View:
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
======================
FORM 8-K
======================
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
October 12, 2004
Date of Report (Date of Earliest Event Reported)
======================
Yahoo! Inc.
(Exact name of Registrant as specified in its charter)
======================
Delaware 0-28018 77-0398689
(State or other Jurisdiction (Commission File No.) (IRS Employer
of Incorporation) Identification No.)
701 First Ave.
Sunnyvale, California 94089
(Address of principal executive offices, including zip code)
(408) 349-3300
(Registrant's telephone number, including area code)
================================================================================
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
================================================================================
================================================================================
Item 2.02 Results of Operations and Financial Condition
The information in this Current Report is being furnished and shall not be
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934, as amended.
On October 12, 2004, Yahoo! Inc., a Delaware corporation ("Yahoo!")
announced its financial results for the fiscal quarter ended September 30, 2004
and certain other information. A copy of Yahoo!'s press release announcing these
financial results and certain other information is attached hereto as Exhibit
99.1.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits.
The following exhibit is furnished with this report on Form 8-K:
99.1 Yahoo! Inc. press release dated October 12, 2004
2
================================================================================
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
YAHOO! INC.
By: /s/ Susan Decker
--------------------
Susan Decker
Executive Vice President, Finance and
Administration, and Chief Financial
Officer (Principal Financial Officer)
Date: October 12, 2004
3
YAHOO! INC.
INDEX TO EXHIBITS
Exhibit Number Description
- -------------- -----------
99.1 Press Release dated October 12, 2004
4
Exhibit 99.1
Yahoo! Reports Third Quarter 2004 Financial Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 12, 2004--
Company Posts Revenues of $907 Million,
Operating Income of $172 Million, Operating Income Before
Depreciation and Amortization of $260 Million
Yahoo! Inc. (Nasdaq:YHOO) today reported results for the third
quarter ended September 30, 2004.
"Yahoo! began to demonstrate the next stage in the Company's
evolution in the third quarter, and in doing so recorded its sixth
consecutive quarter of record revenue," said Terry Semel, chairman and
chief executive officer, Yahoo!. "We accelerated the pace at which new
products and services were developed, which in-turn helped increase
the level of user engagement across the Yahoo! network. Our engaged
audience enables us to deliver an unmatched set of advertising
opportunities, providing deeper value to our marketers, and supporting
the mantra that great products are the key to a great business."
-- Revenues were $907 million for the third quarter of 2004, a
154 percent increase compared to $357 million for the same
period of 2003.
-- Revenues excluding traffic acquisition costs ("TAC") were $655
million for the third quarter of 2004, an 84 percent increase
compared to the $357 million for the same period of 2003.
-- Gross profit for the third quarter of 2004 was $574 million,
an 86 percent increase compared to $310 million for the same
period of 2003.
-- Operating income for the third quarter of 2004 was $172
million, an increase of 106 percent compared to $83 million
for the same period of 2003.
-- Operating income before depreciation and amortization for the
third quarter of 2004 was $260 million, a 122 percent increase
compared to $117 million for the same period of 2003.
-- Cash flow from operating activities for the third quarter of
2004 was $267 million, an increase of 97 percent compared to
$136 million for the same period of 2003.
-- Free cash flow for the third quarter of 2004 was $202 million,
a 108 percent increase over the $97 million reported for the
same period of 2003.
-- Net income for the third quarter of 2004 was $253 million or
$0.17 per diluted share (including a net impact of $129
million, or $0.09 per share, related to the sale of an
investment and the associated tax benefit resulting from fully
reserved capital losses becoming realizable). Excluding this
gain, net income for the third quarter was $124 million, or
$0.09 per diluted share. This compares with net income of $65
million or $0.05 per diluted share for the same period of
2003.
-- The provision for income taxes of $67 million yielded an
effective tax rate of 21% for the third quarter of 2004 as a
result of the previously described tax benefit associated with
the capital loss carryforwards. The provision for income taxes
in the same period of 2003 was $40 million, and yielded an
effective tax rate of 38%.
"Yahoo! generated its highest-ever level of free cash flow in the
third quarter, more than doubling the amount generated one year ago,"
said Susan Decker, chief financial officer, Yahoo!. "We believe that
long-term free cash flow generation is the most important factor
driving shareholder value and we are very pleased with both its
magnitude in this quarter and the strong foundation on which it is
based, positioning us well for sustained growth."
