Yahoo! Reports Second Quarter 1999 Financial Results; -2-
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.
Yahoo! Inc.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
1999 1998
--------- ---------
(unaudited) (audited)
ASSETS
Cash, cash equivalents, and
investments in marketable
debt securities $ 637,588 $ 576,976
Accounts receivable, net 34,052 29,642
Property and equipment, net 34,230 24,221
Investments in marketable
equity securities 133,181 18,682
Other assets 112,070 85,677
--------- ---------
Total assets $ 951,121 $ 735,198
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable $ 8,501 $ 8,953
Accrued expenses and other
liabilities 62,303 50,963
Deferred revenue 63,932 38,661
--------- ---------
Total liabilities 134,736 98,577
--------- ---------
Minority interests in consolidated
subsidiaries 2,412 1,248
--------- ---------
Stockholders' equity:
Common Stock 791,024 670,596
Accumulated deficit (55,216) (45,797)
Accumulated other
comprehensive income 78,165 10,574
--------- ---------
Total stockholders' equity 813,973 635,373
--------- ---------
$ 951,121 $ 735,198
========= =========
Note: The results for all periods presented have been restated to
reflect the acquisitions of GeoCities, Encompass, and Online
Anywhere which were completed during the quarter ended June 30,
1999 and accounted for as poolings of interests.
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
1999 1998 1999 1998
--------- --------- --------- ---------
Net revenues $ 115,239 $ 44,948 $ 209,505 $ 77,811
Cost of revenues 15,766 7,774 28,679 13,664
Amortization of
purchased
technology 2,708 417 4,674 417
--------- --------- --------- ---------
Total cost of
revenues 18,474 8,191 33,353 14,081
--------- --------- --------- ---------
Gross profit 96,765 36,757 176,152 63,730
--------- --------- --------- ---------
Operating expenses:
Sales and
marketing 42,655 23,948 80,887 43,023
Product
development 12,883 6,437 25,317 12,159
General and
administrative 6,892 4,538 13,694 7,989
Amortization of
intangibles 3,459 290 6,662 290
Other - non-
recurring
costs (1) 56,125 15,000 65,900 15,000
--------- --------- --------- ---------
Total
operating
expenses 122,014 50,213 192,460 78,461
--------- --------- --------- ---------
Loss from operations (25,249) (13,456) (16,308) (14,731)
Investment income,
net 8,011 2,156 15,546 3,837
Minority interests
in operations of
consolidated
subsidiaries (839) 112 (1,164) 355
--------- --------- --------- ---------
Loss before income
taxes (18,077) (11,188) (1,926) (10,539)
Provision (benefit)
for income
taxes (2) (3,015) 3,060 7,493 4,131
--------- --------- --------- ---------
Net loss $ (15,062) $ (14,248) $ (9,419) $ (14,670)
========= ========= ========= =========
Net loss per share -
diluted $ (0.07) $ (0.08) $ (0.04) $ (0.08)
========= ========= ========= =========
Shares used in per
share calculation
- diluted 227,461 181,352 225,753 178,138
========= ========= ========= =========
(1) Non-recurring costs consist of the following:
- During the quarter ended June 30, 1999, $53,500,000 was incurred
in connection with the acquisition of GeoCities, $1,525,000 was
incurred in connection with the relocation of GeoCities
employees, and an aggregate of $1,100,000 was incurred in
connection with the acquisitions of Encompass and Online
Anywhere.
- During the quarter ended March 31, 1999, $9,775,000 of in-process
research and development was incurred in connection with the
acquisition of a development stage Internet software company.
- During the quarter ended June 30, 1998, $15,000,000 of in-process
research and development was incurred in connection with the
acquisition of Viaweb Inc.
(2) During the quarter ended June 30, 1999, the benefit for income
taxes includes the effect of nondeductible acquisition-related
costs and the effect of a change in the income tax regulations
which resulted in a benefit in the current period for certain
acquired net operating losses.
Note: The results for all periods presented have been restated to
reflect the acquisitions of GeoCities, Encompass, and Online
Anywhere which were completed during the quarter ended June 30,
1999 and accounted for as poolings of interests.
Yahoo! Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ----------------------
1999 1998 1999 1998
------------------------ ----------------------
Net revenues $ 115,239 $ 44,948 $ 209,505 $ 77,811
Cost of revenues 15,766 7,774 28,679 13,664
--------- --------- --------- ---------
Gross profit 99,473 37,174 180,826 64,147
--------- --------- --------- ---------
Operating expenses:
Sales and
marketing 42,655 23,948 80,887 43,023
Product
development 12,883 6,437 25,317 12,159
General and
administrative 6,892 4,538 13,694 7,989
--------- --------- --------- ---------
Total
operating
expenses 62,430 34,923 119,898 63,171
--------- --------- --------- ---------
Income from
operations 37,043 2,251 60,928 976
Investment income,
net 8,011 2,156 15,546 3,837
Minority interests
in operations of
consolidated
subsidiaries (839) 112 (1,164) 355
--------- --------- --------- ---------
Income before income
taxes 44,215 4,519 75,310 5,168
Provision for income
taxes 15,917 3,060 27,112 4,131
--------- --------- --------- ---------
Pro forma net income $ 28,298 $ 1,459 $ 48,198 $ 1,037
========= ========= ========= =========
Pro forma net income
per share -
diluted $ 0.11 $ 0.01 $ 0.18 $ 0.00
========= ========= ========= =========
Shares used in per
share pro forma
calculation -
diluted 263,844 224,792 264,352 221,268
========= ========= ========= =========
Note: The above unaudited pro forma condensed consolidated statements
of operations exclude the effects of the following:
- Nonrecurring acquisition-related charges incurred during the
quarter ended June 30, 1999: $53,500,000 in connection with the
acquisition of GeoCities, $1,525,000 in connection with the
relocation of GeoCities employees, and an aggregate of $1,100,000
in connection with the acquisitions of Encompass and Online
Anywhere.
- During the quarter ended March 31, 1999, $9,775,000 of in-process
research and development was incurred in connection with the
acquisition of a development stage Internet software company.
- During the quarter ended June 30, 1998, $15,000,000 of in-process
research and development was incurred in connection with the |
