Yahoo Revenues Rise 39% But Disappoint Wall Street

[Kristijntje]

The company's adjusted net income was 16 cents per share below expectations of 17 cents.  The shares fell nearly 13% in after hours trading on the news.

Yahoo! Reports Fourth Quarter and Full Year 2005 Financial Results; Full Year
Revenues - $5,258 Million, Operating Income - $1,108 Million, Operating Income
Before Depreciation and Amortization - $1,557 Million

Fourth Quarter 2005 Financial Results

    --  Revenues were $1,501 million for the fourth quarter of 2005, a 39
          percent increase compared to $1,078 million for the same period of
          2004.

          --  Marketing services revenue was $1,315 million for the fourth
              quarter of 2005, a 39 percent increase compared to $943 million
              for the same period of 2004.

          --  Fees revenue was $186 million for the fourth quarter of 2005, a
              38 percent increase compared to $135 million for the same period
              of 2004.

    --  Revenues excluding traffic acquisition costs ("TAC") were $1,068
          million for the fourth quarter of 2005, a 36 percent increase compared
          to $785 million for the same period of 2004.

    --  Gross profit for the fourth quarter of 2005 was $928 million, a 34
          percent increase compared to $691 million for the same period of 2004.

    --  Operating income for the fourth quarter of 2005 was $329 million, a 40
          percent increase compared to $235 million for the same period of 2004.

    --  Operating income before depreciation and amortization for the fourth
          quarter of 2005 was $459 million, a 40 percent increase compared to
          $327 million for the same period of 2004.

    --  Cash flow from operating activities for the fourth quarter of 2005 was
          $481 million, a 43 percent increase compared to $337 million for the
          same period of 2004.

    --  Free cash flow for the fourth quarter of 2005 was $330 million, a 31
          percent increase compared to $251 million for the same period of 2004.

    --  Net income for the fourth quarter of 2005 was $683 million or $0.46
          per diluted share compared to $373 million or $0.25 per diluted share
          for the same period of 2004.

    --  Adjusted net income for the fourth quarter of 2005 was $247 million or
          $0.16 per diluted share compared to $187 million or $0.13 per diluted
          share for the same period of 2004.

    --  The provision for income taxes for the fourth quarter of 2005 was $18
          million and yielded an effective tax rate of 3 percent as a result of
          a tax benefit related to a subsidiary restructuring transaction
          completed in the quarter. The provision for income taxes for the
          fourth quarter of 2004 was $234 million, and yielded an effective tax
          rate of 40 percent.   

full earnings report: http://www.sec.gov/Archives/edgar/data/1...000337.txt