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Leveraging Tencent, overweight AI, eight highlights to see Sogou IPO roadshow PPT

via:博客园     time:2017/11/3 15:34:02     readed:1552

Sogou will be in the United States on November 9, the eastern market in the United States, recently in various roadshows. Lei Feng network (public number: Lei Feng network) according to their road show PPT, summed up the following eight highlights to share with you.

1, cooperation with Tencent

If you summed up the hot words in the Roadshow PPT, Tencent will probably be the first. According to the Roadshow PPT, Sogou and Tencent Ecology have a full range of cooperation including content sources - Wechat, Reading Group, Knowing, Lilac Park, Getting Channel & Wechat, QQ Cell Phones Browser, Tencent, Internet navigation, QQ navigation and so on.

Major cooperation include:

  • Sogou WeChat search is the only universal WeChat search engine, you can retrieve the WeChat more than 20 million public account of the entire content

  • Sogou Ming medical search, and Tencent investment lilac Park cooperation, access to reliable, formal medical information content

  • QQ browser is currently ranked second mobile browser, Sogou traffic is a major source. (The first is the UC browser (UC browser market penetration accounted for 65.9%, mobile QQ browser accounted for 32.5%)

At present, the traffic volume of all major channels is as follows: primary traffic accounts for 21%, from Tencent 36% and mobile phone manufacturers 43%.

2, AI all-round help

Sogou self-proclaimed "standing in the forefront of AI research and development" and has a clear road map, AI is also a key driver of smart hardware. Sogou previously mentioned in the prospectus AI more than 90 times, 7 times machine / depth learning, 9 natural language processing. Content from technology to product landing, from the strategy to the future development planning are involved.

Sogou in AI advantages are:

  • Sogou has industry-leading speech recognition accuracy (97%), machine translation and natural language understanding.

  • Sogou's AI technology can also be applied to the field of Internet of things, is conducive to the development of virtual personal assistant (VPA).

  • Sogou hope through the development of search, integration of big data, AI technology, access to more and greater opportunities for development, such as news push, virtual personal assistant.

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3, continue to rely on search and input method

Sogou input method and search is the most successful sogou two major businesses, the former is designed to help exchange, which is designed to help users access to information.

Sogou search has been continuing to grow, the market share has been sustained and steady improvement, China's search share second only to Baidu. Revenue growth for the 2014-16 fiscal year remained at 34%, the fastest growing search engine.

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Sogou Mobile Input Method 307 million mobile DAU, China is second only to WeChat and QQ third largest mobile applications. Permeability in the PC side as high as 98%, the average daily expression of Sogou input Chinese characters over 90 billion. Almost all Chinese APP has frequent interaction with them.

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4, to develop the search market

Compared to the United States, China's search engine economic efficiency is still low. China has 600 million people using search engines, the United States only 231 million. However, the search market in the United States accounts for 0.2% of the total GDP while that of China is only 0.1%.

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Demand for search advertising in verticals such as education, e-commerce, games, financial services, healthcare and other fields is still growing rapidly. The overall advertising revenue in 2016-2021 is expected to remain at 21.7%.

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5, Reshape the search market with differentiated content, multi-channel traffic sources, and leading technology

Sogou search market in the development of the main advantages are:

  • Rely on the cooperation with Tencent, and Tencent to build ecological system

  • Achieve differentiated search through strategic cooperation including WeChat search, Ming medical search, cooperation with know-it-all and English search

  • Advanced technology, mainly AI and big data

  • Sogou input method to guide the search traffic

  • Forward-looking technology and team management

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6, set the scale, growth, profitability in one, the financial and other data performed well

Sogou third quarter 2017 revenue of 257 million US dollars, an increase of 55%.

Sogou search mobile MAU reached 511 million; Sogou input method mobile MAU is 427 million; in 2016 to achieve revenues of 660 million US dollars;

From September 2014 to September 2017, the annual growth rate of mobile terminal traffic was 72%; in September 2017, the mobile terminal DAU of Sogou input method increased by 55% compared with the same period of last year; in 2014 and 2016, the revenue composite The average annual growth rate of 36%;

Non-GAAP caliber, has 15 consecutive quarters of profitable; 2016 non-GAAP net profit of 97 million US dollars.

