Altaba 8K Yahoo! Reports Third Quarter 2000 Financial Results | AABA 11 Oct 00

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EXHIBIT 99.1
FOR IMMEDIATE RELEASE

Yahoo! Reports Third Quarter 2000 Financial Results

Company Posts $295.5 Million in Revenues and $81 Million in Pro Forma Net Income

SANTA CLARA, Calif.—Oct. 10, 2000—Yahoo! Inc. (Nasdaq: YHOO) today reported net revenues totaling $295,548,000 for the third quarter ended Sept. 30, 2000, compared to net revenues of $155,863,000 for the third quarter ended Sept. 30, 1999, an increase of 90 percent. Pro forma net income for the quarter was $81,090,000 or $0.13 per share diluted, excluding acquisition-related charges, amortization of intangibles and stock compensation, employer payroll taxes on gains realized by employees from non-qualified stock option exercises, and gains from the exchanges of certain equity investments. This compares to pro forma net income of $38,485,000 or $0.06 per share diluted for the comparable period in the previous year. Including acquisition-related charges, amortization of intangibles and stock compensation, and employer payroll taxes on non-qualified options, net income for the third quarter ended Sept. 30, 2000 was $47,665,000 or $0.08 per share diluted, compared to a net income for the third quarter ended Sept. 30, 1999, of $11,073,000, or $0.02 per share diluted.

"The global Yahoo! franchise is stronger today than ever before, and this is reflected in our performance this quarter—our 16^th consecutive quarter of profitability on a pro forma basis before acquisitions," said Tim Koogle, chairman and CEO of Yahoo!. "Once again, we exceeded expectations for financial performance by posting record revenues, operating profit and cash flow. We made significant progress in all areas of strategic focus and extended our services to more of the world's largest advertisers. Going forward, we remain focused on extending our strong leadership position and capturing market share through our key growth areas."

"Yahoo! content and services have become an increasingly essential part of people's daily lives—our active registered users interact with more Yahoo! services, spend more time, consume more pages, and purchase more products and services," said Jeff Mallett, Yahoo!'s president and chief operating officer. "We also continue to deliver essential services for business partners and clients, who continue to turn to Yahoo! for customized and comprehensive marketing and business solutions. As we move forward into the fourth quarter, we will focus on our key growth areas in order to provide our customers and consumers with the most powerful and valuable suite of services available in the marketplace."

Yahoo! today also announced that Edward Kozel has joined its Board of Directors. Kozel is currently a managing partner of Open Range Ventures, a private venture capital firm. He is a member of the Board of Directors of Cisco Systems, Inc., where he worked for 11 years in a variety of roles. During his tenure at Cisco, Kozel founded the business development group, which, under his direction, was responsible for more than 22 technology acquisitions and 25 minority investments.

Audience Growth, Loyalty and Usage

During the third quarter, Yahoo!® once again emerged as the world's leading global, branded Web network and the platform of choice for a vast loyal audience with more than 166 million unique users worldwide during September including Yahoo! Japan. Yahoo!'s cumulative registrations for member services grew to a record 185 million, up from 155 million in June. According to Nielsen//NetRatings (August 2000), the Yahoo! network reached 60.6 percent of the combined U.S. home/work audience, and is ranked No. 1 among work users (68.4 percent reach) and No. 2 among home users (53.6 percent reach).

The amount of time spent by consumers on Yahoo! continues to grow. Yahoo! is ranked No. 1 among the top five Web sites in average combined time spent by home and work users, which was 98

minutes (Nielsen//NetRatings, August 2000). And, according to Media Metrix's latest research, Yahoo! is ranked No. 1 in month-to-month visitor retention (79.2 percent) among the top six Web sites (June-July 2000). Yahoo! also emerged as the No. 1 Web network in Europe and Japan (Media Metrix, August 2000).

