Exhibit 99.1
Yahoo! Reports First Quarter 2004 Financial Results
Company Posts Revenues of $758 Million, Operating Income
of $132 Million, Operating Income Before Depreciation
and Amortization of $211 Million
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 7, 2004--
Yahoo! Inc. (Nasdaq:YHOO) today reported results for the first quarter
ended March 31, 2004.
"Yahoo!'s performance surpassed even our high expectations, delivering the
most successful quarter in the Company's history," said Terry Semel, chairman
and chief executive officer, Yahoo!. "With our products more popular than ever
before, we have experienced success across our entire business including strong
growth in our fee-based and marketing services."
-- Revenues were $758 million in the first quarter of 2004, compared to
$283 million in the same period of 2003.
-- Revenues excluding traffic acquisition costs ("TAC") were $550 million
in the first quarter of 2004, compared to $283 million for the same
period of 2003.
-- Gross profit for the first quarter of 2004 was $476 million, compared
to $240 million for the same period of 2003.
-- Operating income for the first quarter of 2004 was $132 million,
compared to $55 million for the same period of 2003.
-- Operating income before depreciation and amortization for the first
quarter of 2004 was $211 million, compared to $85 million for the same
period of 2003.
-- Cash flow from operating activities for the first quarter of 2004 was
$236 million, compared to $99 million for the same period of 2003.
-- Free cash flow for the first quarter of 2004 was $197 million,
compared to $78 million for the same period of 2003.
"Yahoo! is off to a great start in 2004. Our growth is a result of very
impressive performance from our ongoing operations, leveraged further by recent
acquisitions," said Susan Decker, chief financial officer, Yahoo!. "Looking
forward, we are focused on making the appropriate investments and capital
allocation decisions to help ensure sustainable, long-term growth. Due to our
increased optimism about our business, we have raised our financial outlook for
the full year 2004."
First Quarter 2004 Financial Highlights
Cash flow from operating activities and Free cash flow: Cash flow from
operating activities for the first quarter of 2004 totaled $236 million,
compared to $99 million for the same period of 2003. Free cash flow for the
first quarter of 2004 totaled $197 million, a 153 percent increase over the $78
million reported for the same period of 2003.
Cash, cash equivalents and investments in marketable debt and equity
securities increased by approximately $219 million to $2,790 million at March
31, 2004, compared to $2,571 million at December 31, 2003. In addition to the
free cash flow of $197 million generated for the quarter ended March 31, 2004,
the company increased its cash, cash equivalents and investments in marketable
debt and equity securities balances by $92 million related to issuance of common
stock from exercise of employee stock options and approximately $24 million
related to other investing activities, offset by approximately $50 million used
to enter into a structured stock repurchase transaction and approximately $44
million used for acquisitions completed in the first quarter of 2004, net of
cash acquired. The structured stock repurchase will mature in the third quarter
of 2004, at which point depending on the price per share of Yahoo! shares,
Yahoo! will either repurchase shares or receive the $50 million investment and a
premium.
Revenues: In the first quarter of 2004, Yahoo! reported revenues of $758
million, a 168 percent increase compared to the $283 million reported in the
same period in 2003.
Marketing services revenue for the first quarter of 2004 totaled $635
million, a 235 percent increase from the $190 million reported in the same
period in 2003. This amount includes approximately $10 million related to a
one-time gain from unredeemed third party loyalty program points that expired
during the quarter. The year over year increase in marketing services revenue
(excluding the gain related to the points expiration) resulted from a 48 percent
growth in Yahoo!'s organic marketing services revenues, primarily in the search
and marketplace properties, and incremental revenue associated with acquisitions
completed during the past year.
Fees revenue for the first quarter of 2004 totaled $88 million, a 39
percent increase compared to the $64 million reported in the same period in
2003. This increase was primarily driven by the growth in the number of paying
relationships for Yahoo!'s premium services, which were approximately 5.8
million at March 31, 2004 compared to approximately 2.9 million at March 31,
2003.