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7, Sohu is still the largest share of the Sogou the future development of the biggest say

Before the listing, Sohu owns 37.8% stake in Sogou, Sohu CEO Zhang Chaoyang holding 9.2%, Tencent 43.7% stake, Sogou CEO Wang Xiaochuan 5.5% stake, Sogou and Sohu employees holding 3.8%.

Prior to the disclosure of Sogou prospectus, Sogou has two institutional shareholders, respectively, Sohu and Tencent. Sohu has a total stake of 37.8%; Tencent shares ratio was 43.7%, is the largest shareholder of Sogou. However, Tencent, which holds the largest shareholding, does not have control of Sogou. Sohu, Tencent and Sogou signed a voting agreement to ensure the control of Sohu and Sogou relative independence.

8, a clear and mature business model

Search and search-related advertising revenue accounted for 92.4% of total revenue in 2016, with PPC-based pay-as-you-go service accounting for 70.2% and online advertising accounting for 20.2%. Revenue from games, Sogou reading and smart hardware accounted for 70.2% 9.6% of revenue.

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Lei Feng Web results: Sogou and its old rival Baidu has been knocking for fifteen years, while the other has long been listed in fourteen years ago, is so far the Chinese giant can not shake the Internet. Once struggling Sogou, with three rocket and mobile Internet strategy, now appears to have reborn Nirvana. Lei Feng Wang believes that the listing of the road at hand, of course, this is a good start. But the future trend, but also long-term observation.


Sogou IPO road show PPT exposure:

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IPO IPO Overview

Sogo IPO size 45 million shares of ADS, IPO issue price of 11-13 US dollars / ADS, ADS is equal to 1 share of 1 common stock

Stock code: SOGO, listed on the New York Stock Exchange (NYSE)

To raise funds: R & D investment; sales and marketing; potential strategic acquisitions, investment and cooperation opportunities.

Lead underwriter: J. P. Morgan, Credit Suisse, Goldman Sachs, CICC

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【Company Overview】

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【corporate vision】

"Letting Exchanges and Getting Information Easy" rdquo;

Two products: Sogou input method, Sogou search

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【Growth process and ownership structure】

- In 2004, Sogou established

2006, launched Sogou input method;

2008, launched sogou browser;

2010, stripped from Sohu;

- In 2013, it acquired Tencent's investment and merged with Tencent's search business "Soso".

According to iResearch September 2017 MAU data, the current Sogou has become the fourth largest Internet company, the second largest search engine, the largest Chinese input method.

The IPO ownership structure was 37.8% owned by Sohu, 9.2% owned by Zhang Chaoyang, 43.7% owned by Tencent, 5.5% owned by CEO Wang Xiaochuan, and 3.8% owned by Sohu and Sogou.

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Sogou became the second largest domestic search engine, and market share continued to rise

- From 15.2% in March 2017 to 17.8% in September (search requests by mobile).

- Annual mobile traffic growth rate of 72% (compared to search PV).

- In the past three years, the revenue of the search business has increased at a compound annual growth rate of 34%, making it the mainstream search engine with the fastest revenue growth.

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Sogou input method is the largest Chinese input method

- According to iResearch's September 2017 average DAU data, mobile DAU reached 307 million and is the third largest mobile application in China, second only to WeChat and QQ.

- Permeability up to 98% on PC side.

- On average, more than 90 billion Chinese characters are expressed through Sogou input method every day.

- Sogou input method almost all Chinese mobile applications have interaction.

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【Sogou】

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Sogou: innovator in the search of China's Internet industry leader

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China's search engine market is in a phase of rapid growth

- It is estimated that the CAGR of the search market will still be 21.7% from 2016 to 2021.

- More and more advertisers are shifting their ad delivery to online. In 2016, online advertising accounted for 44.7% of all ads and is expected to rise to 75.3% in 2021.

