Exhibit 99.1
Yahoo! Reports Second Quarter 2004 Financial Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 7, 2004--
Company Posts Revenues of $832 Million,
Operating Income of $149 Million, Operating Income Before
Depreciation and Amortization of $234 Million
Yahoo! Inc. (Nasdaq:YHOO) today reported results for the second
quarter ended June 30, 2004.
"Yahoo!'s second quarter results represent another record quarter
for the Company and demonstrate continued execution of our core
priorities," said Terry Semel, chairman and chief executive officer,
Yahoo!. "Yahoo! is in the midst of a product renaissance, as we have
been busier than ever rolling out new products and services we believe
will be essential to our users."
-- Revenues were $832 million for the second quarter of 2004,
compared to $321 million for the same period of 2003.
-- Revenues excluding traffic acquisition costs ("TAC") were $609
million for the second quarter of 2004, compared to $321
million for the same period of 2003.
-- Gross profit for the second quarter of 2004 was $535 million,
compared to $275 million for the same period of 2003.
-- Operating income for the second quarter of 2004 was $149
million, compared to $63 million for the same period of 2003.
-- Operating income before depreciation and amortization for the
second quarter of 2004 was $234 million, compared to $98
million for the same period of 2003.
-- Cash flow from operating activities for the second quarter of
2004 was $250 million, compared to $92 million for the same
period of 2003.
-- Free cash flow for the second quarter of 2004 was $194
million, compared to $71 million for the same period of 2003.
"Yahoo! is benefiting from its diverse and balanced sources of
revenue, which have well positioned the Company to deliver strong,
consistent, and profitable growth," said Susan Decker, chief financial
officer, Yahoo!. "Yahoo! remains committed to making the appropriate
investments in our products and services in order to ensure that they
remain among the most popular on the Internet, and continue to
contribute to the creation of long-term shareholder value."
Second Quarter 2004 Financial Highlights
Cash flow from operating activities and Free cash flow: Cash flow
from operating activities for the second quarter of 2004 totaled $250
million, compared to $92 million for the same period of 2003. Free
cash flow for the second quarter of 2004 totaled $194 million, a 172
percent increase over the $71 million reported for the same period of
2003.
Cash, cash equivalents and investments in marketable securities
were approximately $2,650 million at June 30, 2004, compared to $2,790
million at March 31, 2004. The net decrease in cash, cash equivalents
and investments in marketable securities balances is primarily a
result of $530 million used for acquisitions completed in the second
quarter of 2004, net of cash acquired, offset by free cash flow of
$194 million and $225 million of cash generated from the issuance of
common stock as a result of the exercise of employee stock options for
the quarter ended June 30, 2004.
Revenues: In the second quarter of 2004, Yahoo! reported revenues
of $832 million, a 159 percent increase compared to the $321 million
reported in the same period in 2003.
Marketing services revenue for the second quarter of 2004 totaled
$691 million, a 215 percent increase from the $219 million reported in
the same period in 2003. The year over year increase in marketing
services revenue resulted from strong 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 second quarter of 2004 totaled $104 million,
a 49 percent increase compared to the $70 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 6.4 million at June 30, 2004 compared to
approximately 3.5 million at June 30, 2003.
Listings revenue for the second quarter of 2004 totaled $38
million, a 17 percent increase compared to the $32 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 second quarter of 2004 totaled $609 million, a 90 percent
increase compared to the $321 million in the same period of 2003.
Gross profit for the second quarter of 2004 totaled $535 million,
compared to $275 million in the same period of 2003. The increase in
revenues excluding TAC for the quarter ended June 30, 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 second quarter of 2004 totaled
$149 million, compared to $63 million in the same period of 2003.
Operating income before depreciation and amortization for the second
quarter of 2004 totaled $234 million, a 138 percent increase compared
to the $98 million achieved in the same period of 2003. The increase
in operating income and operating income before depreciation and
amortization for the quarter ended June 30, 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 second quarter of 2004 was $113
million or $0.08 per diluted share, compared with $51 million or $0.04
per diluted share for the same period of 2003.
