Qihoo 360 (NYSE:QIHU)

First Quarter Financial Highlights

• Revenues were $69.3 million, representing an increase of 202.1% from $22.9 million in the first quarter of 2011.
• Net income attributable to Qihoo 360 was $14.1 million, compared to a net loss of $21.4 million in the first quarter of 2011.
• Net income attributable to Qihoo 360 excluding share-based compensation (non-GAAP)(1) was $25.7 million, representing an increase of 290.5% from $6.6 million in the first quarter of 2011.
• Diluted earnings per ADS(2) ("EPADS") attributable to Qihoo 360 were $0.12.
• Diluted EPADS attributable to Qihoo 360 excluding share-based compensation (non-GAAP)(1) were $0.21 vs $0.12 in prior year.

"We have once again outperformed the industry and our expectations, delivering another quarter of triple-digit year-over year growth in revenue and net income as well as outstanding performance across several key operating metrics," said Mr. Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. "Monthly active users of our products and services grew to 411 million and our browsers' user penetration rate reached a record 62% in the first quarter of 2012. We believe our success has been driven by our company-wide focus on product and technology innovation and maximizing customer satisfaction. As a leader in China's Internet industry, we have demonstrated our ability to effectively execute our open platform strategy. We are confident that the product initiatives we launched earlier this year will substantially enhance our monetization capabilities in the coming quarters, despite the uncertainty in the Chinese economy and global markets," concluded Mr. Zhou.

Mr. Xiangdong Qi, President of Qihoo 360, added, "While the first quarter is seasonally soft across the industry, we achieved stronger than expected revenue growth and profitability. Our online advertising business outperformed the industry in a challenging macro environment, with a 177% year-over-year increase supported by our robust user activity growth on our Personal Start-up Page. Web game operations continued to gain momentum and strong user growth drove a 248% year-over-year increase in game revenue. As we continue to deliver solid results in the near term, we believe our proactive investments in product and technology on both the PC and mobile platforms will support sustainable growth and drive long-term shareholder value."

Business Outlook

For the second quarter of 2012, the Company expects revenues to be between $72 million and $73 million, representing a year-over-year increase of 105% to 108%. These estimates give consideration to the impact of our offer of remote technical support services for free starting in April 2012. Such free offerings significantly extend Qihoo 360's comprehensive free security solution, strengthen the Company's core security position, and enhance user experiences and stickiness to Qihoo 360's products and services.

BEIJING, April 20, 2012 /PRNewswire-Asia/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo 360" or the "Company," NYSE: QIHU), a leading Internet company in China as measured by active user base, and Unity Technologies (the "Unity"), the creator of Unity3D, have reached an agreement to form a partnership that enables Chinese Internet users to seamlessly access Unity3D-powered 3D games through 360 browsers.

Qihoo 360 will distribute the Unity Web Player initially to the over 240 million users of its 360 Safe Browser and then to its entire user base of 400 million. This will enable Unity games to be played seamlessly in the 360 Safe Browser on any website, including 360 Game Center, one of the top web game portals in China.

Qihoo 360 and Unity will also introduce Unity's popular 3D engine and development tools to Chinese developers.  With one million registered developers worldwide, Unity is an intuitive and flexible development platform used to make creative and interactive 3D content and deliver the best 3D games and applications for the Internet, PCs, Macs, iOS and Android devices, and gaming consoles. 

"This is an excellent opportunity to corner the market for Unity-powered web games throughout China," said David Helgason, CEO of Unity Technologies. "Having a strong partner like Qihoo 360 distribute the Unity Web Player across their user base will introduce new customers to our developers and solidify the global importance of Unity."

"This partnership is a great opportunity to enhance our users' web game experiences," said Hongyi Zhou, Chairman and CEO of Qihoo 360. "We look forward to working with Unity to provide safe and exciting gaming experiences for our users across various platforms."

Over the past five months, the Company has been subject to a series of accusations made by various firms and individuals such as Citron, Deloitte-Watch and Richard Pearson, the author of today's article. The company has rejected all those allegations and firmly stands by all of the information contained in its filings with the U.S. Securities and Exchange Commission. The Company is fully committed to continuously increasing the transparency of its financial reporting.

The year 2011 was without question a challenging year for Deloitte in China.

