Sunnyvale, California – (The Hosting News) – May 4, 2009 – Yahoo! global Internet company, has reported its first quarter 2009 financial results, with revenues of $1,580 million for the period ending March 31, 2009, a decrease of 13 percent from the first quarter of 2008.
Excluding the impact of currency rate fluctuations, revenues for the first quarter of 2009 would have declined 8 percent from the first quarter of 2008. The Company’s non-GAAP operating cash flow for the first quarter of 2009 of $409 million exceeded the midpoint of the outlook range provided by the Company last quarter. Marketing services revenues declined 12 percent and fees revenues declined 20 percent. As expected, revenues were reduced by the effects of currency rate fluctuations, the sale of Kelkoo and lower fees revenues from broadband partnerships, voice-over IP services and subscription music offerings.
Excluding the effects of these items, revenues would have declined 3 percent. Net income per diluted share in the first quarter of 2009 was $0.08, compared to $0.37 in the first quarter of 2008. Net income for the first quarter of 2008 included a non-cash gain of $401 million, or $0.29 per diluted share, related to Alibaba Group’s initial public offering of Alibaba.com, net of tax. Non- GAAP net income per diluted share in the first quarter of 2009 was $0.15, compared to non-GAAP net income of $0.18 per diluted share in the first quarter of 2008. Non-GAAP net income per diluted share excludes stock-based compensation expense, costs for advisors, restructuring charges, net, and the non-cash gain related to Alibaba.com.
Carol Bartz, Chief Executive Officer, Yahoo! Inc. noted, ”Yahoo! is not immune to the ongoing economic downturn, but careful cost management
in the first quarter allowed our operating cash flow to come in near the high end of our outlook range. While we experienced pressure in both display and search advertising in the first quarter, we believe Yahoo! remains one of the most compelling advertising buys on the Internet. With our leading audience properties, substantial reach and innovative advertising solutions, we are confident Yahoo! will be well positioned when online brand advertising resumes its growth.”
Blake Jorgensen, chief financial officer at Yahoo! noted, ”Yahoo!’s balance sheet remains strong, and we are continuing to generate free cash flow which provides us with the flexibility to make strategic investments in key talent, platforms, products and infrastructure, even during this economic downturn. We also are making selective adjustments to our spending to accelerate those strategic investments.”
First Quarter 2009 Financial Results include:
Marketing services revenues from Owned and Operated sites were $872 million for the first quarter of 2009, a 10 percent decrease compared to $966 million for the same period of 2008. The decrease was driven by a 3 percent decline in search advertising revenue and a 13 percent decline in display advertising revenue.
Marketing services revenues from Affiliate sites were $511 million for the first quarter of 2009, a 16 percent decrease compared to $606 million for the same period of 2008. The decrease was driven primarily by Yahoo!’s efforts to improve traffic quality and lower revenue per search. Cash Flow and Cash Balance
Cash flow from operating activities for the first quarter of 2009 was $262 million, a 67 percent decrease compared to $786 million in the same period of 2008. Cash flow from operating activities for the first quarter of 2008 included a $350 million one-time payment from AT and T Inc.
Free cash flow for the first quarter of 2009 was $214 million, a 67 percent decrease compared to $647 million in the same period of 2008. Free cash flow for the first quarter of 2008 included a $350 million one-time payment from AT and T Inc.
Cash, cash equivalents and investments in marketable debt securities were $3,691 million at March 31, 2009 compared to $3,522 million at December 31, 2008, an increase of $169 million. Cost Initiatives To allow flexibility for accelerated strategic investments and targeted hiring in its core operations, Yahoo! expects to reduce its number of current employees worldwide by approximately five percent.
The majority of impacted employees are expected to be notified within the next two weeks. The Company is also continuing to implement nonheadcount cost reductions. Business Outlook GAAP revenue for the second quarter of 2009 is expected to be in the range of $1,425 million to $1,625 million. Non-GAAP operating income before depreciation, amortization, and stock-based compensation expense for the second quarter of 2009 is expected to be in the range of $375 million to $425 million.
Income from operations for the second quarter of 2009 is expected to be in the range of $80 million to $90 million.
Yahoo! Inc. is a leading global Internet brand and one of the most trafficked Internet destinations worldwide. Yahoo! is focused on powering its communities of users, advertisers, publishers, and developers by creating indispensable experiences built on trust. Yahoo! is headquartered in Sunnyvale, California.
To learn more, please visit: www.yahoo.com.