Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Yahoo! Inc., consolidated income statement
US$ in thousands
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Revenue
- The revenue displayed a slight decline between 2012 and 2014, dropping from approximately $4.99 billion to $4.62 billion. This was followed by a recovery and growth through 2016, reaching approximately $5.17 billion, indicating some stabilization and modest growth in the later years.
- Traffic Acquisition Costs
- Traffic acquisition costs decreased sharply from 2012 to 2014, from around $519 million to $218 million, before increasing significantly in 2015 and 2016, peaking at approximately $1.65 billion. This suggests changes in acquisition strategies or cost structure during these years.
- Other Cost Components
- The category labeled "Other" showed relatively consistent expenses across the years, slightly declining in 2016. Cost of revenue followed an increasing trend from 2014 onwards, rising sharply in 2015 and 2016, contributing to reduced gross profit in those years.
- Gross Profit
- Gross profit remained stable from 2012 to 2014, around $3.3 billion, but experienced a considerable decline in 2015 and 2016, falling to approximately $2.45 billion by 2016. This decline reflects rising costs outpacing revenue growth.
- Operating Expenses
- Sales and marketing expenses peaked in 2014 and trended downward through 2016. Product development costs increased up to 2014 but declined thereafter. General and administrative expenses increased steadily until 2015 and decreased somewhat in 2016. Amortization of intangibles rose through 2015 before falling in 2016.
- Impairment and Restructuring Charges
- There were notable goodwill impairment charges in 2013, 2014, 2015, and 2016, with a very large charge in 2015. Asset impairments appear only in 2015. Restructuring charges fluctuated, with significant but varying charges each year, peaking early in 2012 and diminishing by 2016.
- Operating Income (Loss)
- The company reported positive operating income in 2012, 2013, and 2014, with a sharp decline into a significant operating loss in 2015 and a smaller loss in 2016. This corresponds with the impairment charges and increased costs noted in those years.
- Investment and Financing Activities
- Interest and investment income remained relatively steady, showing some growth over the period. Interest expense increased modestly. Gains from the sale of Alibaba Group shares and Alibaba Group ADSs were significant in 2012 and 2014, contributing to exceptionally high income before taxes in those years. Gains and losses related to Hortonworks warrants were minor compared to the Alibaba transactions. Foreign exchange losses appeared from 2013 to 2015 but reversed to a small gain in 2016.
- Other Income and Expenses
- Other income experienced extreme fluctuations, strongly influenced by gains from asset sales, including Alibaba-related gains in earlier years and volatility in 2015 and 2016 where net other income became negative.
- Income Before Taxes and Taxes
- Income before income taxes and equity earnings peaked notably in 2012 and 2014 due to non-operating gains. It turned negative in 2015 and 2016. The provision for income taxes varied widely, with large benefits reported in 2015 and 2016, offsetting some losses.
- Earnings in Equity Interests
- These earnings increased steadily from 2012 to 2014, then declined notably in 2015 and 2016, indicating reduced returns or valuations in affiliated entities.
- Net Income (Loss)
- Net income followed a similar pattern to operating income and income before taxes: strong positive results in 2012 through 2014, driven mainly by extraordinary gains, followed by substantial losses in 2015 and much smaller losses in 2016. The net income attributable to Yahoo! Inc. followed this same trend, highlighting the company’s decreasing profitability after 2014.