Following detailed fraud allegations from short sellers, Deloitte resigned from two major clients in China, China Media Express and Longtop Financial. Deloitte then became embroiled in a difficult battle between the Chinese government and the United States Securities and Exchange Commission over the issue of handing over audit papers to non-Chinese entities. Last year’s resignations drew widespread criticism, having come at the 11^th hour and only after detailed fraud allegations were published by short sellers. However, this year, Deloitte appears to be taking a more proactive approach to cleaning up its portfolio of clients listed in Hong Kong, having already resigned from two Hong Kong listed Chinese companies. With the current audit season approaching its end, other Deloitte clients who will be in focus include ChinaCast Education (CAST), Focus Media (FMCN) and Qihoo 360 Technology (QIHU). Full article.

BEIJING, March 12, 2012 /PRNewswire-Asia/ -- Phoenix New Media Limited (NYSE: FENG), a leading new media company in China ("Phoenix New Media", "ifeng" or the "Company"), and Qihoo 360 Technology Co. Ltd. ("Qihoo 360") (NYSE: QIHU), a leading Internet company in China as measured by active user base, today announced strategic cooperation between the two companies to offer users seamless access to Phoenix New Media's premium content through Qihoo 360's multi-platform products.

Phoenix New Media, China's fourth largest Internet portal by time spent, has become the first media partner to offer Qihoo 360's over 400 million users easy and immediate access to ifeng's premium news content. Pursuant to the agreement, Phoenix New Media will provide content from its portal website, www.ifeng.com, directly to Qihoo 360's multi-platform products, including 360 Browsers and 360 Desktop. Ifeng News will be listed as one of only six default links placed on 360's Personal Start-up Page. Moreover, Phoenix New Media will further expand its news application offerings to 360 Desktop, Qihoo 360's application-based platform for PCs in China. Phoenix New Media will provide breaking news and other media updates to 360 Desktop users through tailored applications and push notifications.

Mr. Xiangdong Qi, President of Qihoo 360 commented, "We are pleased to partner with Phoenix New Media, leveraging its strong media DNA and editorial capabilities to provide our audience a balanced perspective on real-time global news and in-depth featured stories. This strategic cooperation with ifeng will further improve users' engagement and experience on our platform by providing comprehensive and efficient access to global news via ifeng's applications and information services. We believe this partnership will further enhance close interaction between two of China's leading Internet companies going forward."

Mr. Ya Li, Chief Operating Officer of Phoenix New Media, commented, "We are excited to be partnered with Qihoo 360, the leading Internet platform company in China. Our strategic partnership will not only enrich Qihoo 360's content offerings, but also help boost our application downloads, increase our webpage views and further expand our overall user reach. Going forward, we believe that such initiatives, allowing expanded and easier access to our proprietary content, will help further enhance our user loyalty and viewership growth."

BEIJING, March 9, 2012 /PRNewswire-Asia/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo 360" or the "Company") (NYSE: QIHU), a leading Internet company in China as measured by active user base, today announced that it has secured exclusive rights in China for the initial launch of the PC Version of Rovio's "Angry Birds Space" on its 360 Desktop. The game is expected to become available for download on March 22, 2012. A mobile version of the game is expected to be available on Qihoo 360's mobile platform shortly thereafter.

Chinese Internet users will be able to download the game for free with one easy click on their desktop and mobile platforms. Qihoo 360's 400 million users will also be able to customize their 360 Desktop, 360 Browsers, 360 Personal Startup Page, and 360 Safeguard with Angry Birds screen savers, skin packs and videos.

Angry Birds Space will be the largest sequel to follow the successful 2009 launch of wildly popular Angry Birds. With 60 puzzling levels, new Angry Birds characters, new superpowers, and new gameplay, users will be able to have fun with physics in a variable gravity environment. More levels will be available both as free regular updates as well as in-app purchases.

360 Desktop is the largest app-based open platform on the PC in China with over 180,000 third-party applications and more than 50 million active users as of December 31, 2011. Rovio, the developer of the Angry Birds franchise, granted Qihoo 360 the exclusive right for the initial launch of Angry Birds Space China in order to leverage the Company's massive user base.

Fourth Quarter 2011 Highlights

• Revenues were $62.3million, an increase of 214.5% from $19.8 million in the fourth quarter of 2010.
• Net income attributable to Qihoo 360 was $15.0 million, an increase of 274.1% from $4.0 million in the fourth quarter of 2010.
• Net income attributable to Qihoo 360 excluding share-based compensation ("non-GAAP")(1) was $24.3 million, an increase of 365.9% from $5.2 million in the fourth quarter of 2010.
• Diluted earnings per ADS(2) (EPADS) attributable to Qihoo 360 were $0.13.
• Diluted EPADS attributable to Qihoo 360 excluding share-based compensation (non-GAAP)(1) were $0.20.
• Total monthly active users of Qihoo 360's products and services surpassed 400 million for the first time ever and user penetration of Qihoo 360's products reached a record 93.8% in December 2011(3)
• User penetration of Qihoo 360's browsers reached a record 59.5% in December 2011(3).
• Average daily clicks on Qihoo 360's Personalized Start-up Page and its sub-pages were approximately 235 million in the fourth quarter of 2011.

