Press Release
Yahoo Reports First Quarter 2016 Results
"I'm pleased that we delivered Q1 results in line with our expectations.
Our 2016 plan is off to a solid start as we continue to focus on driving
efficiency, lowering costs, and improving long-term growth," said
Q1 2015 | Q1 2016 | |||||
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Non-GAAP income from operations |
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Net earnings |
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Business Highlights
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Strategic Alternatives Update
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The Board of Directors at
Yahoo formed a strategic review committee of independent directors to consider strategic alternatives for the company alongside its continued consideration of a reverse spin. Since the launch of the process in February, management has worked diligently with the committee and its independent legal and financial advisors to engage with interested strategic and financial parties.
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The Board of Directors at
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Company Updates
- Introduced an enhanced mobile search experience making it easier for users to get the most relevant, specialized information about sports teams, players, presidential candidates and movies.
- Launched new features for Yahoo Mail Android and iOS apps that help users stay organized and get more things done quickly. New features include customizable swipe options, actionable notifications, recent attachment features, new colorful themes and 3D gestures.
- Unveiled the new Yahoo App and Homepage that allows users to more easily access related news they're interested in, share their commentary on news they read, and stay apprised of developments with real-time notifications when stories are updated.
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As part of our commitment to delivering the best sports content
experience on
Yahoo Sports , we introducedYahoo Esports, a premium destination that aims to become the most comprehensive guide for esports fans. The site features reporting, blogging, video commentary, match pages, team rosters, stats, related schedules, scores and a live chat feature where fans can connect with the community. -
Yahoo Sports continued to build on past success in live streaming events through new and expanded partnerships with professional sports organizations like theNHL ,PGA and MLB. - Announced that Yahoo Finance, the site that provides users with unparalleled access to data, analysis and insights, will host the first-ever live stream of the Berkshire Hathaway annual shareholders meeting.
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Held three well-attended Yahoo Mobile Developer Conferences in
San Francisco ,Taiwan andHong Kong whereYahoo introduced new tools as part of the Yahoo Mobile Developer Suite designed to help developers grow their apps and build their businesses. New features include a redesigned Flurry Analytics platform, a new Flurry App, tvOS analytics support and direct ad serving capabilities. -
In
March 2016 , we appointed two new directors who each bring a strong expertise in complex business matters;Cathy Friedman andEric Brandt .Cathy Friedman spent 23 years at Morgan Stanley as a strategic and transaction advisor.Eric Brandt brings significant financial and business management experience as a former pharmaceutical and technology executive, and was most recently involved in the acquisition ofBroadcom Corporation by Avago.
First Quarter 2016 Financial Highlights
Mavens Revenue:
Q1 2015 | Q1 2016 | ||||||
Mavens revenue |
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Non-Mavens revenue | 742 million | 644 million | |||||
Total traffic-driven revenue |
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Non-traffic-driven revenue | 119 million | 53 million | |||||
GAAP revenue |
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Mavens revenue represented 33 percent of traffic-driven revenue in the first quarter of 2015, and increased to 38 percent in the first quarter of 2016.
Mobile Revenue:
Q1 2015 | Q1 2016 | ||||||
Mobile revenue |
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Desktop revenue | 873 million | 774 million | |||||
Total traffic-driven revenue |
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Non-traffic-driven revenue | 119 million | 53 million | |||||
GAAP revenue |
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Mobile revenue represented 21 percent of traffic-driven revenue in the first quarter of 2015, and increased to 25 percent in the first quarter of 2016.
Gross mobile revenue for the first quarter of 2015 and 2016 was
Search Revenue:
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Gross search revenue was
$820 million for the first quarter of 2016, a decrease of 15 percent compared to the first quarter of 2015. -
GAAP search revenue was
$492 million for the first quarter of 2016, a decrease of 9 percent compared to the first quarter of 2015. -
Cost of revenue - TAC paid to search partners was
$144 million for the first quarter of 2016, a 44 percent increase compared to the first quarter of 2015. - The number of Paid Clicks decreased 21 percent compared to the first quarter of 2015.
- Price-per-Click increased 7 percent compared to the first quarter of 2015.
Display Revenue:
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GAAP display revenue was
$463 million for the first quarter of 2016, a 1 percent decrease compared to the first quarter of 2015. -
Cost of revenue - TAC paid to display partners was
$83 million for the first quarter of 2016, a 1 percent increase compared to the first quarter of 2015. - The number of Ads Sold increased 8 percent compared to the first quarter of 2015.
