Sohu.com (SOHU)

Operating Expenses

For the third quarter of 2009, Sohu’s operating expenses totaled US$50.8 million. Non-GAAP operating expenses totaled US$46.7 million, up 7% sequentially from US$43.5 million and up 9% year-on-year. The quarter-on-quarter and year-on-year increases primarily reflect increases in salaries and compensation expenses as a result of increased headcount and an increase in professional fees.

Operating Expenses

For the second quarter of 2009, Sohu’s operating expenses totaled US$49.8 million. Non-GAAP operating expenses totaled US$43.5 million, up 21% from US$36.1 million for the first quarter of 2009 and up 23% year-on-year. The quarter-on-quarter increase reflects higher sales and marketing expenses in the second quarter of 2009. The year-on-year increase was primarily due to an increase in salaries and compensation expenses as a result of increased headcounts, an increase in marketing expenses for Sohu’s branding, and an increase in professional fees.

Operating Expenses

For the first quarter of 2009, Sohu’s operating expenses totaled US$38.1 million. Non-GAAP operating expenses totaled US$36.1 million, down 9% from US$39.6 million for the fourth quarter of 2008 and up 17% year-on-year. The quarter-on-quarter decrease was primarily attributable to lower sales commission and bonuses in the first quarter of 2009. The year-on-year increase was primarily due to continued investment in product development, marketing expenses for Sohu’s branding initiatives and an increase in salaries and bonuses.