SAN FRANCISCO (04/05/2000) - Internet portal behemoth Yahoo Inc. posted first-quarter results today that beat Wall Street earnings estimates and showed burgeoning audience interest and increased revenue.
Yahoo also announced that Susan Decker, the former head of global research for Donaldson, Lufkin & Jenrette Inc., will replace Gary Valenzuela as company chief financial officer. Decker will join Yahoo in June, according to a Yahoo statement issued today. Valenzuela and Decker will work together until he retires in July.
For the first quarter ended March 31, 2000, Yahoo reported pro forma net income of US$63.3 million, or 10 cents per diluted share, excluding special charges such as those related to acquisitions, compared with net income of $17.7 million, or 3 cents per diluted share for the year-ago period.
The earnings per share beat the consensus estimate of 8 cents per share as predicted by 24 brokers polled by First Call/Thomson Financial.
Yahoo reported first-quarter net revenue of $228.4 million, up 120 percent from $103.9 million for the same quarter a year ago.
Page views of Yahoo's portal increased to a record of 625 million views a day on average during last month, up from 465 million page views per day in December 1999.
Yahoo's strong performance came as no surprise to analysts who said the company's earnings growth positioned it in strong contrast to many Internet companies showing slim or no gains.
"Yahoo is emerging as a clear winner in the space," said Van Baker, an analyst with Stamford, Connecticut-based Gartner Group Inc. "They are actually generating money."
The recent decline in the value of many Internet stocks does not reflect weakness in Yahoo, Baker said. The stock losses of other companies, "actually enhances Yahoo's value," he added.
Yahoo's shares on the Nasdaq exchange closed today at $165.5, down $1.80 or 1 percent.
Yahoo, based in Santa Clara, California, can be reached at +1-408-731-3300 or via the Internet at http://www.yahoo.com/.