Sogou Inc. (NYSE:SOGO)

Fourth Quarter 2019 Financial Results

• Total revenues[1] were $301.0 million, a 1% increase year-over-year, or a 3% increase in RMB terms.
• Basic and diluted earnings per ADS were $0.09. Non-GAAP basic and diluted earnings per ADS were $0.10.

"Our business showed resilience in 2019 despite continued headwinds in the macro environment and in the online advertising industry in China," said Xiaochuan Wang, CEO of Sogou. "Search revenue grew faster than the industry average in 2019, as we stepped up efforts to build out our content and service ecosystem. Revenues from our Recommendation Service leveraging Mobile Keyboard increased nearly 90% year-over-year in 2019. The Smart Hardware business maintained healthy growth momentum as we increasingly integrated our core AI capabilities into product upgrades. With respect to our language-centric AI technologies, we have been able to provide industry-leading solutions, including our AI-powered Vocational Avatars and Simultaneous Interpretation."

Mr. Wang added, "The recent COVID-19 outbreak has increased user requests for reliable information and high efficiency. As a result, our Search traffic and Mobile Keyboard users reached record high levels. We also quickly mobilized our R&D and technological advantages to address the situation and facilitate the development of AI healthcare. While we expect the epidemic to have a short-term dampening impact on our results in the first quarter of 2020, we remain confident in our overall positioning with strong execution of our strategies to further unlock the potential of our core user assets."

Joe Zhou, CFO of Sogou, said, "We are pleased to see steady progress in our fourth quarter results, despite continued pressure from external challenges. In particular, we experienced margin expansion across the board in the quarter, and our non-GAAP net income increased 44% year-over-year to $39 million. This primarily resulted from our efforts to prudently control traffic acquisition costs and to drive operational efficiencies, which we will continue as we forge ahead, particularly amidst the near-term challenging environment. We remain confident in our long-term growth prospects."

NEW YORK, Jan. 2, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced its subsidiary Nanjing Recon Technology Co., Ltd. ("Nanjing Recon") won the bid to build the automation system for PetroChina Jidong Oilfield Company ("Jidong Oilfield"). The winning price is RMB 9.5 million (approximately $1.36 million) per year, for a three-year construction period from January 1st, 2020 to December 31st, 2022.

The current bidding price includes compensation for predetermined materials, services and other fees to compete each year's project. Pursuant to the bidding document, the materials bought by Nanjing Recon will be reimbursed by Jidong Oilfield with a 20% discount of the predetermined price under some temporary circumstances, so the total consideration will be reduced accordingly. The Company expects that this reduction will not be material to the winning price.

The oil & gas industry is transitioning toward automation to minimize human labor in the oil & gas process. The automated oilfield receives data from numerous instrumented sources, runs the data through algorithms and simulation models, and makes decisions with or without humans in the decision loop.

"Recon is one of the companies leading the digital transformation in the oilfields. Our automation system can help oilfields reduce more than 90% labor cost and enhance their production efficiency at the production site," Mr. Shenping Yin, co-founder and CEO of Recon said. "We expect there is a 20% growth in our automation business this year. In order to maximize productivity, reduce costs, and minimize risks, we are continuously improving machine-learning algorithms and cloud-based software suite, meanwhile increasing adoptions of Internet of Things (IoT) in the oilfields."

Sogou Simultaneous Interpretation 3.0 is the first of its kind that can "see" and "think" in real-time during the interpretation process. Sogou applies leading Optical Character Recognition (OCR) and Natural Language Processing (NLP) technologies that enable the solution to see and process images on presentation slides, further interpreting the underlying information. To "think" while interpreting, the solution utilizes Sogou's proprietary "Context Engine," Knowledge Graph technology, and online encyclopedia Sogou Baike to generate contextual knowledge and collect extensive background information that in real-time comprehends the speaker's message accurately.

Sogou Simultaneous Interpretation 3.0 analyzes sensory inputs from different modalities including vision, audio, and text, improving the recognition accuracy of slides-based content by 21.7% and lifting translation accuracy by 40.3%. The advancement, which marks another stride forward in the field of AI simultaneous interpretation, is powered by Sogou's multimodal cognition capacity. Moreover, the solution builds a comprehensive knowledge database utilizing each presentation, thereby helping speakers with different expertise to explain specialized information more precisely.

