Phew! Yahoo makes a big profit
Yahoo's latest results again showed that pure dot.coms can generate revenue and profits.
A huge sigh of relief has been heard across the dot.com world as Yahoo again turned in strong results.
The company beat analyst estimates for its latest quarter by a fair margin, reporting net earnings of $81 million, or 13 cents a share, on revenue of $295.5 million (the results exclude a one-time charge for acquisitions and other items).
Analysts polled by First Call had expected Yahoo to earn 12 cents a share on revenue of $280 million. The company also managed to reduce its exposure to other Internet companies, which are often financially unstable. These companies accounted for just over 40% of Yahoo's revenue in the quarter, down from 47% in the previous quarter.
The results are even better than last quarter's, which were gleefully received at the time. Revenues then topped $270 million and net income was $74 million.
"The global Yahoo! franchise is stronger today than ever before, and this is reflected in our performance this quarter--our 16th consecutive quarter of profitability on a proforma basis before acquisitions," said Tim Koogle, chairman and CEO of Yahoo. "Once again, we exceeded expectations for financial performance by posting record revenues, operating profit and cash flow.
"We made significant progress in all areas of strategic focus and extended our services to more of the world's largest advertisers. Going forward, we remain focused on extending our strong leadership position and capturing market share through our key growth areas."