"We are very pleased to report robust growth and expanding margins in our first full year operating results since becoming a public company," commented Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. "We have set a number of new records in financial and operating metrics, significantly exceeding our expectations. Our success was driven by our continued focus on product and technology innovation and customer satisfaction. Despite global economic uncertainty and capital markets volatility, growth in China's Internet sector remains healthy and we continue to outgrow the market by a wide margin."

"Our business fundamentals are strong as ever. We continue to experience robust growth in all major areas throughout 2011, particularly in the second half. As we maintain our dominant market position in China's Internet security industry, we continued to expand our market share in other key product areas. Our browsers' user penetration hit another record high of 59.5% at the end of 2011, compared to 41% at the end of 2010, further strengthening our leading market position. Total monthly active users of Qihoo 360's products and services surpassed 400 million for the first time ever in our company's history, a significant leap from 290 million at the end of 2010. This is particularly encouraging as it demonstrates the level of trust that our users have in us and the strong brand recognition we carry in the market. We are well positioned for the many opportunities ahead of us as we effectively execute our open platform strategy to drive long-term sustainable growth," Mr. Zhou concluded.

Xiangdong Qi, President of Qihoo 360, added, "With a relatively healthy market environment in China and our history of solid execution, we achieved stronger than expected revenue growth and profitability in the fourth quarter and the full year. Our online advertising business is clearly gaining market share. The 217% year-over-year growth in online advertising in 2011 was supported by robust user activity growth on our Personal Start-up Page and new customer contributions. Although web game operations is still relatively small at Qihoo 360, it is gaining momentum as we see accelerated user growth in the second half of 2011 that eventually drove an over 170% year-over-year revenue growth. As we continue to execute our business plan, we are confident that we can consistently deliver strong operating results in the near term. We also believe our proactive investments in product innovation and technology on both PC and mobile platforms will support long-term sustainable growth for our company."

Business Outlook

For the first quarter of 2012, the Company expects revenues to be between $63 million and $65 million, representing a year-over-year increase of 175% - 183% and a sequential increase of 1% - 5%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

BEIJING, Dec. 22, 2011 /PRNewswire-Asia/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo 360" or the "Company") (NYSE: QIHU), a leading Internet company in China as measured by active user base, today announced that it will host the Company's first investor/analyst day in Beijing on January 12, 2012. 

During the day, members of senior management as well as the heads of major business units will provide formal presentations and host Q&A sessions to discuss the Company's growth strategy, product development, operational details and business updates. In addition, several business partners and major customers of Qihoo 360 will participate in panel discussions about the relevant business areas in order to provide more information and greater transparency about Qihoo 360's business model and operations.

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BEIJING, Dec. 22, 2011 /PRNewswire-Asia/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo 360" or the "Company") (NYSE: QIHU), a leading Internet company in China as measured by active user base, today announced that it will meet with investors at the following upcoming investor conferences in January 2012:

On January 9, 2012, Qihoo 360 will present and meet investors at the UBS Greater China Conference 2012 in Shanghai, China. The conference will be held at the Pudong Shangri-la Hotel in Shanghai, China.

On January 10 - 11, 2012, Qihoo 360 will present and meet investors at the Deutsche Bank Access China Conference 2012 in Beijing, China. The conference will be held at the Grand Hyatt Hotel in Beijing, China.

Investors who are interested in attending these conferences and meeting with Qihoo 360 should contact their sales representatives at the respective banks.

Third Quarter 2011 Highlights (1)

• Revenues were a record $47.5 million, an increase of 207% from $15.5 million in the third quarter of 2010.
• Net income attributable to Qihoo 360 was $10.9 million, an increase of 186% from $3.8 million in the third quarter of 2010.
• Net income attributable to Qihoo 360 excluding share-based compensation ("non-GAAP")(1) was $19.5 million, an increase of 306% from $4.8 million in the third quarter of 2010.
• Diluted earnings per ADS(2) (EPADS) attributable to Qihoo 360 were $0.09.
• Diluted EPADS attributable to Qihoo 360 excluding share-based compensation (non-GAAP)(1) were $0.16 vs. $0.06.
• User penetration of Qihoo 360's browsers reached a record 57% in September 2011(3).
• Average daily clicks on the Company's 360 Personalized Start-up Pages were 185 million in September 2011.

