Yahoo, the search company, beats estimates

| About: Yahoo! Inc. (YHOO)

Highlights from Yahoo!'s results:

  • EPS (excluding investment gains) was $0.13 versus consensus of $0.11.
  • Net revenue was up 54% year over year (exludes fees to advertising partners).
  • Cash flow from operations was $337 million, up 231% year over year.
  • Guidance: YHOO expects Q1 revenue of $765-805 million, versus consensus of $766.6 million; full year 2005 revenue of $3.37-3.57 billion, versus consensus of $3.38 billion.

Susan Decker, Yahoo!'s CFO, says in the press release:

"We are attracting more and more users to Yahoo!'s network of services and driving their usage deeper with more relevant products and services. This deeper usage is the real magic behind the surpassing of our financial objectives."

Quick comment:

Susan Decker's remark about Yahoo!s "network of services" is interesting. Consider: Yahoo!'s revenues from "marketing services" (dominated by search?) were $911 million. Total revenues were $1.078 billion. Yahoo's other businesses pale in comparison to its "marketing services": listings revenue was only $38 million, and fees (mainly from premium services) were only $129 million. Yahoo!'s October '03 acquisition of Overture looks smarter every quarter.

One year YHOO chart below.