SANTA CLARA, Calif. -- July 8, 1998 --
Yahoo! Inc. (NASDAQ: YHOO) today reported revenues totaling $41.2 million for the second quarter ended June 30, 1998, a 192 percent increase over the same period in 1997. Pro forma net income for the second quarter of 1998 was $8.1 million, or $0.15 per share diluted, before the effect of a $44.1 million non-recurring charge for in-process R&D purchased in the acquisition of Viaweb Inc. The pro forma net income for the current quarter compares with a pro forma net loss of $0.3 million or $0.01 per share diluted, excluding the effect of a $21.2 million non-recurring, non-cash charge incurred during the second quarter of 1997.
In separate announcements today, Yahoo!® said its Board of Directors has approved a 2-for-1 common stock split and that it has entered into an agreement for a $250 million private placement of common stock to SOFTBANK Holdings, Inc.
Yahoo! today also announced that its traffic grew to an average of 115 million page views per day during the month of June 1998, compared to the 95 million page views per day average during March 1998. Yahoo! Japan, which is included in the above page view totals, increased to an average of approximately 8 million page views per day during the month of June 1998 from an average of approximately 6 million per day in March 1998. A page view is defined as one electronic page of information displayed in response to a user request.
Yahoo! also announced that its registered user base grew to more than 18 million members, compared to more than 12 million as of March 1998, reflecting the number of people who have submitted personal data for Yahoo!'s universal registration process. In addition, Yahoo! was recently ranked No. 1 in reach among all Web sites with 54.1 percent of work users accessing Yahoo!. The company's reach among home users has grown to 44.4 percent, and is second only to AOL's reach by 1 percent (Media Metrix, May 1998).
"While we maintained our leadership position in audience reach among work users and continued to experience popularity among home users, we had significant growth in the number of registered Yahoo! members during the quarter," said Tim Koogle, president and CEO, Yahoo!. "We continued to build on the strong distribution platform we deliver to advertisers, merchants, and content providers. As a result, we were able to sign several key agreements during the quarter and experienced strong revenue growth. As always, we are continuing to focus on building our strong brand, delivering quality content and services, and aggressively growing our global audience as well as our advertising and commerce revenue."
Merchant and Shopping Services
During the second quarter, Yahoo! expanded its online merchant services. The company acquired Viaweb Inc. and launched Yahoo! Store to provide small and medium-sized online merchants with a complete, easy-to-use service to create, design, host, manage and promote online stores. In addition, Yahoo! launched Impulse Deals, a new merchandising platform where merchants can offer targeted shopping bargains on the Web. Also during the quarter, AutoConnect joined Yahoo!
Autos' (autos.yahoo.com) featured merchant button program, providing users with easy access to shop for and purchase cars. AT&T and JFAX joined Yahoo!'s premier merchant program to provide traditional communication services and unified messaging services, respectively. The Fragrance Counter is now enabling Yahoo! users to purchase designer fragrances and cosmetics in relevant areas throughout the Yahoo! network of properties.
Yahoo! further expanded its programming during the quarter. The company announced that Inktomi will become Yahoo!'s integrated default search results provider beginning in the third quarter. Yahoo! introduced Yahoo! Computers (computers.yahoo.com), offering users news, product reviews, shareware downloads, shopping services and chats. The company launched Yahoo! Movies (movies.yahoo.com) providing a directory of movie and entertainment information, showtimes, new releases, news and reviews and more. Yahoo! also launched Yahoo! Real Estate (realestate.yahoo.com), a comprehensive, free resource for listings, tools and information on buying, selling and renting property. In addition, Yahoo! Sports (sports.yahoo.com) is providing full coverage of the World Cup '98 in 11 different languages for users around the world.
During the quarter, Yahoo! enhanced the communications services it offers users. Yahoo! users now have convenient access to order and be billed for AT&T's traditional communication services online. In addition, JFAX enables users to turn their Yahoo! Mail (mail.yahoo.com) account into a universal in-box for incoming and outgoing electronic, fax or voice messages. Yahoo! Chat (chat.yahoo.com), the leading Web-based chat service, partnered with PRIMEDIA during the quarter, and now features more than 100 celebrity and expert chats each month.
Yahoo! extended its distribution during the quarter through an agreement with Compaq. My Yahoo! is now the default Internet start page on Compaq's new Internet PC product family, enabling customers to fully personalize their Web experience.
As in the U.S., the company's World Yahoo!s are very popular among Web users, with several of its international sites being ranked No. 1 in various categories. Yahoo! significantly expanded its network of international properties during the quarter. In addition to Yahoo! Italy (yahoo.it), a geographically-based Web guide, Yahoo! launched two language-based Web guides for the significant number of Chinese (chinese.yahoo.com and gbchinese.yahoo.com) and Spanish (espanol.yahoo.com) speaking Web users around the world. The comprehensive, global, branded network of Yahoo! properties has grown to now include 14 World Yahoo!s featuring content and services for geographic areas and language-based global communities.
Yahoo! Inc. is a global Internet media company that offers a network of branded Web programming serving millions of users daily. As the first navigational guide to the Web, www.yahoo.com is the single largest guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. Yahoo! provides targeted Internet resources and communications services for a broad range of audiences, based on demographic, key-subject and geographic interests. Yahoo! is headquartered in Santa Clara, Calif.
This announcement contains forward
looking statements that involve risks and uncertainties,
including those relating to the company's ability to grow
its user and advertiser base, and advertising and commerce
revenues. 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 Web services and advertising
sales, the early stage of the Web as an advertising medium,
the company's dependence on advertising revenues and third
parties for technology, content and distribution. More
information about potential factors which could affect the
company's business and financial results is included in the
company's annual report on Form 10-K for the year ended Dec.
31, 1997, including (without limitation) under the captions,
"Management's Discussion and Analysis of Financial Condition
and Results of Operations," "Risk Factors," "Competition,"
and "Proprietary Rights," the company's quarterly report on
Form 10-Q for the period ended March 31, 1998, and the
company's current report filed on Form 8-K dated June 18,
1998, which are on file with the Securities and Exchange
Commission (www.sec.gov). The accompanying condensed
consolidated statements of operations and balance sheets are
an integral part of this announcement.