Despite Being at War With Everyone, Qihoo Posts Stellar 2012 Financials

Qihoo’s new search engine emerged in mid-2012.

Despite every single one of its iOS apps being banned by Apple right now, and a lot of negative media coverage of how its desktop apps threaten user privacy, Chinese web company Qihoo (NYSE:QIHU) has reported some stellar numbers in its Q4 and full-year 2012 financial report. Markets reacted positively to the news from the software maker and fledgling search engine, pushing Qihoo’s stock price up 6.3 percent in Tuesday trading to hit an all-time high of $34.82 per share.

Before looking at the financial side, Qihoo also rolled out some user numbers. The report states that total monthly active users of Qihoo 360’s products and services reached a record 456 million in December 2012, up from 402 million at the end of 2011. As for its web browser – which is an important traffic driver for its relatively new search engine – the company reported that “monthly active users of Qihoo 360’s browsers reached a record 310 million in December 2012,” up from 255 million the year before. Antivirus apps are another strong area for Qihoo, and it saw mobile users of 360 Mobile Safe rocket from just 53 million in 2011 to 207 million at the end of last year.

Qihoo sailed past its revenue guidance with $103 million in revenues in Q4 (up 64 percent from previous year) to reach $329 million for full-year 2012, almost double that of 2011. Out of all that, $46.8 million was net income.

Chairman and CEO Zhou Hongyi hailed an eventful year in which Qihoo burst into the search segment to take on compatriot rival Baidu. President Qi Xiangdong explained their investment focus:

In 2012, we made proactive investments in product and technology development to further our leadership position and expand our footprint, particularly in mobile internet and search technology where we see tremendous opportunity for future expansion.

Aside from Qihoo’s tussle with Apple over its iOS apps ban – which might seriously impede its mobile strategy in 2013 if it remains unresolved – rival search giant Baidu has instigated a lawsuit over Qihoo’s search mechanisms.

See the full Qihoo financials here.