- Price-per-Ad decreased 6 percent compared to the first quarter of 2015.
Cash, Cash Equivalents, and
-
Cash, cash equivalents, and marketable securities were
$7.1 billion as ofMarch 31, 2016 compared to$6.8 billion as ofDecember 31, 2015 , an increase of$0.3 billion .
"We delivered financial results at the high end or above our guidance
ranges. We also achieved free cash flow of
Live Stream
Non-GAAP Financial Measures
This press release and its attachments include the following financial
measures defined as non-GAAP financial measures by the
Gross mobile revenue is GAAP mobile revenue plus the related revenue share with third parties. Gross search revenue is GAAP search revenue plus the related revenue share with third parties. Revenue ex-TAC is GAAP revenue less cost of revenue - TAC. Adjusted EBITDA, non-GAAP income from operations, non-GAAP net earnings and non-GAAP net earnings per share - diluted, exclude from the most comparable GAAP financial measures certain gains, losses, and expenses that we do not believe are indicative of ongoing results, and exclude stock-based compensation expense. Adjusted EBITDA also excludes taxes, depreciation, amortization of intangible assets, other expense, net (which includes interest), earnings in equity interests, and net income attributable to noncontrolling interests. Free cash flow is GAAP net cash provided by operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net (i.e., acquisition of property and equipment less proceeds received from disposition of property and equipment) and dividends received from equity investees.
These measures may be different than non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP"). Explanations of the Company's non-GAAP financial measures and reconciliations of these financial measures to the GAAP financial measures the Company considers most comparable are included in the accompanying "Note to Supplemental Financial Data and GAAP to Non-GAAP Reconciliations," "Supplemental Financial Data and GAAP to Non-GAAP Reconciliations," and "GAAP to Non-GAAP Reconciliations."
About
"Ads Sold" consist of display ad impressions for paying advertisers
on
"Affiliates" refers to the third-party entities that have integrated Yahoo's advertising offerings into their websites or other offerings (those websites and other offerings, "Affiliate sites").
"Alibaba Group" means Alibaba Group Holding Limited. In
"Desktop computer" means a desktop or laptop computer, and "desktop revenue" is revenue generated from search and display ads served on desktop computers and also includes leads, listings and fees revenue and ecommerce revenue allocated to user activity on desktop computers.
"Gross mobile revenue," a non-GAAP measure, is GAAP mobile revenue plus the related revenue share with third parties.
"Gross search revenue," a non-GAAP measure, is GAAP search revenue plus the related revenue share with third parties.
"Mavens revenue" is revenue generated from, without duplication: (i)
mobile (as defined below), (ii) video ads and video ad packages, (iii)
native ads, and (iv)
"Mobile revenue" is revenue generated in connection with user activity on mobile devices, including smartphones and tablets, regardless of whether the device is accessing a mobile-optimized service. Mobile revenue is generated primarily from search and display ads. Mobile revenue also includes leads, listings and fees revenue and ecommerce revenue allocated to user activity on mobile devices.
"Native revenue" is revenue generated from native ads (search
and display) on
"Net earnings" means net income (loss) attributable to
"Non-Mavens revenue" is revenue generated from search ads and
traditional (i.e., non-native, non-video, non-
"Non-traffic-driven revenue" is revenue not arising from user
activity on
"Paid Clicks" are clicks by end-users on sponsored search listings
(excluding native ads) on
"Price-per-Ad" is defined as display revenue divided by our total number of Ads Sold.
"Price-per-Click" is defined as Search click-driven revenue divided by our total number of Paid Clicks.
"Search Agreement" refers to the Search and Advertising Services and
Sales Agreement between
"Search click-driven revenue" is gross search revenue excluding the Microsoft RPS guarantee and search revenue from Yahoo Japan.
"TAC" refers to traffic acquisition costs. TAC consists of
payments to Affiliates and payments made to companies that direct
consumer and business traffic to
"Yahoo," "Company," and "we" refer to
"Yahoo Properties" refers to the online properties and services that
We periodically review, refine and update our methodologies for monitoring, gathering, and counting number of Ads Sold and Paid Clicks, and for calculating Search click-driven revenue, Price-per-Ad, and Price-per-Click.
