Yahoo! Reports First Quarter 2002 Financial Results; Yahoo! Delivers Year Over Year Growth; First Quarter Revenue of $193 Million and EBITDA of $24 Million.Business Editors/High-Tech Writers SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BUSINESS WIRE)--April 10, 2002 Yahoo! Inc. today reported results for the fiscal first quarter ended March 31, 2002. Net revenues for the first quarter totaled $192.7 million compared to net revenues of $180.2 million for the first quarter ended March 31, 2001. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation, amortization and stock compensation expense) for the first quarter 2002 was $24.4 million, or 13% of revenues, compared to EBITDA for the first quarter 2001 of $0.9 million. Yahoo! also reported income on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) basis, before the cumulative effect of the accounting change for the implementation of Financial Accounting Standard ("FAS") 142, totaling $10.5 million or $0.02 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , compared to a net loss of $11.5 million or $0.02 per share diluted for the quarter ended March 31, 2001. FAS 142, which the company adopted January January: see month. 1, 2002, requires companies to assess the goodwill recorded from previous acquisitions, and as necessary, record a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge that does not affect cash or the company's operations. Including the non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $64.1 million recorded in the quarter for the effect of implementing FAS 142, Yahoo! reported a net loss for the fiscal first quarter of $53.6 million or $0.09 per share. "We have a world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. management team in place, who have lead the charge in executing against Yahoo!'s business plan. We posted solid results this quarter due to the transformation of Yahoo!'s business model. Our quarterly performance demonstrates continued momentum as we move forward in executing on our strategic objectives. Additionally, we experienced significant growth in our key audience metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. and demonstrated the considerable depth and breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of the Yahoo! network. As we progress through the year, we are well positioned to maintain our growth and to achieve our goal of more than doubling EBITDA profitability in 2002 from 2001 levels," said Terry Semel Terry Semel (born on February 24, 1943 in Brooklyn, New York, U.S.A.) is a notable American corporate executive who was the chairman and CEO of Yahoo! Incorporated. Previously, Semel spent 24 years at Warner Brothers, where he served as chairman and co-chief executive officer. , chairman and chief executive officer, Yahoo!. Business Outlook "Our first quarter results show momentum and progress toward our goal to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. free cash flow. This quarter also demonstrated the growing success of our monetization Monetization The securitization of the gross revenues of a contract. strategy, to draw increased value from our enormous consumer base and find new ways to drive financial value," said Susan Decker Susan L. Decker (b. 1963) is the President of Yahoo! Inc.. Previously she was director of Costco Corporation. She graduated from Tufts University with Bachelor of Science in computer science and economics. She then graduated with an MBA from Harvard Business School. , chief financial officer, Yahoo!. "We have upwardly revised our full year outlook for revenue and EBITDA to reflect our performance in the quarter, the acquisition of HotJobs and several other factors. While we are basing our outlook on a continuation continuation - continuation passing style of current economic conditions, we nevertheless anticipate strong, profitable growth in 2002, considering the progress we have demonstrated against the execution of our business plan," continued Decker. The following information is based on current information as of April 10, 2002 and includes the effects of the recent acquisition of HotJobs.com hotjobs.com is an online job search engine, known as Yahoo! HotJobs after being acquired by Yahoo! in 2002. Yahoo! HotJobs provides tools and advice for job seekers, employers, and staffing firms. , Ltd. The company expects revenues for the second quarter 2002 to be between $205 and $225 million, and between $870 and $910 million for the full year 2002. EBITDA (earnings before interest, taxes, depreciation, amortization and stock compensation expense) is expected to be between $23 and $33 million for the second quarter 2002 and between $105 and $130 million for the full year 2002. Capital expenditures are expected to be between $10 and $12 million for the second quarter 2002, and to be between $40 and $50 million for the full year 2002. Depreciation is expected to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $21 million in the second quarter 2002 and $85 million for the full year 2002. The business outlook for the company as of today will be available on the company's Investor Relations Investor relations The process by which the corporation communicates with its investors. Web site throughout the current quarter. It is currently expected the full business outlook will not be updated until the release of Yahoo!'s next