 1 million.
And the GAAP net loss attributable to Sohu com limited to be between $38 million and $28 million.
This forecast reflects our current and preliminary review.
Which is subject to substantial uncertainty.
This concludes our prepared remarks.
Operator, we would now like to open the call to questions.
Thank you.
At this time, if you'd like to ask question. Please press star one one on your telephone and wait for a named we announce.
Once again to ask a question. Please press star one on your telephone and wait for a name to be announced.
Okay.
Okay.
Thank you first question comes from July of Thomas Chong of Jefferies. Please go ahead.
Hi, Good evening, Thanks management for taking my questions.
I have two questions. The first one is on advertising given that we reached the high end well have our guidance in Q2, and then I look into Q3.
Hi, David.
<unk>.
212%.
I just wanted to get a sense about.
We also have we hit the low end and high end of the guide and can you comment about.
The trend.
So in the month of July if any as well as other trend 40 planes are going to close and then my second question is about the gaming business.
Given that we have.
Turning to launch expansion. Thanks.
The first quarter, but we are seeing some must be crazy. So.
Just wanted to give some comment about.
Yes, Danny.
Macro uncertainties of Brexit.
<unk> spending in the second half thank you.
Alright.
Tom.
Charles.
Advertising.
It really depends on weather.
The COVID-19 situation.
Whether it will allow us to be able to to offline.
Marketing events.
Some and some.
I will say content you bet.
Draw advertisers.
So we will.
Yes.
Usually about whether the.
The pandemic situation, whether the lockdown.
Yes.
So we see some uptake.
Advertisers coming back trying to.
Stop magazine.
Thanks.
Entering.
I think any kind of June July .
And.
We'll see.
Okay.
Hi, Tom.
Hi, Tom firm last regarding the online game business.
To your question or.
Third quarter performance look weaker than the second quarter.
Yes.
Yes.
We saw some sequential decline, but guidance just wanted to get some color on definitely yes.
Okay.
Youll see Obama and thank you for your contract Jacob.
Thank you Sal Amendment shoveling Ngos.
To prevent other forecasts shlomo on the frontline.
Yeah.
Thank you Amy Thank you for the double tree.
Sure.
<unk>.
Okay.
The seven inches high Silicon women move allows us units without Hamilton call Sanjeev <unk> to <unk>.
Goldman <unk> channel Hydro Brian .
Hello again.
<unk> does have some major holiday.
The shovel in the car.
So this is Jim maybe without.
Sure that sounds good.
Yes.
The second half the main focus will be on the.
Expansion pack.
Are they impacted our revenue.
The weaker guidance for the third quarter.
Our vintage bounce to weekend platform in the second quarter again revenue jumped up.
Yes.
Tom for the game revenue and it didn't last into the third quarter.
Later, we will have.
Thanks for a decline in the third quarter.
Thank you.
Okay.
Thank you.
Alright.
Yes.
Thank you for the questions.
As a reminder, if you would like to ask a question. Please press star one one and great for our name to be announced.
Our next question comes from the line of Alicia Yap from Citi. Please go ahead.
Hi, Thank you.
Good evening, Charles and management, Thanks for taking my question.
So I actually wanted to ask about the <unk> guidance on the net loss.
I'm, just if management can share how you actually get.
Into such a big loss is it really because of the.
Gaming revenues.
Or any other reasons all of which expense line that we should expect.
It will become bigger in the third quarter.
That's my first question.
A follow up on another question yes.
So the.
Think that marketing expense, mostly for third quarter is the new game right.
Hi, John .
Which would be helpful.
Yes.
Let me see if Tom Yes, Steve dumped marketing expense for the third quarter, because actually the marketing event.
That was postponed from Q2 to Q3, so thats contributed to the most part.
Marketing expenses for the third quarter.
Also on the portal side.
That's a small part but we do.
We expect.
Our planning assumption.
To increase our two hour.
Marketing activities.
To promote our live streaming.
Video view.
And yes, we'll spend money it was SaaS.
As we as we said before but we didn't.
As much in Q2.
Both candidates for them.
Larger.
Net loss in Q3, but mostly the game marketing.
Yes.
Yes.
Sure.
Any chance you can give us roughly a merger you have budgeted for this game marketing spend.
I think we do but we don't.
Yes.
Okay.
Operator.
