Qihoo 360 Technologies (QIHU, Financial) came up with fantastic results recently. The company managed to post impressive numbers on the back of its impressive moves. With such momentum, Qihoo is looking for robust value growth across all its businesses. The company looks aggressive for it growth going forward and is taking various initiatives to improve its profitability. With growing smartphone usage, Qihoo is seeing good opportunities to improve its performance in the long run. Let's take a look at what will improve the company's growth.
What will power Qihoo's growth?
Qihoo is mainly gaining on the back of its search services. It is seeing impressive traction for its search. This is attracting many of the users as Qihoo is working impressively on improving the search quality and overall user experience. In addition, Qihoo is also focused on PC search. It is laser focusing on some mobile related products including an all-in-one content search platform. The company is expecting this new product to strengthen its market position in the coming days.
As a result, Qihoo's performance has been strong in recent times. According to the company's CFO,
"Revenues were $317.9 million, up 109.6% from Q2 2013 and up 19.9% from the prior quarter. The strong year-over-year growth was driven by solid performance from both online advertising and Internet value-added service, with IVAS growing at a faster pace. We are particularly pleased with the search monetization ramp. No single customer contributed 10% or more to total revenue during the quarter."
So Qihoo saw impressive growth and it looks set to improve further.
Important moves
Qihoo is aiming at becoming a key player in China’s search market. It is seeing impressive improvements in monetization system. To further support this, Qihoo will be focusing much on the advertising. Moreover, its gaming platform is also a potential growth driver for Qihoo. Qihoo expects this platform to attract more game developers. Despite a competitive environment, Qihoo is expecting its Android app Store and 360 Mobile Assistant to deliver robust growth which will strengthen its leadership position in the market.
Qihoo is also focusing on strengthening its monetization network in product development and technology innovation. Besides this, the company is making significant investments to strengthen its brand security and mobile segment. Qihoo will be having its eyes on improving the user experience and will also be making innovations in the product. With these, Qihoo is confident of expanding its strategy to further accelerate its efforts of building a Tier 1 PC and mobile internet platform in China. Qihoo is confident about its long term prospects with its new products and services its recently launched.
However, Qihoo is quite disappointed with the slow momentum that it is seeing with its monetization system. It is also expanding its agency network and customer base to further seek opportunities to improve its market share in future. While it is relying majorly on its search business which is gaining some robust traction in the market. Further, to make its monetization system better and reduce the gap, Qihoo is upgrading its system.
Conclusion
Qihoo looks like a good investment from different angles. The company will benefit from a growing Internet market in China, and investors should invest in it for strong long-term gains.