Yahoo! has continuously anticipated and delivered the services that people seek on the Web, and has over time become an increasingly essential part of individuals' daily lives. As a result, the company achieved record levels across key metrics during the third quarter:

•: Yahoo!'s traffic increased to 780 million page views per day on average during September, compared to an average of 680 million page views per day in June 2000. Yahoo! Japan's traffic, which is included in these page view totals, increased to more than 112 million page views per day during September from more than 85 million per day in June 2000. Yahoo! Europe's traffic, also included in total page views, reached 41 million page views per day on average in September. Yahoo!'s non-U.S. operations, excluding Yahoo! Japan, which is not a consolidated subsidiary of Yahoo!, represented 16 percent of total consolidated revenues during the third quarter.
•: Yahoo!'s communication platform delivered 6.1 billion messages on Yahoo! Mail, Yahoo! Messenger, and eGroups in September, up from 4.4 billion in June.
•: Voice minutes spent by individuals on Yahoo!'s communication services doubled to one billion total minutes during September, up from 500 million in June.
•: Yahoo! hosted and distributed more than 15 million hours of streamed audio and video programming during the month of September, up from 13 million in June.
•: The Yahoo! Shopping and Yahoo! Store platform and Yahoo! Auctions have grown significantly, with transactions enabled increasing 300 percent and more than 400 percent respectively, since the third quarter in 1999. Overall, transactions enabled on the Yahoo! global network, including Yahoo! Japan, remained solid at $1 billion during the third quarter 2000.

Throughout the quarter, Yahoo! continued to expand the extensive array of content and services it offers consumers worldwide. The company completed its acquisition of eGroups, Inc., an email group communication service company, to provide Yahoo!'s community of 166 million consumers powerful new ways to communicate one-to-one, one-to-many and many-to-many.

Yahoo! also made significant progress in five key growth areas: mobile services, rich media and voice services, enabling commerce transactions, business and enterprise services, and globalization.

Mobile Services

During the quarter Yahoo! further expanded its wireless distribution channels worldwide and continued to deliver its popular programming and communications services to the growing numbers of Internet users accessing the Web through mobile devices. Yahoo! welcomed 13 new network and device partners, bringing its total number of wireless alliances to 37 companies in 21 countries. New wireless agreements signed during the third quarter include Mitsubishi in 14 countries throughout Europe and Asia; France Telecom in France; Optus Mobile in Australia and New Zealand; Cosmote in Greece; DiGi Telecommunications in Malaysia; and more.

Rich Media and Voice Services

Yahoo! continued to extend its audio, video, voice, and digital content and services during the third quarter and continued to see strong consumer usage growth of voice-enabled and rich media services. The company today launched several new free voice-enabled services, including Yahoo! By Phone, which provides access to popular My Yahoo!® content over the telephone. Yahoo! Mail now incorporates voice telephony, which allows users to listen to their email over the phone. And, an

updated version of Yahoo! Messenger gives consumers the ability to place PC-to-phone calls to anywhere within the continental United States.

In digital music, Yahoo! entered a license agreement with the Recording Industry Association of America for music performances broadcast by Yahoo! on some of the Web's most popular broadcast destinations, including Yahoo! Radio and Yahoo! Broadcast. Yahoo! also entered into a comprehensive agreement with the NFL to broadcast, for the first time, live game audio for more than 90 percent of this season's NFL games. In addition, the NBA, the WNBA, and Yahoo! entered a multi-faceted global relationship, including NBA and WNBA content distribution, commerce and communications initiatives incorporated into Yahoo!'s branded network, and Yahoo! sponsorship of NBA's and WNBA's media and promotions. Yahoo! sponsored and broadcasted the Macy's Passport 2000 charity fashion show and is broadcasting the live presidential debates of 2000.

Enabling Commerce Transactions

Yahoo! Shopping, the No. 2 shopping destination on the Web (MediaMetrix, August 2000 custom report), continued to grow during the third quarter as leading brand name retailers continue to rely upon it as an essential part of their online business. Merchants joining or renewing commerce agreements with Yahoo! in the third quarter include Barnes & Noble, Costco, Dell, FAO Schwarz, Hewlett-Packard, Kodak, Ritz Camera, Spiegel, and Visa. Yahoo! also launched co-branded, free Internet services with leading retail brands Barnes & Noble and Costco.