Operating on the platform.
Yes.
E C.
CE with O&M does at Hudson yards.
<unk> sees the retail channel.
And do you see this.
Golar will see weather.
I see I see okay.
Thank you and then my follow up question.
I'm, sorry, I really just.
This is Joe I'll break timber frame that the management has disconnected.
Temporarily just b.
Stay on the line with US we connect them for them to return the call before we take your next question.
Okay. Thanks.
Okay.
Do we have some really spin back please.
I think you may have FCA dental muted.
Okay.
Thank you do we have to manage going back to the call. Please.
Yes, we are back.
Yes. Thank you very much Alicia. Please go ahead with your next question. Thank you.
Alicia Thank you.
Here, what I said the last part.
I only heard about until the games.
The budget will depending on the gains performance and adjust accordingly.
Yes, yes, that's about it so basically what's been alike.
Tim.
10 to $15 million to $20 million that kind of thing.
Okay.
Okay.
So my my follow up question is on the overall underlying economy and also the advertising.
Gentleman.
I know you just now you mentioned that in some.
Returns after advertiser in June and July .
Is that.
In line with what you expected or the return is actually better.
Worse than what you expected so far.
<unk>.
Yes.
Thank you.
So.
Yeah.
Shanghai on the eastern market very important market for us so.
Lockdown Shanghai in Q2 have an impact and the operational highlights.
Sure.
This.
Basically lifted lockup lockdown lifting.
Companies, especially the auto companies are starting to start to.
Spending money and having activities marketing events, so we see it coming back of auto industry.
And some.
So the Internet services entities.
Entities.
It is expected is basically because of the lifting of the olive garden.
<unk>.
Okay.
I see.
Regarding the remaining of the year is that really depends on.
The overall COVID-19 situation.
Yes so.
We see that the current.
The current situation that.
It depends but for now seems that offline activities R. B.
Hell are being held.
Great.
With some disappointing.
Baskin wearing and those kind of things so.
So companies that do having.
Our having marketing events and we also have some activities plan our comprehensive content comprehensive yet.
So.
We see the improvement in Q3.
Okay, alright. Thank you so much I'll get back to the queue. Thank you.
Alright.
Yes.
Okay.
As a reminder, if you'd like to ask a question you can press star one one Alicia do you have any follow up questions.
And I would go back to that Q auto.
Thank you.
At this time, we don't have any more questions. You may go ahead.
I'll take your question first last question.
Oh, Okay alright.
Thank you so I guess maybe.
Any update in terms of the latest.
Share buyback.
Management can comment on.
And also overall.
The costs.
Optimization effect, because I think a lot of auto Internet peers has done many different sort of cost optimization effort. So wondering.
<unk> will need to do any for the remaining of the year and also the share buyback update thank you.
So the share buyback.
Almost finished.
Over $100.
Finished 90, maybe we've been made.
U S dollar share buyback already.
Okay.
And for cost cutting actually over the last few years, we've been constantly doing that so basically we left we only focused on <unk>.
Media portal and video business and cut a lot of other.
Business.
The last few years, so we don't have.
Much.
Optimization to do.
Unlike some of our peers will be.
And then.
And I did make the comment.
The downturn and they are doing but we don't need to do that.
Thank you.
Ajay can actually in the last one given the current capital market and given we still have.
Decent size of cash.
Eddie merging.
Opportunity in comes from Boston attractive potential target.
Given the valuation has come down quite a lot in both the public and the private space. So not sure if there's anything that trigger.
Some of your cash.
Balance that you can actually beef up some of the big question is going forward. Thank you.
Yes, we are.
<unk>.
Myself I'm going to deliver organic growth.
Companies to buy and buy some products or by some companies.
Integration in these.
Sure.
And also the.
Forming a new.
Gaining new competitive advantage, it's very hard for we.
We do have a good sizable capital.
So we will.
More focus on.
Basically beefing up our current products.
Spending more on channel marketing.
Alex.
Our video.
News App and it's a social network.
Live streaming so we do not have any acquisition or the nonorganic.
Yes.
We don't see any of.
Those kind of opportunities.
Okay, great. Thank you Joe.
Alright. Thank.
Thank you for your questions.
That does conclude today's conference call, ladies and gentlemen, Thank you for participating you may now disconnect that concludes the conference for today.