Yahoo! Reports Profitable First Quarter Results
Company Posts $9.5 Million in Revenues and
$210,000 in Net Income
SANTA CLARA, Calif. -- April 9, 1997 -- Yahoo!
Inc. (NASDAQ: YHOO) today reported revenues totaling
$9,515,000 for the first quarter ended March 31, 1997
compared to revenues of $1,733,000 for the first quarter in
fiscal year 1996. Net income for the first quarter was
$210,000 or $0.01 per share, compared to net income of
$81,000 or $0.00 per share for the comparable period in the
previous year.
Yahoo! also announced its traffic grew to an average of
more than 30 million page views per day during the month of
March 1997, a 50 percent increase over the 20 million page
views per day average reported in December 1996. Yahoo!
Japan, which is included in the above page view totals,
increased to more than two million page views per day in
March 1997. A page view is defined as one electronic page of
information displayed in response to a user request.
According to PC Meter, Yahoo! was ranked the No. 1 search
and navigational site on the Web for the fifth consecutive
quarter, with an overall audience reach of 37.8 percent in
February. In addition, Yahoo! News and Yahoo! Finance were
ranked the No. 1 sources of up-to-the-minute general news
and financial information on the Web according to recent
analysis by PC Meter.
"We are pleased with the increased use of our services as
measured in page views, which has grown five fold from a
year ago," said Tim Koogle, Yahoo!'s president and chief
executive officer. "The continued traffic growth during
business and leisure hours across our family of media
properties reconfirms that we are providing our users with
the information and services they desire, thus delivering
our advertisers with a large and growing audience. We are
focusing on building Yahoo! services and the Yahoo! brand on
a global basis and will continue to place a higher priority
on such investments rather than on delivering short-term
profits. These upfront investments are key to maintaining
our leadership position in a very competitive market."
Yahoo! continued to increase its advertiser base in the
first quarter, adding several well known national brands to
its client list. IBM Corporation, one of the top three Web
advertisers, has selected the Yahoo! Network to launch a
global Internet advertising program. The ad program, which
begins this month and runs through year end, will leverage
Yahoo!'s complete network of properties, locally and
internationally, to promote IBM in technology and
Internet-related content areas. Yahoo!'s growing list of new
advertisers included several major accounts in the quarter,
such as Avon, Buick, Condenet, Domino's Pizza, Hitachi,
Johnson & Johnson, Lufthansa, Novell, Oldsmobile,
Prodigy, Spiegel, and UPS.
During the quarter, Yahoo! expanded its distribution to
now include Netscape Guide by Yahoo!, which is scheduled to
be launched in the second quarter. Under its agreement with
Netscape Communications Corporation, Yahoo! will program,
produce, operate, and run ad sales for this new,
high-profile Internet navigation service. The personalized
guide, which is designed to provide users with a central
comprehensive source of sites, news, and other valuable
services on the Web, leverages Yahoo!'s existing business,
while expanding the company's potential distribution, sales,
and advertising revenue opportunities. Yahoo! will also
operate and manage What's New, What's Cool, People, and
Yellow Pages on Netscape's Internet site.
The company also added several new services in the first
quarter. Yahoo! Chat, a free platform available to all
Internet users, enables communication among Yahoo! users
worldwide. Yahoo! Classifieds is a nationwide extension of
classifieds services already popular on Yahoo!'s metro sites
and features listings for employment, autos, real estate,
rentals, computers, pets, personals, and miscellaneous
merchandise. Yahoo! also added The Motley Fool's popular
personal investing information and educational service to
Yahoo! Finance, which provides portfolio management,
charting, company profiles, news, and stock quotes. Yahoo!
and Wire Networks Inc., producers of Women's Wire, launched
Beatrice's Web Guide, a topical interactive site designed to
deliver reviews and tips about the best Web sites for women.
Yahoo! continued expanding its geographical programming
through local, regional, and national properties. The
company launched Yahoo! Seattle, Yahoo! Dallas, and Yahoo!
Austin during the quarter and now serves 10 of the largest
markets in the United States in addition to Get Local, which
reaches more than 30,000 cities. These sites combine local
content, news, and entertainment programming, and free
communication services, including bulletin boards,
classifieds, yellow pages, and interactive maps. Yahoo! also
continues to offer its services internationally in the
United Kingdom, France, and Germany and announced several
new European advertisers in the first quarter, including
British Airways, British Sky Broadcasting, Guinness,
Nescafe, Opel, and Siemens.
About Yahoo!
Yahoo! Inc. (NASDAQ:YHOO) is an Internet media company that
offers a network of globally-branded properties, specialty
programming, and aggregated content distributed primarily on
the Web serving business professionals and consumers. As the
first online navigational guide to the Web, www.yahoo.com is
the single largest guide in terms of traffic, advertising,
and household reach, and is one of the most recognized
brands associated with the Internet. Yahoo! Inc. continues
to develop a family of community services, including Yahoo!
Chat, Classifieds, and Yellow Pages, along with targeted
Internet guides for geographcic audiences (Yahoo! Japan, UK
& Ireland, France, Germany, Canada, San Francisco Bay
Area, Los Angeles, New York, Chicago, Washington, D.C.,
Boston, Austin, Seattle, Dallas/Fort Worth, Atlanta);
shared-interest audiences (Yahoo! Internet Life magazine and
website, Yahoo! Finance, Yahoo! News and unfURLed,
MTV/Yahoo!'s online music guide); and demographic audiences
(Yahooligans!, a Web guide for kids; and Beatrice's Web
Guide for women). Yahoo! Inc. is headquartered in Santa
Clara, Calif., and can be found on the Web at www.yahoo.com.
This announcement contains forward looking statements
that involve risks and uncertainties, including those
relating to the company's ability to continue to increase
its advertiser and user base, to successfully introduce new
local and international media properties, and to sustain
profitability in future periods. Actual results may differ
materially from the results predicted and reported results
should not be considered an indication of future
performance. The potential risks and uncertainties include,
among others, the company's limited operating history, the
increasingly competitive environment for the company's
services and advertising sales, the early stage of the Web
as an advertising medium, and the company's dependence on
advertising revenues and third parties for sales,
technology, content and distribution. More information about
potential factors which could affect the company's financial
results is included in the company's annual report on Form
10-K for the year ended Dec. 31, 1996, which is on file with
the Securities and Exchange Commission.
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Yahoo! Inc. Condensed Consolidated Income
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# # #
Yahoo!, the Yahoo! logo, and Yahooligans!
are trademarks and/or registered trademarks of Yahoo! Inc.
Beatrice's Web Guide is a trademark of Yahoo! Inc. and Wire
Networks, Inc. All other names are trademarks and/or
registered trademarks of their respective owners.
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