"We are very pleased to report our third consecutive quarter of robust growth since becoming a public company as we set a number of new records in financial and operating metrics," commented Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. "Our success was driven by our continued focus on product and technology innovation and customer satisfaction. Despite continued global economic uncertainty and capital markets volatility, growth in China's Internet sector remains healthy and we continue to outgrow the market by a wide margin.

Business Outlook

For the fourth quarter of 2011, the Company expects revenues to be between $55 million and $56 million, representing a year-over-year increase of 178% - 183% and a sequential increase of 16% - 18%.

For the full year 2011, the Company expects revenues to be between $160 million and $161 million, representing a year-over-year increase of 177% - 179%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

Second Quarter 2011 Highlights(1)

• Revenues hit a record $35.1 million, an increase of 176.6% from $12.7 million in the second quarter of 2010.
• Net income attributable to Qihoo 360 was a record at $11.1 million, an increase of 411.5% from $2.2 million in the second quarter of 2010.
• Net income attributable to Qihoo 360 excluding share-based compensation ("non-GAAP")(1) was $13.2 million, an increase of 328.4% from $3.1 million in the second quarter of 2010.
• Diluted earnings per ADS(2) (EPADS) attributed to Qihoo 360 were $0.09.
• Diluted EPADS attributed to Qihoo 360 excluding share-based compensation (non-GAAP)(1) was$0.11  vs. $0.04. 
• Monthly active users of Qihoo 360's products and services reached 378 million as of June 2011, an increase of 10% from 345 million at the end of March 2011(3).
• Qihoo 360's products and services' user penetration rate among all Chinese internet users reached 92% as of June 2011, the highest level in the Company's history(3).
• 360 Safe Browser's user penetration reached a record 52% as of June 2011, compared with 48% at the end of March 2011(3)

"We are pleased to report another period of strong growth in the second quarter as we set a number of new records in terms of our performance," commented Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. "Our strong results were driven by our continued focus on product and technology innovation and customer satisfaction. While global economic uncertainty and volatility in the capital markets in recent months appear to have caused some concern around the world, the growth and development of the Internet sector in China and our business fundamentals remain strong. As we continued to solidify our dominant market position in China's Internet security industry, we also expanded our market penetration in some key product areas, such as our web browser. Our user base and user penetration rates both hit record highs during the quarter. This is particularly encouraging as it shows the level of trust our users have in us and the strong brand recognition we carry in the market."

Business Outlook

For the third quarter of 2011, the Company expects revenues to be between $41 million and $42 million, representing a year-over-year increase of 165% - 172% and a sequential increase of 17% - 20%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

We believe that our current levels of cash and cash flows from operations and financing activities will be sufficient to meet our anticipated cash needs for at least the next twelve months. However, we may need additional cash resources in the future if we experience changed business conditions or other developments. We may also need additional cash resources in the future if we find and wish to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions.

First Quarter Results:

• Revenues were $22.9 million, an increase of 136.5% from $9.7 million in the first quarter of 2010.
• Net loss attributable to Qihoo 360 was $21.4 million, compared with a net loss attributable to Qihoo 360 of $1.5 million in the first quarter of 2010, mainly due to the recognition of $26.7 million share-based compensation expenses related to the options and nonvested shares ("share awards") vested upon the company's listing on NYSE and the re-measurement of value of the share awards granted to consultants at quarter end.
• Net income attributable to Qihoo 360 excluding share-based expenses (non-GAAP) was $6.6 million, compared with a net loss attributable to Qihoo 360 excluding share-based expenses (non-GAAP) of $585,000 in the first quarter of 2010.

"We are pleased to report our first quarterly results as a public company," commented Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. "Our strong growth in the first quarter was driven by our unwavering commitment to cutting-edge product innovation and user-oriented product design. We are also benefiting from a booming internet market in China, where we see particularly strong business and investment activities. We see strong momentum across our major business segments during the quarter as we reached new highs in monthly active users for most of our main products. With our recent successful IPO on the New York Stock Exchange, we are even better positioned to attract new users, engineering talent and business partners to our powerful platform as we continue to build and expand our trusted brand among internet users in China."

For the second quarter of 2011, the Company expects revenue to be in the range of $28 million and $30 million, representing a year-over-year increase of 120% - 136% and sequential growth of 22% - 31%. These estimates reflect the company's current and preliminary view, which is subject to possible material changes.