On November 4th Sogou reported unaudited results for the third quarter of 2019. The company reported operating revenue of more than 2.2 billion yuan in the third quarter, up 17% year-on-year. Under non-U.S. GAAP, net profit attributable to Sogou reached RMB283 million, up 47% YoY. Revenue and net profit both hit record highs. Sogou (NYSE: SOGO) closed up 2.14 per cent at $5.26 yesterday, up 1.33 per cent at $5.33 as of 19:20 BST.
In the third quarter, Search Dog Search and Input Method, two core businesses continued to maintain a solid growth trend.
Sogou Search continues to enhance the professional quality and efficiency of search around high-quality content differentiation and intelligent question-and-answer. Sogou has renewed its cooperation with Tencent in the coming year related to WeChat Sogou’ one-search feature, and third-party search within WeChat will continue to give priority to the use of Sogou. Correspondingly, Sogou Search significantly increased the proportion of WeChat’s public content in search results, providing differentiated, high-quality content.
In addition, for common medical problems, Sogou Search added dozens of new medical encyclopedia content coverage, driving search results click-through rate and other core operational indicators to increase by about 10%. Sogou Search continues to improve the content ecology, the first direct answer coverage and accuracy continues to lead the industry 5%.
In terms of input method, the average daily voice request of mobile input method increased by 67% compared with a year ago, peaking at 830 million, ranking in the position of the largest voice application in China.
Language-centric AI layout is also breaking through, with the accuracy of mixed speech recognition in China and the UK increasing by more than 65%. Sogou Input Introduced a new feature of “Smart WangChai” AI Assistant, expanding the coverage of AI services.
Sogou has been used in customer service, law, meteorology, media, conferences and other industries. This technology adds real-time conversation altogether and combines Ping An Pratt and Whitney to launch AI Synthetic Interactive Customer Service.
This quarter, the new AI recording pen color version in a number of mainstream e-commerce platforms to obtain single-item sales first, and through the Sogou input method to help 90% of the recording pen on the market access to sogou dictation services.
Earlier, according to media reports, Sogou Q3 financial results before the release of the investment bank generally positive outlook. On October 4th Credit Suisse raised Sogou’s rating from “neutral” to “overweight” in a research report, and on October 8th Zacks Investment Research raised its rating from “hold” to “buy” with a target price of $5.75.