More on Yahoo: Q4 guidance soft, Alibaba numbers strong, deal amended

Oct. 15, 2013 4:37 PM ETAltaba, Inc. (AABA)AABABy: Eric Jhonsa, SA News Editor
  • Yahoo (YHOO) expects Q4 revenue of $1.18B-$1.22B, below a $1.25B consensus. Operating income is expected to total $240M-$260M, down from $283M a year earlier.
  • However, Alibaba had Q2 revenue of $1.74B (+26% Q/Q and +61% Y/Y) and net income of $717M (+145% Y/Y). That's offsetting the Q4 guidance. Yahoo Japan (35% stake) had revenue of $992M (-4% Y/Y) and net income of $365M (+15%).
  • Also: Yahoo says it has amended the Alibaba deal to lower the number of shares it's required to sell following an IPO to 208M from a prior 261.5M.
  • Yahoo's Q3 revenue (ex-TAC) fell 1% Y/Y, same as Q2 and Q1. Search ads +3% Y/Y vs. +5% in Q2. Paid clicks +21 %, price per click -4%. Display ads -7% Y/Y vs. -11% in Q2. Ads sold +1%, price per ad -7%. The ad volume and pricing data excludes Yahoo's discontinued Korean ops.
  • $1.69B was spent to buy back 59M shares at an average price of $28.53. That's up sharply from Q2's $653M.
  • Thanks to the buybacks, Yahoo's cash balance stood at $3.2B at the end of Q3, down from $4.8B at the end of Q2.
  • YHOO +0.3% AH. CC/live video talk at 5PM ET.
  • Q3 results, PR, slide deck

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.