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 second 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: 9286236
About Yahoo!
Yahoo! Inc. is the No. 1 Internet brand globally and the most
trafficked Internet destination. Headquartered in Sunnyvale, Calif.,
Yahoo!'s mission is to provide online products and services essential
to consumers' lives and offer a full range of marketing solutions to
enable businesses to connect with Yahoo!'s hundreds of millions of
users worldwide.
This press release includes the following 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; the Company's ability to
compete with new or existing competitors; general economic conditions;
risks related to the integration of recent acquisitions; dependence on
key personnel; 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 July 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 and the Quarterly Report on Form 10-Q for
the quarter ended March 31, 2004, including (without limitation) under
the captions, "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations," which are 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 of
Yahoo!'s Quarterly Report on Form 10-Q for the quarter ended June 30,
2004, which will be filed with the SEC in the third 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 Six Months Ended
June 30, June 30,
---------------------- ----------------------
2003 2004 2003 2004
---------- ---------- ---------- ----------
Revenues $ 321,406 $ 832,299 $ 604,354 $1,590,085
Cost of revenues 46,842 297,383 89,974 579,088
---------- ---------- ---------- ----------
Gross profit 274,564 534,916 514,380 1,010,997
---------- ---------- ---------- ----------
Operating expenses:
Sales and marketing 122,106 191,875 235,585 358,170
Product development 45,099 87,140 81,497 164,129
General and
administrative 33,934 63,159 62,574 120,715
Stock compensation
expense (1) 891 7,140 1,466 19,712
Amortization of
intangibles 9,762 36,108 15,509 66,620
---------- ---------- ---------- ----------
Total operating
expenses 211,792 385,422 396,631 729,346
---------- ---------- ---------- ----------
Income from operations 62,772 149,494 117,749 281,651
Other income, net 10,334 13,179 22,864 27,557
Earnings in equity
interests 10,001 24,108 19,730 43,976
Minority interests in
operations of
consolidated
subsidiaries (1,126) (1,752) (3,034) (2,234)
---------- ---------- ---------- ----------
Income before income
taxes 81,981 185,029 157,309 350,950
Provision for income
taxes 31,153 72,517 59,778 137,226
---------- ---------- ---------- ----------
Net income $ 50,828 $ 112,512 $ 97,531 $ 213,724
========== ========== ========== ==========
Net income per share -
diluted $ 0.04 $ 0.08 $ 0.08 $ 0.15
========== ========== ========== ==========
Shares used in per
share calculation -
diluted 1,257,154 1,449,707 1,244,365 1,438,128
========== ========== ========== ==========
(1) Stock compensation expense is allocated as follows:
Sales and marketing $ 112 $ 2,376 $ 321 $ 5,981
Product development 588 2,548 874 7,271
General and
administrative 191 2,216 271 6,460
---------- ---------- ---------- ----------
Total stock
compensation
expense $ 891 $ 7,140 $ 1,466 $ 19,712
========== ========== ========== ==========
- ----------------------------------------------------------------------
Supplemental Financial Data (See Note)
- ---------------------------
Revenues excluding
traffic acquisition
costs ("TAC") $ 321,406 $ 609,141 $ 604,354 $1,159,291
Operating income
before depreciation
and amortization $ 98,166 $ 234,062 $ 182,791 $ 444,983
Free cash flow $ 71,353 $ 194,003 $ 149,478 $ 391,289
- ----------------------------------------------------------------------
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. Following our acquisition of Overture Services, Inc.
("Overture"), on October 7, 2003, our total costs of revenue include
TAC paid to affiliates of Overture in connection with its sponsored
search services. TAC also comprises a significant percentage of the
revenues reported from Overture. We believe revenues excluding TAC is
a useful measure to management and investors because it is more
comparable to our historically reported profitability numbers. 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 stock compensation 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
net 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 as a factor in determining
management compensation. 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 Six Months Ended
June 30, June 30,
----------------------- ----------------------
2003 2004 2003 2004
----------- ----------- ----------- ----------
Revenues for groups of similar services:
Marketing services $ 219,198 $ 690,634 $ 409,163 $1,326,102
Fees 69,926 103,851 133,655 192,321
Listings 32,282 37,814 61,536 71,662
----------- ----------- ----------- ----------
Total revenues $ 321,406 $ 832,299 $ 604,354 $1,590,085
=========== =========== =========== ==========
Revenues by segment:
United States $ 271,345 $ 624,161 $ 509,891 $1,223,432
International 50,061 208,138 94,463 366,653
----------- ----------- ----------- ----------
Total revenues $ 321,406 $ 832,299 $ 604,354 $1,590,085
=========== =========== =========== ==========
Cost of revenues:
Traffic acquisition
costs ("TAC") $ - $ 223,158 $ - $ 430,794
Other cost of
revenues 46,842 74,225 89,974 148,294
----------- ----------- ----------- ----------
Total cost of
revenues $ 46,842 $ 297,383 $ 89,974 $ 579,088
=========== =========== =========== ==========
Revenues excluding TAC:
Gross profit $ 274,564 $ 534,916 $ 514,380 $1,010,997
Other cost of
revenues 46,842 74,225 89,974 148,294
----------- ----------- ----------- ----------
Revenues excluding
TAC $ 321,406 $ 609,141 $ 604,354 $1,159,291
=========== =========== =========== ==========
Revenues excluding TAC by segment:
United States:
Gross profit $ 232,890 $ 413,788 $ 436,118 $ 802,896
Other cost of
revenues 38,455 60,304 73,773 122,921
----------- ----------- ----------- ----------
Revenues excluding
TAC $ 271,345 $ 474,092 $ 509,891 $ 925,817
=========== =========== =========== ==========
International:
Gross profit $ 41,674 $ 121,128 $ 78,262 $ 208,101
Other cost of
revenues 8,387 13,921 16,201 25,373
----------- ----------- ----------- ----------
Revenues excluding
TAC $ 50,061 $ 135,049 $ 94,463 $ 233,474
=========== =========== =========== ==========
Operating income before depreciation and amortization:
Income from
operations $ 62,772 $ 149,494 $ 117,749 $ 281,651
Depreciation and
amortization 34,503 77,428 63,576 143,620
Stock compensation
expense 891 7,140 1,466 19,712
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization $ 98,166 $ 234,062 $ 182,791 $ 444,983
=========== =========== =========== ==========
Operating income before depreciation and amortization by segment:
Operating income
before depreciation
and amortization -
United States $ 91,446 $ 198,365 $ 168,969 $ 389,619
Operating income
before depreciation
and amortization -
International 6,720 35,697 13,822 55,364
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization 98,166 234,062 182,791 444,983
Corporate operating
costs and expenses:
Depreciation and
amortization (34,503) (77,428) (63,576) (143,620)
Stock compensation
expense (891) (7,140) (1,466) (19,712)
----------- ----------- ----------- ----------
Income from
operations $ 62,772 $ 149,494 $ 117,749 $ 281,651
=========== =========== =========== ==========
United States:
Income from
operations $ 60,472 $ 128,556 $ 111,472 $ 249,845
Depreciation and
amortization 30,083 63,711 56,031 123,011
Stock compensation
expense 891 6,098 1,466 16,763
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization -
United States $ 91,446 $ 198,365 $ 168,969 $ 389,619
=========== =========== =========== ==========
International:
Income from
operations $ 2,300 $ 20,938 $ 6,277 $ 31,806
Depreciation and
amortization 4,420 13,717 7,545 20,609
Stock compensation
expense - 1,042 - 2,949
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization -
International $ 6,720 $ 35,697 $ 13,822 $ 55,364
=========== =========== =========== ==========
Free cash flow:
Cash flow from
operating
activities $ 92,123 $ 249,702 $ 190,751 $ 485,677
Acquisition of
property and
equipment, net (20,770) (55,699) (41,273) (94,388)
----------- ----------- ----------- ----------
Free cash flow $ 71,353 $ 194,003 $ 149,478 $ 391,289
=========== =========== =========== ==========
Yahoo! Inc.
