Why Qihoo Missed Q4 Earnings and Fell 3%

Qihoo 360  (NYSE: QIHU  ) shares fell as low as 3% to $33.74 after missing quarterly estimates. While analysts hoped for $0.17 per share from this quarter, Qihoo delivered only $0.10. The company, however, beat 2012 fiscal year by $0.04. 

In the fourth quarter, Qihoo's revenue's jumped 65% year over year to the tune of $103 million. Overall, the company netted $12.8 million, 14.7% less than last year's $15 million. Altogether, that means shareholders earned a $0.10 instead of $0.13 for the same quarter last year.

In all of 2012, Qihoo almost doubled revenues to $329 million, a total increase of 96% from $167.9 million over FY2011. Even better, the  company tripled net income to $46.8 million. For the year, Qihoo delivered $0.80 per share, while analysts only expected $0.76 per share.

However, the good news for Qihoo seemed to be in its operating metrics. CEO Zhou Hongyi noted that monthly active users for Qihoo's PC-based products and services increased to 456 million by the end of 2012. Moreover, the company's mobile security product, 360 Mobile Safe, reached 207 million.

Specifically, the company's 360 Browser reached a record 310 million, compared to 256 million in Q4 2011. Qihoo's 360 Personal Start-up Page hit 91 million daily unique visitors in the fourth quarter. 

Barely noted in the earnings report was Qihoo's new search efforts. Launched in the summer 2012, Qihoo mainly referred to the venture (and mobile investments) as a reason for shrinking margins. 

In closing, Mr. Xiangdong Qi, president of Qihoo 360, added:

We are thrilled to have surpassed our revenue guidance and internal profitability targets for both the fourth quarter and the full year. With 80% year-over-year growth, our online advertising business continued to gain market share in 2012, supported by a strong increase in our user activities, as well as our successful initiatives to deepen our monetization process.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2295375, ~/Articles/ArticleHandler.aspx, 10/23/2014 1:20:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,700.68 239.36 1.45%
S&P 500 1,954.38 27.27 1.42%
NASD 4,453.03 70.18 1.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/23/2014 1:04 PM
QIHU $68.50 Up +3.50 +5.38%
Qihoo 360 Technolo… CAPS Rating: *

Advertisement