Yahoo! Inc. today reported results for the quarter ended
March 31, 2011.
Revenue excluding traffic acquisition costs ("revenue ex-TAC") was
$1,064 million for the first quarter of 2011, a 6 percent decrease from
the first quarter of 2010, primarily due to the revenue share related to
the Search Agreement with Microsoft. Excluding this item and other
special items, revenue ex-TAC for the first quarter of 2011 was flat
year over year. Special items include the impact of the divestitures of
Zimbra and HotJobs, broadband deferred revenue amortization, and certain
fee rate reductions.
GAAP revenue was $1,214 million for the first quarter of 2011, a 24
percent decrease from the first quarter of 2010, primarily due to the
required change in revenue presentation related to the Search Agreement
and the associated revenue share with Microsoft. For transitioned
markets (U.S. and Canada), Yahoo! now reports revenue associated with
the Search Agreement on a net (after TAC) basis rather than a gross
basis. Excluding the impact of these two items and the impact of the
divestitures of Zimbra and HotJobs, broadband deferred revenue
amortization, and certain fee rate reductions, revenue for the first
quarter of 2011 decreased 8 percent compared to the first quarter of
2010.
Income from operations increased by 1 percent to $190 million in the
first quarter of 2011, compared to $188 million in the first quarter of
2010.
Net earnings per diluted share were $0.17 per diluted share in the first
quarter of 2011, compared to $0.22 in the first quarter of 2010, a
decrease of 23 percent. Net earnings per diluted share in the first
quarter of 2011 included an impairment charge of $0.02 related to an
investment held by Yahoo Japan. Net earnings per diluted share in the
first quarter of 2010 included benefits of $0.05 related to the sale of
Zimbra and $0.02 related to transition cost reimbursements from
Microsoft attributable to 2009, reimbursed in 2010. Excluding these
items, net earnings per diluted share for the first quarter of 2011
increased 23 percent compared to the first quarter of 2010.