Business Outlook
Business Outlook
The following business outlook is based on current information and
expectations as of July 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
September 30, December 31,
2004 2004
------------ ----------------
Revenues excluding traffic acquisition costs (2) ("TAC") outlook
(in millions):
Gross Profit $535 - $570 $2,145 - $2,215
Other cost of revenues $75 - $80 $310 - $320
------------ ----------------
Revenues excluding TAC $610- $650 $2,455 - $2,535
============ ================
Operating income before depreciation and amortization (2) outlook
(in millions):
Income from operations $152 - $169 $620 - $650
Depreciation and amortization $73 - $78 $295 - $310
Stock compensation expense $5 - $8 $30 - $35
------------ ----------------
Operating income before depreciation
and amortization $230 - $255 $945 - $995
============ ================
(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 Six Months Ended
June 30, June 30,
---------------------- ----------------------
2003 2004 2003 2004
---------- ---------- ---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 50,828 $ 112,512 $ 97,531 $ 213,724
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation and
amortization 34,503 77,428 63,576 143,620
Tax benefits from
stock options 28,588 60,371 49,645 121,121
Earnings in equity
interests (10,001) (24,108) (19,730) (43,976)
Minority interests
in operations of
consolidated
subsidiaries 1,126 1,752 3,034 2,234
Stock compensation
expense 891 7,140 1,466 19,712
Gains from sale of
assets and other,
net 4,535 10,889 7,547 9,616
Changes in assets
and liabilities,
net of effects of
acquisitions:
Accounts
receivable, net (8,182) (37,011) (23,529) (35,822)
Prepaid expenses
and other
assets (9,180) 4,992 (3,965) 582
Accounts payable (3,008) 4,316 (405) (13,593)
Accrued expenses
and other
liabilities (5,193) 19,566 (933) 51,869
Deferred revenue 7,216 11,855 16,514 16,590
---------- ---------- ---------- ----------
Net cash provided by
operating activities 92,123 249,702 190,751 485,677
---------- ---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of
property and
equipment, net (20,770) (55,699) (41,273) (94,388)
Purchases of
marketable
securities (528,738) (347,458) (666,178) (862,013)
Proceeds from sales
and maturities of
marketable
securities 219,981 369,663 650,499 751,723
Acquisitions, net of
cash acquired - (530,110) (228,318) (573,877)
Purchases of other
investments (7,555) (491) (6,274) (491)
Proceeds from sale
of assets and other - 6,068 - 16,979
---------- ---------- ---------- ----------
Net cash used in
investing activities (337,082) (558,027) (291,544) (762,067)
---------- ---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from
issuance of debt, net 733,125 - 733,125 -
Proceeds from
issuance of common
stock, net 105,044 225,383 128,611 317,678
Structured stock
repurchase - - - (50,000)
---------- ---------- ---------- ----------
Net cash provided by
financing activities 838,169 225,383 861,736 267,678
---------- ---------- ---------- ----------
Effect of exchange
rate changes on cash
and cash equivalents 3,929 13 3,667 3,053
Net change in cash and
cash equivalents 597,139 (82,929) 764,610 (5,659)
Cash and cash
equivalents,
beginning of period 478,443 790,809 310,972 713,539
---------- ---------- ---------- ----------
Cash and cash
equivalents, end of
period $1,075,582 $ 707,880 $1,075,582 $ 707,880
========== ========== ========== ==========
Yahoo! Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, June 30,
2003 2004
---------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 713,539 $ 707,880
Short-term investments in marketable
securities 595,978 829,387
Accounts receivable, net 282,415 337,082
Prepaid expenses and other current assets 129,777 138,518
---------- ----------
Total current assets 1,721,709 2,012,867
Long-term investments in marketable securities 1,261,693 1,112,556
Property and equipment, net 449,512 463,890
Goodwill 1,805,561 2,295,585
Intangible assets, net 445,640 504,841
Other assets 247,539 270,288
---------- ----------
Total assets $5,931,654 $6,660,027
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,890 $ 27,075
Accrued and other current liabilities 483,628 552,867
Deferred revenue 192,278 213,378
---------- ----------
Total current liabilities 707,796 793,320
Long term debt 750,000 750,000
Other liabilities 72,890 111,768
Minority interests in consolidated subsidiaries 37,478 43,812
Stockholders' equity 4,363,490 4,961,127
---------- ----------
Total liabilities and stockholders' equity $5,931,654 $6,660,027
========== ==========
Yahoo! Inc.