Additional information about how "Ads Sold," "Paid Clicks,"
"Price-per-Ad," "Price-per-Click," and "Search click-driven revenue" are
defined and calculated is included under the caption "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's Annual Report on Form 10-K for the year
ended
This press release contains forward-looking statements concerning
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Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
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2015 |
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2016 |
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ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 1,631,911 | $ | 1,479,604 | ||
Short-term marketable securities | 4,225,112 | 4,497,046 | ||||
Accounts receivable, net | 1,047,504 | 878,135 | ||||
Prepaid expenses and other current assets | 602,792 | 369,440 | ||||
Total current assets | 7,507,319 | 7,224,225 | ||||
Long-term marketable securities | 975,961 | 1,153,846 | ||||
Property and equipment, net | 1,547,323 | 1,496,510 | ||||
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808,114 | 815,979 | ||||
Intangible assets, net | 347,269 | 316,251 | ||||
Other long-term assets and investments | 342,390 | 251,970 | ||||
Investments in Alibaba Group | 31,172,361 | 30,313,175 | ||||
Investments in equity interests | 2,503,229 | 2,583,979 | ||||
Total assets | $ | 45,203,966 | $ | 44,155,935 | ||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 208,691 | $ | 187,862 | ||
Other accrued expenses and current liabilities | 934,658 | 830,542 | ||||
Deferred revenue | 134,031 | 139,606 | ||||
Total current liabilities | 1,277,380 | 1,158,010 | ||||
Convertible notes | 1,233,485 | 1,249,775 | ||||
Long-term deferred revenue | 27,801 | 30,733 | ||||
Other long-term liabilities | 118,689 | 124,306 | ||||
Deferred tax liabilities related to investment in Alibaba Group | 12,611,867 | 12,261,783 | ||||
Deferred and other long-term tax liabilities | 855,324 | 817,635 | ||||
Total liabilities | 16,124,546 | 15,642,242 | ||||
Total |
29,043,537 | 28,476,868 | ||||
Noncontrolling interests | 35,883 | 36,825 | ||||
Total equity | 29,079,420 | 28,513,693 | ||||
Total liabilities and equity | $ | 45,203,966 | $ | 44,155,935 | ||
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Unaudited Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share amounts) | ||||||||
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Three Months Ended |
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2015 | 2016 | |||||||
Revenue | $ | 1,225,970 | $ | 1,087,152 | ||||
Operating expenses: | ||||||||
Cost of revenue - traffic acquisition costs | 183,139 | 227,763 | ||||||
Cost of revenue - other | 285,263 | 282,587 | ||||||
Sales and marketing | 275,357 | 236,033 | ||||||
Product development | 326,747 | 278,029 | ||||||
General and administrative | 173,513 | 155,451 | ||||||
Amortization of intangibles | 20,073 | 18,773 | ||||||
Gain on sale of patents | (2,000 | ) | (1,500 | ) | ||||
Restructuring charges, net | 51,232 | 57,230 | ||||||
Total operating expenses | 1,313,324 | 1,254,366 | ||||||
Loss from operations | (87,354 | ) | (167,214 | ) | ||||
Other expense, net | (31,063 | ) | (47,416 | ) | ||||
Loss before income taxes and earnings in equity interests | (118,417 | ) | (214,630 | ) | ||||
Benefit for income taxes | 40,900 | 34,766 | ||||||
Earnings in equity interests | 99,690 | 81,574 | ||||||
Net income (loss) | 22,173 | (98,290 | ) | |||||
Less: Net income attributable to noncontrolling interests | (975 | ) | (942 | ) | ||||
Net income (loss) attributable to |
$ | 21,198 | $ | (99,232 | ) | |||
Net income (loss) attributable to |
$ | 0.02 | $ | (0.10 | ) | |||
Shares used in per share calculation - diluted | 947,976 | 945,719 | ||||||
Stock-based compensation expense by function: | ||||||||
Cost of revenue - other | $ | 6,009 | $ | 8,526 | ||||
Sales and marketing | 38,121 | 32,887 | ||||||
Product development | 48,221 | 47,988 | ||||||
General and administrative | 23,345 | 19,006 | ||||||
Restructuring charges, net | 2,705 | 7,374 | ||||||
Supplemental Financial Data: |
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Revenue ex-TAC | $ | 1,042,831 | $ | 859,389 | ||||
Adjusted EBITDA | $ | 231,113 | $ | 147,072 | ||||
Free cash flow(1)(2) |
$ | (3,034,922 | ) | $ | 297,195 | |||
(1) |
During the three months ended |
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(2) |
Q1'16 includes a |
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Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
Three Months Ended | ||||||||
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2015 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | 22,173 | $ | (98,290 | ) | |||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||
Depreciation | 117,061 | 107,377 | ||||||
Amortization of intangible assets | 34,478 | 32,288 | ||||||
Accretion of convertible notes discount | 15,457 | 16,290 | ||||||
Stock-based compensation expense | 118,401 | 115,781 | ||||||
Non-cash restructuring (reversals) charges | (859 | ) | 362 | |||||
Non-cash accretion on marketable debt securities | 16,012 | 12,354 | ||||||
