Yahoo reported results for the quarter ended March 31, 2011, after the market closed today.
“Revenue excluding traffic acquisition costs (“revenue ex-TAC”) was $1,064 million for the first quarter of 2011, a 6% decrease from the first quarter of 2010″
“GAAP revenue was $1,214 million for the first quarter of 2011, a 24% decrease from the first quarter of 2010″
Income from operations increased by 1% to $190 million in the first quarter of 2011, compared to $188 million in the first quarter of 2010.
Net earnings per diluted share were $0.17 per diluted share in the first quarter of 2011, compared to $0.22 in the first quarter of 2010, a decrease of 23%.
The biggest problem for Yahoo is that is search advertising business is declining.
Search advertising business, fell 19% in the quarter from $440 million to $357 million.
CEO Carol Bartz acknowledged during the company’s earnings call Tuesday that the company’s search operations were “encountering some issues,” saying that the company’s search alliance with Microsoftwas not yet producing the revenue per search Yahoo had hoped for, but she said she was “confident” that would change and she was “very confident” the company was headed in the right direction.”
Despite the numbers Yahoo beat Wall Street Estimate causing the stock to rise 3% in after hours trading.
Here are the numbers:
Financials at a Glance
| Quarterly Results (in millions, except percentages and per share amounts) | |||||||||
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Q1 2010
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Q1 2011
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Percent Change
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Non-GAAP Revenue ex-TAC*
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$1,130 | $1,064 | (6)% | ||||||
| Income from operations | $188 | $190 | 1% | ||||||
| Net earnings | $310 | $223 | (28)% | ||||||
| Net earnings per diluted share | $0.22 | $0.17 | (23)% | ||||||
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* GAAP revenue for the first quarter of 2011 was $1,214 million, a 24 percent decrease year over year.
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“We are solidly executing toward our plan for returning Yahoo! to sustainable revenue and profit growth,” said Carol Bartz, CEO of Yahoo!. “During the quarter, we beat the midpoint of revenue guidance while continuing to deliver on the bottom line. We continued to extend our lead as the world’s premier digital media company with users to Yahoo! branded properties increasing 15% year over year and minutes spend increasing 17%.”
“Yahoo!’s results for the first quarter of 2011 reflect $56 million in search operating cost reimbursements and $11 million in transition cost reimbursements from Microsoft under the Search Agreement”
First Quarter 2011 Revenue Results
- Display revenue ex-TAC increased 10 percent to $471 million, compared to $427 million for the first quarter of 2010.
- GAAP display revenue increased 6 percent to $523 million, compared to $491 million for the first quarter of 2010.
- Search revenue ex-TAC was $357 million, a 19 percent decrease compared to $440 million for the first quarter of 2010.
- GAAP search revenue was $455 million, a 46 percent decrease compared to $841 million for the first quarter of 2010.
Cash Flow and Cash Balance
- Cash flow from operating activities for the first quarter of 2011 was $208 million, a 45 percent increase compared to $144 million for the same period of 2010.
- Free cash flow was $59 million for the first quarter of 2011, a 7 percent decrease compared to $64 million for the same period of 2010.
- Cash, cash equivalents, and investments in marketable debt securities were $3,528 million at March 31, 2011 compared to $3,629 million at December 31, 2010, a decrease of $101 million. During the first quarter of 2011, Yahoo! repurchased 8 million shares for $137 million.
As SEM managers that have to ‘buy yahoo/bing’ now for some clients that ‘think’ that network ‘matters’, the system is so messed up, ads almost never show on Bing, so they are having major, major merging problem. We’ve done it from old yahoo accounts to the new accounts and even brand new ‘MSN’ originated accounts, the ads just never show up on Bing. Most pages are going blank with no ads and I know I have buyers trying to buy the yahoo/bing buy.
Bottom line, they have a ton of bugs still.
After all these years and obvious heavy competition, Yahoo still comes out on top as having some of the best information (especially aggregated financial info) and online “departments” compared to Google and Bing. I also happen to like their search engine results and URL submission process which is logical & reliable.
@Domain Lords – The merging problem you mention is evident to me as well. Bing imo seems more inconsistent in indexing viable url’s. I can have pages picked up reliably in Google or Yahoo, whereas Bing is more a roll of the dice. Bing also will index, de-index, and then re-index the same page for no apparent reason (within the span of a week) … which I find odd.