Listings revenue for the first quarter of 2004 totaled $34 million, a 16
percent increase compared to the $29 million reported in the same period in
2003. This increase was primarily driven by our search and marketplace listings.
Revenues excluding TAC and Gross profit: Revenues excluding TAC for the
first quarter of 2004 totaled $550 million, a 94 percent increase compared to
the $283 million in the same period of 2003. Gross profit for the first quarter
of 2004 totaled $476 million, compared to $240 million in the same period of
2003. The increase in revenues excluding TAC for the quarter ended March 31,
2004, when compared to the same period in 2003, resulted from the combination of
a strong increase in revenues from Yahoo!'s organic marketing services revenues,
as well as the incremental revenue associated with the acquisitions completed
during the past year.
Operating income and Operating income before depreciation and amortization:
Operating income for the first quarter of 2004 totaled $132 million, compared to
$55 million in the same period of 2003. Operating income before depreciation and
amortization for the first quarter of 2004 totaled $211 million, a 149 percent
increase compared to the $85 million achieved in the same period of 2003. The
increase in operating income and operating income before depreciation and
amortization for the quarter ended March 31, 2004, when compared to the same
period in 2003, reflects strong growth in revenues excluding TAC while
maintaining ongoing cost discipline.
Net Income: Net income for the first quarter of 2004 was $101 million or
$0.14 per diluted share (which included $0.01 per diluted share related to the
one-time gain from unredeemed third party loyalty program points that expired
during the quarter), compared with $47 million or $0.08 per diluted share for
the same period of 2003.
Stock Split: Yahoo!'s Board of Directors approved a two-for-one split of
all outstanding shares of the company's common stock, payable May 11, 2004 to
stockholders of record on April 26, 2004.
Please refer to the "Note to Unaudited Condensed Consolidated Statements of
Operations" for definition of these key financial measures and "Business
Outlook" attached to this press release.
Quarterly Conference Call
Yahoo! will host a conference call to discuss first quarter results at 5:00
p.m. Eastern Time today. A live Webcast of the conference call, together with
supplemental financial information can be accessed through the Company's
Investor Relations Web site at http://yhoo.client.shareholder.com/earnings.cfm.
In addition, an archive of the Webcast can be accessed through the same link. An
audio replay of the call will be available following the conference call by
calling 877-213-9653 or 630-652-3041, reservation number: 8685021
About Yahoo!
Yahoo! Inc. headquartered in Sunnyvale, Calif., is a leading provider of
comprehensive online products and services to consumers and businesses
worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked
Internet destination worldwide.
This press release includes the financial measures revenues excluding
traffic acquisition costs, operating income before depreciation and amortization
and free cash flow. These measures are defined as non-GAAP financial measures by
the Securities and Exchange Commission and may be different from non-GAAP
financial measures used by other companies. The presentation of this financial
information is not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with generally
accepted accounting principles. See Note to Unaudited Condensed Consolidated
Statements of Operations and Reconciliations to Unaudited Condensed Consolidated
Statements of Operations included in this press release for further information
regarding these non-GAAP financial measures.
This press release and its attachments contain forward-looking statements
that involve risks and uncertainties concerning Yahoo!'s expected financial
performance (as described without limitation in the Business Outlook section and
quotations from management in this press release), as well as Yahoo!'s strategic
and operational plans. 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,
decreases or delays in marketing services spending, including performance of the
Company's recently acquired businesses; the actual increases in demand by
customers for Yahoo!'s premium services; acceptance of new products and
services; general economic conditions; risks related to the integration of
recent acquisitions; the ability to adjust to changes in personnel, including
management changes; and the dependence on third parties for technology,
services, content and distribution. All information set forth in this release
and its attachments is as of April 7, 2004. Yahoo! undertakes no duty to update
this information. 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 fiscal year ended December 31, 2003, including
(without limitation) under the captions, "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations," which
is on file with the SEC and available at the SEC's website at www.sec.gov.
Additional information will also be set forth in those sections in Yahoo!'s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, which will
be filed with the SEC in the second quarter of 2004.
Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of
Yahoo! Inc. All other names are trademarks and/or registered trademarks of their
respective owners.
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
-----------------------------
2003 2004
-------------- --------------
Revenues $ 282,948 $ 757,786
Cost of revenues 43,132 281,705
------------ -------------
Gross profit 239,816 476,081
------------ -------------
Operating expenses:
Sales and marketing 113,479 166,295
Product development 36,398 76,989
General and administrative 28,640 57,556
Stock compensation expense(1) 575 12,572
Amortization of intangibles 5,747 30,512
------------ -------------
Total operating expenses 184,839 343,924
------------ -------------
Income from operations 54,977 132,157
Other income, net 12,530 14,378
Earnings in equity interests 9,729 19,868
Minority interests in operations of
consolidated subsidiaries (1,908) (482)
------------ -------------
Income before income taxes 75,328 165,921
Provision for income taxes 28,625 64,709
------------ -------------
Net income $ 46,703 $ 101,212
============ =============
Net income per share - diluted $ 0.08 $ 0.14
============ =============
Shares used in per share calculation -
diluted 615,788 713,274
============ =============
(1) Stock compensation expense is allocated as follows:
Sales and marketing $ 209 $ 3,605
Product development 286 4,723
General and administrative 80 4,244
------------ -------------
Total stock compensation expense $ 575 $ 12,572
============ =============
- ----------------------------------------------------------------------
Supplemental Financial Data (See Note)
- --------------------------------------
Revenues excluding traffic acquisition
costs ("TAC") $ 282,948 $ 550,150
Operating income before depreciation and
amortization $ 84,625 $ 210,921
Free cash flow $ 78,125 $ 197,286
- ----------------------------------------------------------------------
Yahoo! Inc.
Note to Unaudited Condensed Consolidated Statements of Operations
The Company believes that the non-GAAP financial measures revenues
excluding traffic acquisition costs ("TAC"), operating income before
depreciation and amortization and free cash flow are helpful, when
presented in conjunction with the comparable GAAP measures of gross
profit, income from operations, and cash flow from operating
activities.
Revenues excluding TAC is defined as gross profit before other cost of
revenues. We believe this performance measure is useful to management
and investors as it is more comparable to our historical
profitability, because traffic acquisition costs paid to affiliates of
Overture Services, Inc., ("Overture"), which the Company acquired on
October 7, 2003, are a significant percentage of revenues generated
from Overture's sponsored search services. A limitation of revenues
excluding TAC is that other cost of revenues are excluded and
therefore it does not represent the actual gross profit for the
period.
Operating income before depreciation and amortization is defined as
income (loss) from operations before depreciation, amortization of
intangible assets and amortization of stock compensation expense. We
consider operating income before depreciation and amortization to be
an important indicator of the operational strength of the Company.
This measure eliminates the effects of depreciation, amortization of
intangible assets and amortization of stock compensation expense from
period to period, which we believe is useful to management and
investors in evaluating the operating performance of the Company as
depreciation and amortization costs are not directly attributable to
the underlying performance of the Company's business operations. A
limitation associated with this measure is that it does not reflect
the periodic costs of certain capitalized tangible and intangible
assets used in generating revenues in the Company's businesses.
Management evaluates the costs of such tangible and intangible assets
through other financial measures such as capital expenditures. A
further limitation associated with this measure is that it does not
include all expenses related to our workforce. Management compensates
for this limitation by providing supplemental information about stock
compensation expense on the face of our consolidated statements of
operations.
Free cash flow is defined as cash flow from operating activities less
capital expenditures. In addition, for the quarters ended June 30,
2002 and December 31, 2003, free cash flow also included change in
long-term deferred revenue and Overture receivable settled through
acquisition, respectively. Change in long-term deferred revenue
represented cash payments received in advance of revenue recognized.
Overture receivable settled through acquisition represented a Yahoo!
accounts receivable balance owed from Overture that was settled as
part of the acquisition. We consider free cash flow to be a liquidity
measure which provides useful information to management and investors
about the amount of cash generated after the acquisition of property
and equipment, which can then be used for strategic opportunities
including, among others, investing in the Company's business, making
strategic acquisitions, strengthening the balance sheet and
repurchasing stock. A limitation of free cash flow is that it does not
represent the total increase or decrease in the cash balance for the
period.
In addition, management refers to these financial measures to
facilitate internal and external comparisons to the Company's
historical operating results, in making operating decisions, for
budget planning purposes, and in some cases to form the basis upon
which management is compensated. These measures should be considered
in addition to, not as a substitute for, or superior to, gross profit,
income from operations, cash flow from operating activities, or other
measures of financial performance prepared in accordance with
generally accepted accounting principles.
Yahoo! Inc.
