Sogou Inc. (NYSE:SOGO) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 06:30 am ET

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Sogou Inc. (NYSE:SOGO) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Sogou's Second Quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded, and if you have any objections, you may disconnect at this time. [Operator instructions] Again, the conference call is being recorded.

I would now like to turn the conference call over to your host today, Jessie Zheng, investor relations of Sogou. Please go ahead.

Executive
Jessie Zheng

Hello, everyone. And thank you for joining Sogou's Second Quarter 2020 Earnings Conference Call. On the call, our CEO, Xiaochuan Wang; and our CFO, Fion Zhou, will give an overview of the business and the financial results. In line with our practice on the previous earnings conference calls, Xiaochuan's prepared remarks will be made in Xiaochuan's voice using personalized speech synthesis and style transfer learning technology, which was developed by the Sogou Voice Interaction Technology Center.

Please note that due to the pending going-private transaction, we will not be holding the Q&A session at the end of this call. If you have any questions, please contact us at ir@sogou-inc.com.

Before management begins their prepared remarks, I would like to remind you of the company's safe harbor statement in connection with today's conference call. Except for the historical information contained here, the measures discussed in this conference call are forward-looking statements. These statements are based on our current plans, estimates and projections, and therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements.

For more information about potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

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

Executive
Xiaochuan Wang

Thank you, Jessie. Hello, everyone. We delivered overall in line results in the second quarter of 2020, with healthy momentum in our core search and Mobile Keyboard businesses. In particular, Sogou Search maintained a steady share of traffic and reinforced its position as China's second largest search engine.

Mobile Keyboard further expanded its DAU base to 484 million, maintaining the third largest Chinese mobile app in terms of DAUs according to iResearch. In addition, our AI Hardware business recorded solid growth in the quarter. Since the beginning of this year, the online advertising industry, particularly search advertising, has been facing great challenges. The pandemic exacerbates the structural changes the industry is undergoing, and it continues to dampen the overall advertising sentiment and the business operations as SME. We expect the situation to continue for some time, and Sogou is not immune to that.

Amidst this unfavorable environment, Sogou has been proactively upgrading its development strategy to focus on generating more user value and building out a business that is oriented towards long-term value and growth. We will further boost AI empowerment and synergies across our businesses as we