Sogou recently published its unaudited financial report for the third quarter ended September 30, 2020.
According to the report, based on GAAP, Sogou’s total operating revenue for the third quarter was USD216.7 million, a year-on-year decrease of 31.2%; and it made net losses of USD42 million. The company saw net profit of USD36.6 million in the same period last year.
The report states that the main reason for the decrease in Sogou’s revenue is that due to the previously announced proposal by Tencent to privatize Sogou, some advertisers are uncertain about Sogou’s business policies and reduced traffic acquisition activities.
During the third quarter, Sogou’s search and related income was USD192.5 million, a year-on-year decrease of 33.2%. Its other income was USD24.2 million, a year-on-year decrease of 9.3%.
On September 29, 2020, Sogou announced the signing of a final privatization agreement to become an indirect wholly-owned subsidiary of Tencent. At present, the transaction is expected to be closed in the fourth quarter of 2020 and Sogou will be delisted from New York Stock Exchange after that.