Unaudited Supplemental Financial Information and Business Metrics
(in thousands)
Q1 Q2 Q3 Q4
2003 2003 2003 2003
---------- ---------- ---------- ----------
Revenues for groups of similar services:
Marketing services $ 189,965 $ 219,198 $ 245,072 $ 545,498
Fees 63,729 69,926 79,358 85,179
Listings 29,254 32,282 32,391 33,245
---------- ---------- ---------- ----------
Total revenues $ 282,948 $ 321,406 $ 356,821 $ 663,922
========== ========== ========== ==========
Revenues for groups of similar services (Trailing Twelve Months):
Marketing services $ 703,858 $ 771,346 $ 850,657 $1,199,733
Fees 232,124 252,987 275,014 298,192
Listings 107,368 114,631 121,291 127,172
---------- ---------- ---------- ----------
Total revenues $1,043,350 $1,138,964 $1,246,962 $1,625,097
========== ========== ========== ==========
Revenues by segment:
United States $ 238,546 $ 271,345 $ 299,759 $ 545,503
International 44,402 50,061 57,062 118,419
---------- ---------- ---------- ----------
Total revenues $ 282,948 $ 321,406 $ 356,821 $ 663,922
========== ========== ========== ==========
Revenues by segment (Trailing Twelve Months):
United States $ 878,532 $ 962,412 $1,052,036 $1,355,153
International 164,818 176,552 194,926 269,944
---------- ---------- ---------- ----------
Total revenues $1,043,350 $1,138,964 $1,246,962 $1,625,097
========== ========== ========== ==========
Cost of revenues:
Traffic acquisition
costs ("TAC") $ - $ - $ - $ 152,583
Other cost of revenues 43,132 46,842 47,287 68,259
---------- ---------- ---------- ----------
Total cost of revenues $ 43,132 $ 46,842 $ 47,287 $ 220,842
========== ========== ========== ==========
Cost of revenues (Trailing Twelve Months):
Traffic acquisition
costs $ - $ - $ - $ 152,583
Other cost of revenues 168,192 173,326 179,580 205,520
---------- ---------- ---------- ----------
Total cost of revenues $ 168,192 $ 173,326 $ 179,580 $ 358,103
========== ========== ========== ==========
Revenues excluding TAC:
Gross profit $ 239,816 $ 274,564 $ 309,534 $ 443,080
Other cost of revenues 43,132 46,842 47,287 68,259
---------- ---------- ---------- ----------
Revenues excluding TAC $ 282,948 $ 321,406 $ 356,821 $ 511,339
========== ========== ========== ==========
Revenues excluding TAC (Trailing twelve months):
Gross profit $ 875,158 $ 965,638 $1,067,382 $1,266,994
Other cost of revenues 168,192 173,326 179,580 205,520
---------- ---------- ---------- ----------
Revenues excluding TAC $1,043,350 $1,138,964 $1,246,962 $1,472,514
========== ========== ========== ==========
Revenues excluding TAC by segment:
United States:
Gross profit $ 203,228 $ 232,890 $ 261,290 $ 371,557
Other cost of revenues 35,318 38,455 38,469 58,446
---------- ---------- ---------- ----------
Revenues excluding TAC $ 238,546 $ 271,345 $ 299,759 $ 430,003
========== ========== ========== ==========
International:
Gross profit $ 36,588 $ 41,674 $ 48,244 $ 71,523
Other cost of revenues 7,814 8,387 8,818 9,813
---------- ---------- ---------- ----------
Revenues excluding TAC $ 44,402 $ 50,061 $ 57,062 $ 81,336
========== ========== ========== ==========
Revenues excluding TAC by segment (Trailing Twelve Months):
United States:
Gross profit $ 744,266 $ 822,088 $ 905,792 $1,068,965
Other cost of revenues 134,266 140,324 146,244 170,688
---------- ---------- ---------- ----------
Revenues excluding TAC $ 878,532 $ 962,412 $1,052,036 $1,239,653
========== ========== ========== ==========
International:
Gross profit $ 130,892 $ 143,550 $ 161,590 $ 198,029
