Yahoo Inc. has reported results for the first quarter ended March 31, 2008. The company has reported an increase of 9 percent as compared to $1,672 million for the same period of 2007.
“As outlined in our investor presentation, we believe we can significantly accelerate our revenue growth,return to our historically high margins, and double our operating cash flow by 2010. This quarter’s solid performance underscores the fact that we are executing on that plan. Yahoo! is beginning to realize the benefits of the very substantial and deliberate long-term investments we’ve made to capitalize on the opportunities ahead in display and to recapture momentum in search,” said Jerry Yang, co-founder and chief executive officer, Yahoo Inc.
“Not only does Yahoo! have a unique franchise, it increasingly has industry-leading tools, technology and,most importantly, people. It is the hard work, dedication and professionalism of our people that is our greatest asset—and this quarter’s performance demonstrates how well they can perform under unusually challenging circumstances.”
In addition to free cash flow of $647 million for the first quarter of 2008 (including a $350 million one-time payment from AT&T Inc.), Yahoo! generated $127 million from the issuance of common stock as a result of the exercise of employee stock options. This was offset by $79 million used for direct stock repurchases, $52 million used for tax withholdings related to net share settlements of restricted stock awards and restricted stock units, and $166 million used for acquisitions. Cash, cash equivalents, and investments in marketable
debt securities were $2,848 million at March 31, 2008 as compared to $2,363 million at December 31, 2007,an increase of $485 million.
“Yahoo!’s first quarter 2008 financial performance was on target and aligned with our strategy to generate substantial value for stockholders,” said Blake Jorgensen, chief financial officer, Yahoo! Inc. “Our strong growth in free cash flow, excellent capital position, and ample scale give us the resources to execute our plans to grow operating cash flow substantially. Core revenue grew at an attractive, double-digit pace. The capital expenditures and substantial investments we made in people last year and early this year are now producing gains in our core, long term growth initiatives,” Jorgensen added.
Explanations of the Company’s non-GAAP financial measures and the related reconciliations to the GAAP financial measures the Company considers most comparable are included in the accompanying “Note to Unaudited Condensed Consolidated Statements of Income,” Reconciliations to Unaudited Condensed Consolidated Statements of Income,” and “Reconciliation of GAAP Net Income and GAAP Net Income Per Share to Non-GAAP Net Income and Non-GAAP Net Income Per Share.”