This update document highlights Sogou's search engine and input business on the leading edge, as well as Sogou andTencentRecent Developments in Business Cooperation:
According to China's mobile search volume, Sogou search is the second largest mobile search engine, Sogou search in September 2017 accounted for 17.8% of China Mobile search market share, higher than in March 2017 15.2%, higher than 2017 16.9% in June. Powered by artificial intelligence, Sogou search offers innovative products and services.
According to iResearch statistics, based on the number of active users in September 2017, Sogou input method is China's second largest PC software, the third largest mobile applications. Sogou input method to almost all applications related to the Chinese input application interface provides a large number of high-quality data, the data on the Sogou's large data capacity is essential. Sogou input method to real-time prediction of the user's search intent, and allows users to search through its embedded search function, which accounted for Sogou organic search traffic a considerable part of the share.
At present, Sogou search is Tencent mobile QQ browser and Tencent website default search engine, 2017 in October, Tencent began to test Sogou search and WeChat integration, so that WeChat users can use Sogou as a search function, access to WeChat external information. To be product testing and optimization, Sogou will discuss with Tencent related business arrangements.
In addition, Sogou's prospectus also revealed that in addition to a lot of important information.
Control in Sohu
According to Sogou's latest prospectus content, after the IPO is completed, Sohu holds all SogoustockWill be re-divided into Class B common stock. For any matter raised by Sogou shareholders, there are 10 votes per share for Class B ordinary shares and 1 vote for each Class A common stock (corresponding to ADS).
Assuming the underwriters do not implement the over-allotment option, after the completion of the IPO, Sohu accounted for Sogou all A shares and B shares of the equity ratio of about 33.4%, and has Sogou A and B shares the total voting power of about 44.0% The Tencent accounted for about 28.7% of the total interest in Sogou S and B stocks, accounting for about 52.3% of Sogou A and B shares.
According to Sohu, Tencent and Sogou's voting rights agreement, after the listing, Tencent will be 45,578,896 shares of which Class B ordinary shares of the voting rights entrusted to Sohu, the remaining stock of the voting right to retain their own, which makes Sohu can elect Most of the board members, and continue to merge Sogou's financial statements.
45,578,896 shares of voting rights accounted for about 15.7% of the total voting power of Sogou, that is, Sohu currently holds 44% of the voting rights, the two together, after the listing of Sohu's voting rights will become 59.7% Tencent's vote is 36.6%.
In addition, the Sogou board of directors will have seven seats, Sohu will have the right to appoint four directors, Tencent has the right to appoint two directors, the other one is Sogou CEO Wang Xiaochuan.
In summary, Sohu is still firmly in control of Sogou control.
Sogou prospectus shows that as of June 30, 2017, Sogou in the first half of the total revenue of $ 373 million, compared with $ 323 million in the same period last year.
The "search and search related advertising revenue" to $ 329 million, higher than last year's $ 294 million; "other revenue" to 44.4 million US dollars, higher than the same period last year 28.9 million US dollars. Search and search for related advertising revenue growth, thanks to the number of paid click-through service customers and the average revenue growth of individual customers.
Sogou in 2014, 2015 and 2016 total revenue of $ 386 million, respectively, $ 592 million and $ 660 million, showing an upward trend year by year.
Among them, search and search related advertising revenue were $ 358 million, $ 540 million and $ 597 million, other revenue were $ 28.5 million, $ 52.3 million and $ 63.2 million, other revenue growth mainly from the Internet value-added services As well as intelligent hardware sales.
According to the prospectus, Sogou's source of income is mainly for search and search related advertising revenue, the past three years, this part of the total income accounted for more than 90%, in addition, Sogou other income accounted for from 7.4% in 2014 to 2016 years 9.6%, showing an upward trend year by year.
2017 years before the two quarters, Sogou other income accounted for 10% of the break up to 11.9%, search and search related advertising revenue accounted for the first time down to 90%, 88.1%, which shows the income structure of Sogou is further towards a reasonable optimization.
Sogou in the first half of 2017 net profit of 35.8 million US dollars, higher than the same period last year 27.7 million US dollars. Sogou 2016, 2015 and 2014 net profit of 56.1 million US dollars, respectively, 99.5 million US dollars and a net loss of 26.8 million US dollars.
Products and data
At the business and user level, the prospectus discloses Sogou's four business components and some user data. Among them, Sogou business consists of four major parts: Sogou search, Sogou input method, intelligent hardware and other products.
Sogou search, including WeChat search, Tomorrow search, knowledge search and other 10 products, Sogou input method, including PC input method, mobile input method, voice input method and image input method 4 products. Other products are mainly Sogou browser, Sogou map, etc .; intelligent hardware mainly for the sugar cat series.
In the Sogou search engine and input products on the mobile side of the month, the prospectus data show that in March 2015 Sogou search mobile side of the monthly activity of 346 million, in June 2017 the figure increased to 483 million; Sogou input method to move The end of the month from March 2015 to 225 million growth in June 2010, 403 million; as of June 2017, Sogou input method of the number of active users in the day of 283 million.
AI and the future of large data is broader
Sogou currently determine the six future strategies are: to expand the search market, the development of the next generation of man-machine interface, unlock the value of large data, continue to develop AI technology, improve liquidity, seeking strategic investment and alliance.
In addition, in addition to the basic business search dog search, the Sogou is the most important part of the AI and large data, it is to support Sogou future business growth imagination space core business.
At present, Sogou has a clear roadmap on AI, focusing on natural interaction and knowledge computing. It has made great breakthroughs in voice and image technology, machine translation, Q & A, and successfully integrated AI into Sogou products and services.
Sogou said in the prospectus, in addition to online search, it will also develop and apply the following key AI technology:
Speech recognition: Speech recognition is the core technology to realize human voice interaction. Sogou has advanced speech recognition technology, reaching 97% accuracy. In the third quarter of 2017, every day through the Sogou input method mobile version produced more than 200 million voice input, large data can strengthen Sogou's voice recognition ability.
Image recognition: Image recognition is the core technology of vision-based human-computer interaction. Sogou developed handwriting recognition, OCR, image search and face recognition.
Semantic understanding: semantic understanding is the key to human - computer interaction. Through natural language processing and dialogue modeling technology, Sogou allows the machine to understand the user text, voice and image input intention.
Sogou has developed advanced machine translation technology, Sogou said it has successfully applied deep neural network technology to optimize and commercialize real-time machine translation technology, with the ability to simultaneously identify voice and translate Chinese into English.
Knowledge Computing: Knowledge calculation refers to a series of techniques, including the representation of knowledge, storage, retrieval and reasoning. By extracting and digging information on the Internet, Sogou can build a Chinese knowledge map to help answer the question of fact.
In addition, Sogou developed a deep level of Q & A technology to answer the user's complex natural language problems. Sogou has also been these key AI technology, integrated in the Sogou proprietary natural interactive interface Concert System and Sogou knowledge computing platform deep intelligent engine, the two platforms can be in the home, car and work environment applications.
Concert system: the use of voice recognition and synthesis and semantic understanding of the voice dialogue man-machine interface. Intelligent hardware and intelligent operating system allows users to perform tasks via voice, such as lights and electrical appliances, search for information, and ask questions in a natural, conversational way.
Deep intelligence engine: combines knowledge computing technology with natural language processing technology, including Q & A session, machine translation, intelligent customer service and knowledge graph, to provide technical support for Sogou and Sogou partner products and services. July 2017, Sogou launched a cloud-based AI open platform, allowing mobile Internet developers to use Sogou's voice recognition, OCR, natural language processing, Q & A and machine translation technology.
For Sogou in the AI artificial intelligence investment, which in the prospectus revealed that the IPO raised by the money, will come up with about 150 million US dollars for research and development, continue to strengthen the product development, artificial intelligence and large data capabilities.