AI-powered simultaneous machine interpretation has been a critical component of Sogou's use of AI technology to assist cross-language communications. At the 2016 World Internet Conference in Wuzhen, Sogou launched the first generation of Sogou Simultaneous Interpretation, the world's first commercially applied machine translation solution. In 2018, Sogou Simultaneous Interpretation 2.0 was launched by enriching customization capabilities.

Sogou Simultaneous Interpretation 3.0 recently made its debut at the GeekPark IF X conference in Beijing in December. Sogou's AI interpretation technology has supported hundreds of domestic and international events, including the World Internet Conference, 2018 China Open Tennis Championship, and 2018 RISE Hong Kong Summit. With the latest breakthrough in multimodal cognition technology, Sogou looks to provide accurate and smooth interpretation services in more scenarios including conferences, video translation, and live broadcasts.

Third Quarter 2019 Financial Results

• Total revenues[1] were $314.9 million, a 14% increase year-over-year, or a 17% increase in RMB terms.
• Net income attributable to Sogou Inc. was $36.6 million, a 53% increase year-over-year. Non-GAAP[2] net income attributable to Sogou Inc. was $40.9 million, a 46% increase year-over-year.
• Sogou Mobile Keyboard had 464 million DAUs (daily average users), up 14% year-over-year. As China's largest voice app, it processed up to 830 million daily voice requests.

"During the third quarter we achieved healthy top- and bottom-line growth despite the headwinds in the macro environment and the online advertising industry," said Xiaochuan Wang, CEO of Sogou. "Search revenue continued to grow faster than the industry average, while the Recommendation Service that leverages Mobile Keyboard has maintained robust growth. Our language-centric AI technologies play an essential role across our core businesses. Of note, driven by the new AI-enabled products, our Smart Hardware business returned to a growth trajectory in the quarter."

Mr. Wang added, "In the rest of 2019, we expect the slowing macro and online advertising sentiment to continue, as well as the ongoing tightening regulation in the Internet sector. While we are confident in our long-term trajectory, we anticipate short-term softness as the external challenges weigh in. To navigate the environment, we will focus on building our high-quality search platform and driving organic traffic growth, as well as delivering positive momentum in our new growth drivers, including Recommendation Service and Smart Hardware. "

Joe Zhou, CFO of Sogou, said, "In the third quarter, our total revenues increased to $315 million. Non-GAAP net income grew by 46% year-over-year of $41 million. Margins improved across the board, as we generated increasing contribution from organic traffic, which helped us well contain the traffic acquisition cost, and at the same time prudently managed expenses and improved operational efficiency."

Business Outlook

For the fourth quarter of 2019, Sogou expects total revenues to be in the range $290 million to $310 million, representing a 3% decrease to 4% increase year-over-year, or a 0% to 7% increase year-over-year in RMB terms. The guidance takes into account the potential impact of the challenges in the macroeconomy and the online advertising industry, as well as the ongoing tightening regulatory environment in the Internet sector.

For the fourth quarter 2019 guidance, the Company has adopted a presumed exchange rate of RMB7.10 = $1.00, as compared with the actual exchange rate of approximately RMB6.91 = $1.00 for the fourth quarter of 2018, and RMB6.99 = $1.00 for the third quarter of 2019.

First Quarter 2019 Financial Results

• Total revenues were $252.7 million, a 2% increase year-over-year.
• Basic and diluted loss per ADS were $0.01. 
• Non-GAAP basic and diluted loss per ADS were $0.01.

"Our core search business recorded steady growth in the first quarter of 2019, with revenue growth outpacing the industry average," said Xiaochuan Wang, CEO of Sogou. "During the quarter, we delivered a more efficient search experience to users by leveraging high-quality content and intelligent Q&A capabilities. Building on increasing synergies with search, we also improved the mobile keyboard's content and service distribution capabilities."

Mr. Wang added, "Advancing language-centric AI enables us to build on our leadership position in voice, computer vision, machine translation and Q&A technologies. During the quarter, we launched a new generation of Vocational Avatars and enhanced our AI News Anchor. We also accelerated the product development process for our AI-enabled hardware business and launched a new smart recorder. We look forward to driving AI innovation through the course of 2019."

Joe Zhou, CFO of Sogou, said, "Better-than-expected performance of our core search business enabled us to exceed the top end of our revenue guidance in the first quarter of 2019. During the quarter, we continued to accelerate the growth of our organic traffic and implemented initiatives that improved the monetization of our search platform. We believe that these trends, combined with a greater focus on execution and efficiency, will position us for solid results in the quarters ahead."

