Yahoo’s Ad Revenue Rises

NEW YORK Yahoo recorded a 31 percent year-over-year rise in fourth-quarter advertising revenue, thanks in part to an increase in sponsored-search services.

The Sunnyvale, Calif.-based Web portal said Wednesday that revenue from marketing services totaled $177.5 million in Q4, up from about $135 million in the same period a year ago. That boost, partially offset by a decrease in barter revenue, was primarily a result of the inside sales organization and more small- to mid-size marketers using sponsored searches. In the third quarter, Yahoo’s ad revenue reached $147.4 million, up 22 percent over Q3 2001 [IQ Daily Briefing, Oct. 10, 2002].

A day after releasing healthy fourth-quarter and full-year financial results, Yahoo shares closed on the Nasdaq Thursday at $18.75, down 83 cents or 4.24 percent. The stock’s (YHOO) 52-week high is $20.54 and 52-week low is $8.94.

Yahoo’s total net revenue for the fourth quarter totaled $285.8 million, a 51 percent increase versus $188.9 million a year ago. Excluding HotJobs, an acquisition completed earlier this year, Yahoo’s revenue rose 39 percent over the same time in 2001. Net income for Q4 was $46.2 million, or 8 cents per share, compared with a loss of $8.7 million, or 2 cents per share, in the year-earlier period.

Over the past couple of years, Yahoo has taken steps to diversify its revenue stream beyond online advertising. Those efforts appear to be paying off as fourth-quarter revenue from the Internet company’s fees- and listings-based services, including its personals ads, job listings, and dial-up and DSL products, boomed 120 percent to $89.4 million. Excluding HotJobs, the growth was 65 percent over Q4 2001. Revenue from transactions totaled $19 million, a 45 percent increase compared to the same period last year.

For 2002, Yahoo’s net revenue was $953.1 million, a 33 percent rise over the $717.4 million reported in 2001. The company also raised its forecast on Wednesday; revenue for 2003 is expected to be between $1.1-1.2 billion.