Yahoo Profit More Than Triples Thanks to Overture
Yahoo’s quarterly profit more than tripled when compared to Q3 2003. The increase in Yahoo profit over this time period is largely attributed by the performance of Yahoo’s search engine advertising service Overture. Yahoo posted net income of $253.3 million, or 17 cents a share. Excluding the item, its profit would have been $124 million or 9 cents a share. Yahoo earned $65.3 million, or 5 cents a share, in the third quarter of 2003, when it was still sharing advertising revenue with Overture.
“Yahoo! began to demonstrate the next stage in the Company’s evolution in the third quarter, and in doing so recorded its sixth consecutive quarter of record revenue,” said Terry Semel, chairman and chief executive officer, Yahoo!. “We accelerated the pace at which new products and services were developed, which in-turn helped increase the level of user engagement across the Yahoo! network. Our engaged audience enables us to deliver an unmatched set of advertising opportunities, providing deeper value to our marketers, and supporting the mantra that great products are the key to a great business.”
* Revenues were $907 million for the third quarter of 2004, a 154 percent increase compared to $357 million for the same period of 2003.
* Gross profit for the third quarter of 2004 was $574 million, an 86 percent increase compared to $310 million for the same period of 2003.
* Operating income for the third quarter of 2004 was $172 million, an increase of 106 percent compared to $83 million for the same period of 2003.
* Cash flow from operating activities for the third quarter of 2004 was $267 million, an increase of 97 percent compared to $136 million for the same period of 2003.
“Yahoo! generated its highest-ever level of free cash flow in the third quarter, more than doubling the amount generated one year ago,” said Susan Decker, chief financial officer, Yahoo!. “We believe that long-term free cash flow generation is the most important factor driving shareholder value and we are very pleased with both its magnitude in this quarter and the strong foundation on which it is based, positioning us well for sustained growth.”