- Demand for search advertising in vertical areas such as education, electricity, business, financial services, and medical services continues to grow at a high speed.

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- Compared to the United States, China's online search market, although many users, but the permeability is still low, the future there is still great growth potential.

- In 2016, the average annual search advertising revenue per search user, the United States is 8 times that of China.

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Sogou's competitive advantage allows it to redefine the search

Tencent ecosystem to bring the difference between the search content

- A diversified flow access path

- Big Data and AI bring cutting-edge technology

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Through the strategic cooperation to obtain differentiated search content

- Sogou WeChat search is the only universal WeChat search engine that can be found on WeChat more than 20 million public account of the entire content.

Seeking reliable, formal medical information content.

- Sogou has a strategic investment in the Q & A community and has become an exclusive partner in the search field. Sogou search users can get the question and answer content of the exclusive real-time push.

- Sogou English search, is the world's first cross-language search engine, and Microsoft Bing search cooperation, designed to help non-English-speaking Chinese, search and read the world's medical, scientific and cultural information.

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Diversified and differentiated traffic access channels

- Traffic mainly comes from: Sogou search App itself, China's largest mobile browser & mdash; QQ browser, Super App & mdash; sogou input method and WeChat, and with mainstream mobile phone manufacturers to establish relations of cooperation.

At present, the traffic volume of each major channel is as follows: primary traffic accounts for 21%, from Tencent accounts for 36% and mobile phone manufacturers account for 43% (vivo, OPPO, millet, etc.)

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Sogou input method for Sogou search flow four ways

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Micro letter for Sogou search guide flow in three ways

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Together with Tencent to build and share the ecosystem, from the ecosystem to obtain the search traffic, access to differentiated search content, but also for the ecosystem and Tencent to provide services, contribute value.

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Sogou input method to obtain massive data, and then use the advanced data capabilities to enhance Sogou search

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- Successfully integrated its leading AI technology into Sogou search and Sogou input method, improving product quality.

- AI-related technical strength, Sogou has industry-leading speech recognition accuracy (97%), machine translation and natural language understanding of technology.

- sogou's AI technology can also be applied to the field of Internet of things, is conducive to its development of virtual personal assistant (VPA).

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Sogou also hope that through the development of search, integration of big data, AI technology, access to more and greater opportunities for development, such as news push, virtual personal assistant.

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[Visionary management team and technology-driven culture]

- The management team is talented and working for the company for a long time.

- Innovative engineer culture: 43% of the staff are master's or doctorate, 71% of the staff engaged in research and development work, applied for 714 patents, and Tsinghua University set up AI research institutions - Institute of Technology.

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【Financial status】

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Set size, growth, profitability in one

- scale

Sogou search mobile MAU reached 511 million; Sogou input method mobile MAU is 427 million; in 2016 to achieve revenues of 660 million US dollars;

- Growth

From September 2014 to September 2017, the annual growth rate of mobile terminal traffic was 72%; in September 2017, the mobile terminal DAU of Sogou input method increased by 55% compared with the same period of last year; in 2014 and 2016, the revenue composite The average annual growth rate of 36%;

- Profitability

Non-GAAP non-GAAP, the company has 15 consecutive quarters of profitable; 2016 non-GAAP net profit of 97 million US dollars.

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Clearly mature revenue model

- Search and search-related advertising revenue accounted for 92.4% of total revenue, with PPC-based pay-per-click service accounting for 70.2% of total revenue and other online advertising services accounting for 20.2%.

- Games, sogou reading, smart hardware "sugar cat" (children's intercom positioning watch) and other income accounted for 9.6% of total revenue.

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Industry-leading revenue growth

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Stable cost structure and continuous improvement of operating leverage

The proportion of the cost of main operations was stable. In the first three quarters of 2017, the operating expense ratio improved both on a year-on-year basis and on a sequential basis. It recorded a record low for the reporting period and dropped to 35% in the third quarter of 2017.

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Considerable profitability and healthy operating cash flow

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