quarterly earnings announcement; however, Yahoo! may update the full business outlook or any portion thereof at any time for any reason. Leading Global Audience Yahoo!'s strong consumer metrics in the first quarter continue to underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the company's leadership position among online consumers. In February February: see month. , Yahoo!'s global network was ranked the world's most trafficked Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the destination, a distinction held for seven continuous quarters, and Yahoo! continues to be the worldwide leader in terms of unique users, reach, and total time spent (Nielsen//NetRatings, February 2002). Yahoo!'s global audience grew to 237 million unique users, compared to 192 million in the first quarter of 2001. In addition, a record 98 million active registered members logged onto Yahoo!'s global network during March 2002, compared to 67 million in the first quarter of 2001, a positive indication that Yahoo!'s efforts to build deeper relationships with its consumers are paying off. Quarterly Conference Call Yahoo! will host a conference call today to discuss first quarter results at 5:00 p.m. Eastern Time today. A live Webcast of the conference call can be accessed at http://webevents.broadcast.com/yahoo/041002/. In addition, an archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. of the call can be accessed through the "Conference Calls" area of the company's Investor Relations Web site at http://www.yahoo.com/info/investor, and a replay will be available for 48 hours following the conference call by calling 800-633-8284, reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number: 20087965. About Yahoo! Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! reaches more than 237 million individuals worldwide each month, and is the No. 1 Internet brand globally. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 World properties and is available in 13 languages. This press release and its attachments contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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, the slower spending environment for advertising sales; the actual increases in demand by customers for Yahoo!'s premium and enterprise services; the ability to successfully change the customer mix among Yahoo!'s advertising customers; general economic conditions (including the effects of events related to the terrorist attacks on the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. on Sept. 11, 2001); risks related to the integration of recent acquisitions; the ability to adjust to changes in personnel, including management changes; and the dependence on third parties for technology, content and distribution. All information set forth in this release and its attachments is as of April 10, 2002, and 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended Dec. 31, 2001, including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Additional information will also be set forth in those sections in Yahoo!'s Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the three-month period ended March 31, 2002, which will be filed with the SEC in the near future. Note to Editors: Yahoo! and the Yahoo! logos are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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
March 31,
--------------------------
2002 2001
------------ ------------
Net revenues $ 192,665 $ 180,215
Costs and expenses:
Cost of revenues 37,821 38,543
Sales and marketing 95,597 106,418
Product development 32,219 30,336
General and administrative 21,998 19,131
Payroll taxes on option exercises 162 243
Stock compensation expense 5,621 3,415
Amortization of intangibles 3,422 14,897
--------- ---------
Total costs and expenses 196,840 212,983
--------- ---------
Loss from operations (4,175) (32,768)
Other income (loss), net 22,669 23,276
Minority interests in operations
of consolidated subsidiaries 212 229
--------- ---------
Income (loss) before income taxes and
cumulative effect of accounting change 18,706 (9,263)
Provision for income taxes 8,231 2,223
--------- ---------
Income (loss) before cumulative effect
of accounting change 10,475 (11,486)
Cumulative effect of accounting change (64,120) -
--------- ---------
Net loss $ (53,645) $ (11,486)
========= =========
Net income (loss) per share -- diluted:
Income (loss) before cumulative effect
of accounting change $ 0.02 $ (0.02)
Cumulative effect of accounting change (0.11) -
--------- ---------
Net loss per share -- diluted $ (0.09) $ (0.02)
========= =========
Shares used in per share calculation
-- diluted 610,020 565,447
========= =========
Supplemental Financial Data (1)
-------------------------------
EBITDA $ 24,401 $ 858
After tax cash earnings $ 39,051 $ 23,926
Free cash flow $ 38,294 $ 13,961
After tax cash earnings
per share - diluted (2) $ 0.06 $ 0.04
(1) In order to fully assess the Company's financial operating
results, management believes that EBITDA, After tax cash earnings,
and Free cash flow are appropriate measures of the operating
performance of the Company. However, this supplementary financial
data should be considered in addition to, not as a substitute for
or superior to, operating income, cash flows, or other measures of
financial performance prepared in accordance with generally
accepted accounting principles.
(2) For the quarter ended March 31, 2001 shares used in the After tax
cash earnings per share -- diluted were 596,539.
Yahoo! Inc.
Notes to Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
--------------------------
2002 2001
------------ ------------
Net revenues for groups of
similar services:
Marketing services $ 120,995 $ 141,960
Fees and listings 54,990 33,236
Transactions 16,680 5,019
--------- ---------
Total net revenues $ 192,665 $ 180,215
========= =========
Net revenues by segment:
United States $ 166,612 $ 146,974
International 26,053 33,241
--------- ---------
Total net revenues $ 192,665 $ 180,215
========= =========
EBITDA (1):
Reported loss from operations $ (4,175) $ (32,768)
Depreciation and amortization 22,955 30,211
Stock compensation expense 5,621 3,415
--------- ---------
EBITDA $ 24,401 $ 858
========= =========
EBITDA by segment:
United States $ 32,450 $ 10,056
International (8,049) (9,198)
--------- ---------
EBITDA $ 24,401 $ 858
========= =========
After tax cash earnings (2):
Reported income (loss) before
cumulative effect of
accounting change (3) $ 10,475 $ (11,486)
Depreciation and amortization 22,955 30,211
Stock compensation expense 5,621 3,415
Goodwill amortization of Yahoo!
Japan equity investment - 1,786
--------- ---------
After tax cash earnings $ 39,051 $ 23,926
========= =========
Free cash flow (4):
After tax cash earnings $ 39,051 $ 23,926
Noncash taxes 6,804 2,058
Earnings in equity interests (4,300) (2,400)
Minority interests in operations
of consolidated subsidiaries (212) (229)
Change in working capital 4,238 32,061
Acquisition of property and equipment (7,287) (41,455)
--------- ---------
Free cash flow $ 38,294 $ 13,961
========= =========
(1) Defined as reported loss from operations before depreciation,
amortization, and stock compensation expense.
(2) Defined as reported income (loss) before cumulative effect of
accounting change, depreciation and amortization, stock
compensation expense, and goodwill amortization of Yahoo! Japan
equity investment.
(3) Reported income (loss) before cumulative effect of accounting
change for the quarter ended March 31, 2002 includes significant
nonrecurring items such as net investment losses of $1,893 and
income from contract termination fees of $2,504. Reported income
(loss) before cumulative effect of accounting change for the
quarter ended March 31, 2001 includes significant nonrecurring
items such as net investment losses of $12,620 and income from a
contract termination fee of $9,000.
(4) Defined as after tax cash earnings before noncash taxes, earnings
in equity interests, and minority interests in operations of
consolidated subsidiaries and after the change in working capital
and acquisition of property and equipment.
Yahoo! Inc.
Unaudited Consolidated Summary Balance Sheet Data
(in thousands)
March 31, December 31,
2002 2001
------------ ------------
ASSETS
Cash, cash equivalents,
and investments in
marketable debt securities $ 1,333,948 $ 1,471,993
Accounts receivable, net 89,850 68,648
Restricted investments 258,662 258,662
Property and equipment, net 143,635 131,648
Investments in marketable
equity securities 21,264 34,852
Other assets, net 775,437 413,543
--------- ---------
Total assets $ 2,622,796 $ 2,379,346
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable,
accrued expenses and
other liabilities $ 327,994 $ 272,921
Deferred revenue 125,194 109,402
--------- ---------
Total liabilities 453,188 382,323
--------- ---------
Minority interests in
consolidated subsidiaries 29,794 30,006
Stockholders' equity 2,139,814 1,967,017
--------- ---------
$ 2,622,796 $ 2,379,346
========= =========
Yahoo! Inc.
