Tue, Oct. 27, 9:22 AM
- Yahoo (NASDAQ:YHOO) has risen to $35.20 premarket after Alibaba (BABA - up 8%) beat FQ2 estimates with the help of a 12 bps Y/Y increase in Chinese marketplace monetization/take rate (contrasts with FQ1's 19 bps decline) to 2.42%.
- The trigger: Mobile monetization rate (up 52 bps Y/Y to 2.39%) is now nearly even with Alibaba's total monetziation rate, helping mobile grow to 61% of marketplace revenue from 51% in FQ1 and just 29% a year ago. Mobile monthly active users rose 13% Q/Q and 59% Y/Y to 346M, and total annual active buyers 5% Q/Q and 26% Y/Y to 386M.
- Alibaba's China marketplace GMV growth slowed to 28% Y/Y from FQ1's 34% and FQ4's 40%. Total China commerce revenue rose 35% to $2.88B, international commerce rose 14% to $289M, and cloud computing/Internet infrastructure rose 128% to $102M. EBITDA margin was flat at 50%, and free cash flow rose 52% to $2.14B (above net income of $1.46B).
- Not counting any potential tax payments, Yahoo's 384M-share Alibaba stake is now worth $31.6B.
Tue, Oct. 20, 6:24 PM
- Yahoo (NASDAQ:YHOO) has once more guided light in its earnings slides (.pdf): It expects Q4 GAAP revenue of $1.16B-$1.2B, below a $1.33B consensus. Ex-TAC revenue is expected to drop to $920M-$960M from Q4 2014's $1.18B, and op. income to just $10M-$50M from Q4 2014's $256M and Q4 2013's $330M.
- With its top line still under pressure, Yahoo is cutting costs. Marissa Mayer: "As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality..." CFO Ken Goldman: "This quarter we've reduced spending in areas such as workforce, facilities and discretionary expenses, and in our ongoing efforts to control expenses, we'll continue to focus our headcount on growth initiatives." Non-GAAP operating expenses fell 3% Y/Y in Q3 to $911M, with cash expenses falling 4% to $758M.
- On the earnings call, Yahoo said it's taking a $42M write-down on video assets, including a season of Community. Goldman: "We couldn’t see a way to make money."
- Also mentioned: The Alibaba stake spinoff might happen in January (Yahoo was previously aiming for Q4). Mayer insists Yahoo has received a good legal opinion arguing the spinoff is "tax efficient" under current law. Goldman: "We tend not to want to speak for the IRS."
- Q3 segment performance (ex-TAC): Search revenue -13% Y/Y to $390M (the Microsoft deal restructuring weighed). Display ad revenue +2% to $405M. Other revenue -17% to $207M. Search paid clicks +5% Y/Y, price per click -2%, "search ciick-driven" revenue +3%. Display ads sold +8%, price per ad +8%.
- Regional performance (ex-TAC): Americas revenue -5% Y/Y to $786M. EMEA (hurt by forex) -18% to $67M. Asia-Pac (ditto) -18% to $150M.
- No buybacks occurred. Yahoo ended Q3 with $6.8B in cash/investments, and $1.2B in convertible debt.
- YHOO -1.6% after hours to $32.30.
- Yahoo's Q3 results, the Google search/ad deal
Tue, Oct. 20, 4:07 PM
Mon, Oct. 19, 5:35 PM
Tue, Jul. 21, 5:39 PM
- Though Yahoo (NASDAQ:YHOO) slightly beat Q2 revenue estimates (while missing on EPS), it has guided in its earnings slides (.pdf) for Q3 revenue (ex-TAC) of $1B-$1.04B, below a $1.07B consensus. Op. income is expected to fall to $50M-$90M from Q3 2014's $156M.
- Also drawing attention: Traffic acquisition costs (boosted by the Firefox search deal and mobile revenue-sharing) rose to $200M from Q1's $183M and Q2 2014's $44M. TAC is expected to rise to $230M-$270M in Q3.
- Business performance (ex-TAC): Search revenue -3% Y/Y to $415M. Display revenue +3% to $407M. Other revenue +1% to $221M. Search paid clicks +13%, price per click +4% (offset by TAC growth and lower Microsoft revenue-sharing payments). Display ads sold +9%; price per ad +10% (offset by TAC growth). Americas revenue +5%; EMEA -17%; Asia-Pac -11%.
- Financials: Non-GAAP operating expenses rose 10% Y/Y to $935M. Yahoo ended Q2 with $7B in cash/investments, and $1.2B in convertible debt. No buybacks occurred.
- On the CC, CFO Ken Goldman states Yahoo is still figuring out what to do with its Yahoo Japan stake, and has no announcement to make yet.
