In what’s probably its last financial report as an independent company, Yahoo reported Q1 results that beat analyst expectations — and said it still expects the deal to sell its media assets to Verizon to close in June.
She adds that she has “never been more proud of the improvements we’ve made to the business and the value we’ve delivered to our shareholders.”
Yahoo generated Q1 net earnings of $99.4 million, up from a $99.2 million loss in the period last year, on revenues of $1.33 billion, up 22.1%. That beat the Street’s expectation for revenues of $1.23 billion.
Adjusted earnings at 18 cents a share exceeded predictions for 14 cents.
A change in the presentation of the company’s finances, tied to an amendment to its Microsoft Search Agreement, added $304 million both to revenues and costs. If you take it out of the equation, then Yahoo revenues would have come in at $1.02 billion, down 6% vs the period last year — but with a 17% drop in costs.
“We feel incredibly proud that we executed so well against our 2016 plan and kicked off 2017 on a positive note by achieving our internal operating goals,” Yahoo CFO Ken Goldman said.
In addition to meeting its revenue goals, the company “continued managing our capital and cash operating expenditures closely, ending the quarter with over $8 billion in cash, cash equivalents, and marketable securities, representing an increase of nearly $900 million year over year. As we prepare to close the sale of this iconic company to Verizon, I’m very pleased with what we have accomplished with regard to the achievement of our operating and financial plans.”
Yahoo agreed in February to reduce the value of its asset sale to Verizon by $350 million, to $4.48 billion. The telco insisted on a lower price for the deal cut last year after discovering that more than 1 billion Yahoo accounts had been hacked in 2013 and 500 million in 2014.