Foreign exchange loss (gain) | 18,233 | (6,524 | ) | |||||
Loss (gain) on sale of assets and other | 63 | (190 | ) | |||||
Gain on sale of patents | (2,000 | ) | (1,500 | ) | ||||
Loss on Hortonworks warrants | 11,909 | 39,150 | ||||||
Earnings in equity interests | (99,690 | ) | (81,574 | ) | ||||
Tax benefits from stock-based awards | 32,822 | 1,192 | ||||||
Excess tax benefits from stock-based awards | (37,470 | ) | (7,526 | ) | ||||
Deferred income taxes | 17,009 | (37,794 | ) | |||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||
Accounts receivable | 89,923 | 172,677 | ||||||
Prepaid expenses and other | (64,245 | ) | 232,783 | |||||
Accounts payable | 30,613 | 2,844 | ||||||
Accrued expenses and other liabilities | 66,466 | (142,308 | ) | |||||
Income taxes payable related to sale of Alibaba Group ADSs | (3,282,293 | ) | - | |||||
Deferred revenue | (65,002 | ) | 8,376 | |||||
Net cash (used in) provided by operating activities | (2,960,939 | ) | 365,768 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquisition of property and equipment | (111,677 | ) | (76,399 | ) | ||||
Proceeds from sales of property and equipment | 224 | 300 | ||||||
Purchases of marketable securities | (712,818 | ) | (1,871,316 | ) | ||||
Proceeds from sales of marketable securities | 172,352 | 47,374 | ||||||
Proceeds from maturities of marketable securities | 2,359,767 | 1,369,836 | ||||||
Purchases of intangible assets | (1,160 | ) | (1,177 | ) | ||||
Proceeds from sales of patents | 20,000 | 1,500 | ||||||
Proceeds from the settlement of derivative hedge contracts | 19,627 | 36,028 | ||||||
Payments for the settlement of derivative hedge contracts | (2,151 | ) | (3,024 | ) | ||||
Acquisitions, net of cash acquired | (23,073 | ) | - | |||||
Other investing activities, net | (38 | ) | (58 | ) | ||||
Net cash provided by (used in) investing activities | 1,721,053 | (496,936 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of common stock | 36,189 | 4,754 | ||||||
Repurchases of common stock | (203,771 | ) | - | |||||
Excess tax benefits from stock-based awards | 37,470 | 7,526 | ||||||
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units |
(97,426 | ) | (42,139 | ) | ||||
Other financing activities, net | (4,573 | ) | (3,637 | ) | ||||
Net cash used in financing activities | (232,111 | ) | (33,496 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (17,444 | ) | 12,357 | |||||
Net change in cash and cash equivalents | (1,489,441 | ) | (152,307 | ) | ||||
Cash and cash equivalents, beginning of period | 2,664,098 | 1,631,911 | ||||||
Cash and cash equivalents, end of period | $ | 1,174,657 | $ | 1,479,604 | ||||
Note to Supplemental Financial Data and GAAP
to Non-GAAP Reconciliations
This press release and its attachments include the non-GAAP financial
measures of revenue excluding traffic acquisition costs ("revenue
ex-TAC"); gross mobile revenue; gross search revenue; adjusted EBITDA;
non-GAAP income from operations; non-GAAP net earnings; non-GAAP net
earnings per diluted share; and free cash flow, which are reconciled to
revenue (in the case of revenue ex-TAC, gross mobile revenue, and gross
search revenue); net income (loss) attributable to
Revenue ex-TAC is a non-GAAP financial measure defined as GAAP revenue
less TAC that has been recorded as a cost of revenue. TAC consists of
payments made to Affiliates, and payments made to companies that direct
consumer and business traffic to
Each of gross mobile revenue and gross search revenue is a non-GAAP
financial measure. Gross mobile revenue is defined as GAAP mobile
revenue plus the related revenue share with third parties. Gross search
revenue is defined as GAAP search revenue plus the related revenue share
with third parties. We present these amounts to provide investors with
additional metrics used by the Company for evaluation and
decision-making purposes and as an indicator of the size of our presence
in the relevant business. To this end, gross mobile revenue and gross
search revenue report the total receipts generated on
Adjusted EBITDA is defined as net income (loss) attributable to
Non-GAAP income from operations is defined as income (loss) from operations excluding certain gains, losses, and expenses that we do not believe are indicative of our ongoing operating results and further adjusted to exclude stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation expense enhances the ability of management and investors to understand the impact of stock-based compensation expense on income (loss) from operations. We consider non-GAAP income from operations to be a profitability measure which facilitates the forecasting of our operating results for future periods and allows for the comparison of our results to historical periods. A limitation of non-GAAP income from operations is that it does not include all items that impact our income from operations for the period. Management compensates for this limitation by also relying on the comparable GAAP financial measure of income (loss) from operations which includes the gains, losses, and expenses that are excluded from non-GAAP income from operations.
