Boom times as Qihoo 360 sees Q3 FY13 sales up 124% to $188 million

Game platform and search business growing fast

Boom times as Qihoo 360 sees Q3 FY13 sales up 124% to $188 million

Chinese internet and mobile outfit Qihoo 360 (NYSE: QIHU) has announced its unaudited financials for Q3 2103, the three months ending 30 September 2013.

Revenues were $188 million, up 124 percent year-on-year.

This was driven both by online advertising (up 107 percent to $121 million) and value-added services (up 163 percent to 67 million).

Qihoo 360's VAS are mainly derived from its games platform operations.

Net income was $43.9 million, up 245 percent.

Be secure

Qihoo 360's core business is its PC internet security product which reaches 465 million users - or 94 percent of the Chinese market.

It's now building out such services to mobile and had 408 million users of its 360 Mobile Safe product in September. This is up from 149 million 12 months ago.

In addition, 342 million people are using Qihoo 360's browsers; something that is reflected in the company's growing position as the #2 search company in China.

Most recent figures say it has around 21 percent market share compared to 62 percent for market leader Baidu.

Search is the target

"With our PC security products covering nearly 95 percent of Chinese PC internet users, and our mobile security solutions covering approximately 70 percent of Chinese smartphone users, Qihoo 360 remains the indisputable leader in internet security in China," said CEO Hongyi Zhou.

He also pointed to the important of the company's Android app 360 Mobile Assistant, which he claims was "becoming the most effective launch platform for Android app developers".

In terms of future growth opportunities Zhou highlighted both internet and mobile search.

"Looking ahead, we will continue to invest in product development and technology innovation, setting the stage for Qihoo 360 to capture a significant portion of the search market in both PC and mobile internet and eventually reshape this vast industry in China.

"While our search monetization is still in its early stages, we have made significant progress. We believe that search and mobile monetization will drive substantial long-term growth for our business."

The company ended the quarter with cash and equivalents worth $1 billion, in part thanks to its recent $600 million convertible bond issue.

[source: Qihoo 360]

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A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.