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Yahoo! Inc. (NASDAQ:YHOO)

This company has been moved to the archive! The financial data has not been updated since May 9, 2017.

Common-Size Income Statement
Quarterly Data

Yahoo! Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Traffic acquisition costs -37.18 -34.65 -34.29 -35.67 -20.95 -21.28 -18.21 -16.11 -14.94 -5.87 -4.72 -4.04 -4.05 -5.18 -5.13 -5.67 -5.79 -9.29 -9.39 -11.25 -11.80
Other -19.35 -17.81 -19.57 -20.53 -25.99 -24.83 -24.71 -23.80 -23.27 -20.91 -23.24 -25.01 -24.79 -21.64 -23.86 -23.89 -24.38 -21.34 -23.47 -22.87 -20.80
Cost of revenue -56.53% -52.45% -53.86% -56.21% -46.94% -46.11% -42.92% -39.91% -38.21% -26.78% -27.96% -29.05% -28.85% -26.82% -28.99% -29.56% -30.17% -30.62% -32.86% -34.12% -32.60%
Gross profit 43.47% 47.55% 46.14% 43.79% 53.06% 53.89% 57.08% 60.09% 61.79% 73.22% 72.04% 70.95% 71.15% 73.18% 71.01% 70.44% 69.83% 69.38% 67.14% 65.88% 67.40%
Sales and marketing -15.77 -14.08 -16.29 -17.28 -21.71 -20.16 -22.38 -22.06 -22.46 -24.10 -26.97 -27.01 -29.12 -24.61 -24.81 -24.64 -22.54 -20.37 -22.41 -22.41 -23.36
Product development -19.00 -17.27 -18.67 -21.42 -25.57 -21.40 -22.22 -24.65 -26.65 -25.24 -26.62 -28.01 -24.86 -22.53 -23.48 -20.81 -19.26 -17.86 -18.08 -16.39 -18.71
General and administrative -11.82 -10.90 -13.54 -12.11 -14.30 -14.27 -12.40 -14.53 -14.15 -13.01 -12.82 -11.81 -12.05 -11.83 -13.28 -11.90 -11.70 -10.75 -11.25 -11.18 -10.18
Amortization of intangibles -0.87 -0.79 -0.89 -1.25 -1.73 -1.52 -1.60 -1.61 -1.64 -1.43 -1.33 -1.40 -1.62 -1.12 -1.34 -0.71 -0.65 -0.59 -0.67 -0.80 -0.82
Gain on sale of patents 0.00 0.00 0.00 9.18 0.14 0.00 0.00 0.73 0.16 2.80 0.11 5.67 0.00 6.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Asset impairment charge 0.00 0.00 0.00 0.00 0.00 -0.21 -3.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Goodwill impairment charge 0.00 0.00 0.00 -30.20 0.00 -350.31 0.00 0.00 0.00 -7.06 0.00 0.00 0.00 -5.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Intangible assets impairment charge 0.00 0.00 0.00 -6.68 0.00 -1.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Restructuring (charges) reversals, net -0.44 -0.14 -0.76 -1.48 -5.26 -0.56 -2.12 -1.58 -4.18 -2.62 -0.74 -4.85 -0.84 -0.62 0.05 -0.32 0.62 -5.69 -2.06 -10.60 -0.47
Income (loss) from operations -4.43% 4.37% -4.01% -37.45% -15.38% -355.75% -7.04% -3.60% -7.13% 2.57% 3.67% 3.55% 2.66% 13.76% 8.14% 12.07% 16.31% 14.12% 12.66% 4.50% 13.87%
Other income (expense), net 1.42 -1.05 -0.47 1.15 -4.36 -0.71 -1.95 -0.94 -2.53 6.99 897.88 -1.25 -1.19 -0.21 0.47 2.08 1.50 1.32 383.42 1.66 0.19
Income (loss) before income taxes and earnings in equity interests -3.01% 3.32% -4.48% -36.30% -19.74% -356.45% -9.00% -4.55% -9.66% 9.55% 901.55% 2.29% 1.48% 13.55% 8.62% 14.15% 17.80% 15.43% 396.08% 6.16% 14.06%
(Provision) benefit for income taxes 1.97 0.10 8.08 -1.19 3.20 1.10 7.60 -4.70 3.34 -4.18 -346.07 -0.75 -0.37 -3.28 -2.80 -4.43 -2.61 -6.17 -147.63 -2.18 -4.62
Earnings in equity interests, net of tax 8.57 7.74 8.90 3.96 7.50 7.29 7.77 7.71 8.13 8.13 34.73 23.60 26.61 17.51 20.44 19.79 19.08 11.07 14.58 14.78 14.10
Net income (loss) 7.53% 11.16% 12.51% -33.52% -9.04% -348.06% 6.37% -1.54% 1.81% 13.51% 590.21% 25.14% 27.71% 27.78% 26.25% 29.51% 34.28% 20.33% 263.04% 18.76% 23.54%
Net income attributable to noncontrolling interests -0.04 -0.13 -0.04 -0.12 -0.09 -0.22 -0.15 -0.19 -0.08 -0.23 -0.20 -0.26 -0.21 -0.27 -0.21 -0.34 -0.05 -0.10 -0.06 -0.15 -0.09
Net income (loss) attributable to Yahoo! Inc. 7.49% 11.03% 12.48% -33.64% -9.13% -348.28% 6.22% -1.73% 1.73% 13.27% 590.01% 24.88% 27.51% 27.51% 26.05% 29.17% 34.22% 20.23% 262.97% 18.61% 23.45%

Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The company experienced a significant shift in its cost structure between 2012 and 2017, characterized by a substantial increase in direct costs and a corresponding compression of gross margins.

Gross Profit and Direct Costs
Traffic acquisition costs remained relatively low and stable, ranging from approximately 4% to 12% of revenue from March 2012 through December 2014. However, starting in March 2015, these costs escalated rapidly, exceeding 30% of revenue by mid-2016 and reaching 37.18% by March 2017. This trend drove the total cost of revenue from a historical average of roughly 30% to over 56% by the end of the period. Consequently, gross profit margins declined from a peak of 73.22% in December 2014 to 43.47% by March 2017.
Operating Expense Trends
While direct costs rose, operating expenses as a percentage of revenue showed a general trend of optimization or stability. Sales and marketing expenses decreased from 23.36% in early 2012 to 15.77% by March 2017. Product development costs fluctuated, peaking at 28.01% in June 2014 before settling at 19.00% in March 2017. General and administrative expenses remained relatively constant, typically fluctuating between 10% and 14% of revenue.
Operating Income and Impairments
Operating income transitioned from positive margins—averaging between 8% and 16% through 2013—to consistent losses starting in early 2015. This decline was punctuated by extreme volatility due to non-cash charges. A massive goodwill impairment charge in December 2015 represented 350.31% of revenue, causing a severe drop in operating income for that quarter. Additional impairment charges occurred in June 2016, further depressing operational results.
Non-Operating Income and Net Profitability
Net income was heavily influenced by non-operating factors, creating a disconnect between operational performance and the bottom line. Significant gains were recorded from the sale of patents and extreme spikes in other income, notably in September 2012 and September 2014. Furthermore, earnings from equity interests provided a consistent and substantial positive contribution, often ranging from 7% to 34% of revenue, which frequently offset operating losses to maintain positive net income in several quarters.

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