Reconciliations to Unaudited Condensed Consolidated
Statements of Operations
(in thousands)
Three Months Ended
March 31,
-----------------------------
2003 2004
-------------- --------------
Revenues for groups of similar services:
Marketing services $ 189,965 $ 635,468
Fees 63,729 88,470
Listings 29,254 33,848
------------ -------------
Total revenues $ 282,948 $ 757,786
============ =============
Revenues by segment:
United States $ 238,546 $ 599,271
International 44,402 158,515
------------ -------------
Total revenues $ 282,948 $ 757,786
============ =============
Cost of revenues:
Traffic acquisition costs ("TAC") $ - $ 207,636
Other cost of revenues 43,132 74,069
------------ -------------
Total cost of revenues $ 43,132 $ 281,705
============ =============
Revenues excluding TAC:
Gross profit $ 239,816 $ 476,081
Other cost of revenues 43,132 74,069
------------ -------------
Revenues excluding TAC $ 282,948 $ 550,150
============ =============
Revenues excluding TAC by segment:
United States:
Gross profit $ 203,228 $ 389,108
Other cost of revenues 35,318 62,617
------------ -------------
Revenues excluding TAC $ 238,546 $ 451,725
============ =============
International:
Gross profit $ 36,588 $ 86,973
Other cost of revenues 7,814 11,452
------------ -------------
Revenues excluding TAC $ 44,402 $ 98,425
============ =============
Operating income before depreciation and amortization:
Income from operations $ 54,977 $ 132,157
Depreciation and amortization 29,073 66,192
Stock compensation expense 575 12,572
------------ -------------
Operating income before depreciation and
amortization $ 84,625 $ 210,921
============ =============
Operating income before depreciation and amortization by segment:
Operating income before depreciation
and amortization - United States $ 77,523 $ 191,254
Operating income before depreciation
and amortization - International 7,102 19,667
------------ -------------
Operating income before depreciation
and amortization 84,625 210,921
Corporate and unallocated operating
costs and expenses:
Depreciation and amortization (29,073) (66,192)
Stock compensation expense (575) (12,572)
------------ -------------
Income from operations $ 54,977 $ 132,157
============ =============
United States
Income from operations $ 51,000 $ 121,289
Depreciation and amortization 25,948 59,300
Stock compensation expense 575 10,665
------------ -------------
Operating income before depreciation
and amortization - United States $ 77,523 $ 191,254
============ =============
International
Income from operations $ 3,977 $ 10,868
Depreciation and amortization 3,125 6,892
Stock compensation expense - 1,907
------------ -------------
Operating income before depreciation
and amortization - International $ 7,102 $ 19,667
============ =============
Free cash flow:
Cash flow from operating activities $ 98,628 $ 235,975
Acquisition of property and equipment,
net (20,503) (38,689)
------------ -------------
Free cash flow $ 78,125 $ 197,286
============ =============
Yahoo! Inc.
Business Outlook
Business Outlook
The following business outlook is based on current information
(including the effect of our acquisition of Kelkoo S.A.) and
expectations as of April 7, 2004. Yahoo!'s business outlook as of
today is expected to be available on the Company's Investor Relations
Web site throughout the current quarter. It is currently expected the
full business outlook will not be updated until the release of
Yahoo!'s next quarterly earnings announcement, notwithstanding
subsequent developments; however, Yahoo! may update the full business
outlook or any portion thereof at any time.
Three months Year
ending ending
June 30, December 31,
2004 2004
-------------- ----------------
Revenues excluding traffic acquisition
costs(2) ("TAC") outlook (in millions):
Gross Profit $500 - $530 $2,080 - $2,170
Other cost of revenues $80 - $85 $325 - $350
-------------- ----------------
Revenues excluding TAC $580 - $615 $2,405 - $2,520
============== ================
Operating income before depreciation and
amortization(2) outlook (in millions):
Income from operations $131 - $148 $575 - $625
Depreciation and amortization $70 - $75 $280 - $300
Stock compensation expense $9 - $12 $35 - $45
-------------- ----------------
Operating income before depreciation
and amortization $210 - $235 $890 - $970
============== ================
(2) Refer to Note to Unaudited Condensed Consolidated Statements of
Operations.