Third Quarter 2004 Financial Highlights
Marketing services revenue for the third quarter of 2004 totaled
$765 million, a 212 percent increase from the $245 million reported in
the same period in 2003. Listings revenue for the third quarter of
2004 totaled $37 million, a 15 percent increase compared to the $32
million reported in the same period in 2003. The year over year
increases in marketing services and listings revenues resulted from
growth in Yahoo!'s organic revenue and incremental revenue associated
with acquisitions completed during the past year. Fees revenue for the
third quarter of 2004 totaled $104 million, a 31 percent increase
compared to the $79 million reported in the same period in 2003. The
year over year increase in fees revenues was primarily driven by the
growth in the number of paying relationships for Yahoo!'s premium
services, which were approximately 7.6 million at September 30, 2004
compared to approximately 4.2 million at September 30, 2003.
United States revenues in the third quarter of 2004 were $655
million, an increase of $355 million, or 118 percent, compared to the
same period in 2003. International revenues in the third quarter of
2004 were $252 million, an increase of $195 million, or 341 percent,
compared to the same period in 2003.
United States segment operating income before depreciation and
amortization in the third quarter of 2004 was $223 million, an
increase of $117 million, or 109 percent, compared to the same period
of 2003. International segment operating income before depreciation
and amortization in the third quarter of 2004 was $36 million, an
increase of $26 million, or 251 percent, compared to the same period
in 2003. These increases were primarily a result of the increase in US
and International revenues and continued efforts to control
discretionary spending during the period.
Free cash flow was $202 million in the third quarter of 2004 and
was the largest contributor to the increase of $425 million in our
cash, cash equivalents and investments in marketable debt securities.
Our cash, cash equivalents and investments in marketable debt
securities grew from approximately $2,646 million at June 30, 2004 to
$3,072 million at September 30, 2004. Together with free cash flow,
this increase is a result of $106 million of cash generated from the
issuance of common stock as a result of the exercise of employee stock
options and $191 million in net proceeds from the sale of an
investment, offset by a net $46 million used in structured stock
repurchase transactions and $28 million used for other investing
activities, including acquisitions.
Please refer to the "Note to Unaudited Condensed Consolidated
Statements of Operations" for definition of these key financial
measures and "Business Outlook" attached to this press release.
Quarterly Conference Call
Yahoo! will host a conference call to discuss third quarter
results at 5:00 p.m. Eastern Time today. A live Webcast of the
conference call, together with supplemental financial information can
be accessed through the Company's Investor Relations Web site at
http://yhoo.client.shareholder.com/earnings.cfm. In addition, an
archive of the Webcast can be accessed through the same link. An audio
replay of the call will be available following the conference call by
calling 877-213-9653 or 630-652-3041, reservation number: 10046233.
About Yahoo!
Yahoo! Inc. is the No. 1 Internet brand globally and the most
trafficked Internet destination. Headquartered in Sunnyvale, Calif.,
Yahoo!'s mission is to provide online products and services essential
to consumers' lives and offer a full range of marketing solutions to
enable businesses to connect with Yahoo!'s hundreds of millions of
users worldwide.
This press release includes the following financial measures
defined as non-GAAP financial measures by the Securities and Exchange
Commission: revenues excluding traffic acquisition costs, operating
income before depreciation and amortization, and free cash flow. These
measures may be different from non-GAAP financial measures used by
other companies. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
generally accepted accounting principles. See Note to Unaudited
Condensed Consolidated Statements of Operations and Reconciliations to
Unaudited Condensed Consolidated Statements of Operations included in
this press release for further information regarding these non-GAAP
financial measures.
This press release and its attachments contain forward-looking
statements that involve risks and uncertainties concerning Yahoo!'s
expected financial performance (as described without limitation in the
Business Outlook section and quotations from management in this press
release), as well as Yahoo!'s strategic and operational plans. Actual
results may differ materially from the results predicted and reported
results should not be considered as an indication of future
performance. The potential risks and uncertainties include, among
others, decreases or delays in marketing services spending, including
performance of the Company's recently acquired businesses; the actual
increases in demand by customers for Yahoo!'s premium services;
acceptance of new products and services; the Company's ability to
compete with new or existing competitors; general economic conditions;
risks related to the integration of recent acquisitions; dependence on
key personnel; and the dependence on third parties for technology,
services, content and distribution. All information set forth in this
release and its attachments is as of October 12, 2004. Yahoo!
undertakes no duty to update this information. More information about
potential factors that could affect the Company's business and
financial results is included in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2003 and the Quarterly
Report on Form 10-Q for the quarter ended June 30, 2004, including
(without limitation) under the captions, "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations," which are on file with the SEC and available
at the SEC's website at www.sec.gov. Additional information will also
be set forth in those sections of Yahoo!'s Quarterly Report on Form
10-Q for the quarter ended September 30, 2004, which will be filed
with the SEC in the fourth quarter of 2004.