Non-GAAP net earnings is defined as net income (loss) attributable to
Free cash flow is a non-GAAP financial measure defined as net cash provided by (used in) operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net (i.e., acquisition of property and equipment less proceeds received from disposition of property and equipment) and dividends received from equity investees. We consider free cash flow to be a liquidity measure which provides useful information to management and investors about the amount of cash generated by business operations, after deducting our net payments for acquisitions and dispositions of property and equipment, which cash can then be used for strategic opportunities or other business purposes including, among others, investing in the Company's business, making strategic acquisitions, strengthening the balance sheet, and repurchasing stock. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for this limitation by also relying on the net change in cash and cash equivalents as presented in the Company's unaudited condensed consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.
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Supplemental Financial Data and GAAP to Non-GAAP Reconciliations | ||||||||
(in thousands) | ||||||||
Three Months Ended | ||||||||
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2015 | 2016 | |||||||
Revenue for groups of similar services: | ||||||||
Search (3) |
$ | 542,092 | $ | 491,881 | ||||
Display (3) |
466,938 | 463,019 | ||||||
Other (3) |
216,940 | 132,252 | ||||||
Total revenue | $ | 1,225,970 | $ | 1,087,152 | ||||
Revenue excluding traffic acquisition costs ("revenue ex-TAC") for groups of similar services: | ||||||||
GAAP search revenue | $ | 542,092 | $ | 491,881 | ||||
TAC associated with search revenue | (100,009 | ) | (144,160 | ) | ||||
Search revenue ex-TAC | $ | 442,083 | $ | 347,721 | ||||
GAAP display revenue | $ | 466,938 | $ | 463,019 | ||||
TAC associated with display revenue | (82,434 | ) | (83,067 | ) | ||||
Display revenue ex-TAC | $ | 384,504 | $ | 379,952 | ||||
Other GAAP revenue | $ | 216,940 | $ | 132,252 | ||||
TAC associated with other GAAP revenue | (696 | ) | (536 | ) | ||||
Other revenue ex-TAC | $ | 216,244 | $ | 131,716 | ||||
Revenue ex-TAC: | ||||||||
GAAP revenue | $ | 1,225,970 | $ | 1,087,152 | ||||
TAC | (183,139 | ) | (227,763 | ) | ||||
Revenue ex-TAC | $ | 1,042,831 | $ | 859,389 | ||||
Revenue ex-TAC by segment: | ||||||||
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GAAP revenue | $ | 984,721 | $ | 861,539 | ||||
TAC | (166,655 | ) | (204,871 | ) | ||||
Revenue ex-TAC | $ | 818,066 | $ | 656,668 | ||||
EMEA: | ||||||||
GAAP revenue | $ | 81,086 | $ | 76,923 | ||||
TAC | (11,704 | ) | (12,509 | ) | ||||
Revenue ex-TAC | $ | 69,382 | $ | 64,414 | ||||
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GAAP revenue | $ | 160,163 | $ | 148,690 | ||||
TAC | (4,780 | ) | (10,383 | ) | ||||
Revenue ex-TAC | $ | 155,383 | $ | 138,307 | ||||
Total revenue ex-TAC | $ | 1,042,831 | $ | 859,389 | ||||
Direct costs by segment (4): |
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$ | 69,274 | $ | 81,133 | ||||
EMEA | 20,184 | 20,609 | ||||||
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50,732 | 45,079 | ||||||
Global operating costs (5) |
673,528 | 575,980 | ||||||
Gain on sale of patents | (2,000 | ) | (1,500 | ) | ||||
Restructuring charges, net | 51,232 | 57,230 | ||||||
Depreciation and amortization | 151,539 | 139,665 | ||||||
Stock-based compensation expense | 115,696 | 108,407 | ||||||
Loss from operations | $ | (87,354 | ) | $ | (167,214 | ) |
(3) |
In Q1'16, we reclassified certain amounts from other revenue to either display or search revenue. Prior period amounts have been revised to conform to the current presentation. |
|
(4) |
Direct costs for each segment include certain cost of revenue-other and costs associated with the local sales teams. | |
(5) |
Global operating costs include product development, marketing, real estate workplace, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. | |
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Supplemental Financial Data and GAAP to Non-GAAP Reconciliations (continued) | ||||||||
(in thousands) | ||||||||
Three Months Ended | ||||||||
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2015 | 2016 | |||||||
Reconciliation of net income (loss) attributable to |
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Net income (loss) attributable to |
$ | 21,198 | $ | (99,232 | ) | |||
Advisory fees | - | 8,984 | ||||||
Depreciation and amortization | 151,539 | 139,665 | ||||||
Stock-based compensation expense | 115,696 | 108,407 | ||||||
Restructuring charges, net | 51,232 | 57,230 | ||||||
Other expense, net | 31,063 | 47,416 | ||||||
Benefit for income taxes | (40,900 | ) | (34,766 | ) | ||||
Earnings in equity interests | (99,690 | ) | (81,574 | ) | ||||
Net income attributable to noncontrolling interests | 975 | 942 | ||||||
Adjusted EBITDA | $ | 231,113 | $ | 147,072 | ||||
Reconciliation of net cash (used in) provided by operating activities to free cash flow: | ||||||||
Net cash (used in) provided by operating activities | $ | (2,960,939 | ) | $ | 365,768 | |||
Acquisition of property and equipment, net | (111,453 | ) | (76,099 | ) | ||||
Excess tax benefits from stock-based awards | 37,470 | 7,526 | ||||||
Free cash flow(1)(2) |
$ | (3,034,922 | ) | $ | 297,195 | |||
Reconciliation of GAAP mobile revenue to gross mobile revenue: | ||||||||
GAAP mobile revenue | $ | 233,593 | $ | 260,193 | ||||
Revenue share with third parties | 157,877 | 151,578 | ||||||
Gross mobile revenue | $ | 391,470 | $ | 411,771 | ||||
Reconciliation of GAAP search revenue to gross search revenue: | ||||||||
GAAP search revenue | $ | 542,092 | $ | 491,881 | ||||
Revenue share with third parties | 424,099 | 328,516 | ||||||
Gross search revenue | $ | 966,191 | $ | 820,397 |
(1) |
During the three months ended |
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(2) |
Q1'16 includes a |
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GAAP to Non-GAAP Reconciliations | |||||||||||
(in thousands, except per share amounts) | |||||||||||
Three Months Ended | |||||||||||
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2015 | 2016 | ||||||||||
GAAP loss from operations | $ | (87,354 | ) | $ | (167,214 | ) | |||||
(a) | Restructuring charges, net | 51,232 | 57,230 | ||||||||
(b) | Stock-based compensation expense | 115,696 | 108,407 | ||||||||
(c) | Advisory fees | - | 8,984 | ||||||||
Non-GAAP income from operations | $ | 79,574 | $ | 7,407 | |||||||
GAAP net income (loss) attributable to |
$ | 21,198 | $ | (99,232 | ) | ||||||
(a) | Restructuring charges, net | 51,232 | 57,230 | ||||||||
(b) | Stock-based compensation expense | 115,696 | 108,407 | ||||||||
(c) | Advisory fees | - | 8,984 | ||||||||
(d) | Loss on Hortonworks warrants | 11,909 | 39,150 | ||||||||
(e) |
To adjust the provision for income taxes to reflect an effective
tax rate of 35% for both the three months ended |
(62,047 | ) | (34,465 | ) | ||||||
Non-GAAP net earnings | $ | 137,988 | $ | 80,074 | |||||||
GAAP net income (loss) attributable to |
$ | 0.02 | $ | (0.10 | ) | ||||||
Non-GAAP net earnings per share - diluted | $ | 0.15 | $ | 0.08 | |||||||
Shares used in non-GAAP per share calculation - diluted |
947,976 | 951,338 | |||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160419006724/en/
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