Sohu.com Limited (NASDAQ: SOHU) reported a revenue decline of 12% year-over-year to $141.36 million for the fourth quarter of 2023. Revenue was down by 3% Q/Q.

The Chinese internet company's adjusted loss per ADS was 32 cents, beating the consensus loss of 59 cents.

Brand advertising revenues declined 30% Y/Y to $20 million. Online game revenues decreased 5% Y/Y to $115 million.

The adjusted gross margin declined by 200 bps Y/Y to 76% and flat Q/Q. The adjusted gross margin for online games was 87% versus 84% last year and 87% in the prior quarter.

Sohu held $1.3 billion in cash and equivalents as of December 31, 2023.

Average monthly active user accounts for Changyou PC games increased by 2% Y/Y to 2.3 million. The average MAU for Changyou mobile games fell 4% Y/Y to 1.7 million.

Sohu.Com board authorized an increase in previously-announced share repurchase from up to $80 million to up to $150 million of outstanding ADSs.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the fourth quarter and full year of 2023, we continued to optimize operating efficiency with strict budget control, despite the external economic environment and cautious budgeting by advertisers."

Outlook: Sohu sees first-quarter brand advertising revenue of $15 million-$17 million, an annual decrease of 25% – 33% Y/Y.

It sees quarterly online game revenues decline by 7% – 15% to $110 million-$120 million.

Sohu estimates a quarterly adjusted net loss of $(23) million – $(33) million.

Investors can gain exposure to Sohu via Invesco Golden Dragon China ETF (NASDAQ:PGJ) and SPDR S&P Emerging Markets Small Cap ETF (NYSE:EWX), which gained 6-14% last month.

Price Action: SOHU shares traded lower by 2.40% at $9.36 premarket Monday.