Yahoo! and the Yahoo! logos are trademarks and/or registered
trademarks of Yahoo! Inc. All other names are trademarks and/or
registered trademarks of their respective owners.
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ----------------------
2003 2004 2003 2004
----------- ----------- ---------- -----------
Revenues $ 356,821 $ 906,715 $ 961,175 $2,496,800
Cost of revenues 47,287 332,333 137,261 911,421
---------- ---------- ---------- ----------
Gross profit 309,534 574,382 823,914 1,585,379
---------- ---------- ---------- ----------
Operating expenses:
Sales and marketing 128,748 192,950 364,333 551,120
Product development 47,683 97,033 129,180 261,162
General and
administrative 39,609 69,215 102,183 189,930
Stock compensation
expense (a) 485 6,111 1,951 25,823
Amortization of
intangibles 9,511 36,968 25,020 103,588
---------- ---------- ---------- ----------
Total operating
expenses 226,036 402,277 622,667 1,131,623
---------- ---------- ---------- ----------
Income from operations 83,498 172,105 201,247 453,756
Other income, net 11,440 123,281 34,304 150,838
Earnings in equity
interests 12,495 25,696 32,225 69,672
Minority interests in
operations of
consolidated
subsidiaries (2,063) (660) (5,097) (2,894)
---------- ---------- ---------- ----------
Income before income
taxes 105,370 320,422 262,679 671,372
Provision for income
taxes 40,041 67,117 99,819 204,343
---------- ---------- ---------- ----------
Net income $ 65,329 $ 253,305 $ 162,860 $ 467,029
========== ========== ========== ==========
Net income per share -
diluted $ 0.05 $ 0.17 $ 0.13 $ 0.32
========== ========== ========== ==========
Shares used in per
share calculation -
diluted 1,274,888 1,458,610 1,254,540 1,444,955
========== ========== ========== ==========
(a) Stock compensation expense is allocated as follows:
Sales and marketing $ 98 $ 1,731 $ 419 $ 7,712
Product development 343 2,371 1,217 9,642
General and
administrative 44 2,009 315 8,469
---------- ---------- ---------- ----------
Total stock
compensation
expense $ 485 $ 6,111 $ 1,951 $ 25,823
========== ========== ========== ==========
- ----------------------------------------------------------------------
Supplemental Financial Data (See Note)
Revenues excluding
traffic acquisition
costs ("TAC") $ 356,821 $ 655,401 $ 961,175 $1,814,692
Operating income
before depreciation
and amortization $ 116,996 $ 259,704 $ 299,787 $ 704,687
Free cash flow $ 97,088 $ 201,680 $ 246,566 $ 592,969
- ----------------------------------------------------------------------
Yahoo! Inc.
Note to Unaudited Condensed Consolidated Statements of Operations
This press release includes the non-GAAP financial measures of
revenues excluding traffic acquisition costs, operating income before
depreciation and amortization, and free cash flow, which are
reconciled to gross profit, income from operations, and cash flow from
operating activities, respectively, which we believe are the most
comparable GAAP measures. We use these non-GAAP financial measures for
internal managerial purposes, when publicly providing guidance on
possible future results, and as a means to evaluate period-to-period
comparisons. These non-GAAP financial measures are used in addition to
and in conjunction with results presented in accordance with GAAP.
These non-GAAP financial measures reflect an additional way of viewing
aspects of our operations that, when viewed with our GAAP results and
the accompanying reconciliations to corresponding GAAP financial
measures, provide a more complete understanding of factors and trends
affecting our business. These non-GAAP measures should be considered
as a supplement to, and not as a substitute for, or superior to, gross
profit, income from operations, and cash flow from operating
activities calculated in accordance with generally accepted accounting
principles.