Business Outlook

For the second quarter of 2019, Sogou expects total revenues to be in the range $303 million to $313 million, representing a 1% to 4% increase year-over-year, or a 7 % to 11% increase year-over-year in RMB terms.

For the second quarter 2019 guidance, the Company has adopted a presumed exchange rate of RMB6.80 = $1.00, as compared with the actual exchange rate of approximately RMB6.38 = $1.00 for the second quarter of 2018, and RMB6.74 = $1.00 for the first quarter of 2019.

BEIJING, March 28, 2019 /PRNewswire/ -- Sogou Inc. (SOGO) ("Sogou" or "the Company"), an innovator in search and a leader in China's internet industry, today announced that the Company filed with the Securities and Exchange Commission its Annual Report on Form 20-F for the fiscal year ended December 31, 2018. The Annual Report is available on the Company's investor relations website at http://ir.sogou.com/.

The Company will provide a hard copy of the Annual Report containing the audited consolidated financial statements of the Company, free of charge, to a shareholder or holder of the Company's American depositary shares upon written request.

Fourth Quarter 2018 Financial Results

• Total revenues[1] were $297.8 million, a 7% increase year-over-year.
• Basic earnings per ADS and diluted earnings per ADS were $0.07. Non-GAAP basic and diluted earnings per ADS were $0.07.

"Our twin growth engines, Sogou Search and Sogou Mobile Keyboard, continued to drive solid growth in the fourth quarter," said Xiaochuan Wang, CEO of Sogou. "Our core search revenues grew faster than the industry average and we created more synergies between mobile keyboard and search. More importantly, despite macro uncertainties, Sogou remains solid with high quality assets, a large and highly engaged user base, and annual revenue of over one billion dollars."

"In addition, we have demonstrated industry-leading AI capabilities in several key areas such as voice, computer vision, machine translation and Q&A. Looking ahead to 2019, we remain committed to leveraging AI technology to accelerate innovation initiatives across our core businesses and enhance the overall competitiveness of Sogou," added Mr. Wang.

Joe Zhou, CFO of Sogou, said, "Our fourth-quarter revenues were in line with expectations, as core search revenues grew 12% year-over-year, and we delivered $27 million non-GAAP net income. We were pleased to see increased contribution from organic traffic in the fourth quarter and expect this trend to continue into 2019. In line with the ongoing upgrade of our smart hardware business, we have more AI-enabled hardware products in the pipeline and expect this segment will regain momentum in 2019."

Business Outlook

For the first quarter of 2019, Sogou expects total revenues to be in the range $231 million to $241 million, representing a 3% to 7% decrease year-over-year, or a 1% to 5% increase year-over-year in RMB terms.

For the first quarter 2019 guidance, the Company has adopted a presumed exchange rate of RMB 6.90 = $1.00, as compared with the actual exchange rate of approximately RMB6.36 = $1.00 for the first quarter of 2018, and RMB 6.91 = $1.00 for the fourth quarter of 2018.

Third Quarter 2018 Financial Results

• Total revenues[1] were US$460 million[2], down 11% year-over-year and 5% quarter-over-quarter.
• Non-GAAP net loss attributable to Sohu.com Limited for the third quarter of 2018 was US$32 million, or a loss of US$0.81 per fully-diluted ADS, compared with a net loss of US$93 million in the third quarter of 2017 and a net loss of US$49 million in the second quarter of 2018.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "For the third quarter, while our total revenues were largely in-line with prior guidance, the bottom line performance, excluding non-operating items, came in better than we expected, mainly driven by the cost savings of Sohu Video and solid results of our online game business. For Sohu Media Portal, we focused our efforts on upgrading the content as well as optimizing our recommendation engine algorithms. Our key mobile apps gained momentum in terms of DAU and time spent by users. For Sohu Video, we remained on track to reduce content costs while develop new original programs, which tend to generate better ROI. This helped us narrow the segment's loss by more than 50% year-over-year. Sogou continuously integrated more innovative AI features into its search and mobile keyboard products, strengthening its market competiveness. Lastly, Changyou comfortably beat expectations on both revenues and profit, supported by the healthy performance of its TLBB PC and mobile games."

