updated 05:50 pm EST, Tue January 27, 2009
Yahoo posts Q4 loss
Amid the flurry of financial disclosures this week, Yahoo has posted a net loss of $300 million for the fourth quarter of 2008, compared to a $205 million profit for the same quarter in 2007. The company achieved revenue of $1.81 billion through Q4, marking a drop of one percent from the same period a year earlier. International sales seem to have been hit harder, with a revenue drop of 10 percent, while domestic revenue was up 2 percent. Despite the effects of the weakened economy, revenues rose 3 percent to $7.21 billion for the whole year, while net income surpassed $424 million.
"We have work to do, but I am excited by Yahoo's opportunities, and encouraged by the tremendous innovation and momentum I've seen since joining the company," said Carol Bartz, CEO.
Bartz, a former Autodesk CEO, was brought into the company earlier this month to replace Jerry Yang. The new leadership could serve to bolster fresh negotiations with Microsoft, as Yang had been heavily criticized for killing the original acquisition deal.
Search giant Google appears to have endured the economic pressure slightly better, surpassing analyst estimates with its quarterly report last week. Despite a decline in profit from the same quarter last year, the company was still able to resist slipping into a loss. Sales were up 24 percent from year-ago numbers and $100 million over the Wall Street expectations.
Following in line with many companies uncertain about the near-term economic future, Yahoo guidance for Q109 maintained a conservative approach that anticipates revenue between $1.53 billion and $1.73 billion with operating income of $75 million to $85 million.