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended
March 31,
-----------------------------
2003 2004
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 46,703 $ 101,212
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 29,073 66,192
Tax benefits from stock options 21,057 60,750
Earnings in equity interests (9,729) (19,868)
Minority interests in operations of
consolidated subsidiaries 1,908 482
Stock compensation expense 575 12,572
Other noncash charges 3,012 (1,273)
Changes in assets and liabilities,
net of effects of acquisitions:
Accounts receivable, net (15,347) 1,189
Prepaid expenses and other assets 5,215 (4,410)
Accounts payable 2,603 (17,909)
Accrued expenses and other
liabilities 4,260 32,303
Deferred revenue 9,298 4,735
------------ -------------
Net cash provided by operating activities 98,628 235,975
------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment,
net (20,503) (38,689)
Purchases of marketable securities (137,440) (514,555)
Proceeds from sales and maturities of
marketable securities 430,518 382,060
Acquisitions, net of cash acquired (228,318) (43,517)
Proceeds from sales of other
investments 1,281 10,661
------------ -------------
Net cash provided by (used in) investing
activities 45,538 (204,040)
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock,
net 23,567 92,295
Structured stock repurchase - (50,000)
------------ -------------
Net cash provided by financing activities 23,567 42,295
------------ -------------
Effect of exchange rate changes on cash
and cash equivalents (262) 3,040
Net change in cash and cash equivalents 167,471 77,270
Cash and cash equivalents, beginning of
period 310,972 713,539
------------ -------------
Cash and cash equivalents, end of period $ 478,443 $ 790,809
============ =============
Yahoo! Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31, March 31,
2003 2004
---------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 713,539 $ 790,809
Short-term investments in marketable
securities 595,978 767,118
Accounts receivable, net 282,415 281,966
Prepaid expenses and other current
assets 129,777 138,052
------------ -------------
Total current assets 1,721,709 1,977,945
Long-term investments in marketable
securities 1,261,693 1,232,343
Property and equipment, net 449,512 449,428
Goodwill 1,805,561 1,849,111
Intangible assets, net 445,640 433,477
Other assets 247,539 249,883
------------ -------------
Total assets $ 5,931,654 $ 6,192,187
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,890 $ 15,234
Accrued and other current liabilities 483,628 516,415
Deferred revenue 192,278 200,991
------------ -------------
Total current liabilities 707,796 732,640
Long term debt 750,000 750,000
Other liabilities 72,890 75,996
Minority interests in consolidated
subsidiaries 37,478 42,060
Stockholders' equity 4,363,490 4,591,491
------------ -------------
Total liabilities and stockholders'
equity $ 5,931,654 $ 6,192,187
============ =============
Yahoo! Inc.
Unaudited Supplemental Financial Information and Business Metrics
(in thousands)
Q1 Q2 Q3 Q4 Q1
2003 2003 2003 2003 2004
---------- ---------- ---------- ---------- ----------
Revenues for groups of similar services:
Marketing
services $ 189,965 $ 219,198 $ 245,072 $ 545,498 $ 635,468
Fees 63,729 69,926 79,358 85,179 88,470
Listings 29,254 32,282 32,391 33,245 33,848
---------- ---------- ---------- ---------- ----------
Total
revenues $ 282,948 $ 321,406 $ 356,821 $ 663,922 $ 757,786
========== ========== ========== ========== ==========
Revenues for groups of similar services (Trailing Twelve Months):
Marketing
services $ 703,858 $ 771,346 $ 850,657 $1,199,733 $1,645,236
Fees 232,124 252,987 275,014 298,192 322,933
Listings 107,368 114,631 121,291 127,172 131,766
---------- ---------- ---------- ---------- ----------
Total
revenues $1,043,350 $1,138,964 $1,246,962 $1,625,097 $2,099,935
========== ========== ========== ========== ==========
Revenues by segment:
United States $ 238,546 $ 271,345 $ 299,759 $ 545,503 $ 599,271
International 44,402 50,061 57,062 118,419 158,515
---------- ---------- ---------- ---------- ----------
Total
