jump to navigation

Yahoo Earnings 4th Quarter and Full Year 2008 – The Facts January 27, 2009

Posted by John in Technology.
trackback

I fully expect a decoder from Boomtown’s Kara Swisher soon and I will spare you my opinion for now.   Here are the facts on Yahoo 4th quarter and full 2008 results.

Update: Kara Swisher has the decoder on for this – Her take is “Yes We Can...”..Apparently Carol is doing a fine job.

Here is the new CEO Carol Bartz in a written statement…  “Despite the challenging economic environment, Yahoo! delivered adjusted operating cash flow above the midpoint of guidance for the fourth quarter,” said Yahoo! Chief Executive Officer Carol Bartz. “The company also made important investments while aggressively managing costs, leaving us better positioned to weather the economic downturn and emerge stronger when advertiser spending improves. We have work to do, but I am excited by Yahoo!’s opportunities, and encouraged by the tremendous innovation and momentum I’ve seen since joining the company as CEO.”

Fourth Quarter 2008 Financial Results

  • Revenues were $1,806 million for the fourth quarter of 2008, a 1 percent decrease compared to $1,832 million for the same period of 2007.
  • Marketing services revenues were $1,594 million for the fourth quarter of 2008 compared to $1,590 million for the same period of 2007.
    • Marketing services revenues from Owned and Operated sites were $1,063 million for the fourth quarter of 2008, a 3 percent increase compared to $1,035 million for the same period of 2007.
    • Marketing services revenues from Affiliate sites were $531 million for the fourth quarter of 2008, a 4 percent decrease compared to $555 million for the same period of 2007.
  • Fees revenues were $212 million for the fourth quarter of 2008, a 12 percent decrease compared to $242 million for the same period of 2007.
  • Revenues excluding traffic acquisition costs (“TAC”) were $1,375 million for the fourth quarter of 2008, a 2 percent decrease compared to $1,403 million for the same period of 2007.
  • Operating loss for the fourth quarter of 2008 was $278 million compared to operating income of $191 million for the same period of 2007.
  • Operating loss before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 was $60 million compared to operating income before depreciation, amortization, and stock-based compensation expense of $527 million for the same period of 2007.
  • Adjusted operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 was $542 million, excluding restructuring charges of $108 million for severance, facilities, and other restructuring costs; a goodwill impairment charge of $488 million related to our international segment; and incremental costs of $7 million incurred for outside advisors related to Microsoft’s proposals to acquire all or a part of the Company, other strategic alternatives, including the Google agreement, the proxy contest, and related litigation defense (collectively, the “strategic alternatives and related matters”).
  • Cash flow from operating activities for the fourth quarter of 2008 was $321 million, a 48 percent decrease compared to $622 million for the same period of 2007.
  • Free cash flow for the fourth quarter of 2008 was $219 million, a 34 percent decrease compared to $330 million for the same period of 2007.
  • Net loss for the fourth quarter of 2008 was $303 million or $0.22 per diluted share compared to net income of $206 million or $0.15 per diluted share for the same period of 2007.
  • Non-GAAP net income for the fourth quarter of 2008 was $238 million or $0.17 per diluted share compared to non-GAAP net income of $184 million or $0.13 per diluted share for the same period of 2007.

Fourth Quarter 2008 Segment Financial Results

  • United States segment revenues for the fourth quarter of 2008 were $1,338 million, a 2 percent increase compared to $1,313 million for the same period of 2007.
  • International segment revenues for the fourth quarter of 2008 were $468 million, a 10 percent decrease compared to $519 million for the same period of 2007.
  • United States segment operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 was $308 million, a 21 percent decrease compared to $391 million for the same period of 2007.
    • United States segment operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 includes restructuring charges of $83 million and incremental costs for advisors of $7 million related to the strategic alternatives and related matters noted above.
  • International segment operating loss before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 was $368 million compared to International segment operating income before depreciation, amortization, and stock-based compensation expense of $136 million for the same period of 2007.
    • International segment operating loss before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 includes restructuring charges of $25 million and the goodwill impairment charge of $488 million.

“We are encouraged by our results for 2008,” said Yahoo! Chief Financial Officer Blake Jorgensen. “Yahoo!’s aggressive cost management and strong balance sheet helped us navigate this unprecedented economic environment. The cost reduction initiatives and investments we made in 2008 have positioned us well for challenging conditions.”

Full Year 2008 Financial Results

  • Revenues were $7,209 million for 2008, a 3 percent increase compared to $6,969 million for 2007.
  • Marketing services revenues were $6,316 million for 2008, a 4 percent increase compared to $6,088 million for 2007.
    • Marketing services revenues from Owned and Operated sites were $4,046 million for 2008, a 10 percent increase compared to $3,670 million for 2007.
    • Marketing services revenues from Affiliate sites were $2,270 million for 2008, a 6 percent decrease compared to $2,418 million for 2007.
  • Fees revenues were $892 million for 2008, a 1 percent increase compared to $881 million for 2007.
  • Revenues excluding TAC were $5,399 million for 2008, a 6 percent increase compared to $5,113 million for 2007.
  • Operating income for 2008 was $13 million compared to $695 million for 2007.
  • Operating income before depreciation, amortization, and stock-based compensation expense for 2008 was $1,211 million, a 37 percent decrease compared to $1,927 million for 2007.
  • Adjusted operating income before depreciation, amortization, and stock-based compensation expense for 2008 was $1,915 million, excluding restructuring charges of $137 million for severance, facilities, and other restructuring costs; the goodwill impairment charge of $488 million related to our international segment; and incremental costs for advisors of $79 million related to the strategic alternatives and related matters noted above.
  • Cash flow from operating activities for 2008 was $1,880 million, a 2 percent decrease compared to $1,919 million for 2007.
  • Free cash flow for 2008 was $1,312 million, a 2 percent decrease compared to $1,337 million for 2007.
  • Net income for 2008 was $424 million or $0.29 per diluted share compared to $660 million or $0.47 per diluted share for 2007.
  • Non-GAAP net income for 2008 was $642 million or $0.46 per diluted share compared to non-GAAP net income of $652 million or $0.46 per diluted share for 2007.

Full Year 2008 Segment Financial Results

  • United States segment revenues for 2008 were $5,190 million, a 10 percent increase compared to $4,727 million for 2007.
  • International segment revenues for 2008 were $2,019 million, a 10 percent decrease compared to $2,242 million for 2007.
  • United States segment operating income before depreciation, amortization, and stock-based compensation expense for 2008 was $1,213 million, a 15 percent decrease compared to $1,434 million for 2007.
    • United States segment operating income before depreciation, amortization, and stock-based compensation expense for 2008 includes restructuring charges of $107 million and incremental costs for advisors of $79 million related to the strategic alternatives and related matters noted above.
  • International segment operating loss before depreciation, amortization, and stock-based compensation expense for 2008 was $2 million compared to International segment operating income before depreciation, amortization, and stock-based compensation expense of $493 million for 2007.
    • International segment operating income before depreciation, amortization, and stock-based compensation expense for 2008 includes restructuring charges of $30 million and the goodwill impairment charge of $488 million.

Comments»

1. Wedding Pianist - November 17, 2010

Big earnings for a big company i suppose


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: