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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: satish kamat who wrote (9835)4/12/1998 4:39:00 PM
From: Bill Harmond  Read Replies (2) of 27307
 
>>Wondering if you noticed the item called deferred revenues in liabilities mean. Any idea ? If it is revenues to be booked over next quarters, why include it in liabilities?

That's what I've been talking about.

That's cash they took in this quarter that they are deferring on their books for future quarters. That's part of this quarter's cash flow you seem to want to ignore...and assign to other than operating results.

Those deferred revenues are cash that's now in the bank earning interest. It's a bookkeeping entry...probably in connection to some commerce deals. Fact is Yahoo took the money in this quarter and are arbitrarily not showing it as earnings. It was a huge increase over prior quarters trends.

Now look at accrued expenses. There's another $5 million buried there. Yahoo didn't actually incur those expenses this quarter. They just booked some future expenses (perhaps as allowance for employee stock options) this quarter.

Bottom line is Yahoo actually took in the "deferred" revenues this quarter and didn't actually incur the "accrued" expenses this quarter. They just booked them now....and still beat Street estimates by 100%.

That's $10 million in cash flow that doesn't show up on the income statement but is actually real money that went into the bank above and beyond the $.08 per share in stated earnings.

That's why Yahoo's net result for this quarter was an actual cash increase of $17.8 million...which has to show up on the balance sheet. You'll find it there on the cash line.
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