Sogou Inc. (NYSE:SOGO) Q3 2018 Earnings Conference Call Transcript

Nov 05, 2018 • 07:30 am ET


Sogou Inc. (NYSE:SOGO) Q3 2018 Earnings Conference Call Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to Sogou's Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

I would now like to turn the call over to your host today, Jessie Zheng, Investor Relations, Director of Sogou. Please go ahead.

Jessie Zheng

Hello, everyone, and thank you for joining Sogou's Third Quarter 2018 conference call. On the call, our CEO, Xiaochuan Wang; and our CFO, Joe Zhou, will give an overview of operations and the financial results.

[Forward Looking-Cautionary Statements]

With that, I will now turn the call over to our CEO, Xiaochuan Wang.

Xiaochuan Wang

Thank you, Jessie. During the third quarter of 2018, we recorded healthy business growth. As the second largest search engine by mobile search queries in China, we continued to grow our core search revenues faster than the industry average. Sogou Mobile Keyboard cemented its leading position with 405 million DAUs, up 32% year-over-year. According to iResearch, Sogou Mobile Keyboard remains the third largest mobile application in China by DAU. We remained focused on executing our strategy to differentiate our offerings and enhance competitiveness. We also continued to apply our AI capabilities to all business segments to upgrade our products and the services, and towards the next phase of growth.

Now I will provide an update on the key initiatives in our core businesses, starting with search. Thanks to our differentiated content capacity and leading Q&A technology. All operating indicators in our search business steadily improved in the third quarter. We continued to enrich our platform with high-quality authoritative health care content to further differentiate our services from here. At present, we partnered with the leading medical information platform and the Chinese pharmaceutical information platform, that both directly administrated by China's National Health and Family Planning Commission. Through this partnership, we can provide users with comprehensive information about diseases, symptoms and drugs.

We have also integrated a vast amount of interactive Q&A content from replicable softwares into our health care search results. As a result of this initiative, content from authoritative service now comprises 65% of Sogou's health care search results, significantly higher than our competitors. Our efforts to provide users with reliable trustworthy health care information to over 36% year-over-year increase in mobile health care search queries in the quarter. At the same time, we continued to leverage our independently-developed Q&A technology to upgrade our search services. This significantly improved user satisfaction of our talk direct on the results to search queries. In the third quarter, we processed 38% of our total search queries with search results with 94% accuracy rate.

We also continued to optimize search results by increasing the display of images and videos and build the growing database of authoritative content for health care and other verticals. With these efforts, users are now more likely to first seek