This Chinese Search Engine Continues to Grow in Baidu’s Shadow
Sogou (NYSE: SOGO) controls 18% of China's online search market, according to StatCounter, placing it in second place behind Baidu's (NASDAQ: BIDU) 65% share. Competing against Baidu has been tough for Sogou, which is backed by Tencent (OTC: TCEHY) and its former parent company Sohu, but it continues to grow in the tech giant's shadow.
Sogou recently posted its first-quarter numbers, which bore the full impact of the COVID-19 lockdowns across China. Its revenue grew 2% annually to $257.3 million, beating estimates by $6.6 million. Its non-GAAP net loss widened from $2.7 million to $31.1 million, or $0.08 per share -- but still matched analysts' expectations.
For the second quarter, Sogou expects its revenue to decline 8%-14% annually due to the impact of COVID-19, the contraction of the Chinese economy, and other macro and advertising-industry challenges.
Source Fool.com