revenues $ 282,948 $ 321,406 $ 356,821 $ 663,922 $ 757,786
========== ========== ========== ========== ==========
Revenues by segment (Trailing Twelve Months):
United States $ 878,532 $ 962,412 $1,052,036 $1,355,153 $1,715,878
International 164,818 176,552 194,926 269,944 384,057
---------- ---------- ---------- ---------- ----------
Total
revenues $1,043,350 $1,138,964 $1,246,962 $1,625,097 $2,099,935
========== ========== ========== ========== ==========
Cost of revenues:
Traffic acqui-
sition costs
("TAC") $ - $ - $ - $ 152,583 $ 207,636
Other cost of
revenues 43,132 46,842 47,287 68,259 74,069
---------- ---------- ---------- ---------- ----------
Total cost of
revenues $ 43,132 $ 46,842 $ 47,287 $ 220,842 $ 281,705
========== ========== ========== ========== ==========
Cost of revenues (Trailing Twelve Months):
Traffic
acquisition
costs $ - $ - $ - $ 152,583 $ 360,219
Other cost of
revenues 168,192 173,326 179,580 205,520 236,457
---------- ---------- ---------- ---------- ----------
Total cost of
revenues $ 168,192 $ 173,326 $ 179,580 $ 358,103 $ 596,676
========== ========== ========== ========== ==========
Revenues excluding TAC:
Gross profit $ 239,816 $ 274,564 $ 309,534 $ 443,080 $ 476,081
Other cost of
revenues 43,132 46,842 47,287 68,259 74,069
---------- ---------- ---------- ---------- ----------
Revenues
excluding
TAC $ 282,948 $ 321,406 $ 356,821 $ 511,339 $ 550,150
========== ========== ========== ========== ==========
Revenues excluding TAC (Trailing twelve months):
Gross profit $ 875,158 $ 965,638 $1,067,382 $1,266,994 $1,503,259
Other cost of
revenues 168,192 173,326 179,580 205,520 236,457
---------- ---------- ---------- ---------- ----------
Revenues
excluding
TAC $1,043,350 $1,138,964 $1,246,962 $1,472,514 $1,739,716
========== ========== ========== ========== ==========
Revenues excluding TAC by segment:
United States:
Gross profit $ 203,228 $ 232,890 $ 261,290 $ 371,557 $ 389,108
Other cost of
revenues 35,318 38,455 38,469 58,446 62,617
---------- ---------- ---------- ---------- ----------
Revenues
excluding
TAC $ 238,546 $ 271,345 $ 299,759 $ 430,003 $ 451,725
========== ========== ========== ========== ==========
International:
Gross profit $ 36,588 $ 41,674 $ 48,244 $ 71,523 $ 86,973
Other cost of
revenues 7,814 8,387 8,818 9,813 11,452
---------- ---------- ---------- ---------- ----------
Revenues
excluding
TAC $ 44,402 $ 50,061 $ 57,062 $ 81,336 $ 98,425
========== ========== ========== ========== ==========
Revenues excluding TAC by segment (Trailing Twelve Months):
United States:
Gross profit $ 744,266 $ 822,088 $ 905,792 $1,068,965 $1,254,845
Other cost of
revenues 134,266 140,324 146,244 170,688 197,987
---------- ---------- ---------- ---------- ----------
Revenues
excluding
TAC $ 878,532 $ 962,412 $1,052,036 $1,239,653 $1,452,832
========== ========== ========== ========== ==========
International:
Gross profit $ 130,892 $ 143,550 $ 161,590 $ 198,029 $ 248,414
Other cost of
revenues 33,926 33,002 33,336 34,832 38,470
---------- ---------- ---------- ---------- ----------
Revenues
excluding
TAC $ 164,818 $ 176,552 $ 194,926 $ 232,861 $ 286,884
========== ========== ========== ========== ==========
Operating income before depreciation and amortization:
Income from
operations $ 54,977 $ 62,772 $ 83,498 $ 94,419 $ 132,157
Depreciation
and
amortization 29,073 34,503 33,013 63,099 66,192
Stock
compensation
expense 575 891 485 20,078 12,572
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization $ 84,625 $ 98,166 $ 116,996 $ 177,596 $ 210,921
========== ========== ========== ========== ==========
Operating income before depreciation and amortization (Trailing
Twelve Months):
Income from
operations $ 147,340 $ 202,594 $ 256,615 $ 295,666 $ 372,846
Depreciation
and
amortization 115,507 122,534 125,796 159,688 196,807
Stock
compensation
expense 3,357 3,129 2,661 22,029 34,026
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization $ 266,204 $ 328,257 $ 385,072 $ 477,383 $ 603,679
========== ========== ========== ========== ==========
Operating income before depreciation and amortization by segment:
Operating
income before
depreciation
and
amortization -
