Yahoo Q1 Earnings Released, Revenues and Earnings Above Expectations
Michael Arrington
35 comments »
Update: Erick is live blogging the earnings call.
Yahoo released Q1 financials moments ago, and blew through expectations. Total revenue for the quarter was $1.8 billion, net revenues were $1.35 billion. Net Income was $542 million, or $0.37 per share. That includes a one time non-cash gain related to Alibaba’s IPO. Net of that, EPS are $0.11.
Analysts were expecting Q1 net revenues of around $1.33 billion, ebitda of $435 million and EPS of $0.09/share. Citigroup had revised estimates of $1.34 billion, just under the reported results.
Other interesting tidbits:
- Revenues were up 19% for the quarter compared to Q12007 in the U.S., and 11% internationally.
- Net revenues of $1,352 million were a 14 percent increase compared to $1,183 million for the same period of 2007.
- Operating income for the first quarter of 2008 was $121 million, a 28 percent decrease compared to $169 million for the same period of 2007.
- Yahoo has spent $14 million to date on outside advisors on the Microsoft deal
- They took a $29 million charge for severance arrangements.
What does this mean for Yahoo? Probably not much relative to other things going on, although it is certainly good news for them. A very high percentage of Yahoo’s stock is in the hands of arbitrageurs, however, who are focused only on whether or not the deal with Microsoft will happen or not, as opposed to the fundamental financial health of the company. They’ll be listening closely to the earnings call at 2 pm PST for messages about the Yahoo search deal with Google. All indications suggest that Yahoo is getting a roughly 100% revenue increase from search queries outsourced to Google.
In the meantime, Microsoft is saying the results are irrelevant to their offer. But if Yahoo signals that they think a long term Google deal is a real possibility, they may fold, and quickly.
We’ll be live blogging the earnings announcement at 2 pm.
Way to go Yahoo!
Wow, that wasn’t expected… I hoped for it, but it still caught me off guard.
I just want to know what will happen with the company already lol
This just means the Microsoft deal is going to be much harder to pull through.
Bad news for anyone who likes competition.
Go yahooooooo!
This will make things interesting. I wonder if Yahoo realizes that no one thinks that they are relevent without search.
Yahoo sure has some nice properties but only nice for Microsoft, Google already has strong competitors to all of those products
wow looks like Microsoft will have to raise its bid eventually
No No to Microsoft-Yahoo merger. Then what’s the point of competition?
Does any one know what the Microsoft Mesh is all about, Scoble makes it sound really BIG
http://scobleizer.com/2008/04/.....f-my-lawn/
Revenues up, expenses down — but there are those things like the one-time charges related to layoffs, et al. It always looks good when reported at the quarterly date.
Reading through the document, it’s hard to figure out the “real” growth — i.e., differentiating between gains due to asset restructuring, one-time payments, etc. vs organic growth from regular operations.
Its interesting to read the Microsoft’s offer cost them $14 million in expenses.
Looks like AT&T gave them a one-time payment of $350 Million. I am curious is that common? If not, then that drops their income for the quarter to $192 million, which isn’t an improvement over last year. It just looks like it is an improvement. Does this seem right to you guys, or I am I understanding it wrong?
I’m not sure if I trust these numbers. I agree they made a good amount of money this quarter, but what if they cooked the books…just a little…to drive Microsoft’s offer up? Just my 2 cents
So, Zell @4… something that prevents two competitors from easily becoming one is … bad… for competition?
maybe there is a subtle use of “bad” that I’m missing.
go go go Yahooooooooooo!
Everything rocks about Yahoo except for their search. I’m a huge believer in the company, and all their properties except for the search engine. Sell it and concentrate on stuff that works!
Nice! Yahoo is doing really well. Their search is decent, but Google is “known” to most people as the best anyway, which nobody can conclude on in any other medium other than market share, since there’s obviously no (accurate) metric of how well a search engine searches.
Let’s hear the earnings announcement. Go Yahoo!
Lot’s of specific generalities posted here. I just have to pipe in with my own. If you believe in the benefits the Web 2.0 movement is bringing to the web, then you’re a small step away from understanding what it is that Yahoo brings to the table that’s unique. Yahoo’s interface tools that they make available to the average developer are far and above better than any UI tool sets out there. As well, Yahoo’s interface in regards, to it’s online offierings, such as mail, are simply standard-setting. I do travel to Google for search, but in any other regard, Yahoo understands how the average user tries to interact with an application. This is unique, this is good, and this is not a commodity - but it’s not something most 20-something power-user futurists are enamored with.
this link says something else
http://biz.yahoo.com/bw/080422......html?.v=1
it says revenue is down by 9% internationally and not up by 9%
i mean by 11%
I just watched the analysis on CNBC and they said Yahoo’s earnings are not good enough to get Microsoft to raise it’s bid and one of the pundits who said that owns both Microsoft and Yahoo shares
Weird that you are spinning this as a win — it isn’t.
Excelent for Yahoo & good news for & signal to market, thats the Yahoo way
Weren’t analysts expectations pushed lowered by the turmoil at the start of the year? If so, wouldn’t that make these numbers not as good as we think they are?
Marketwatch has a different tune than your “blew through expectations“.
Marketwatch: “Yahoo barely beats Wall Street’s targets“
Marketwatch has a different tune than your “blew through expectations“.
Marketwatch: “Yahoo barely beats Wall Street’s targets” - http://is.gd/88j
What the F is “net revenues?” i don’t remember that one from my days taking accounting. LOL
Yahoo should fire all the US employees and outsource jobs to India for higher profit.
Impressive results!
I find it interesting that Yahoo owns the domain MSYAHOO.COM. It was registered in 2005.