- YHOO -1% AH to $39.35. With the lion's share of Yahoo's equity value tied to its Alibaba/Yahoo Japan stakes, the results/guidance haven't yielded a major reaction.
- Q2 results, PR
Tue, Jul. 21, 4:08 PM
Mon, Jul. 20, 5:30 PM
Thu, May 7, 9:30 AM
- Alibaba (NYSE:BABA) has jumped to $89.05 after posting an FQ4 beat amid low expectations. Along with the results, the company has announced COO Daniel Zhang is its new CEO, effective May 10; current CEO Jonathan Lu will stay on board as vice chairman, joining Joseph Tsai in holding that title. Jack Ma remains executive chairman.
- Revenue growth accelerated to 45% Y/Y from FQ3's 40%. Chinese marketplaces GMV rose 40% to RMB600B ($96.6B), a slowdown from FQ3's 49%. Mobile accounted for 51% of GMV, up from 42% in FQ3 and 36% in FQ2. Annual active buyers +5% Q/Q and +37% Y/Y to 350M.
- A stabilizing monetization rate (revenue as a % of GMV) helped make the FQ4 beat possible: After falling 35 bps Y/Y in seasonally strong FQ3 to 2.7%, monetization rate fell just 1 bps Y/Y in FQ4 to 2.17%. Making this possible: Mobile monetization rate rose to 1.73% from 0.98% a year ago. Altogether, mobile revenue rose 352% Y/Y and was 40% of China retail marketplace revenue vs. 30% in FQ3 and 12% a year ago.
- Segment performance: China retail commerce revenue +39% Y/Y to $2.11B. China wholesale +42% to $136M. International wholesale +19% to $190M. International retail +53% to $70M. Cloud computing/Web infrastructure +82% to $63M. Everything else (boosted by acquisitions) +169% to $243M. Taobao GMV +29% to $61B; Tmall GMV +62% to $35B.
- Financials: Free cash flow +143% Y/Y to $914M; it trailed net income of $1.25B. R&D spend ($491M) was 17% of revenue vs. 10% a year ago; sales/marketing ($408M) was 15% of revenue vs. 11%; G&A ($400M) was 14% of revenue vs. 4%. Soaring stock compensation expenses (driven by the IPO) contributed to the spending growth. Alibaba had $19.7B in cash at the end of March.
- Yahoo (NASDAQ:YHOO) has risen to $44.95 thanks to Alibaba. SoftBank (OTCPK:SFTBF) has seen the value of 797.7M-share Alibaba stake grow by over $7B.
- Alibaba's FQ4 results, PR
Tue, Apr. 21, 5:05 PM
- Yahoo (NASDAQ:YHOO) has guided in its Q1 earnings slides (.pdf) for Q2 revenue (ex-TAC) of $1.01B-$1.05B vs. a $1.04B consensus. Op. income is expected to fall to $90M-$110M from $194M in Q2 2014.
- With share loss and a shift to native ad formats still weighing, Yahoo's display ad revenue (ex-TAC) fell 7% Y/Y in Q1 to $381M, a bigger drop than Q4's 5%. Ads sold +29%, price per ad -17%.
- Search revenue (ex-TAC) fell 3% to $432M after coming in flat in Q4, in spite of the boost provided by the U.S. Firefox deal. A 21% increase in paid clicks was offset by lower Microsoft payments and a 3% drop in price per ad click. Yahoo's restructured Microsoft deal (increases Yahoo's gross revenue cut to 93% from 88%) could improve matters.
- GAAP mobile revenue (doesn't back out traffic acquisition costs) rose 73% Y/Y to $234M. GAAP PC revenue fell 2% to $873M. Non-traffic driven revenue (e.g. royalties, license fees) rose 18% to $119M. GAAP "Mavens revenue," which covers mobile, video, native, and Tumblr ads, rose 58% to $363M.
- CFO Ken Goldman, perhaps looking to appease Starboard Value: "We are tightly managing our overall cost structure as EBITDA remains a key measurement for the Company." With job cuts limiting spending growth, operating expenses (non-GAAP) rose 3% Y/Y to $963M. Ex-TAC, Americas revenue (78% of total revenue) fell 2%, EMEA fell 16%, and Asia-Pac fell 9%.
- $204M was spent on buybacks, much less than Q4's $980M. Yahoo "satisfied" its $3.3B tax liability related to Alibaba IPO proceeds during Q1, leaving its quarter-ending cash balance at $6.9B.
- YHOO -1.2% AH to $43.95.
