Yahoo reported earnings after the market closed today.
Yahoo had net revenue of $1.21 billion, down 4% drop from the 4th quarter of 2009.
4th Q net income rose to $312 million, or 24 cents a share, from $153 million or 11 cents a share in the same period a year earlier.
Yahoo said its search-advertising revenue fell 27% in the 4th quarter compared with the period in the prior year.
Shares are trading at $15.52 down 3% in after market trading.
“We just completed a very encouraging quarter and year … where we saw our plans to turn around the company gain momentum,” Yahoo Chief Executive Carol Bartz said in a statement.
Yahoo also said earlier today that it was cutting roughly 1% of its workforce.
“The personnel changes we are making are part of our ongoing strategy to best position Yahoo for revenue growth and margin expansion and to support our strategy,” the Yahoo spokeswoman said in a statement.
Here is some additional info from the earning report:
Fourth Quarter 2010 Revenue Results
- GAAP display revenue increased 14 percent to $635 million, compared to $560 million for the fourth quarter of 2009.
- Display revenue ex-TAC increased 16 percent to $567 million, compared to $490 million for the fourth quarter of 2009.
- GAAP search revenue was $640 million, a 27 percent decrease compared to $875 million for the fourth quarter of 2009.
- Search revenue ex-TAC was $388 million, an 18 percent decrease compared to $473 million for the fourth quarter of 2009.
Cash Flow and Cash Balance
- Cash flow from operating activities for the fourth quarter of 2010 was $403 million, a 15 percent increase compared to $351 million for the same period of 2009.
- Free cash flow was $155 million for the fourth quarter of 2010, a 29 percent decrease compared to $220 million for the same period of 2009.
- Cash, cash equivalents, and investments in marketable debt securities were $3,629 million at December 31, 2010 compared to $4,518 million at December 31, 2009, a decrease of $889 million. During the year ended December 31, 2010, Yahoo! repurchased 119 million shares for $1,749 million.
Revenue ex-TAC for the first quarter of 2011 is expected to be in the range of $1,020 million to $1,080 million. Based on the terms of the Search Agreement with Microsoft, Microsoft retains a revenue share of 12 percent of the net (after TAC) search revenue generated on Yahoo!’s Advertising Network in transitioned markets. Yahoo! reports the net revenue it receives under the Search Agreement as revenue and no longer presents the associated TAC within cost of revenue. Accordingly, for transitioned markets Yahoo! reports GAAP revenue associated with the Search Agreement on a net (after TAC) basis rather than a gross basis. For markets that have not yet transitioned, revenue continues to be recorded on a gross basis, and TAC is recorded in cost of revenue. Microsoft’s revenue share in the first quarter of 2011 is expected to be approximately $36 million. GAAP revenue for the first quarter of 2011 is expected to be in the range of $1,150 million to $1,230 million. Total expenses (cost of revenue plus total operating expenses) for the first quarter of 2011 is expected to be in the range of $1,020 million to $1,070 million. Total expenses less TAC for the first quarter of 2011 is expected to be in the range of $890 million to $920 million. Income from operations for the first quarter of 2011 is expected to be in the range of $130 million to $160 million.
Business outlook for revenue ex-TAC is being provided to reflect the underlying dynamics of the business during the Microsoft transition and to facilitate comparisons to prior periods.
For it current, first quarter, Yahoo said it expects net revenue to be between $1.02 billion and $1.08 billion.
Here is its P & L:
|Unaudited Condensed Consolidated Statements of Income|
|(in thousands, except per share amounts)|
|Three Months Ended
|Cost of revenue||749,658||557,686||2,871,746||2,627,545|
|Sales and marketing||357,470||298,508||1,245,350||1,264,491|
|General and administrative||149,282||125,755||580,352||488,332|
|Amortization of intangibles||10,372||7,627||39,106||31,626|
|Restructuring charges, net||40,409||37,735||126,901||57,957|
|Total operating expenses||863,564||747,447||3,201,877||2,924,582|
|Income from operations||118,755||219,976||386,692||772,524|
|Other income, net||5,168||7,602||187,528||297,869|
|Income before income taxes and earnings in equity interests||123,923||227,578||574,220||1,070,393|
|Provision for income taxes||(36,831||)||(17,142||)||(219,321||)||(221,523||)|
|Earnings in equity interests||68,646||107,511||250,390||395,758|
|Less: Net income attributable to noncontrolling interests||(2,784||)||(5,927||)||(7,297||)||(12,965||)|
|Net income attributable to Yahoo! Inc.||$||152,954||$||312,020||$||597,992||$||1,231,663|
|Net income attributable to Yahoo! Inc. common stockholders per share – diluted||$||0.11||$||0.24||$||0.42||$||0.90|
|Shares used in per share calculation – diluted||1,416,974||1,311,682||1,415,658||1,364,612|
|Stock-based compensation expense by function:|
|Cost of revenue||$||1,829||$||986||$||10,759||$||3,275|
|Sales and marketing||25,839||16,870||141,537||71,154|
|General and administrative||14,661||10,632||79,820||42,384|
|Restructuring expense acceleration (reversals), net||18,662||(4,211||)||11,062||(4,211||)|
Supplemental Financial Data:
|Free cash flow||$||219,685||$||155,165||$||957,410||$||596,255|
Sat3D.TV + 3Dsat.TV + Satellite3D.TV + Fast3D.TV + Retina3D.TV says
Yahoo dies a piece a day
Yahoo has done the mistake of the millennium when they haven’t sold the company to Microsoft for $45 billions
Thanks for the info. Sooner the yahoo stock will trade less than 5 bucks, its not far. Yahoo should have sold themselves to microsoft when microsoft wanted to buy them. At that time yahoo traded @ 24 bucks a share. Almost 10 bucks dropped from it so far, soon it will be hard to survive.
Google has been implemented new features to search, and yahoo begin to decline. and will continue to do so under same management.
Google chrome which has been gaining market share for browser, and Android which has been the good buy by the google for 50 million which now valuates at over 2Billion, and voted top ios recently, is giving google good advantage for users to keep sticking to google as their homepage.
These factors will eliminiate yahoo search soon. 🙂 I never searched in yahoo, and I can care less. Their search results look like, a Elementary school search results lol.
Yahoo……..Good Bye! We need another strong competitor.
The market is ripe for a new entry into the online-search space – something mobile-centric and sexy would blow the roof off. Any takers?
Yahoo …what dahoo?
Oh..it is Jerry Yanghooooooooooo
Yahoo–5L domain….Urrr…I passed.
Still Chillin' After All These Domains says
We’re cutting our workforce so we can be better positioned for growth, says Carol.
Sat3D.TV (hey, CNN, Sky, Canal+) says
“We need another strong competitor.”
unfortunately, Yahoo was the last one able to compete, so, when it will die, the web will be entirely googlized 😐
Yahoo – yeah I heard of them but dont know what they do 🙂