Business Outlook

For the fourth quarter of 2018, Sohu estimates:

Total revenues to be between US$465 million and US$495 million.
Brand advertising revenues to be between US$55 million and US$60 million; this implies an annual decrease of 16% to 23% and a sequential decrease of 3% to a sequential increase of 5%.
Sogou revenues to be between US$292 million and US$307 million; this implies an annual increase of 5% to 11% and a sequential increase of 6% to 11%.
Online game revenues to be between US$85 million and US$95 million; this implies an annual decrease of 13% to 22% and a sequential decrease of 1% to 11%.
Before deducting the share of non-GAAP net income pertaining to non-controlling interest, non-GAAP net loss to be between US$23 million and US$33 million. Assuming no new grants of share-based awards and that the market price of our shares is unchanged, we estimate that compensation expense relating to share-based awards will be around US$3 million. Including the impact of these share-based awards, GAAP net loss before non-controlling interest to be between US$26 million and US$36 million.
Non-GAAP net loss attributable to Sohu.com Limited to be between US$45 million and US$55 million, and non-GAAP loss per fully-diluted ADS to be between US$1.15 and US$1.40. Including the impact of the aforementioned share-based awards, and netting off approximately US$2 million of Sohu's economic interests in Changyou and Sogou, GAAP net loss attributable to Sohu.com Limited to be between US$46 million and US$56 million, and GAAP loss per fully-diluted ADS to be between US$1.20 and US$1.45.
For the fourth quarter 2018 guidance, the Company has adopted a presumed exchange rate of RMB7.00=US$1.00, as compared with the actual exchange rate of approximately RMB6.61=US$1.00 for the fourth quarter of 2017, and RMB6.80=US$1.00 for the third quarter of 2018.

Third Quarter 2018 Financial Results

• Total revenues1 were $276.6 million, a 7% increase year-over-year.
• Basic earnings per ADS and diluted earnings per ADS were $0.06. Non-GAAP basic and diluted earnings per ADS were $0.07.

"In the third quarter, we recorded healthy growth in our core businesses," said Xiaochuan Wang, CEO of Sogou. "As the second largest search engine by mobile queries in China, we continued to grow our core search revenues faster than the industry average. Driven by our commitment to providing users with reliable, trustworthy information to help them address their key problems, we further enriched our search platform with high-quality content for popular verticals such as healthcare. This drove a significant year-over-year increase in mobile healthcare queries."

"For our mobile keyboard business, we continued to leverage AI-driven innovation to make it more efficient for users to communicate. These AI initiatives enabled us to achieve solid growth in both our user base and market share. In the third quarter, Sogou Mobile Keyboard continued to cement its position as both the leading mobile keyboard as well as China's largest and most popular voice app. According to iResearch, Sogou Mobile Keyboard remained the third largest mobile app in China."

Mr. Wang added, "During the quarter, we increased our investments in the development of our industry-leading AI technologies and continued to integrate them into Sogou Search, Sogou Mobile Keyboard and our smart hardware products. We are committed to driving the development of language-centric AI technology and are confident this will enable us to fuel the sustainable growth of our platform."

Joe Zhou, CFO of Sogou, said, "Our third-quarter revenues reached $276.6 million, in line with expectations, with core search revenues up 13% year-over-year. Going forward, we expect to see long-term, sustainable growth in our search business as we continue to deliver on our strategy of differentiation. We are also confident that, while near term smart hardware sales will be impacted, our upgraded smart hardware strategy will better position us to create more competitive products and drive long term growth in this segment." 

Business Outlook

For the fourth quarter of 2018, Sogou expects total revenues to be in the range $292 million to $307 million, representing a 5% to 11% increase year-over-year, or an 11% to 17% increase year-over-year in RMB terms.

For the fourth quarter 2018 guidance, the Company has adopted a presumed exchange rate of RMB 7.00 = $1.00, as compared with the actual exchange rate of approximately RMB6.61 = $1.00 for the fourth quarter of 2017, and RMB 6.81 = $1.00 for the third quarter of 2018.

Second Quarter 2018 Financial Results

• Total revenues[1] were $301.4 million, a 43% increase year-over-year.
• Basic earnings per ADS were $0.09. Diluted earnings per ADS were $0.08. Non-GAAP basic and diluted earnings per ADS were $0.10 and $0.09 respectively.

