Yahoo Logo

Yahoo reported profits of $348 million for the quarter ended December 31, 2013, registering a 28% growth from $272 million profit in the same quarter last year and up from $297 million profit in the previous quarter. However, do note that this profit includes a $49 million net gain from the sale of patents.

For the full year ended December 31, 2013, Yahoo reported profits of $1.37 million, down 65% from $3.95 million profit in FY-2013, although note that FY-2013 profit includes a $2.76 billion gain from the sale of Alibaba group shares.

The revenue excluding traffic acquisition costs (revenue ex-TAC) marginally declined to $1.2 billion for the quarter, down 2% from $1.22 billion revenues in the same quarter last year. The total revenue declined by 6% year-on-year (YoY) to $1.27 billion for the quarter, down from $1.35 billion in the same quarter last year.

For the full year ended December 31, 2013, the revenues excluding traffic acquisition costs (revenue ex-TAC) declined to $4.43 billion, down 1% from $4.47 billion, while the total revenue declined 6% YoY to $4.68 billion from $4.99 billion in FY-2013.

Highlights

Acquisitions: During the quarter, Yahoo made eight acquisitions to strengthen its products, technology, content offerings and talent. These include Aviate, PeerCDN, Evntlive, Ptch, SkyPhrase, LookFlow, Bread Labs and Hitpost to strengthen its products, content offerings, core technology and talent.

– Yahoo says it also introduced an improved Yahoo Finance experience across multiple platforms (web, mobile and tablet), released a major update to Yahoo Mail and extended Yahoo Screen to Apple TV.

– Flickr introduced Photo Books while Yahoo Weather added support for iPad.

– Earlier this month at CES 2014, Yahoo also announced a new unified suite of its advertising products and unveiled several new products like Yahoo News Digest, Yahoo Smart TV and two new media sites – Yahoo Food and Yahoo Tech.

APAC Revenues

The Asia Pacific revenues excluding traffic acquisition costs (revenue ex-TAC) was at $194.5 million for the quarter, down 10.2% from $216.5 million in the same quarter last year. The total revenue was at $202.1 million for the quarter, down 25.75% from $272.2 million in Q4 2012. APAC region accounted for 16% of Yahoo’s total revenues for the quarter, down from 18% in Q4 2012.

For the full year 2013, revenue ex-TAC was at $761.1 million, down 8.4% from $830.7 million in 2012 while the total revenues was at $813.7 million, down 22.5% from $1.05 billion in the previous year. APAC region accounted for 17.4% of Yahoo’s total revenues for the year, down from 21% in 2012.

Yahoo Geography

Display Revenues Decline 9% In FY-2014

Display revenue ex-TAC saw a 6% YoY decline to $491 million for the quarter, down from $520 million in Q4-2012. The total display revenues declined to $553 million for the quarter, down 6% YoY from $591 million in Q4-2012.

For the full year 2013, the display revenue ex-TAC was at $1.74 billion, down 9% from $1.9 billion in the previous year while the total display revenues declined 9% YoY to $1.95 billion from $2.14 billion in the previous year.

Number of ads sold (excluding Korea) increased by 3% approximately YoY while the price-per-ad (excluding Korea) declined by 7% YoY.

Yahoo Q4 2013 Display Trends

Search Revenues Up 6% in FY-2014

Search revenue ex-TAC was at $461 million in Q4 2013, a 8% increase from $427 million in the same quarter last year. The total search revenues however declined by 4% YoY to $464 million for the quarter, down from $482 million in Q4 2012.

For the full year 2013, Search revenue ex-TAC increased to $1.7 billion, a 6% increase from $1.61 billion in 2012. The total search revenues however declined by 8% YoY to $1.74 million for the year, down from $1.89 million in 2012.

Paid clicks (excluding Korea) increased 17% approximately YoY while the price-per-click (excluding Korea) declined by 3% approximately YoY.

Yahoo Q4 2013 Search trends

Other Highlights

Cashflow: As of December 31, 2013, Yahoo has $5 billion money in terms of cash, cash equivalents, and investments in marketable securities, as compared to $6 billion in the previous year.

Share repurchase: During Q4 2013, Yahoo repurchased 6 million shares for $231 million and used $60 million for acquisitions. For the full year 2013, Yahoo repurchased 129 million shares for $3.3 billion and used $1.2 billion for acquisitions.

– Yahoo has also raised $1.3 billion convertible debt, net of the call spread and received net proceeds of $295 million from derivative hedge contract settlements.

DownloadPress release | Financials | Slides