FOR THE RECORD: Yahoo! Posts $115 Million in Q2 Revenues and $0.11 Pro Forma EPS
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 7, 1999--Yahoo! Inc. (Nasdaq:YHOO) today reported net revenues totaling $115,239,000 for the second quarter ended June 30, 1999, a 156 percent increase over net revenues of $44,948,000 reported in the same period in 1998. Pro forma net income for the quarter was $28,298,000 or $0.11 per share diluted, excluding merger-related charges incurred in the acquisitions of GeoCities, Online Anywhere, and Encompass, Inc., and the effects of amortization of intangible assets. This compares to pro forma net income of $1,459,000 or $0.01 per share diluted for the same period in 1998, and pro forma net income of $19,900,000 or $0.08 per share diluted in the first quarter ended March 31, 1999. These financial results include the recent acquisitions of GeoCities, Online Anywhere, and Encompass, and do not include the proposed acquisition of broadcast.com, which is anticipated to close in the third quarter of 1999. Net loss, including the merger-related charges and effects of amortization of intangible assets for the quarter ended June 30, 1999, was $15,062,000 or $0.07 per share compared to a net loss of $14,248,000 or $0.08 per share for the quarter ended June 30, 1998.
''During the second quarter, we expanded our audience, our extensive global presence, the content and services we offer, the platforms and devices on which they are delivered, and the marketing programs we offer our customers,'' said Tim Koogle, chairman and CEO, Yahoo!. ''The GeoCities, broadcast.com, Online Anywhere, and Encompass acquisitions support our strategy to further strengthen our leadership in these areas, delivering the Web's best consumer experience from any device, any time, while providing merchants and advertisers with innovative, integrated, and measurable solutions.''
Audience Growth and Usage
Yahoo!'s global audience, reach, and consumption continued to increase during the second quarter. In the month of June 1999, more than 80 million unique users worldwide visited the Yahoo! network, and the company's registration base grew to more than 65 million unique registrations. In addition, the Yahoo! and GeoCities combined reach among work and home users increased to 59.7 percent in the United States during May (Media Metrix, May 1999). During the month of June 1999, traffic on the Yahoo! global network of properties increased to an average of 310 million page views per day, compared to an average of 235 million page views per day in March 1999. Yahoo! Japan's traffic, which is included in the above page view totals, increased to more than 22 million page views per day during the month of June 1999 from more than 17 million per day in March 1999. These June 1999 page views reflect the recent acquisition of GeoCities.
Distribution and Marketing
Yahoo! continued to expand its extensive global distribution during the quarter. The company acquired Online Anywhere to enable Yahoo! to easily deliver content and services to a wide array of non-PC and wireless devices. Yahoo! also acquired Encompass, enabling Yahoo! to offer PC and device manufacturers a comprehensive solution that results in easier consumer access to content and services on the Web. In the United States, Yahoo! entered or extended distribution alliances with Caere Corporation, Hewlett-Packard, Phoenix Technologies, Sprint PCS, and Symantec. Yahoo! also extended its relationship with TIBCO Software, to offer Corporate My Yahoo! to the corporate marketplace. Internationally, Yahoo! teamed with SmarTone in Hong Kong, D2 in Germany, and SK Telecom and Hansol PCS in Korea to deliver Yahoo!'s Web content and services to wireless phone users.
During the quarter, Yahoo! and Canal Fox, the No. 1 general entertainment channel in Latin America, entered a marketing and promotional agreement. In addition, Yahoo! UK & Ireland and BskyB, U.K.'s largest television network, entered a marketing and promotional agreement to promote Yahoo! UK & Ireland throughout BskyB's network.
Network Programming and Services
During the second quarter, Yahoo! continued to build out its media properties. Yahoo! completed its first phase of integrating the GeoCities online community geocities.yahoo.com and home page building services into Yahoo!'s global network, including its unique universal registration system. In personal finance, Yahoo! and Bank of America began giving individuals access to their bank account information through Yahoo! Finance finance.yahoo.com and My Yahoo! my.yahoo.com. Yahoo! Finance also launched auto loan services through a relationship with debis Financial Services. During the quarter, Yahoo! unveiled Yahoo! Radio radio.yahoo.com, providing Web users with direct access to broadcast audio programming. The company also launched Yahoo! Health health.yahoo.com, enabling users to conduct research, obtain the latest health news, gain advice from medical experts, and find a physician. Yahoo! also expanded its programming and services throughout its geographic properties around the world. With the newly launched Yahoo! Brazil br.yahoo.com, Yahoo! now owns and operates 19 geographic services around the world in 12 different languages.
In commerce, the company opened Yahoo! Auctions internationally in Australia & NZ auctions.yahoo.com.au, the UK & Ireland auctions.yahoo.com, and Canada auctions.yahoo.com. Yahoo! also unveiled Yahoo! Auctions Express auctions.yahoo.com to enable sellers with large inventories to easily upload hundreds of items and run multiple auctions. In addition, Yahoo! Classifieds was rolled out in Yahoo! UK & Ireland and Yahoo! France.
During the quarter, Yahoo! expanded its communications services. In the United States, Yahoo! gave users the ability to talk with others anywhere in the world over the Internet using Yahoo! Messenger's voice chat feature messenger.yahoo.com. Yahoo! also added a new conference calling feature to Yahoo! Address Book address.yahoo.com, enabling users to create and manage U.S.-based conference calls from any Internet-connected computer. In addition, the company launched Yahoo! Messenger in Canada, the UK & Ireland, Australia & NZ, France, and Germany. Yahoo! Mail and Yahoo! Address Book were launched in Canada.
Merchant and Advertiser Services
During the quarter, Yahoo! expanded and executed upon its Fusion Marketing Online(TM) (FMO) strategy, which is designed to leverage the company's significant worldwide audience, traffic, and database to provide customized and measurable marketing solutions to its clients. Yahoo! and Procter & Gamble expanded their relationship through extensive, highly-integrated FMO marketing programs designed to connect Yahoo!'s global audience with P&G's brands in innovative ways. In addition to P&G, Yahoo!'s advertiser base increased to 2,700 clients during the quarter, including major new accounts and brands such as Autoweb.com, Bell Atlantic Mobile, Claritin, Milky Way, Musicland, Nabisco, 7-Eleven, Sprint, and Target Stores.
About Yahoo!
Yahoo! Inc. is a global Internet media company that offers a branded network of comprehensive information, communication, and shopping services to 80 million users worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company's global Web network includes 19 World properties. Yahoo! has offices in Europe, the Asia Pacific, South America, Canada, and the United States, and is headquartered in Santa Clara, Calif.
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the company's ability to grow its user and advertiser bases, its advertising and commerce revenues, and to continue to generate profits and positive cash flow from operations. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the company's limited operating history, the increasingly competitive and constantly changing environment for advertising sales and for Yahoo! branded services, the early stage of the Web as an advertising and commerce medium, the company's dependence on advertising revenues and on third parties for technology, content, and distribution, and the company's ability to successfully integrate its acquired companies, especially GeoCities and the proposed acquisition of broadcast.com. More information about potential factors that could affect the company's business and financial results is included in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1998, the company's Quarterly Report on Form 10-Q for the period ended March 31, 1999, and the company's Current Report on Form 8-K/A and the company's Registration Statement on Form S-4 filed June 8, 1999, including (without limitation) under the captions, ''Management's Discussion and Analysis of Financial Condition and Results of Operations,'' ''Risk Factors,'' ''Competition,'' and ''Proprietary Rights,'' which are on file with the Securities and Exchange Commission sec.gov. The accompanying condensed consolidated statements of operations and balance sheets are an integral part of this announcement.
Note to Editors: Yahoo!, the Yahoo! logo, Fusion Marketing Online and FMO are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.
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Contact:
Yahoo! Inc.
Gary Valenzuela, 408/731-3350 (Senior VP and CFO)
investor_relations@yahoo-inc.com
Diane Hunt, 408/731-3441 (Director, Corporate Comm)
diane@yahoo-inc.com
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