Other cost of revenues 33,926 33,002 33,336 34,832
---------- ---------- ---------- ----------
Revenues excluding TAC $ 164,818 $ 176,552 $ 194,926 $ 232,861
========== ========== ========== ==========
Operating income before depreciation and amortization:
Income from operations $ 54,977 $ 62,772 $ 83,498 $ 94,419
Depreciation and
amortization 29,073 34,503 33,013 63,099
Stock compensation
expense 575 891 485 20,078
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization $ 84,625 $ 98,166 $ 116,996 $ 177,596
========== ========== ========== ==========
Operating income before depreciation and amortization (Trailing Twelve
Months):
Income from operations $ 147,340 $ 202,594 $ 256,615 $ 295,666
Depreciation and
amortization 115,507 122,534 125,796 159,688
Stock compensation
expense 3,357 3,129 2,661 22,029
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization $ 266,204 $ 328,257 $ 385,072 $ 477,383
========== ========== ========== ==========
Operating income before depreciation and amortization by segment:
Operating income before
depreciation and
amortization - United
States $ 77,523 $ 91,446 $ 106,607 $ 165,796
Operating income before
depreciation and
amortization -
International 7,102 6,720 10,389 11,800
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization 84,625 98,166 116,996 177,596
Depreciation and
amortization (29,073) (34,503) (33,013) (63,099)
Stock compensation
expense (575) (891) (485) (20,078)
---------- ---------- ---------- ----------
Income from operations $ 54,977 $ 62,772 $ 83,498 $ 94,419
========== ========== ========== ==========
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
Operating income before
depreciation and
amortization -
International 8,409 18,689 27,471 36,011
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization 266,204 328,257 385,072 477,383
Depreciation and
amortization (115,507) (122,534) (125,796) (159,688)
Stock compensation
expense (3,357) (3,129) (2,661) (22,029)
---------- ---------- ---------- ----------
Income from operations $ 147,340 $ 202,594 $ 256,615 $ 295,666
========== ========== ========== ==========
Operating income before depreciation and amortization by segment:
United States:
Income from operations $ 51,000 $ 60,472 $ 77,684 $ 90,246
Depreciation and
amortization 25,948 30,083 28,438 57,423
Stock compensation
expense 575 891 485 18,127
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization - United
States $ 77,523 $ 91,446 $ 106,607 $ 165,796
========== ========== ========== ==========
International:
Income from operations $ 3,977 $ 2,300 $ 5,814 $ 4,173
Depreciation and
amortization 3,125 4,420 4,575 5,676
Stock compensation
expense - - - 1,951
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization -
International $ 7,102 $ 6,720 $ 10,389 $ 11,800
========== ========== ========== ==========
Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
United States:
Income from operations $ 150,646 $ 197,244 $ 244,177 $ 279,402
Depreciation and
amortization 103,792 109,195 110,763 141,892
Stock compensation
expense 3,357 3,129 2,661 20,078
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization - United
States $ 257,795 $ 309,568 $ 357,601 $ 441,372
========== ========== ========== ==========
International:
Income (loss) from
operations $ (3,306)$ 5,350 $ 12,438 $ 16,264
Depreciation and
amortization 11,715 13,339 15,033 17,796
Stock compensation
expense - - - 1,951
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization -
International $ 8,409 $ 18,689 $ 27,471 $ 36,011