Revenues excluding traffic acquisition costs or TAC is defined as
gross profit plus other cost of revenues. Under GAAP, both our
revenues and cost of revenues include TAC. In defining revenues
excluding TAC as our gross profit measure, we have removed TAC from
both revenues and cost of revenues. We began incurring TAC when we
acquired Overture Services, Inc. in October 2003. TAC represents
revenues, a significant portion of which is shared with, and paid to,
Overture's third party affiliates who integrate Overture's
pay-for-performance search service into their websites. We present
revenues excluding TAC: (1) to permit investors to make a meaningful
comparison of our current performance to our performance before we
acquired Overture, (2) to provide a metric for our investors to
analyze and value our Company and (3) to provide investors one of the
primary metrics used by the Company for evaluation and decision-making
purposes. Specifically, it allows investors to compare gross profit as
a percentage of revenues before and after the Overture acquisition,
since TAC is the only significant difference in the cost of revenues
between our legacy business and Overture's business. Consequently,
presenting revenues excluding TAC helps investors better understand
changes in our gross profit as a percentage of revenues for pre- and
post-acquisition of Overture. We also provide revenues excluding TAC
because we believe it is useful to investors in valuing our Company.
One of the ways investors value companies is to apply a multiple to
revenues. Since a significant portion of the GAAP revenues associated
with Overture is paid to our third party affiliates, we believe
investors find it more meaningful to apply multiples to revenues
excluding TAC to assess our value as this avoids "double counting"
revenues that are paid to, and being reported by, our third party
affiliates. Further, management uses revenues excluding TAC for
evaluating the performance of our business, making operating
decisions, for budgeting purposes, and as a factor in determining
management compensation. A limitation of revenues excluding TAC is
that it is a measure which we have defined for internal and investor
purposes that may be unique to the Company and therefore it may not
enhance the comparability of our results to other companies in our
industry who have similar business arrangements but address the impact
of TAC differently.
Operating income before depreciation and amortization is defined as
income from operations before depreciation, amortization of intangible
assets and amortization of stock compensation expense. We consider
operating income before depreciation and amortization to be an
important indicator of the operational strength of the Company. This
measure eliminates the effects of depreciation, amortization of
intangible assets and amortization of stock compensation expense from
period to period, which we believe is useful to management and
investors in evaluating the operating performance of the Company, as
depreciation and amortization costs are not directly attributable to
the underlying performance of the Company's business operations. A
limitation associated with this measure is that it does not reflect
the periodic costs of certain capitalized tangible and intangible
assets used in generating revenues in the Company's businesses.
Management evaluates the costs of such tangible and intangible assets
through other financial measures such as capital expenditures. A
further limitation associated with this measure is that it does not
include stock compensation expenses related to our workforce.
Management compensates for this limitation by providing supplemental
information about stock compensation expense on the face of our
consolidated statements of operations.
Free cash flow is defined as cash flow from operating activities less
net capital expenditures. In addition, for the quarters ended June 30,
2002 and December 31, 2003, free cash flow also included a change in
long-term deferred revenue and an Overture receivable settled through
acquisition, respectively. The change in long-term deferred revenue
represented cash payments received in advance of revenue recognized.
The Overture receivable settled through acquisition represented a
Yahoo! accounts receivable balance owed from Overture that was settled
as part of the acquisition. We consider free cash flow to be a
liquidity measure which provides useful information to management and
investors about the amount of cash generated by the business after the
acquisition of property and equipment, which can then be used for
strategic opportunities including, among others, investing in the
Company's business, making strategic acquisitions, strengthening the
balance sheet and repurchasing stock. A limitation of free cash flow
is that it does not represent the total increase or decrease in the
cash balance for the period.
Yahoo! Inc.
