Yahoo! Sets Quarterly Revenue Record

NEW YORK Yahoo! posted $664 million in Q4 revenue, achieving 132 percent growth over last year and its most successful quarter in its 10-year history.

Net income for the fourth quarter totaled $75 million, or 11 cents per diluted share, compared to $46 million, or 8 cents per diluted share, in the year-ago period.

More than 80 percent of the Web portal’s overall revenue in Q4 came from advertising and marketing. Revenue from marketing services was $546 million, up 178 percent from $196 million during the same time last year. Yahoo! attributed the significant year-over-year boost to increased revenues from its global marketing services and search and marketplace properties, as well as incremental revenue from commercial search company Overture, which it purchased in October.

Still, the Web portal continued to see positive results from diversifying its business beyond online advertising, posting double-digit gains in its fees and listings services in the third quarter. Fourth-quarter revenue from the Internet company’s fees-related services, including its dial-up and DSL products and Yahoo! Personals, rose 37 percent to $85 million.

Meanwhile, Q4 year-over-year revenue for its listings services grew 21 percent to $33 million. The boost was driven primarily by the incremental contribution of revenue from HotJobs, which was acquired in February 2002, as well as increases in search and marketplace services revenue.

Yahoo! enjoyed a healthy 2003 overall, with full-year revenue rising 70 percent to $1.6 million from $953 million the year before. Almost $1.2 million of that came from marketing services revenue, which was up 84 percent from the prior year. Fees revenue for 2003 increased 43 percent to $298 million, while listings revenue was up 36 percent to $127 million.

Net income for the year reached $238 million, or 37 cents per share, compared with income before the cumulative effect of accounting change of $107 million, or 18 cents per share, in 2002.

Yahoo! shares (YHOO) closed on the Nasdaq today at $48.39, down 41 cents or nearly 1 percent. In after-hours trading, the stock dropped 4 percent to $46.48. Its 52-week high is $50.41; its low, $17.30.