full text:
Revenues - $1,768 Million
Operating Income - $150 Million
Operating Income Before Depreciation, Amortization and Stock-Based Compensation Expense - $466 Million
Yahoo! Inc. (Nasdaq:YHOO) today reported results for the third quarter ended September 30, 2007.
"Over the past three months, we conducted a thorough review of our business and the marketplace. We've made key strategic decisions to invest in and grow our large communities of users, advertisers, and publishers. We’ve also made progress in sharpening our focus and improving our execution,” said Jerry Yang, co-founder and chief executive officer, Yahoo! Inc. “Moving forward, we are focused on three big, multi-year objectives: to become the starting point for the most consumers on the Internet; to be the ‘must buy’ for the most advertisers; and to deliver open, industry-leading platforms that attract the most developers. We are executing against our transformation and are excited about playing a leadership role in the large and growing Internet market.”
Third Quarter 2007 Financial Results
* Revenues were $1,768 million for the third quarter of 2007, a 12 percent increase compared to $1,580 million for the same period of 2006.
* Marketing services revenues were $1,544 million for the third quarter of 2007, a 13 percent increase compared to $1,370 million for the same period of 2006.
* Marketing services revenues from Owned and Operated sites were $922 million for the third quarter of 2007, a 24 percent increase compared to $742 million for the same period of 2006.
* Marketing services revenues from Affiliate sites were $622 million for the third quarter of 2007, a 1 percent decrease compared to $628 million for the same period of 2006.
* Fees revenues were $224 million for the third quarter of 2007, a 7 percent increase compared to $210 million for the same period of 2006.
* Revenues excluding traffic acquisition costs (“TAC”) were $1,283 million for the third quarter of 2007, a 14 percent increase compared to $1,121 million for the same period of 2006.
* Gross profit for the third quarter of 2007 was $1,027 million, a 14 percent increase compared to $899 million for the same period of 2006.
* Operating income for the third quarter of 2007 was $150 million, a 26 percent decrease compared to $202 million for the same period of 2006.
* Operating income before depreciation, amortization and stock-based compensation expense for the third quarter of 2007 was $466 million, a 2 percent decrease compared to $474 million for the same period of 2006.
* Cash flow from operating activities for the third quarter of 2007 was $457 million, a 17 percent increase compared to $390 million for the same period of 2006.
* Free cash flow for the third quarter of 2007 was $310 million, an 8 percent increase compared to $288 million for the same period of 2006.
* Net income for the third quarter of 2007 was $151 million or $0.11 per diluted share compared to $159 million or $0.11 per diluted share for the same period of 2006.
* Non-GAAP net income for the third quarter of 2007 was $238 million or $0.17 per diluted share compared to non-GAAP net income of $240 million or $0.17 per diluted share for the same period of 2006.
* The provision for income taxes for the third quarter of 2007 was $79 million and yielded an effective tax rate of 41 percent. The provision for income taxes for the third quarter of 2006 was $124 million and yielded an effective tax rate of 49 percent.
* Explanations of the Company’s non-GAAP financial measures and the related reconciliations to the GAAP financial measures the Company considers most comparable are included in the accompanying “Note to Unaudited Condensed Consolidated Statements of Income,” “Reconciliations to Unaudited Condensed Consolidated Statements of Income,” and “Reconciliation of GAAP Net Income and GAAP Net Income Per Share to Non-GAAP Net Income and Non-GAAP Net Income Per Share.”
"Our strategy is to generate and leverage the most valuable insights, deploy open platforms, and offer partner-of-choice solutions that make Yahoo! more relevant and indispensable for our users, advertisers, publishers, and developers," said Sue Decker, president, Yahoo! Inc. “During the quarter, we continued to make strides in sharpening our focus and organizing ourselves to execute against this strategy. We are prioritizing our resources around the key Yahoo! starting points that create the most value, and creating strong differentiation in those products. We are aggressively building out our open advertising and publishing network, delivering more integrated and targeted solutions, and pursuing opportunities to realize added value from both the search and display inventory created by our massive and growing user base."
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