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Full Year Revenues - $6,969 Million
Full Year Operating Income - $695 Million
Full Year Operating Income Before Depreciation, Amortization, and Stock-Based Compensation Expense - $1,927 Million
Yahoo! Inc. (Nasdaq:YHOO) reported results for the fourth quarter and full year ended December 31, 2007.
“We are executing aggressively against Yahoo!'s three big strategic priorities and that hard work is starting to bear fruit, as evidenced by the 20% year-over-year growth in O&O marketing services we achieved in the fourth quarter. This is a pivotal time for Yahoo!’s business and we have a unique window of opportunity right now to make the necessary, game-changing investments that will help us capture a significant piece of the growing ad market and create substantial long-term value for our shareholders,” said Jerry Yang, co-founder and chief executive officer, Yahoo! Inc. “While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009.”
Fourth Quarter 2007 Financial Results
* Revenues were $1,832 million for the fourth quarter of 2007, an 8 percent increase compared to $1,702 million for the same period of 2006.
* Marketing services revenues were $1,590 million for the fourth quarter of 2007, a 7 percent increase compared to $1,490 million for the same period of 2006.
* Marketing services revenues from Owned and Operated sites were $1,035 million for the fourth quarter of 2007, a 21 percent increase compared to $853 million for the same period of 2006.
* Marketing services revenues from Affiliate sites were $555 million for the fourth quarter of 2007, a 13 percent decrease compared to $637 million for the same period of 2006.
* Fees revenues were $242 million for the fourth quarter of 2007, a 14 percent increase compared to $213 million for the same period of 2006.
* Revenues excluding traffic acquisition costs (“TAC”) were $1,403 million for the fourth quarter of 2007, a 14 percent increase compared to $1,228 million for the same period of 2006.
* Gross profit for the fourth quarter of 2007 was $1,130 million, a 12 percent increase compared to $1,012 million for the same period of 2006.
* Operating income for the fourth quarter of 2007 was $191 million, a 38 percent decrease compared to $308 million for the same period of 2006.
* Operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2007 was $527 million, a 2 percent decrease compared to $540 million for the same period of 2006.
* Cash flow from operating activities for the fourth quarter of 2007 was $657 million, a 293 percent increase compared to $167 million for the same period of 2006.
* Free cash flow for the fourth quarter of 2007 was $330 million, a 19 percent increase compared to $278 million for the same period of 2006.
* Net income for the fourth quarter of 2007 was $206 million or $0.15 per diluted share compared to $269 million or $0.19 per diluted share for the same period of 2006.
* Non-GAAP net income for the fourth quarter of 2007 was $280 million or $0.20 per diluted share compared to non-GAAP net income of $297 million or $0.21 per diluted share for the same period of 2006.
Fourth Quarter 2007 Segment Financial Results
* United States segment revenues for the fourth quarter of 2007 were $1,313 million, a 15 percent increase compared to $1,145 million for the same period of 2006.
* International segment revenues for the fourth quarter of 2007 were $519 million, a 7 percent decrease compared to $558 million for the same period of 2006.
* United States segment operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2007 was $391 million, a 5 percent decrease compared to $410 million for the same period of 2006.
* International segment operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2007 was $136 million, a 5 percent increase compared to $130 million for the same period of 2006.
“The steps we’ve been taking over the course of the past year represent profound, fundamental changes to virtually every aspect of Yahoo!’s business, and we're confident they will help us drive our next leg of growth and gain future ad market share. Even as we increase investment in key areas of our business, we’re making tough but necessary decisions to streamline our organization and redeploy assets to our most promising technology and marketing initiatives,” said Sue Decker, president, Yahoo! Inc. “We still have a tremendous amount of work to do, but we’re confident we can substantially improve our users' experiences and achieve meaningful incremental monetization opportunities for Yahoo!’s own ad inventory and that of our partners.”
Full Year 2007 Financial Results
* Revenues were $6,969 million for 2007, an 8 percent increase compared to $6,426 million for 2006.
* Marketing services revenues were $6,088 million for 2007, an 8 percent increase compared to $5,627 million for 2006.
* Marketing services revenues from Owned and Operated sites were $3,671 million for 2007, a 20 percent increase compared to $3,071 million for 2006.
* Marketing services revenues from Affiliate sites were $2,417 million for 2007, a 5 percent decrease compared to $2,556 million for 2006.
* Fees revenues were $881 million for 2007, a 10 percent increase compared to $798 million for 2006.
* Revenues excluding TAC were $5,113 million for 2007, a 12 percent increase compared to $4,560 million for 2006.
* Gross profit for 2007 was $4,131 million, a 10 percent increase compared to $3,750 million for 2006.
* Operating income for 2007 was $695 million, a 26 percent decrease compared to $941 million for 2006.
* Operating income before depreciation, amortization, and stock-based compensation expense for 2007 was $1,927 million, a 1 percent increase compared to $1,906 million for 2006.
* Cash flow from operating activities for 2007 was $1,954 million, a 42 percent increase compared to $1,372 million for 2006.
* Free cash flow for 2007 was $1,337 million, a 6 percent increase compared to $1,267 million for 2006.
* Net income for 2007 was $660 million or $0.47 per diluted share compared to $751 million or $0.52 per diluted share for 2006.
* Non-GAAP net income for 2007 was $995 million or $0.71 per diluted share compared to non-GAAP net income of $1,011 million or $0.69 per diluted share for 2006.
Full Year 2007 Segment Financial Results
* United States segment revenues for 2007 were $4,727 million, an 8 percent increase compared to $4,366 million for 2006.
* International segment revenues for 2007 were $2,242 million, a 9 percent increase compared to $2,060 million for 2006.
* United States segment operating income before depreciation, amortization, and stock-based compensation expense for 2007 was $1,434 million, a 1 percent decrease compared to $1,452 million for 2006.
* International segment operating income before depreciation, amortization, and stock-based compensation expense for 2007 was $493 million, a 9 percent increase compared to $454 million for 2006.
For more information, visit http://yhoo.client.shareholder.com/results.cfm