Yahoo (NASDAQ:YHOO) released Q1 financials moments ago. Total revenue for the quarter was $1.8 billion. Net Income was $542 million, or $0.37 per share. Gross profit for the quarter was $1,063 million, an 11 percent increase compared to $958 million for the same period of 2007. Compare this to analyst expectations: Q1 net revenues of around $1.33 billion, ebitda of $435 million and EPS of $0.09/share.
Other interesting tidbits:
- Operating income for the first quarter of 2008 was $121 million, a 28 percent decrease compared to $169 million for the same period of 2007.
- Yahoo has spent $14 million to date on outside advisors on the Microsoft deal.
- They took a $29 million charge for severance arrangements.
What does this mean for Yahoo? Probably not much relative to other things going on. A very high percentage of Yahoo’s stock is in the hands of arbitrageurs, who are focused only on whether or not the deal with Microsoft (NASDAQ:MSFT) will happen or not, as opposed to the fundamental financial health of the company. They’ll be listening closely to the earnings call at 2 pm PST for messages about the Yahoo search deal with Google. All indications suggest that Yahoo is getting a roughly 100% revenue increase from search queries outsourced to Google.