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July 9, 1997 Yahoo! Confounds Analysts By Reporting Profits Again Dow Jones Newswires
Yahoo! Inc. surpassed expectations and posted another profitable quarter as sales soared, a rarity among Internet companies heavily dependent on advertising revenue.The Internet-search company, which reported results after the market
closed Wednesday, reported net income for the fiscal second quarter ended June 30 of $610,000 or 2 cents a share, compared to a net loss of $1.4 million, or 5 cents a share, in the same period a year ago. Analysts surveyed by First Call had expected a net loss of around 1 cent a share.Revenue at the Santa Clara, Calif., company, meanwhile, skyrocketed to
$13.5 million from $3.3 million in the year-ago period.Investors Wednesday were apparently hopeful that the Internet-search service would turn in good results, as shares of Yahoo climbed $4.25, or 10.7%, to $44 in heavy trading.
Yahoo is the best known search-engine operator, and its results are considered an indicator of the state of Internet advertising, since its site is among the Web's most popular on the Web.The company said its traffic grew to an average of 38 million page views per day during the month of June, compared with an average of more than 30 million page views per day in March.
electronic page of information displayed in response to a user request.
Yahoo has reported profits for the previous two quarters, beginning in
January, when the company posted earnings of $96,000, surprising
analysts who hadn't expected it to turn a profit for some time. It was
the first time any search engine, or any advertising-based Internet
company, for that matter, reported a profit, analysts said.
Search-engine operators depend on heavy usage. Because most of the
search services are free to users, the companies make money by selling
advertising that appears, alongside the search information, on a user's
computer screen.
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