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To: Johnny Canuck who wrote (40980)	4/7/2004 6:40:53 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70920

Yahoo beats Street, splits stock Last modified: April 7, 2004, 1:51 PM PDT By Jim Hu Staff Writer, CNET News.com Bolstered by improved online advertising revenue and continued momentum in paid search, Yahoo on Wednesday reported first-quarter earnings that blew away Wall Street expectations. Yahoo's board of directors also approved a 2-for-1 stock split, payable beginning May 11. Yahoo hasn't split its stock since January 2000, during the height of the dot-com bubble. The Internet bellwether said profit for the three months ended March 31 reached $101 million, or 14 cents per diluted share, on $550 million in revenue, excluding traffic acquisition costs (TAC). That's up from a profit of $46.7 million, or 8 cents a share, and sales of $282.9 million reported over the same period last year. Wall Street analysts had expected the company to report a profit of 11 cents a share on $497.9 million in revenue excluding TAC, according to consensus estimates from Thomson First Call. Yahoo focuses on revenue without TAC because it considers that figure a more accurate reflection of its business. TAC is the amount of money Yahoo subsidiary Overture Services pays its distribution partners, such as Microsoft's MSN, to host its commercial search results. Overture charges advertisers a price every time someone clicks on the link, and then gives its distribution partners a cut of the revenue, represented as TAC. Revenue including TAC reached $758 million for the quarter. Operating income before depreciation and amortization--formerly known as earnings before interest, taxes, depreciation and amortization (EBITDA)--reached $211 million, compared with $85 million for the same period last year. Cash flow jumped to $236 million from $99 million, while free cash flow surged to $197 million from last year's $78 million. "Yahoo's performance surpassed even our high expectations, delivering the most successful quarter in the company's history," Yahoo CEO Terry Semel said in a statement.