"We continued to develop our twin growth engines – search and mobile keyboard – in the second quarter," said Xiaochuan Wang, CEO of Sogou. "In search, we bolstered our differentiated services in key verticals, such as healthcare, where we added more authoritative content, leading to a solid increase in related search queries and click through rate. We also deepened our partnership with WeChat by providing more search services such as our encyclopedia and interactive Q&A platform. Overall, our core search business maintained solid growth with revenues increasing by 45% year-over-year. During the quarter, we enhanced functionality of the Sogou Mobile Keyboard to better meet user needs for smart interaction and expression. Our AI-powered innovations drove broader adoption of the Sogou Mobile Keyboard, with DAU increasing by 36% year-on-year to 380 million in the second quarter."

Mr. Wang added, "Going forward, we remain committed to developing language-centered AI technologies in voice, translation and Q&A, which are well positioned to empower our search, mobile keyboard and smart hardware products. Sogou Search continuously improved its content quality and user experience with the ongoing refinement of our translation and Q&A technologies. In the month of June, Sogou Mobile Keyboard handled approximately 300 million voice inputs on average per day, up 54% year-on-year, and remained China's largest voice mobile application. We have also applied our AI capabilities to greatly enhance the competitiveness of our recently launched hardware products, such as Sogou Travel Translator and Sogou Smart Recording Translator."

Joe Zhou, CFO of Sogou, said, "We achieved solid results in the second quarter with revenue increasing 43% year-over-year and non-GAAP net income up by 58%. Looking forward, we expect that our third quarter revenues will be lower than anticipated due to the one-time impact of a regulatory investigation and steps taken to ensure our advertising practices are compliant with relevant regulations, and the adjustment of our smart hardware strategy. We are confident that our twin growth engines and AI-focused strategy will lead to sustainable growth over the long term."

Business Outlook

For the third quarter of 2018, Sogou expects total revenues to range from $275 million to $285 million, representing a 7% to 11% increase year-over-year. The guidance for the third quarter takes into account the one-time impact of the regulatory investigation, lower hardware sales following the adjustment of the smart hardware strategy, and the depreciation of the RMB.

For the third quarter 2018 guidance, the Company has adopted a presumed exchange rate of RMB 6.80 = $1.00, as compared with the actual exchange rate of approximately RMB6.66 = $1.00 for the third quarter of 2017, and RMB 6.38 = $1.00 for the second quarter of 2018.

BEIJING, May 16, 2018 /PRNewswire/ -- Sogou Inc. (NYSE: SOGO) ("Sogou" or "the Company"), an innovator in search and a leader in China's internet industry, today announced that its AI-powered, portable translation device, dubbed the Sogou Smart Recording Translator, is now available for purchase. The Sogou Smart Recording Translator logged over 110,000 in pre-orders between May 8-15, with shipments to customers starting today.

The Sogou Smart Recording Translator supports the recording, transcription, translation and interpretation of both real-time and recorded conversations. The device enables users to record information in classes, meetings, and other similar occasions, and simultaneously translates spoken content into the target language via Sogou's translation software. The Sogou Smart Recording Translator is the second product in Sogou's family of translation hardware devices, and follows the successful launch of the Sogou Travel Translator in March.

Xiaochuan Wang, Chief Executive Officer of Sogou, said, "We are excited to launch the Sogou Smart Recording Translator that offers higher-quality voice recordings compared with traditional models thanks to a dual microphone array that suppresses background noise and improves voice recognition, even at 6 meters from the speaker. The Sogou Smart Recording Translator is another example of how AI is enabling us to transform hardware devices into service-oriented products. Designed to overcome a wide range of challenges that students, journalists and business people face every day, the Smart Recording Translator can automatically transcribe conversations that users can easily edit and share at one click of a button as well as serve as a personal interpreter and translator for everyone."

Mr. Wang added, "It is part of the next generation of portable translation devices and we are pleased to see strong early demand for this product. We will continue to focus on developing and leveraging our language-centric AI capabilities to bring more consumer-friendly and practical applications to consumers."

BEIJING, March 23, 2018 /PRNewswire/ -- Sogou Inc. (SOGO) ("Sogou" or the "Company"), an innovator in search and a leader in China's Internet industry, today announced that its AI-powered, portable translation device, the Sogou Travel Translator, sold out on March 19, 2018, the first day of the product's official launch. Exclusively available through JD.com, all available units of the Sogou Travel Translator have been sold with total sales exceeding RMB 10 million (approximately US$1.6 million). The Sogou Travel Translator is the top-selling translation device in China, driven by strong consumer demand for intuitive, accurate and smart translation. On March 22, 2018, JD.com began a second round of pre-orders for the Sogou Travel Translator.

