Earnings

Stock News Recap: Changyou.com Limited (NASDAQ: CYOU)

February 2, 2019

Changyou.com Limited (NASDAQ: CYOU) stock recently located move of -12.28% off 52-week high price and identified change of 52.68% away from 52-week low price. CYOU stock has been recorded 3.14% away from 50 day moving average and 16.51% away from 200 day moving average. Moving closer, we can see that shares have been trading 4.69% off 20-day moving average. It has market worth of $988.91M.

Changyou.com Limited (NASDAQ: CYOU) declared its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2018.

Fourth Quarter 2018 Highlights

  • Total revenue was US$118 million, a decrease of 18% year-over-year and flat quarter-over-quarter, in line with the Company’s guidance.
  • Online game revenue was US$94 million, a decrease of 14% year-over-year and 2% quarter-over-quarter, in line with the Company’s guidance.
  • GAAP net income attributable to Changyou.com Limited was US$10 million, compared with net income of US$34 million in the fourth quarter of 2017 and net income of US$55 million in the third quarter of 2018.
  • Non-GAAP net income attributable to Changyou.com Limited was US$11 million[2], compared with net income of US$34 million in the fourth quarter of 2017 and net income of US$54 million[3] in the third quarter of 2018.

Fiscal Year 2018 Highlights

  • Total revenue was US$486 million, compared with US$580 million in 2017.
  • Online game revenue was US$390 million, compared with US$450 million in 2017.
  • GAAP net income attributable to Changyou.com Limited was US$84 million, compared with US$109 million in 2017.
  • Non-GAAP net income attributable to Changyou.com Limited was US$78 million, compared with US$126 million in 2017.

Fourth Quarter 2018 Unaudited Financial Results

Revenue

Total revenue was US$118 million, a decrease of 18% year-over-year and flat quarter-over-quarter.

Online game revenue was US$94 million, a decrease of 14% year-over-year and 2% quarter-over-quarter. The year-over-year decrease was due to the natural decline in revenue of the Company’s older games, including Legacy TLBB Mobile.

Online advertising revenue was US$4 million, a decrease of 32% year-over-year and 14% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases were mainly due to fewer PC and web games being marketed on the 17173.com Website.

Cinema advertising revenue was US$18 million, a decrease of 30% year-over-year and an increase of 13% quarter-over-quarter. The year-over-year decrease reflected the impact of a strategy adjustment in the second quarter of 2018 related to the acquisition and sale of advertising resources. The quarter-over-quarter increase reflected a recovery in revenue following the strategy adjustment.

Internet value-added services (“IVAS”) revenue was US$2 million, a decrease of 55% year-over-year and an increase of 19% quarter-over-quarter. The year-over-year decrease was a result of lower revenue from PC and mobile internet products and the quarter-over-quarter increase was due to higher revenue from PC Internet products.

Net income

Net income was US$10 million, compared with net income of US$34 million in the fourth quarter of 2017 and net income of US$55 million in the third quarter of 2018.

Non-GAAP net income was US$11 million, compared with non-GAAP net income of US$34 million in the fourth quarter of 2017 and non-GAAP net income of US$54 million in the third quarter of 2018.

Fiscal Year 2018 Unaudited Financial Results

Revenue

Total revenue in 2018 was US$486 million, representing a decrease of 16% year-over-year.

Online game revenue decreased 13% year-over-year to US$390 million. The year-over-year decrease was mainly due to the natural declining life cycles of Legacy TLBB Mobile, which was launched in the second quarter of 2017, and TLBB 3D.

Online advertising revenue decreased 22% year-over-year to US$20 million. The year-over-year decrease was mainly due to fewer Web games and PC games being marketed on the 17173.com Website.

Cinema advertising revenue decreased 23% year-over-year to US$70 million. The year-over-year decrease was a result of a strategy adjustment related to the acquisition and sale of advertising resources during second quarter of 2018.

IVAS revenue decreased 57% year-over-year to US$6 million. The decrease was due to lower revenue from both PC and mobile Internet products.

Net income

Net income was US$84 million, compared with net income of US$82 million in 2017.

Non-GAAP net income was US$77 million, compared with non-GAAP net income of US$99 million in 2017.

 The Technology sector company, Changyou.com Limited noticed change of -4.40% to $19.36 along volume of 332413 shares in recent session compared to an average volume of 244.17K. The stock observed return of -1.73% in 5 days trading activity. The stock was at 12.89% over one month performance. CYOU’s shares are at 44.05% for the quarter and driving a -7.66% return over the course of the past year and is now at 5.91% since this point in 2018. 

 The average volatility for the week at 5.75% and for month was at 4.95%. There are 51.08M shares outstanding and 10.28M shares are floated in market. Right now the stock beta is 0.63. 

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