Unaudited Consolidated Summary Cash Flows Data
(in thousands)
Three Months Ended
March 31,
--------------------------
2002 2001
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (53,645) $ (11,486)
Adjustments to reconcile net
loss to net cash provided
by operating activities:
Depreciation and amortization 22,955 30,211
Tax benefits from stock options 6,804 2,058
Cumulative effect of
accounting change 64,120 -
Earnings in equity interests (4,300) (614)
Minority interests in operations
of consolidated subsidiaries (212) (229)
Other noncash items 7,483 19,052
Change in working capital 4,238 32,061
--------- ---------
Net cash provided by operating activities 47,443 71,053
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment (7,287) (41,455)
Purchases of equity securities - (7,500)
Sales of equity securities 8,483 7,286
Increase in restricted
cash and investments - (193,108)
Acquisitions and dispositions,
net of cash acquired (189,168) (9,771)
--------- ---------
Net cash used in investing activities (187,972) (244,548)
--------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES AND OTHER:
Proceeds from issuance of
Capital Stock, net 15,694 16,495
Other (13,210) 615
--------- ---------
Net cash provided by financing
activities and other 2,484 17,110
--------- ---------
Net change in cash, cash equivalents,
and marketable debt securities (138,045) (156,385)
Cash, cash equivalents, and
investments in marketable debt
securities at beginning of period 1,471,993 1,658,666
--------- ---------
Cash, cash equivalents, and
investments in marketable debt
securities at end of period $ 1,333,948 $ 1,502,281
========= =========
Yahoo! Inc.
First Quarter 2002 Operating Highlights
April 10, 2002
Audience Growth, Usage and Loyalty
-- Yahoo!'s audience across its global network grew to 237
million unique users during March 2002, up from 192 million in
March 2001. A record 98 million active registered members
logged into their personalized Yahoo! services during March
2002, up from 67 million in March 2001. Forty-one percent of
Yahoo!'s unique users are now active registered users.
-- Yahoo!'s traffic increased to a record 1.62 billion page views
per day on average during March 2002, compared to 1.1 billion
in March 2001. Traffic for Yahoo! Japan, which is included in
these page view totals, totaled more than 248 million page
views per day on average in March 2002.
-- Yahoo! was ranked the number one global Web destination for
the 21st consecutive month by Nielsen//NetRatings. Yahoo!
reaches 52 percent of the world's total at home Internet
population. (Nielsen//Netratings Global Internet Index,
February 2002, Home Panel Only)
-- Demonstrating its global strength, Yahoo! is the number one
Internet property in terms of unique audience and reach in
Hong Kong, India, Ireland, Japan, Singapore, and Taiwan and
the number two Internet property in Australia, Argentina,
Canada, Mexico, South Korea, and the United Kingdom. Yahoo! is
in the top five in Austria, Belgium, Brazil, France, Germany,
Israel, Italy, New Zealand, Spain, South Africa and
Switzerland. (Nielsen//Netratings, February 2002)
-- Yahoo.com is the most trafficked Internet brand in the United
States, with the highest number of unique users and the
greatest reach (63 percent), ahead of competitors MSN.com and
AOL.com. Yahoo! is also the preferred brand at work, with a
reach of 72 percent. Consumers also continue to spend more
time on Yahoo! than any other portal, spending an average of
113 minutes on the Yahoo! branded network.
(Nielsen//Netratings, February 2002)
-- According to the Nielsen//NetRatings MarketView Report,
nineteen Yahoo! services or channels were rated within the top
three most popular sites in their respective verticals, as
determined by unique visitors from home and work. Ranked as
the number one most trafficked site in each of their
individual categories were: Yahoo! Search, My Yahoo!, Yahoo!
