Sogou reports Q3 EPS 9c, consensus 6c
Reports Q3 revenue $314.9M, consensus $308.51M. "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." 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."