Reconciliations to Unaudited Condensed Consolidated
Statements of Operations
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2003 2004 2003 2004
----------- ----------- ----------- -----------
Revenues for groups of similar services:
Marketing services $ 245,072 $ 765,112 $ 654,235 $2,091,214
Fees 79,358 104,201 213,013 296,522
Listings 32,391 37,402 93,927 109,064
---------- ---------- ---------- ----------
Total revenues $ 356,821 $ 906,715 $ 961,175 $2,496,800
========== ========== ========== ==========
Revenues by segment:
United States $ 299,759 $ 654,985 $ 809,650 $1,878,417
International 57,062 251,730 151,525 618,383
---------- ---------- ---------- ----------
Total revenues $ 356,821 $ 906,715 $ 961,175 $2,496,800
========== ========== ========== ==========
Cost of revenues:
Traffic acquisition
costs ("TAC") $ - $ 251,314 $ - $ 682,108
Other cost of
revenues 47,287 81,019 137,261 229,313
---------- ---------- ---------- ----------
Total cost of
revenues $ 47,287 $ 332,333 $ 137,261 $ 911,421
========== ========== ========== ==========
Revenues excluding TAC:
Gross profit $ 309,534 $ 574,382 $ 823,914 $1,585,379
Other cost of
revenues 47,287 81,019 137,261 229,313
---------- ---------- ---------- ----------
Revenues excluding
TAC $ 356,821 $ 655,401 $ 961,175 $1,814,692
========== ========== ========== ==========
Revenues excluding TAC by segment:
United States:
Gross profit $ 261,290 $ 438,737 $ 697,408 $1,241,633
Other cost of
revenues 38,469 64,340 112,242 187,261
---------- ---------- ---------- ----------
Revenues excluding
TAC $ 299,759 $ 503,077 $ 809,650 $1,428,894
========== ========== ========== ==========
International:
Gross profit $ 48,244 $ 135,645 $ 126,506 $ 343,746
Other cost of
revenues 8,818 16,679 25,019 42,052
---------- ---------- ---------- ----------
Revenues excluding
TAC $ 57,062 $ 152,324 $ 151,525 $ 385,798
========== ========== ========== ==========
Operating income before depreciation and amortization:
Income from
operations $ 83,498 $ 172,105 $ 201,247 $ 453,756
Depreciation and
amortization 33,013 81,488 96,589 225,108
Stock compensation
expense 485 6,111 1,951 25,823
---------- ---------- ---------- ----------
Operating income
before depreciation
and amortization $ 116,996 $ 259,704 $ 299,787 $ 704,687
========== ========== ========== ==========
Operating income before depreciation and amortization by segment:
Operating income
before depreciation
and amortization -
United States $ 106,607 $ 223,260 $ 275,576 $ 612,879
Operating income
before depreciation
and amortization -
International 10,389 36,444 24,211 91,808
---------- ---------- ---------- ----------
Operating income
before depreciation
and amortization 116,996 259,704 299,787 704,687
========== ========== ========== ==========
United States:
Income from
operations $ 77,684 $ 151,402 $ 189,156 $ 401,247
Depreciation and
amortization 28,438 66,668 84,469 189,679
Stock compensation
expense 485 5,190 1,951 21,953
---------- ---------- ---------- ----------
Operating income
before depreciation
and amortization -
United States $ 106,607 $ 223,260 $ 275,576 $ 612,879
========== ========== ========== ==========
International:
Income from
operations $ 5,814 $ 20,703 $ 12,091 $ 52,509
Depreciation and
amortization 4,575 14,820 12,120 35,429
Stock compensation
expense - 921 - 3,870
---------- ---------- ---------- ----------
Operating income
before depreciation
and amortization -
International $ 10,389 $ 36,444 $ 24,211 $ 91,808
========== ========== ========== ==========
Free cash flow:
Cash flow from
operating
activities $ 135,533 $ 267,424 $ 326,284 $ 753,101
Acquisition of
property and
equipment, net (38,445) (65,744) (79,718) (160,132)
---------- ---------- ---------- ----------
Free cash flow $ 97,088 $ 201,680 $ 246,566 $ 592,969
========== ========== ========== ==========
Yahoo! Inc.
Business Outlook
Business Outlook
The following business outlook is based on current information and
expectations as of October 12, 2004. Yahoo!'s business outlook as of
today is expected to be available on the Company's Investor Relations
Web site throughout the current quarter. It is currently expected the
outlook will not be updated until the release of Yahoo!'s next
quarterly earnings announcement, notwithstanding subsequent
developments; however, Yahoo! may update the outlook or any portion
thereof at any time.
Three months Year
ending ending
December 31, December 31,
2004 2004
------------- --------------
Revenues excluding traffic acquisition costs(b) ("TAC") outlook
(in millions):
Gross Profit $625-$665 $2,200-$2,240
Other cost of revenues $85-$95 $315-$325
------------- --------------
Revenues excluding TAC $710-$760 $2,515-$2,565
============= ==============
Operating income before depreciation and amortization(b) outlook
(in millions):
Income from operations $201-$220 $645-$664
Depreciation and amortization $80-$88 $305-$313
Stock compensation expense $4-$7 $30-$33
------------- --------------
Operating income before depreciation
and amortization $285-$315 $980-$1,010
============= ==============
(b) Refer to Note to Unaudited Condensed Consolidated Statements of
Operations.