Yahoo! continued to enhance its suite of commerce solutions and financial services throughout the third quarter. Through the acquisition of Arthas.com and in cooperation with CIBC National Bank, Yahoo! launched Yahoo! Pay Direct, an online person-to-person payment solution, which is tightly integrated into Yahoo! Auctions. Yahoo! also delivered online account aggregation, providing centralized access to personal financial data on Yahoo! from more than 200 financial institutions through VerticalOne. Yahoo! Finance, the No. 1 ranked financial site on the Web (MediaMetrix, August 2000 custom report), also began offering free real-time ECN quotes through relationships with Instinet, Island and Archipelago.

Business and Enterprise Services

Corporate Yahoo!™, a customized enterprise information portal solution, continued to attract new clients during the quarter, including Applied Materials, Honeywell, Intellinex (a venture of Ernst & Young LLP) and The TCW Group (Trust Company of the West). These companies join Alcatel, Inktomi, Network Appliance, the state of North Carolina, and others as customers licensing Corporate Yahoo!. The state of North Carolina's site based on Corporate Yahoo! has already earnedGovernment Technology magazine's "Best of the Web" award for 2000.

In addition, Yahoo! hosted and distributed 1,055 streamed audio and video corporate events during the quarter including key new broadcast services accounts such as Proctor & Gamble, Samsung Electronics, Schering-Plough, Trans World Airlines and United Steelworkers of America.

Globalization

Yahoo! further demonstrated its commitment to delivering relevant programming and services to a global audience by deepening the offerings across its global network of 24 World sites. During the third quarter, Yahoo! expanded more of its popular communication and commerce services throughout Europe, Asia and the Americas, including Yahoo! Clubs in 10 countries, Yahoo! Invites in 12 countries, and Yahoo! Shopping in several Asian countries and Spain. Yahoo! also continues to support growth of the global Internet market by making investments in key media and distribution outlets around the world such as Mingpao.com, an online affiliate of one of the leading media companies in Hong Kong, the Ming Pao Group; and PhoenixNet, a leading Asia Pacific satellite broadband enabler.

Interactive Marketing Services

During the quarter, Yahoo! continued to develop comprehensive, customized and integrated marketing solutions through Fusion Marketing. Yahoo! served 3,450 advertisers and merchants during the third quarter, including more than 1,400 clients outside the United States. Yahoo! launched innovative offline and online promotions with Pepsi and 7-Eleven. New accounts and major traditional brands served in the third quarter include Bank One, Barnes & Noble, Costco, Home & Garden Television, Instinet, Neiman Marcus, NetLedger, OxygenMedia, Polaroid, Publishers Clearing House, ReplayTV, 7-Eleven, 3M, T.J. Maxx, Trans World Airlines, United Airlines, and Xerox.

About Yahoo!

Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services to more than 166 million individuals each month worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance the Web presence of Yahoo!'s clients, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 24 World properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif.

This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the company's ability to grow its user and advertiser bases, its advertising and commerce revenues, and the company's ability to continue to generate profits and positive cash flow from operations. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the increasingly competitive and constantly changing environment for advertising sales and for Yahoo! branded services; uncertainties associated with the Web as an advertising and commerce medium; the company's dependence on advertising revenues and on third parties for technology, content, and distribution; and the company's ability to successfully integrate its acquired companies. Many of the electronic commerce transactions described in this release do not result in revenues to Yahoo!. More information about potential factors that could affect the company's business and financial results is included in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1999, the company's current report on Form 8-K/A filed on Sept. 22, 2000, and Yahoo!'s quarterly report on Form 10-Q for the three-month and six-month periods ended June 30, 2000, including (without limitation) under the captions, "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Competition," "Proprietary Rights," and "Risk Factors," which are on file with the Securities and Exchange Commission (http://www.sec.gov). Additional information will also be set forth in those sections in Yahoo!'s quarterly report on Form 10-Q for the three-month and nine-month periods ended Sept. 30, 2000, which will be filed with the Securities and Exchange Commission in the near future. The accompanying condensed consolidated statements of operations and balance sheets are an integral part of this announcement.

Yahoo!, the Yahoo! logo, Corporate Yahoo! and My Yahoo! are trademarks and/or
registered trademarks of Yahoo! Inc.
All other trademarks and/or registered trademarks are the property of their respective owners.

# # #

Contacts:

Diane Hunt, Corporate Communications, Yahoo!, (408) 731-3441,diane@yahoo-inc.com
Andrea Klipfel, Investor Relations, Yahoo!, (408) 731-3402, investor_relations@yahoo-inc.com

Yahoo! Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

			Three Months Ended September 30,						Nine Months Ended September 30,
			2000			1999			2000			1999
Net revenues			$	295,548		$	155,863		$	799,305		$	388,638
Cost of revenues				38,616			23,750			109,673			65,469

	Gross profit			256,932			132,113			689,632			323,169

Operating expenses:
	Sales and marketing			106,366			55,033			285,602			146,876
	Product development			26,843			16,956			73,203			45,473
	General and administrative			16,942			9,441			47,537			27,263

		Total operating expenses		150,151			81,430			406,342			219,612

Income from operations				106,781			50,683			283,290			103,557
Investment income, net				25,403			10,019			65,969			26,820
Minority interests in operations of consolidated subsidiaries				(1,394	)		(569	)		(5,422	)		(1,733	)

Income before income taxes				130,790			60,133			343,837			128,644
Provision for income taxes				49,700			21,648			130,658			46,312

Pro forma net income			$	81,090		$	38,485		$	213,179		$	82,332

Pro forma net income per share—diluted			$	0.13		$	0.06		$	0.35		$	0.14
								��
Shares used in per share pro forma calculation—diluted				612,971			595,442			614,398			596,366

Notes:

The results for all periods presented have been restated to reflect the acquisition of eGroups which was completed during the quarter ended September 30, 2000 and accounted for as a pooling of interests. All notes are in thousands.

The above unaudited pro forma condensed consolidated statements of operations exclude the effects of the following:

•: Acquisition-related costs are primarily composed of charges related to the acquisitions of eGroups, broadcast.com, GeoCities, and Log-Me-On in the amounts of $22,370, $22,125, $56,125, and $9,775 in the quarters ended September 30, 2000, September 30, 1999, June 30, 1999, and March 31, 1999, respectively.
•: Employer payroll taxes assessed on stock option gains realized by employees.
•: Stock compensation expense.
•: Amortization of purchased technology and goodwill.
•: Investment income related to gains from the exchanges of certain equity investments of $5,017 and $40,656 in the quarters ended September 30, 2000 and March 31, 2000, respectively.
•: Goodwill amortization, included in investment income, related to the Yahoo! Japan equity investment of $1,455 in each of the quarters ended September 30, 2000 and June 30, 2000.

The above also assumes 38% and 36% effective tax rates for the pro forma presentation of the periods ended September 30, 2000 and 1999, respectively.

Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

			Three Months Ended September 30,						Nine Months Ended September 30,
			2000			1999			2000			1999
Net revenues			$	295,548		$	155,863		$	799,305		$	388,638
Cost of revenues				38,616			23,750			109,673			65,469
Amortization of purchased technology				2,244			2,500			6,432			7,174

	Total cost of revenues			40,860			26,250			116,105			72,643

	Gross profit			254,688			129,613			683,200			315,995

Operating expenses:
	Sales and marketing			106,366			55,033			285,602			146,876
	Product development			26,843			16,956			73,203			45,473
	General and administrative			16,942			9,441			47,537			27,263
	Payroll taxes on option exercises (1)			4,000			—			12,290			—
	Stock compensation expense			4,990			2,127			17,190			4,874
	Amortization of intangibles			5,418			3,477			14,235			10,139
	Acquisition-related costs (2)			22,370			22,125			22,785			88,487

		Total operating expenses		186,929			109,159			472,842			323,112

Income (loss) from operations				67,759			20,454			210,358			(7,117	)
Investment income, net (3)				28,965			10,019			104,801			26,820
Minority interests in operations of consolidated subsidiaries				(1,394	)		(569	)		(5,422	)		(1,733	)

Income before income taxes				95,330			29,904			309,737			17,970
Provision for income taxes				47,665			18,831			141,142			7,923

Net income			$	47,665		$	11,073		$	168,595		$	10,047

Net income per share—diluted			$	0.08		$	0.02		$	0.27		$	0.02

Shares used in per share calculation—diluted				612,971			595,442			614,398			596,366

