On enterprise security, management believes that the market in China was about US$1.5bn in size in 2014. In the past, the industry has been growing at an annual rate of 15-20%. Now it is growing at ~40%, according to the management. Management noted that 400 big enterprises have already become Qihoo enterprise security users, but most of them have yet to pay. Management believes the enterprise security business will see a non-GAAP operating margin of 30%.
On the search business, management believes that its PC search traffic is still growing and taking market share. Organic search traffic (users type in so.com or Haosou.com) currently accounts for over 50% of total traffic. Out of the ~100K search customers now, the company estimates ~5% are KA (Key Accounts).
Management is still comfortable that it can continue to gain market share in China's mobile game market, aiming for ~70% YoY growth.
