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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: P.T.Burnem who wrote (25897)	10/10/2000 6:52:02 PM
From: MarkR37	Respond to of 27307

Here is a nice rundown on this quarter's numbers. Thanks to davidcll on the Motley Fool Yahoo Board. "I just thought I'd take Yahoo's 3rd quarter results through the financial Rule Maker criteria, just to see how things came out. Revenue Growth For the quarter ended 9/30, Yahoo reported revenue growth over the comparable quarter in the prior year of 89.6%. Since our Rule Maker criteria is only 10%, they passed this one easily. For the nine month period, the growth was 105.6%, so their growth rate definitely slowed in the third quarter - but hey, I'll take 89.6%. By the way, that compares with 110% in the 2nd quarter. Gross Margins Gross margins for the quarter ended 9/30 were 86.2%, an improvement over the 85.4% recorded in the second quarter. For the nine months, gross margins were 85.5%. Our Rule Maker threshhold is 50%, so no worries here. Yahoo also discloses "pro forma" gross margins, which backs out the amortization of purchased technology from cost of sales. On a pro forma basis, gross margins were 86.9% for the quarter and 86.3% for the nine months - not a significant difference. Net Margins First, for the actuals. Net margins were 16.1% for the quarter and 21.1% for the nine months. One interesting item of note - this is down significantly from the net margin of 24.2% reported in the second quarter. However, this is primarily due to acquisition related costs from the acquisition of eGroups. On a pro forma basis, net margins were 27.4% for the quarter and 26.7% for the nine months. This is compared to 27.4% for the second quarter, so this held steady on a pro forma basis. In any case, all of these numbers handily beat our target of 10%, even with the acquisition costs included, so no worries here. Cash to debt ratio Still no debt. Nada. Bupkus. Nuff said. Foolish Flow Ratio Yahoo didn't publish a "classified" balance sheet with their press release, which means their assets and liabilities weren't broken out between current and long-term. However, if we assume their prepaid expenses have remained relatively constant from last quarter, and that, consistent with last quarter, all of their deferred revenue was current, you get a Flowie of about 0.26 versus last quarter which ended up at 0.34. It looks like it will be an improvement in any case, but we'll have to wait for the 10-Q to get the exact numbers. Cash King Margin They actually published a cash flow statement with their press release! Three cheers! So we can calculate the Cash King Margin as well. For the nine months ended 9/30, it comes out to 51% for the quarter and 45.7% for the nine months ended 9/30. These are way above our targets of 10% and are also significantly better than our net margins - another good sign. All in all, Yahoo passed all six of our Rule Maker criteria with flying colors. I'll sleep soundly for another quarter." davidcll