Comments
“Yahoo!'s transformation gained momentum in the second quarter as we announced new product initiatives and partnerships along with solid financial results,” said Sue Decker, president Yahoo! Inc. “We advanced our position with users by opening up Yahoo! through new innovative offerings like SearchMonkey and BOSS in search and have seen great improvements with Buzz in the freshness of content on our home page.
"Our commercial agreement with Google is another great example of our open strategy and we expect it will strengthen our competitive position as a leading provider of search and display advertising. On the advertising side, our growing list of major agency partners including Publicis, WPP, Havas and premier publishing partners including walmart.com, and CNET and Turner are great examples of our ability to be the partner of choice across search and display advertising. We remain confident that our efforts will lead to a stronger and more profitable Yahoo!.”
Second Quarter 2008 Segment Financial Results
• United States segment revenues for the second quarter of 2008 were $1,265 million, a 13 percent increase compared to $1,119 million for the same period of 2007.
• International segment revenues for the second quarter of 2008 were $534 million, an 8 percent decrease compared to $579 million for the same period of 2007.
• United States segment operating income before depreciation, amortization, and stock-based compensation expense for the second quarter of 2008 was $298 million, an 18 percent decrease compared to $362 million for the same period of 2007.
• International segment operating income before depreciation, amortization, and stock-based compensation expense for the second quarter of 2008 was $129 million, a 16 percent increase compared to $111 million for the same period of 2007.
“Despite a difficult economic environment, we posted solid results in line with the ranges we indicated in April,” said Blake Jorgensen, chief financial officer, Yahoo! Inc. “GAAP revenue was $1.8 billion, with operating cash flow on a normalized basis coming in at $449 million. Our diverse advertiser base and compelling value proposition for our customers were key factors behind Yahoo!’s strong second quarter performance.”
Cash Flow Information
In addition to free cash flow of $231 million for the second quarter of 2008, Yahoo! generated $191 million from the issuance of common stock as a result of the exercise of employee stock options. This was offset by $14 million used for acquisitions and $42 million used to acquire intellectual property rights. Cash, cash equivalents, and investments in marketable debt securities were $3,219 million at June 30, 2008 as compared to $2,848 million at March 31, 2008, an increase of $371 million.
