Yahoo! Inc. (NASDAQ: YHOO) reported results for the quarter ended September 30, 2012 after the market closed today
Yahoo beat analysts’ expectations revenue in the three months ended in September rose 2% to $1.09 billion, yielding EPS of 35 cents.
Analysts on averaged had been expecting $1.08 billion and 26 cents a share.
Display revenue was flat, year over year, at $452 million, while search ad revenue was better than expected, rising 11% to $414 million.
A $2.8bn gain from the sale of the company’s stake in China’s Alibaba drove up revenues.
Revenue excluding traffic acquisition costs (“Revenue ex-TAC”) was $1,089 million for the third quarter of 2012, a 2% increase compared to the third quarter of 2011.
GAAP revenue was $1,202 million for the third quarter of 2012, a 1% decrease from the third quarter of 2011.
On a GAAP basis, income from operations decreased 14% to $152 million in the third quarter of 2012, compared to $177 million in the third quarter of 2011.
Third Quarter 2012 Revenue Highlights
Display revenue ex-TAC was $452 million, flat compared to the third quarter of 2011.
GAAP display revenue was $506 million, a 1 percent increase compared to $502 million for the third quarter of 2011.
Search revenue ex-TAC was $414 million, an 11% increase compared to $374 million for the third quarter of 2011.
GAAP search revenue was $473 million, a 1% increase compared to $467 million for the third quarter of 2011.
Cash Flow and Cash Balance
Cash flow from operating activities for the third quarter of 2012 was $1,046 million, a 194 percent increase compared to $356 million for the same period of 2011. Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, cash flow from operating activities for the third quarter of 2012 was $496 million.
Free cash flow was $920 million for the third quarter of 2012, a 273 percent increase compared to $247 million for the same period of 2011. Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, free cash flow for the third quarter of 2012 was $370 million.
Cash, cash equivalents, and investments in marketable debt securities were $9.4 billion at September 30, 2012 compared to $2.5 billion at December 31, 2011, an increase of $6.9 billion.
During the third quarter of 2012, Yahoo! repurchased 12 million shares for $190 million.
Share of the company were trading up almost 5% after the news at $16.49
Surprise ! Surprise!
Yahoo were MEANT to be in decline as Google prospered………but Yahoo are well UP and Google are well DOWN !!
Look at those Yahoo increases !! Fantastic !!
I bet investors are shouting ……… YAHOOOO !!!!!!!!!