========== ========== ========== ==========
Free cash flow:
Cash flow from operating
activities $ 98,628 $ 92,123 $ 135,533 $ 101,860
Acquisition of property
and equipment, net (20,503) (20,770) (38,445) (37,611)
Overture receivable
settled through
acquisition - - - 28,071
---------- ---------- ---------- ----------
Free cash flow $ 78,125 $ 71,353 $ 97,088 $ 92,320
========== ========== ========== ==========
Free cash flow (Trailing Twelve Months):
Cash flow from operating
activities $ 353,633 $ 342,374 $ 405,642 $ 428,144
Acquisition of property
and equipment, net (64,769) (71,238) (96,390) (117,329)
Change in long-term
deferred revenue (30,000) - - -
Overture receivable
settled through
acquisition - - - 28,071
---------- ---------- ---------- ----------
Free cash flow $ 258,864 $ 271,136 $ 309,252 $ 338,886
========== ========== ========== ==========
Q1 Q2
2004 2004
---------- ----------
Revenues for groups of similar services:
Marketing services $ 635,468 $ 690,634
Fees 88,470 103,851
Listings 33,848 37,814
---------- ----------
Total revenues $ 757,786 $ 832,299
========== ==========
Revenues for groups of similar services (Trailing Twelve Months):
Marketing services $1,645,236 $2,116,672
Fees 322,933 356,858
Listings 131,766 137,298
---------- ----------
Total revenues $2,099,935 $2,610,828
========== ==========
Revenues by segment:
United States $ 599,271 $ 624,161
International 158,515 208,138
---------- ----------
Total revenues $ 757,786 $ 832,299
========== ==========
Revenues by segment (Trailing Twelve Months):
United States $1,715,878 $2,068,694
International 384,057 542,134
---------- ----------
Total revenues $2,099,935 $2,610,828
========== ==========
Cost of revenues:
Traffic acquisition
costs ("TAC") $ 207,636 $ 223,158
Other cost of revenues 74,069 74,225
---------- ----------
Total cost of revenues $ 281,705 $ 297,383
========== ==========
Cost of revenues (Trailing Twelve Months):
Traffic acquisition
costs $ 360,219 $ 583,377
Other cost of revenues 236,457 263,840
---------- ----------
Total cost of revenues $ 596,676 $ 847,217
========== ==========
Revenues excluding TAC:
Gross profit $ 476,081 $ 534,916
Other cost of revenues 74,069 74,225
---------- ----------
Revenues excluding TAC $ 550,150 $ 609,141
========== ==========
Revenues excluding TAC
(Trailing twelve months):
Gross profit $1,503,259 $1,763,611
Other cost of revenues 236,457 263,840
---------- ----------
Revenues excluding TAC $1,739,716 $2,027,451
========== ==========
Revenues excluding TAC by segment:
United States:
Gross profit $ 389,108 $ 413,788
Other cost of revenues 62,617 60,304
---------- ----------
Revenues excluding TAC $ 451,725 $ 474,092
========== ==========
International:
Gross profit $ 86,973 $ 121,128
Other cost of revenues 11,452 13,921
---------- ----------
Revenues excluding TAC $ 98,425 $ 135,049
========== ==========
Revenues excluding TAC by segment (Trailing Twelve Months):
United States:
Gross profit $1,254,845 $1,435,743
Other cost of revenues 197,987 219,836
---------- ----------
Revenues excluding TAC $1,452,832 $1,655,579
========== ==========
International:
Gross profit $ 248,414 $ 327,868
Other cost of revenues 38,470 44,004
---------- ----------
Revenues excluding TAC $ 286,884 $ 371,872
========== ==========
Operating income before depreciation and amortization:
Income from operations $ 132,157 $ 149,494
Depreciation and
amortization 66,192 77,428
Stock compensation
expense 12,572 7,140
---------- ----------