Finance, Yahoo! Music (LAUNCH), Yahoo! GeoCities and Yahoo!
Greetings. (Nielsen//Netratings MarketView Report, February
2002)
-- Yahoo! now has 25 world properties and is available in
thirteen languages with the launch of Yahoo! En Catala. Yahoo!
is the first major portal to launch a dedicated Catalan site.
Executive Appointments
-- Yahoo! appointed Daniel J. Finnigan as senior vice president
of Yahoo! and executive vice president and general manager of
HotJobs.com, Ltd, a leading recruitment solutions company
acquired by Yahoo! in February 2002. Finnigan will be
responsible for all HotJobs operations, including ongoing
integration with Yahoo! and the development and expansion of
HotJobs' position in the online recruitment space.
-- Christine Castro was named chief communications officer and
senior vice president. An executive with more than twelve
years of experience in corporate communications and public
relations, Castro will be responsible for leading Yahoo!'s
worldwide communications efforts, including public and media
relations; corporate reputation management; corporate,
financial and employee communications; and crisis and issues
management.
Essential Marketing Solutions
-- Yahoo! served 4,175 advertisers and merchants during the first
quarter. Yahoo! clients include 58 of the Fortune 100
advertisers.
-- New accounts and major brands served in the first quarter
include Celebrity Cruises, Intuit, Kimberly-Clark, Procter &
Gamble, Schering-Plough, and Volvo. Internationally, Yahoo!
signed marketing agreements with major brand name companies
around the world including: Avis, Barilla, British Airways,
Carlsberg Brewery, Chrysler, Ford Denmark, Jaguar, Kraft
Foods, Levi's, Nikon Italy, and Sun Microsystems in Europe;
Air Canada in Canada; Procter & Gamble and Fiji Tourism in
Australia & New Zealand; Cosmo Bank, Merck and Sony in Asia;
and Intel in Latin America.
-- Yahoo! launched an agreement with J.D. Power and Associates to
conduct selected J.D. Power surveys online, utilizing Yahoo!'s
technical expertise and global platform. Industries under
consideration for the online surveys include automotive,
financial services, home building, telecom, travel and
utilities. The agreement also provides J.D. Power with an
online distribution channel to offer Yahoo! users selected
automotive quality and customer satisfaction highlights from
the J.D. Power database.
-- Yahoo! announced a marketing agreement with Kellogg Company
for "EET and ERN -- Powered by Yahooligans!," an enhanced
version of the Kellogg online and offline youth loyalty
program that made its debut in 2000. As part of the multi-year
collaboration, program participants will have access to prizes
and merchandise through an online account. More than 170
million boxes of selected Kellogg's cereals and Pop-Tarts will
feature the Yahooligans! logo to alert consumers to the new
program.
-- Yahoo continued to extend its alliance with Pepsi, developing
two promotions in the quarter that leveraged the strength of
Pepsi's offline marketing campaign. First, Yahoo! and Pepsi
developed an innovative promotion around Pepsi's new
commercial featuring Britney Spears, allowing users to vote on
which spot would be seen in the second half of the Super Bowl.
In addition, Yahoo! and Pepsi teamed to give consumers a sneak
peak at Pepsi's new commercial featuring Cindy Crawford for
the Academy Awards and also offered a sweepstakes around the
commercial.
-- Yahoo! continued to bring on global sponsors for FIFA. Philips
Electronics, adidas, KNTO, Motorola, HSBC and United Airlines
joined as marketing partners of FIFAworldcup.com. Yahoo! also
announced the addition of Chinese as the seventh language on
the official site of the 2002 FIFA World Cup
-- In March, Yahoo! announced two major marketing agreements for
Yahoo! Movies (http://movies.yahoo.com), including an online
promotional and market research agreement with Fox Filmed
Entertainment, encompassing the studio's domestic theatrical
and home entertainment initiatives. The agreement represents
Fox's largest advertising commitment to an Internet media
company to date. The company also announced an agreement with
leading independent feature film producer and distributor
Artisan Pictures, consisting of a multifaceted marketing
program to support Artisan's coming theatrical comedy release,
National Lampoon's Van Wilder.
Business Units
Access
-- Yahoo! and SBC announced that the companies will offer small
business customers co-branded, customized DSL and dial-up
services, premium Yahoo! services and other solutions tailored
specifically for small business customers. The new agreement
expands the landmark strategic alliance the two companies
formed last November.
-- Yahoo! and SBC continued to make progress towards the rollout
of their co-branded DSL and dial-up services for consumers.
Full dial-up service is expected to launch later this
Spring, and DSL service is expected to begin to roll out in
the third quarter.
-- Doug Garland was appointed vice president, general manager for
Access and Distribution. Garland brings to the position a
compelling blend of technical, product, marketing, sales and
general management skills from his experience in high-growth,
subscriber-driven businesses, including Sprint PCS,
Excite@Home, Pacific Telesis and MCI.
Business and Enterprise Services
-- Yahoo! Portal Solutions continued to grow, signing five new
customers, bringing the total customer count to 45, and almost
1.3 million licensed seats. New clients include General
Dynamics, Option One Mortgage, and Euro RSCG.
-- Yahoo! Broadcast Solutions again averaged over 15.5 million
hours per month of streamed audio and video programming and
delivered 556 corporate events for 384 customers including 12
new customers such as Lenox International, and a
self-publishing agreement with Compaq to deliver Webcasts over
the next year.
-- Yahoo! continued to add experience, talent, and a fresh
perspective to key growth areas within the company with the
appointment of Jeff Schrock as vice president and general
manger of Yahoo! Broadcast Solutions. Prior to joining Yahoo!,
Jeff was the founder and CEO of Activate.
-- The Yahoo! Store platform hosts more than 18,000 merchants.
Commerce
-- Yahoo! enabled approximately $776 million in commerce
transactions in the first quarter of 2002. This includes
general merchandise sales on Yahoo!'s shopping, store, travel,
and auctions network.
-- In March, Yahoo! launched a ground breaking "Biggest Sale in
Internet History" with nearly 1,000 sales and promotional
offers available on the Yahoo! network. During the three-day
sale, brand name retailers, travel suppliers, specialty
stores, and Yahoo!'s own for-pay services experienced a
significant surge in sales. Several merchants saw sales volume
increase as much as 500 percent, bringing their sales volume
to holiday season levels, while gross sales to Yahoo! Travel
rose 20 percent. The Biggest Sale in Internet History also
resulted in notable lifts in registration and sales for many
of Yahoo!'s own for-pay services.
-- During the first quarter, Yahoo! Travel
(http://travel.yahoo.com) teamed up with British Airways to
launch a transatlantic seat sale, along with 20 Concorde dream
vacations. The Yahoo! Travel platform continued to offer
travel suppliers innovative ways to utilize the powerful and
effective Yahoo! network to sell online travel services.
Communications
-- Yahoo! added enhanced services to its POP Access and
Forwarding features for Yahoo! Mail (http://mail.yahoo.com),
including the ability to send more, and larger attachments -
up to 5MB from previously free 1.5 MB, and five attachments
instead of three. Users can now automatically forward Yahoo!
Mail to another e-mail account, including another Yahoo!
address. The enhanced features are available for $29.99 a
year. However, current Yahoo! Mail users may sign up at a
discounted rate of $19.99 a year if they do so prior to April
24.
-- Yahoo! Greetings (http://greetings.yahoo.com) reached a new
milestone -- delivering more than 11 million online greeting
cards on Valentine's Day. Despite tremendous Valentine's Day
traffic, Yahoo! Greetings provided reliable and fast service
to the millions of consumers who visited the site.
-- Yahoo! launched voice recognition capabilities in its Yahoo!
by Phone (http://phone.yahoo.com) and Yahoo! Phone Card
services, furthering Yahoo! Everywhere's voice and data
strategy to extend Yahoo! beyond the desktop and provide easy
access to essential, personalized and timely information.
-- Yahoo! GeoCities (http://geocities.yahoo.com) expanded its Web
hosting capabilities with the introduction of two additional
packages -- GeoCities Plus and GeoCities Advantage -- to meet
the increasing needs of consumers and small businesses. Yahoo!
GeoCities now offers four Web hosting for-pay packages:
GeoCities Plus, Pro, Webmaster, and Advantage.
Listings
-- On February 12, Yahoo! completed its acquisition of
HotJobs.com, Ltd, a leading recruitment solutions company
whose services include the HotJobs.com consumer job board.
HotJobs is expected to principally drive additional revenue
for Yahoo! through listings fees from employers and recruiters
and subscription fees for access to HotJobs' database of
resumes.
-- Yahoo! Real Estate (http://realestate.yahoo.com) announced a
deal with eRealty to offer homebuyers access to comprehensive,
localized and up-to-date MLS listings available in nine
markets. The company launched the service in Atlanta, Austin,
Boston, Chicago, Dallas/Fort Worth, Houston, Los
Angeles/Orange County, San Diego, and Washington, DC.
-- The company also launched a new Yahoo! Maps
(http://maps.yahoo.com) platform, using technology from map
database providers Navigation Technologies and Geographic Data
Technology, and software companies Telcontar and Sagent. The
new Yahoo! Maps platform replaces the technology formerly
provided by MapQuest.com.
Media, Finance and Information
-- Last week, the company launched Yahoo! Games All-Star, a
for-pay, enhanced games service that provides players with the
power to run their own private game rooms, as well as the
tools to create and manage tournaments and league play.
-- Working with Intuit to offer consumers online tax preparation
and filing services through the Yahoo! Tax Center, Yahoo!
Finance (http://finance.yahoo.com) has seen a 175 percent
increase in online filings compared to the same period the
previous year.
-- Yahoo! Finance now offers the Dow Jones Business Newswire,
featuring breaking news on global companies, markets, and the
economy. The newswire, which is updated twenty four hours a
day, seven days a week, is available on Yahoo! Finance and is
also accessible through Yahoo! News (http://news.yahoo.com).
-- Yahoo! News and Yahoo! Weather (http://weather.yahoo.com)
continued to offer compelling new content. In January, Yahoo!
signed an agreement with USATODAY.com to provide consumers
access to their content via Yahoo! News. The company also
signed a global deal with weather.com, the official website of
The Weather Channel, to provide current and 5-day forecasted
weather conditions, Doppler and other satellite images, and
lifestyle weather updates such including golf, airport, pollen
count, and scenic drives.
-- Yahoo! Sports (http://sports.yahoo.com) continued to add
additional content and sponsors, while receiving record unique
visitors in March. In January, Yahoo! worked with the United
States Olympic Committee (USOC), hosting an Olympic store and
offering USOC content on Yahoo! Sports. In February, the
company signed agreements with TheInsiders.com for
behind-the-scenes college athletic and recruit information and
with SportingNews.com for fantasy sports analysis and
coverage. And in March, Yahoo! Sports provided extensive
College Basketball Tournament coverage, including CBS
broadcaster Clark Kellogg's audio analysis and live audio
broadcasts from games of the men's Division I tournament.
Nearly 600,000 consumers participated in Yahoo!'s tournament
pick'em game, presented by TUMS.
Note to Editors: Yahoo!, Yahoo! Portal A Web "supersite" that provides a variety of services including Web search, news, free e-mail, discussion groups, shopping and links to other sites. The major general-purpose Web portals are Yahoo!, MSN and AOL. Many portals allow the home page to be personalized (see personal portal). Solutions, My 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. |
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