Menu
Yahoo revenue down, but income up sharply

Yahoo revenue down, but income up sharply

The online company posts a 244 percent increase in net income from a year ago

Yahoo has reported revenue of US$1.58 billion for the third quarter of 2009, down 12 percent from the same period a year earlier, although net income was up sharply, by 244 percent, the company said.

Yahoo's third-quarter income was $US186 million, the company said Tuesday, up from $US54 million for the third quarter of 2008. Earnings per share was $US0.13, significantly ahead of analyst estimates of $US0.07, according to those polled by Thomson Reuters.

"In the third quarter we saw strength in key areas of our business," Chief Financial Officer Tim Morse said in a statement. "Our efforts to reposition Yahoo are still in the early stages, but we're confident that our investments in the business will enable us to capitalize on growth opportunities as the economy recovers."

The increase in net income was due to a variety of factors, including a slower-than-anticipated growth in hiring and savings in broadband costs, Morse said during a conference call.

Display advertising revenue was down 8 percent for the quarter, but there were double-digit decreases in the first and second quarters of the year. "Things are starting to loosen up," Morse said. "The ad dollars are starting to flow a little better."

Revenue from marketing services, including Yahoo's online advertising business, was down 12 percent from a year ago. Fees revenue, including money paid for services such as music downloads, was down 11 percent.

Cash flow from operating activities was $US355 million, a 2 percent increase compared to the third quarter of 2008. Free cash flow was $US258 million, up 20 percent from $US215 million in the same period of 2008.

Yahoo expects revenue of $US1.6 billion to $US1.7 billion in the fourth quarter, Morse said.

Yahoo, after being courted by Google, signed a search advertising deal with Microsoft in July. The agreement will allow Yahoo to continue to receive search revenue and allow the company to innovate in search user experience, Morse said.

"We'll innovate on top of the search results that Microsoft delivers to us," he said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GoogleYahoo

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments