Yahoo Q1: Tepid Quarter, Firing 5%

Welcome! Release here.   Replay of call here. Live discussion of call below.  Earnings slideshow below that.

Quick take: Results basically in line, outlook slightly disappointing. Revenue was slightly light, EPS in line.  Outlook for Q2 below street consensus.  Overall, a bit disappointing, although current results not particularly relevant. Announces aggressive 5% layoffs (approx 650 employees), which is a smart move.

Marketing services revenue dropped 12% year over year, which is lousy given that the industry was basically flat.  This is mitigated by FX and the sale of some businesses, however (Ex FX and sales, revenue down 3%). Owned-and-operated site revenue was down 10%.  Cost control was good, preserving $214 million of free cash flow.  The additional cuts will help preserve this cash flow despite flat revenue in Q2.

Carol has consolidated control, assuming president slot after Sue Decker’s departure.  No new CFO announcement yet.  The cost cuts are deep, which is smart (avoids death by 1000 cuts).  Now Carol’s main order of business is getting the revenue engine running again.

Call highlight: Carol’s f-bomb!

Results vs Consensus

  • Gross Revenue: $1.58 billion vs. consensus of $1.65 billion
  • Net Revenue: NA vs. consensus of $1.2 billion
  • EBITDA: $408 million vs. $400 million consensus
  • GAAP EPS: $0.08 vs. $0.08
  • Q2 Outlook: $1.525 billion vs. $1.6 billion consensus



Yahoo YHOO Q109 Earnings Presentation
Yahoo YHOO Q109 Earnings Presentation hblodget

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Yahoo (YHOO) will report earnings after the bell.  The results are expected to be crappy, but in line with Wall Street consensus (below).  Carol Bartz is also expected to announce that she’s firing a few hundred people.  

Yahoo’s stock appears to have turned the corner, and hopefully Carol will be inspiring enough to keep the momentum going.  We don’t expect to hear any details about the Microsoft deal, but we doubt that will take much longer to consummate.

We’ll be analysing the results and conference call live here beginning just after 4PM ET.  Please join us!


  • Gross Revenue: $1.65 billion
  • Net Revenue: $1.2 billion
  • EBITDA: $400M
  • GAAP EPS: $0.08

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