Yahoo exceeds Wall St. estimates in Q1 2005

Yahoo exceeded earnings and revenue expectations in its first quarter of 2005.

Yahoo topped financial analysts' earnings and revenue forecasts for its first quarter of 2005, the provider of online content and services said Tuesday.

Revenue excluding traffic acquisition costs (TAC) came in at US$821 million, up 49 percent from 2004's first quarter and above the US$796.8 million consensus estimate from financial analysts polled by Thomson First Call. Yahoo generated revenue of US$1.174 billion, up 55 percent from 2004's first quarter. TAC is the portion of revenue that Yahoo pays to the third-party affiliates of its Overture online ad network.

Net income was US$205 million, or US$0.14 per share, including US$15 million, or US$0.01 per share related to the sale of certain investments and settlements, up from US$101 million, or US$0.07 per share in 2004's first quarter. The analyst consensus had been for US$0.11 per share, excluding the US$0.01 investment and settlement gain, so Yahoo exceeded that forecast by US$0.02 per share.

During a conference call with analysts to discuss the quarterly results, Yahoo executives said they were extremely pleased with the results of the quarter, which ended March 31, 2005.

"Yahoo is off to a terrific start in 2005. We have raised the bar even higher in the first quarter. The pace of innovation and the appeal of our services has translated into deeper relationships with our users and continued growth for Yahoo," said Terry Semel, Yahoo's chairman and chief executive officer.

"Our intention is to continue capitalizing on our industry leading assets to deliver consistent and powerful growth over the long term," he added.

The strong results were driven primarily by Yahoo's sales of online advertising, which continued to grow, with a particular bright spot in the text ads that are triggered by search engine queries, executives said.

"We are in an excellent position to take advantage of all forms of advertising opportunities on the Web. We appeal to a strong and diverse range of customers including hundreds of blue chip traditional marketers, hundreds of thousands of small and medium size businesses and hundreds of millions of consumers and we can extend these opportunities very rapidly on a global scale," Semel said.

The executives are so optimistic about the rest of the year that they raised their financial forecast for revenue excluding TAC, which for the entire 2005 fiscal year is now expected to fall between US$3.565 billion and US$3.715 billion, up from a previous range of between US$3.365 billion and US$3.565 billion.

Yahoo ended the quarter with 372 million unique users, up 36 percent from 2004's first quarter. Of the 372 million, 176 million were active registered users, up 25 percent. Active registered users are those who have signed up for at least one Yahoo service, such as e-mail, and who visit the Yahoo network at least once per month. Among the active registered users, 8.9 million were fee-paying users -- defined as those who pay for at least one Yahoo service -- up 53 percent.

Meanwhile, Yahoo's workforce increased by 36 percent from 2004's first quarter to 8,023 employees.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments



Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?