United
States $ 77,523 $ 91,446 $ 106,607 $ 165,796 $ 191,254
Operating
income before
depreciation
and
amortization -
International 7,102 6,720 10,389 11,800 19,667
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization 84,625 98,166 116,996 177,596 210,921
Depreciation
and
amortization (29,073) (34,503) (33,013) (63,099) (66,192)
Stock
compensation
expense (575) (891) (485) (20,078) (12,572)
---------- ---------- ---------- ---------- ----------
Income from
operations $ 54,977 $ 62,772 $ 83,498 $ 94,419 $ 132,157
========== ========== ========== ========== ==========
Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
Operating
income before
depreciation
and
amortization -
United
States $ 257,795 $ 309,568 $ 357,601 $ 441,372 $ 555,103
Operating
income before
depreciation
and
amortization -
International 8,409 18,689 27,471 36,011 48,576
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization 266,204 328,257 385,072 477,383 603,679
Depreciation
and
amortization (115,507) (122,534) (125,796) (159,688) (196,807)
Stock
compensation
expense (3,357) (3,129) (2,661) (22,029) (34,026)
---------- ---------- ---------- ---------- ----------
Income from
operations $ 147,340 $ 202,594 $ 256,615 $ 295,666 $ 372,846
========== ========== ========== ========== ==========
Operating income before depreciation and amortization by segment:
United States
Income from
operations $ 51,000 $ 60,472 $ 77,684 $ 90,246 $ 121,289
Depreciation
and
amortization 25,948 30,083 28,438 57,423 59,300
Stock
compensation
expense 575 891 485 18,127 10,665
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization -
United
States $ 77,523 $ 91,446 $ 106,607 $ 165,796 $ 191,254
========== ========== ========== ========== ==========
International
Income from
operations $ 3,977 $ 2,300 $ 5,814 $ 4,173 $ 10,868
Depreciation
and
amortization 3,125 4,420 4,575 5,676 6,892
Stock
compensation
expense - - - 1,951 1,907
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization -
Interna-
tional $ 7,102 $ 6,720 $ 10,389 $ 11,800 $ 19,667
========== ========== ========== ========== ==========
Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
United States
Income from
operations $ 150,646 $ 197,244 $ 244,177 $ 279,402 $ 349,691
Depreciation
and
amortization 103,792 109,195 110,763 141,892 175,244
Stock
compensation
expense 3,357 3,129 2,661 20,078 30,168
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization -
United
States $ 257,795 $ 309,568 $ 357,601 $ 441,372 $ 555,103
========== ========== ========== ========== ==========
International
Income (loss)
from
operations $ (3,306)$ 5,350 $ 12,438 $ 16,264 $ 23,155
Depreciation
and
amortization 11,715 13,339 15,033 17,796 21,563
Stock
compensation
expense - - - 1,951 3,858
---------- ---------- ---------- ---------- ----------
Operating
income before
depreciation
and
amortization -
Interna-
tional $ 8,409 $ 18,689 $ 27,471 $ 36,011 $ 48,576
========== ========== ========== ========== ==========
Free cash flow:
Cash flow from
operating
activities $ 98,628 $ 92,123 $ 135,533 $ 101,860 $ 235,975
Acquisition of
property and
equipment,
net (20,503) (20,770) (38,445) (37,611) (38,689)
Overture
receivable
settled
through
acquisition - - - 28,071 -
---------- ---------- ---------- ---------- ----------
Free
cash flow $ 78,125 $ 71,353 $ 97,088 $ 92,320 $ 197,286
========== ========== ========== ========== ==========
Free cash flow (Trailing Twelve Months):
Cash flow from
operating
activities $ 353,633 $ 342,374 $ 405,642 $ 428,144 $ 565,491
Acquisition of
property and
equipment,
net (64,769) (71,238) (96,390) (117,329) (135,515)
Change in
long-term
deferred
revenue (30,000) - - - -
Overture
receivable
settled
through
acquisition - - - 28,071 28,071
---------- ---------- ---------- ---------- ----------
Free
cash flow $ 258,864 $ 271,136 $ 309,252 $ 338,886 $ 458,047
========== ========== ========== ========== ==========
CONTACT: Yahoo! Inc.
Media Relations Contacts:
Brian Nelson, 408-349-7329
bnelson@yahoo-inc.com
Investor Relations Contact:
Cathy La Rocca, 408-349-5188
cathy@yahoo-inc.com
or
Fleishman-Hillard
Ruben Osorio, 415-318-4108
osorior@fleishman.com