"We are confident that the Sogou Travel Translator is the most accurate and powerful machine translation solution on the market," said Xiaochuan Wang, Chief Executive Officer of Sogou. "The significance of AI cannot be overstated, and I believe that AI has the potential to be as meaningful for humankind as the invention of electricity. At Sogou we have always worked to advance cross-border communication, and our AI-powered natural language processing and machine translation technology has been developed through the research and analysis of billions of user interactions on our flagship platforms. Ultimately, we believe that users will turn to the most accurate and reliable translation device and software available, and that means using Sogou."

The Sogou Travel Translator has a wide range of features that are designed to cater to the needs of China's rapidly growing tourism market. These include:

Offline translation mode allows users to translate real-time dialogue and text-embedded in images without being connected to the Internet;
Powerful Optical Character Recognition technology enables translation of image-embedded text so users can read street signs and menus;
Translates dialogue to and from 18 different languages, including Chinese, English, German, Arabic and Russian;
Built-in dual microphone array effectively filters out and suppresses background noise, while improving voice recognition;
Highly portable, lightweight device with 3.1-inch high-resolution touch screen;
Long-lasting battery life that can power the translation device for up to 7 days without recharging;
Voice recognition accuracy rate of over 97%.
Sogou's AI-powered translation technology was developed through analysis of a significant volume of natural language interactions on Sogou's core platforms. With a Big Data advantage afforded by up to 300 million voice requests and more than 2 million Optical Character Recognition requests every day in Sogou Search and Sogou Input Method, Sogou has developed an unrivalled understanding of the Chinese language that has accelerated the development of its AI capabilities.

Sogou's leadership in natural language processing and machine translation has been widely recognized on the global stage. Sogou's machine translation technology debuted at the World Internet Conference in 2016 – the first time that simultaneous machine translation technology had been used in a commercial event. Sogou was ranked first in the highly regarded 2017 WMT Chinese-to-English machine translation competition and similarly received first place in the 2016-2017 13th NTCIR Chinese short text conversation competition that evaluates the ability of a machine to generate human-like responses to text queries. In addition to the Travel Translator, Sogou's industry-leading machine translation technology has also been effectively integrated into its search, Chinese input method and browser services, as well as its translation app.

Fourth Quarter 2017 Financial Results

• Total revenues were $277.8 million, an increase of 62% year-over-year.
• Basic and diluted earnings per ADS were $0.04. Non-GAAP basic earnings per ADS were $0.11, and non-GAAP diluted earnings per ADS were $0.10.

"We are really pleased to post a strong set of results in the fourth quarter," said Xiaochuan Wang, CEO of Sogou. "Driven by our focus on innovating and applying our AI technology, we continued to differentiate our core suite of products and achieved strong growth across our key metrics. In December, our search market share by mobile queries expanded to 18.2%, adding three percentage points since March 2017. This consolidated Sogou's position as China's second-largest search engine. The Sogou Mobile Keyboard similarly recorded strong growth, with daily active users reaching 330 million in December, up 46% year-over-year, solidifying its position as the No. 3 mobile app by DAU in China."

Mr. Wang added, "Through the course of 2017, we made significant advancements in our AI capabilities that are centered on natural language processing, with major breakthroughs in voice, translation and Q&A. Looking forward, we will continue to leverage AI technology to empower the continuous innovation of Sogou Search and Sogou Mobile Keyboard."

Joe Zhou, CFO of Sogou, said, "We are pleased with our financial performance in the fourth quarter. Mobile search traffic growth, combined with continued improvements in monetization, drove a 62% year-over-year increase in fourth-quarter revenues. While we continued to invest in expanding our R&D capabilities, our prudent financial management enabled us to post an 80% increase in non-GAAP net income. The strength of our fundamentals, along with $1 billion of cash on hand following the recent capital infusion, give us the platform to expand investments in AI and our core product offerings. We look forward to continued financial growth through 2018."

China IPO - Sogou Inc. (NYSE:SOGO),a search engine services provider in China's Internet industry, announced the pricing of its IPO of 45 million ADSs at a price of US$13.00 per ADS, for a total IPO size of US$585 million, assuming the underwriters do not exercise their over-allotment option. The company also granted the underwriters a 30-day option to purchase up to an additional 6.75 million ADSs to cover over-allotments. The ADSs will start trading on NYSE today under the ticker “SOGO”. The implied market cap is about US$5.7 billion with a P/E of about 64 based on the annualized first 9 months net income of 2017.