Notes:

(1): In September 1999, the FASB issued a Staff announcement which requires employer payroll taxes assessed on stock option gains realized by employees to be recorded in the income statement.
(2): Acquisition-related costs are primarily composed of charges related to the acquisitions of eGroups, broadcast.com, GeoCities, and Log-Me-On in the amounts of $22,370, $22,125, $56,125, and $9,775 in the quarters ended September 30, 2000, September 30, 1999, June 30, 1999, and March 31, 1999, respectively.
(3): Investment income includes gains from the exchanges of certain equity investments of $5,017 and $40,656 in the quarters ended September 30, 2000 and March 31, 2000, respectively. Investment income also includes goodwill amortization related to the Yahoo! Japan equity investment of $1,455 in each of the quarters ended September 30, 2000 and June 30, 2000.

Yahoo! Inc.
Unaudited Consolidated Summary Balance Sheet Data
(in thousands)

			September 30, 2000		December 31, 1999
ASSETS
	Cash, cash equivalents, and investments in marketable debt securities		$	1,610,470	$	1,004,301
	Accounts receivable, net			74,496		56,454
	Property and equipment, net			98,098		60,798
	Investments in marketable equity securities			240,125		250,966
	Other assets			286,641		147,610

		Total assets	$	2,309,830	$	1,520,129

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Accounts payable		$	19,293	$	14,341
	Accrued expenses and other liabilities			194,667		107,303
	Deferred revenue			152,404		90,790

		Total liabilities		366,364		212,434

Minority interests in consolidated subsidiaries				29,437		3,790
Mandatory redeemable convertible preferred stock				—		52,173
Stockholders' equity:
	Common Stock			1,749,213		1,148,903
	Retained earnings (accumulated deficit)			140,299		(25,842	)
	Accumulated other comprehensive income			24,517		128,671

		Total stockholders' equity		1,914,029		1,251,732

			$	2,309,830	$	1,520,129

Note:

Yahoo! Inc.
Unaudited Consolidated Summary Cash Flows Data
(in thousands)

			Three Months Ended September 30,						Nine Months Ended September 30,
			2000			1999			2000			1999
CASH FLOWS FROM OPERATING ACTIVITIES:
	Net income		$	47,665		$	11,073		$	168,595		$	10,047
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization		18,680			11,640			49,195			32,089
		Tax benefits from stock options		40,718			9,152			125,534			7,484
		Other non-cash items		2,453			2,540			(21,983	)		16,382
		Change in working capital		63,911			36,040			109,428			50,839

Net cash provided by operating activities				173,427			70,445			430,769			116,841

CASH FLOWS FROM INVESTING ACTIVITIES:
	Acquisition of property and equipment			(22,738	)		(11,370	)		(65,785	)		(32,260	)
	Investments in equity securities and other			(37,541	)		(15,767	)		(82,605	)		(52,379	)

Net cash used in investing activities				(60,279	)		(27,137	)		(148,390	)		(84,639	)

CASH FLOWS FROM FINANCING ACTIVITIES AND OTHER:
	Proceeds from issuance of Capital Stock, net			121,560			63,776			322,900			125,546
	Other			(1,631	)		(574	)		890			(1,312	)

Net cash provided by financing activities and other				119,929			63,202			323,790			124,234

Net change in cash, cash equivalents, and marketable debt securities				233,077			106,510			606,169			156,436
Cash, cash equivalents, and marketable debt securities at beginning of period				1,377,393			686,005			1,004,301			636,079

Cash, cash equivalents, and marketable debt securities at end of period			$	1,610,470		$	792,515		$	1,610,470		$	792,515

Note:

QuickLinks

Yahoo! Inc. Unaudited Pro Forma Condensed Consolidated Statements of Operations (in thousands, except per share amounts)
Yahoo! Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts)
Yahoo! Inc. Unaudited Consolidated Summary Balance Sheet Data (in thousands)
Yahoo! Inc. Unaudited Consolidated Summary Cash Flows Data (in thousands)

Altaba (AABA) 8-KYahoo! Reports Third Quarter 2000 Financial Results

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