Yahoo Nails Q1 Earnings But Scaring Off

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Yahoo Nails Q1 Earnings, But Scaring Off...

By: Andy Beal
2008-04-23

...Microsoft Appears to Hurt Share Price. As expected, Yahoo pulled out all the stops to try and impress Wall Street with its first quarter earnings.

Just about any way you dice it, Yahoo saw an increase:

• Revenues were $1,818 million for the first quarter of 2008, a 9 percent increase compared to $1,672 million for the same period of 2007.
• Marketing services revenues were $1,572 million for the first quarter of 2008, a 7 percent increase compared to $1,469 million for the same period of 2007.
• 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 were $606 million for the first quarter of 2008, a 7 percent decrease compared to $649 million for the same period of 2007.
• Fees revenues were $245 million for the first quarter of 2008, a 21 percent increase compared to $203 million for the same period of 2007.

Whats interesting is that unlike Google"which saw much of its revenue growth from international advertising"Yahoo saw its strength from the US.

• United States segment revenues for the first quarter of 2008 were $1,307 million, a 19 percent increase compared to $1,101 million for the same period of 2007.
• International segment revenues for the first quarter of 2008 were $510 million, an 11 percent decrease compared to $571 million for the same period of 2007.

According to Reuters, Yahoo came in on the high-end of expectations:

"Excluding one-time items and stock compensation costs, the beleaguered Internet company reported a profit of $150 million, or 11 cents per share.

On that basis, Wall Street on average was looking for a profit of 9 cents per share, compared with 11 cents a share a year earlier"

The only problem? Yahoos stock is down in after-hours trading. Were investors hoping for a poor quarter so that Microsoft wouldnt need to raise its offer? Does the after-hours drop suggest investors believe the deal will no longer happen?

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Tag: Yahoo, Q1 Earnings, Microsoft

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About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at [email protected].


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