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- -------------------------
2003 2004 2003 2004
----------- ---------- ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 65,329 $ 253,305 $ 162,860 $ 467,029
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation and
amortization 33,013 81,488 96,589 225,108
Tax benefits from
stock options 36,198 56,145 85,843 177,266
Earnings in equity
interests (12,495) (25,696) (32,225) (69,672)
Minority interests
in operations of
consolidated
subsidiaries 2,063 660 5,097 2,894
Stock compensation
expense 485 6,111 1,951 25,823
(Gain)/loss from
sale of
investments,
assets and other,
net 1,784 (100,683) 9,331 (91,067)
Changes in assets
and liabilities,
net of effects of
acquisitions:
Accounts
receivable, net (8,286) (47,466) (31,815) (83,288)
Prepaid expenses
and other
assets 3,209 (7,016) (756) (6,434)
Accounts payable 685 12,694 280 (899)
Accrued expenses
and other
liabilities 19,080 31,692 18,147 83,561
Deferred revenue (5,532) 6,190 10,982 22,780
---------- --------- ----------- -----------
Net cash provided by
operating activities 135,533 267,424 326,284 753,101
---------- --------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of
property and
equipment, net (38,445) (65,744) (79,718) (160,132)
Purchases of
marketable
securities (966,120) (316,728) (1,632,298) (1,178,741)
Proceeds from sales
and maturities of
marketable debt
securities 390,930 150,349 1,041,429 902,072
Acquisitions, net of
cash acquired - (33,815) (228,318) (607,692)
Proceeds from sales
of marketable
equity securities
and other 9,037 190,445 2,763 206,933
---------- --------- ----------- -----------
Net cash used in
investing activities (604,598) (75,493) (896,142) (837,560)
---------- --------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from
issuance of debt,
net - - 733,125 -
Proceeds from
issuance of common
stock, net 74,416 105,913 203,027 423,591
Structured stock
repurchase, net - (45,907) - (95,907)
---------- --------- ----------- -----------
Net cash provided by
financing activities 74,416 60,006 936,152 327,684
---------- --------- ----------- -----------
Effect of exchange
rate changes on cash
and cash equivalents 585 3,711 4,252 6,764
Net change in cash and
cash equivalents (394,064) 255,648 370,546 249,989
Cash and cash
equivalents,
beginning of period 1,075,582 707,880 310,972 713,539
---------- --------- ----------- -----------
Cash and cash
equivalents, end of
period $ 681,518 $ 963,528 $ 681,518 $ 963,528
========== ========= =========== ===========
Yahoo! Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, September 30,
2003 2004
---------------- ----------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 713,539 $ 963,528
Short-term investments in marketable debt
securities 595,978 1,200,592
Short-term investments in marketable
equity securities - 762,280
Accounts receivable, net 282,415 384,738
Prepaid expenses and other current
assets 129,777 158,611
----------- -----------
Total current assets 1,721,709 3,469,749
Long-term investments in marketable debt
securities 1,256,698 907,448
Property and equipment, net 449,512 484,703
Goodwill 1,805,561 2,324,916
Intangible assets, net 445,640 480,685
Other assets 252,534 279,034
----------- -----------
Total assets $ 5,931,654 $ 7,946,535
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,890 $ 41,283
Accrued and other current liabilities 483,628 586,252
Deferred revenue 192,278 224,261
----------- -----------
Total current liabilities 707,796 851,796
Long term deferred revenue - 66,909
Long term debt 750,000 750,000
Other liabilities 72,890 116,581
Minority interests in consolidated
subsidiaries 37,478 44,472
Stockholders' equity 4,363,490 6,116,777
----------- -----------
Total liabilities and stockholders'
equity $ 5,931,654 $ 7,946,535
=========== ===========
CONTACT: Yahoo! Inc.
Linda Du, 408-349-4619 (Media Relations)
lindadu@yahoo-inc.com
Cathy La Rocca, 408-349-5188 (Investor Relations)
cathy@yahoo-inc.com
or
Fleishman-Hillard (for Yahoo! Inc.)
Ruben Osorio, 415-318-4108 (Media Relations)
osorior@fleishman.com