Qihoo 360 Triumphs in First Quarter 2014

Jianyu Zhao  |

Chinese software company Qihoo 360 Technology Co. Ltd. (QIHU) released its unaudited financial reports of first quarter 2014 after the bell on May 27, showing that revenue increased an impressive 141.3 percent year over year. Such a tremendous rise can be attributed to strong performance in online advertising and growing users.

Qihoo 360’s products range from internet security software and browsers to search service. They are also considered to be the leading provider among major Chinese tech companies such as Tencent Holdings Ltd. (TCEHY).

Measured by its massive users, the company operates one of the largest open internet platforms in China. According to the financial reports, total monthly active users of Qihoo 360’s PC-based products and services reached a record 479 million in March 2014, compared to 457 million in March 2013.

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Similar trends happen to the company’s visitors and daily clicks. Daily unique visitors, on average, to the “360 Personal Start-up Page” and its sub-pages were 122 million in the first quarter of 2014, compared to 94 million in the first quarter of 2013. Qihoo 360’s pages got more than 772 million clicks in the first quarter of 2014, compared to 489 million in the same period of 2013.

"Through continued product improvement and technological innovation, we believe we are in an excellent position to further grow our share of China's search market in terms of both traffic and revenue,” said Mr. Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. “As we continue to execute our business plan and strategy, we believe that search and mobile monetization represent a substantial long-term growth opportunity for our business.”

For their first quarter 2014 earnings, Qihoo 360 reported a net profit of $49.1 million, or $0.78 per share, versus the net profit of $5.6 million, or $0.04 per share, from the same period a year ago. Revenue for the quarter was $265.1 million, as compared to $109.9 million from the previous year.

For the second quarter of 2014, the company expects revenues to be between $300 million and $305 million, representing a year-over-year increase of 98 percent to 101 percent and quarter-over-quarter increase of 13 percent to 15 percent.

Shares were up 5.95 percent in early May 28 trading action.

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