Yahoo announced today that their Q1 2008 Earnings and Revenues have increased over Q4 of last year, beating Wall Street expectations and putting a new spin on the Microsoft acquisition saga.
- Revenues were $1.818 billion for the first quarter of 2008, a 9% increase compared to $1.672 billion for the same period of 2007.
- Marketing services revenues were $1.572 billion for the first quarter of 2008, a 7 percent increase compared to $1.469 billion for the same period of 2007, with $966 million coming from Yahoo owned sites :
- Marketing services revenues from Owned and Operated sites were $966 million for the first quarter of 2008, an 18 percent increase compared to $820 million for the same period of 2007.
- Marketing services revenues from Affiliate sites (Yahoo Partners) were $606 million for the first quarter of 2008, a 7 percent decrease compared to $649 million for the same period of 2007.
Success! Yahoo Revenue has increased! This is pretty good news coming from Sunnyvale and Jerry Yang sees good things to come in terms of Yahoo growth and profitability:
“We believe we can significantly accelerate our revenue growth, return to our historically high margins, and double our operating cash flow by 2010. This quarters solid performance underscores the fact that we are executing on that plan. Yahoo! is beginning to realize the benefits of the very substantial and deliberate long-term investments weve made to capitalize on the opportunities ahead in display and to recapture momentum in search,” said Jerry Yang, co-founder and chief executive officer, Yahoo! Inc.
“Not only does Yahoo! have a unique franchise, it increasingly has industry-leading tools, technology and, most importantly, people. It is the hard work, dedication and professionalism of our people that is our
greatest assetand this quarters performance demonstrates how well they can perform under unusually challenging circumstances.”
- Revenues excluding traffic acquisition costs (TAC) were $1.352 billion for the first quarter of 2008, a 14 percent increase over Q1 2007.
- Gross profit for the first quarter of 2008 was $1.063 billion, an 11 percent increase compared to $958 million for the same period of 2007.
Interesting note how the Microsoft proposal has upped Yahoo’s operating expenses : Operating income before depreciation, amortization, and stock-based compensation expense for the first quarter of 2008 includes incremental costs of $14 million incurred for outside advisors related to Microsofts unsolicited proposal, other strategic alternatives, and related litigation defense costs.
Keep in mind that Microsoft’s 3 week ultimatum to Yahoo ends this weekend, and despite Yahoo’s rise in revenue, Microsoft’s Ballmer says the earnings will not affect their takeover attempts.