Operating income before
depreciation and
amortization $ 210,921 $ 234,062
========== ==========
Operating income before depreciation and amortization (Trailing Twelve
Months):
Income from operations $ 372,846 $ 459,568
Depreciation and
amortization 196,807 239,732
Stock compensation
expense 34,026 40,275
---------- ----------
Operating income before
depreciation and
amortization $ 603,679 $ 739,575
========== ==========
Operating income before depreciation and amortization by segment:
Operating income before
depreciation and
amortization - United
States $ 191,254 $ 198,365
Operating income before
depreciation and
amortization -
International 19,667 35,697
---------- ----------
Operating income before
depreciation and
amortization 210,921 234,062
Depreciation and
amortization (66,192) (77,428)
Stock compensation
expense (12,572) (7,140)
---------- ----------
Income from operations $ 132,157 $ 149,494
========== ==========
Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
Operating income before
depreciation and
amortization - United
States $ 555,103 $ 662,022
Operating income before
depreciation and
amortization -
International 48,576 77,553
---------- ----------
Operating income before
depreciation and
amortization 603,679 739,575
Depreciation and
amortization (196,807) (239,732)
Stock compensation
expense (34,026) (40,275)
---------- ----------
Income from operations $ 372,846 $ 459,568
========== ==========
Operating income before depreciation and amortization by segment:
United States:
Income from operations $ 121,289 $ 128,556
Depreciation and
amortization 59,300 63,711
Stock compensation
expense 10,665 6,098
---------- ----------
Operating income before
depreciation and
amortization - United
States $ 191,254 $ 198,365
========== ==========
International:
Income from operations $ 10,868 $ 20,938
Depreciation and
amortization 6,892 13,717
Stock compensation
expense 1,907 1,042
---------- ----------
Operating income before
depreciation and
amortization -
International $ 19,667 $ 35,697
========== ==========
Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
United States:
Income from operations $ 349,691 $ 417,775
Depreciation and
amortization 175,244 208,872
Stock compensation
expense 30,168 35,375
---------- ----------
Operating income before
depreciation and
amortization - United
States $ 555,103 $ 662,022
========== ==========
International:
Income (loss) from
operations $ 23,155 $ 41,793
Depreciation and
amortization 21,563 30,860
Stock compensation
expense 3,858 4,900
---------- ----------
Operating income before
depreciation and
amortization -
International $ 48,576 $ 77,553
========== ==========
Free cash flow:
Cash flow from
operating activities $ 235,975 $ 249,702
Acquisition of property
and equipment, net (38,689) (55,699)
Overture receivable
settled through
acquisition - -
---------- ----------
Free cash flow $ 197,286 $ 194,003
========== ==========
Free cash flow (Trailing Twelve Months):
Cash flow from
operating activities $ 565,491 $ 723,070
Acquisition of property
and equipment, net (135,515) (170,444)
Change in long-term
deferred revenue - -
Overture receivable
settled through
acquisition 28,071 28,071
---------- ----------
Free cash flow $ 458,047 $ 580,697
========== ==========
CONTACT: Yahoo! Inc.
Brian Nelson, 408-349-7329 (Media Relations)
bnelson@yahoo-inc.com
Cathy La Rocca, 408-349-5188 (Investor Relations)
cathy@yahoo-inc.com
or
Fleishman-Hillard
Ruben Osorio, 415-318-4108 (Media Relations)
osorior@fleishman.com