[Techtaffy Newsdesk]
Yahoo announced results for the quarter ended September 30, 2012, after the markets closed on Monday.
Revenue excluding traffic acquisition costs (“Revenue ex-TAC”) was $1,089 million for the third quarter of 2012, a 2 percent increase compared to the third quarter of 2011; revenue was $1,202 million for the third quarter of 2012, a 1 percent decrease from the third quarter of 2011. Income from operations decreased 14 percent to $152 million in the third quarter of 2012, compared to $177 million in the third quarter of 2011. Net earnings per diluted share was $2.64 in the third quarter of 2012, compared to 23 cents in the third quarter of 2011.
Marissa Mayer (CEO, Yahoo): Yahoo had a solid third quarter, and we are encouraged by the stabilization in search and display revenue. We’re taking important steps to position Yahoo for long-term success.
Third Quarter 2012 Revenue Highlights
- Display revenue ex-TAC was $452 million, flat compared to the third quarter of 2011.
- GAAP display revenue was $506 million, a 1 percent increase compared to $502 million for the third quarter of 2011.
- Search revenue ex-TAC was $414 million, an 11 percent increase compared to $374 million for the third quarter of 2011.
- GAAP search revenue was $473 million, a 1 percent increase compared to $467 million for the third quarter of 2011.
Cash Flow and Cash Balance
- Cash flow from operating activities for the third quarter of 2012 was $1,046 million, a 194 percent increase compared to $356 million for the same period of 2011. Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, cash flow from operating activities for the third quarter of 2012 was $496 million.
- Free cash flow was $920 million for the third quarter of 2012, a 273 percent increase compared to $247 million for the same period of 2011. Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, free cash flow for the third quarter of 2012 was $370 million.
- Cash, cash equivalents, and investments in marketable debt securities were $9.4 billion at September 30, 2012 compared to $2.5 billion at December 31, 2011, an increase of $6.9 billion. We estimate that we will pay approximately $2.5 billion in taxes related to the Alibaba share repurchase agreement, the majority of which will be paid in the fourth quarter of 2012.
- During the third quarter of 2012, Yahoo repurchased 12 million shares for $190 million.