Second Quarter Pro Forma Net Income of $0.15 Per Share
SANTA CLARA, Calif., July 8 /PRNewswire/ -- Yahoo! Inc. (Nasdaq: YHOO) today reported
revenues totaling $41.2 million for the second quarter ended June 30, 1998, a 192 percent increase
over the same period in 1997. Pro forma net income for the second quarter of 1998 was $8.1
million, or $0.15 per share diluted, before the effect of a $44.1 million non-recurring charge for
in-process R&D purchased in the acquisition of Viaweb Inc. The pro forma net income for the
current quarter compares with a pro forma net loss of $0.3 million or $0.01 per share diluted,
excluding the effect of a $21.2 million non-recurring, non-cash charge incurred during the second
quarter of 1997.
In separate announcements today, Yahoo!(R) said its Board of Directors has approved a 2-for-1
common stock split and that it has entered into an agreement for a $250 million private placement
of common stock to SOFTBANK Holdings, Inc.
Yahoo! today also announced that its traffic grew to an average of 115 million page views per day
during the month of June 1998, compared to the 95 million page views per day average during
March 1998. Yahoo! Japan, which is included in the above page view totals, increased to an
average of approximately 8 million page views per day during the month of June 1998 from an
average of approximately 6 million per day in March 1998. A page view is defined as one
electronic page of information displayed in response to a user request.
Yahoo! also announced that its registered user base grew to more than 18 million members,
compared to more than 12 million as of March 1998, reflecting the number of people who have
submitted personal data for Yahoo!'s universal registration process. In addition, Yahoo! was
recently ranked No. 1 in reach among all Web sites with 54.1 percent of work users accessing
Yahoo!. The company's reach among home users has grown to 44.4 percent, and is second only to
AOL's reach by 1 percent (Media Metrix, May 1998).
"While we maintained our leadership position in audience reach among work users and continued
to experience popularity among home users, we had significant growth in the number of registered
Yahoo! members during the quarter," said Tim Koogle, president and CEO, Yahoo!. "We
continued to build on the strong distribution platform we deliver to advertisers, merchants, and
content providers. As a result, we were able to sign several key agreements during the quarter and
experienced strong revenue growth. As always, we are continuing to focus on building our strong
brand, delivering quality content and services, and aggressively growing our global audience as
well as our advertising and commerce revenue."
Merchant and Shopping Services
During the second quarter, Yahoo! expanded its online merchant services. The company acquired
Viaweb Inc. and launched Yahoo! Store to provide small and medium-sized online merchants with
a complete, easy-to-use service to create, design, host, manage and promote online stores. In
addition, Yahoo! launched Impulse Deals, a new merchandising platform where merchants can
offer targeted shopping bargains on the Web. Also during the quarter, AutoConnect joined Yahoo!
Autos' (autos.yahoo.com) featured merchant button program, providing users with easy access to
shop for and purchase cars. AT&T and JFAX joined Yahoo!'s premier merchant program to
provide traditional communication services and unified messaging services, respectively. The
Fragrance Counter is now enabling Yahoo! users to purchase designer fragrances and cosmetics in
relevant areas throughout the Yahoo! network of properties.
Programming
Yahoo! further expanded its programming during the quarter. The company announced that
Inktomi will become Yahoo!'s integrated default search results provider beginning in the third
quarter. Yahoo! introduced Yahoo! Computers (computers.yahoo.com), offering users news,
product reviews, shareware downloads, shopping services and chats. The company launched
Yahoo! Movies (movies.yahoo.com) providing a directory of movie and entertainment
information, showtimes, new releases, news and reviews and more. Yahoo! also launched Yahoo!
Real Estate (realestate.yahoo.com), a comprehensive, free resource for listings, tools and
information on buying, selling and renting property. In addition, Yahoo! Sports
(sports.yahoo.com) is providing full coverage of the World Cup '98 in 11 different languages for
users around the world.
Communication Services
During the quarter, Yahoo! enhanced the communications services it offers users. Yahoo! users
now have convenient access to order and be billed for AT&T's traditional communication services
online. In addition, JFAX enables users to turn their Yahoo! Mail (mail.yahoo.com) account into a
universal in-box for incoming and outgoing electronic, fax or voice messages. Yahoo! Chat
(chat.yahoo.com), the leading Web-based chat service, partnered with PRIMEDIA during the
quarter, and now features more than 100 celebrity and expert chats each month.
Expanding Audience
Yahoo! extended its distribution during the quarter through an agreement with Compaq. My
Yahoo! is now the default Internet start page on Compaq's new Internet PC product family,
enabling customers to fully personalize their Web experience.
International Growth
As in the U.S., the company's World Yahoo!s are very popular among Web users, with several of
its international sites being ranked No. 1 in various categories. Yahoo! significantly expanded its
network of international properties during the quarter. In addition to Yahoo! Italy (yahoo.it), a
geographically-based Web guide, Yahoo! launched two language-based Web guides for the
significant number of Chinese (chinese.yahoo.com and gbchinese.yahoo.com) and Spanish
(espanol.yahoo.com) speaking Web users around the world. The comprehensive, global, branded
network of Yahoo! properties has grown to now include 14 World Yahoo!s featuring content and
services for geographic areas and language-based global communities.
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