- Q1 results, PR
Tue, Apr. 21, 4:07 PM
Mon, Apr. 20, 5:35 PM
Thu, Jan. 29, 9:37 AM
- Alibaba's (NYSE:BABA) FQ3 GMV rose 49% Y/Y to RMB787B ($127B). However, its monetization rate (revenue as a % of GMV) fell 35 bps Y/Y to 2.7%, leading revenue growth to only reach 40%. By contrast, monetization rate fell just 1 bps (to 2.30%) in FQ2.
- A major culprit: Mobile grew to 42% of GMV from 36% in FQ2 and 20% a year ago. And the mobile monetization rate (1.96% vs. 1.87% in FQ2 and 1.12% a year ago) remains well below the total rate. Mobile was 30% of revenue vs. 42% of GMV.
- A bright spot: EBITDA rose 34% Y/Y to $2.43B, better than expectations for 24% growth and driving the EPS beat. Heavy spending led EBITDA margin to slip to 58% from 60% a year ago. With stock compensation spend (IPO-driven) rising to 16% of revenue from 4%, and new business initiatives growing, operating expenses rose to 33% of revenue from 30%, and gross margin fell to 71% from 78%.
- China commerce revenue +32% to $3.6B (a slowdown from FQ2's 47%); international commerce (AliExpress-driven) +39% to $284M; cloud computing/infrastructure +85% to $58M; everything else (boosted by acquisitions) +266% to $309M.
- Taobao GMV (driven by smaller merchants) +43% to $80B; Tmall GMV (driven by larger merchants) +60% to $47B. Annual active buyers rose to 334M from 307M in FQ2 and 231M a year ago.
- Yahoo (NASDAQ:YHOO) is following Alibaba lower, and is now down 9% since posting Q4 results and announcing its spinoff plans.
- Alibaba's FQ3 results, PR
- Related tickers: OTCPK:SFTBF, OTCPK:SFTBY
Tue, Jan. 27, 7:00 PM
- Yahoo (NASDAQ:YHOO) has guided in its Q4 earnings slides (.pdf) for Q1 revenue (ex-TAC) of $1.02B-$1.06B, below a $1.1B consensus. Adjusted EBITDA is expected to fall to $200M-$240M from $306M a year earlier, and op. income to $50M-$90M from $149M.
- The company used its Alibaba IPO windfall to buy back $980M worth of shares in Q4 at an average price of $45.26 (contributed to the EPS beat). $9.7B have been bought back since Q2 2012.
- Q4 search revenue (ex-TAC) was nearly flat Y/Y at $462M, after rising 6% in Q3. However, search click revenue (excludes Microsoft payments) rose 18%, driven by a 10% increase in paid clicks and a 7% increase in price per click.
- Display revenue (ex-TAC), still hurt by share loss and the transition to native ads, fell 5% to $464M. Ads sold rose 17%, but price per ad fell 20%. All other revenue rose 2% to $253M.
- Americas revenue was flat Y/Y at $913M. EMEA fell 7% to $87M, and Asia-Pac 7% to $180M. Operating expenses rose 6% to $923M.
- On the CC, CFO Ken Goldman says Yahoo didn't include its Yahoo Japan (OTCPK:YAHOF) stake in the Alibaba spinoff in order to keep the transaction simple, but hints some other move could be on tap. "We are not saying we will not do something."
- Marissa Mayer says Yahoo is talking with Microsoft about the terms of the companies' search alliance; Mayer has made it clear more than once she's not happy with its performance. Not surprisingly, she also suggests Yahoo would love to displace Google (previous) as Apple's Safari search provider.
- YHOO +7.4% AH. Q4 results, Alibaba announcement.
Tue, Jan. 27, 4:14 PM
- Along with its Q4 results, Yahoo (NASDAQ:YHOO) announces its board has "authorized a plan for a tax-free spin-off of the company's remaining holdings in Alibaba Group (NYSE:BABA) into a newly formed independent registered investment company (SpinCo)."
- Shares in the SpinCo will be "distributed pro rata to Yahoo shareholders, resulting in SpinCo becoming a separate publicly traded company." After the spinoff, Yahoo will own its core business and a 35.5% stake in Yahoo Japan. SpinCo will assume no debt in the deal, and Yahoo will retain its cash.
- The spinoff is expected to be completed in Q4 2015, after a one-year lockup on Yahoo's Alibaba stake expires.
- Yahoo's 384M-share (15%) Alibaba stake has a current market value of $39.5B. The company closed today with a total market cap of $46.7B.
- Yahoo has jumped to $51.08 in AH trading. Alibaba is fractionally higher.
Tue, Jan. 27, 4:06 PM
Mon, Jan. 26, 5:35 PM
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