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Yahoo grows earnings and revenue in Q1

Yahoo grew its revenue and net income during Q1 2008, as it continues trying to fend off Microsoft's acquisition attempt.

Yahoo grew its revenue and net income and exceeded Wall Street's expectations for both categories during its first quarter of 2008, arguably one of the closest-watched earnings reports of its history, as it tries to fend off an acquisition attempt by Microsoft.

Revenue came in at US$1.818 billion, up 9 percent compared to 2007's first quarter. Deducting the commissions paid to Web sites in its ad network, Yahoo's revenue was US$1.352 billion, a 14 percent increase and above the US$1.324 billion consensus expectation from financial analysts polled by Thomson Financial.

Net income was US$542 million, or $0.37 per share, compared to US$142 million, or $0.10 per share, in 2007's first quarter. That includes a net noncash gain of US$401 million from Alibaba.com's initial public offering.

Pro forma net income, which includes one-time items, was US$150 million, or $0.11 per share, slightly down from net income of US$154 million, or $0.11 per share, in 2007's first quarter, but topping analysts' consensus expectation of $0.09 per share.

Yahoo's directors and managers have been arguing strongly against Microsoft's acquisition bid, announced almost three months ago and now valued at around $42 billion, saying it undervalues the company and is not in investors' best interest.

Yahoo's management has been actively seeking alternative deals that will allow it to build a case against Microsoft's bid, but so far hasn't come up with anything concrete.

The first-quarter financial report and management conference call will likely be closely scrutinized and, depending on how satisfied or dissatisfied investors are with the results, the report is likely to have a significant effect on Yahoo's tussle with Microsoft.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Billion, Microsoft, Thomson Financial, Wall Street, Yahoo

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