Net Profit Margin
since 2005
Calculation
Yahoo! Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to Yahoo! Inc.1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -4.15% | = | 100 | × | (214,321) | ÷ | 5,169,135) |
| Dec 31, 2015 | -87.74% | = | 100 | × | (4,359,082) | ÷ | 4,968,301) |
| Dec 31, 2014 | 162.87% | = | 100 | × | 7,521,731) | ÷ | 4,618,133) |
| Dec 31, 2013 | 29.19% | = | 100 | × | 1,366,281) | ÷ | 4,680,380) |
| Dec 31, 2012 | 79.12% | = | 100 | × | 3,945,479) | ÷ | 4,986,566) |
| Dec 31, 2011 | 21.04% | = | 100 | × | 1,048,827) | ÷ | 4,984,199) |
| Dec 31, 2010 | 19.47% | = | 100 | × | 1,231,663) | ÷ | 6,324,651) |
| Dec 31, 2009 | 9.26% | = | 100 | × | 597,992) | ÷ | 6,460,315) |
| Dec 31, 2008 | 5.89% | = | 100 | × | 424,298) | ÷ | 7,208,502) |
| Dec 31, 2007 | 9.47% | = | 100 | × | 660,000) | ÷ | 6,969,274) |
| Dec 31, 2006 | 11.69% | = | 100 | × | 751,391) | ÷ | 6,425,679) |
| Dec 31, 2005 | 36.07% | = | 100 | × | 1,896,230) | ÷ | 5,257,668) |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance between 2005 and 2016 is characterized by extreme volatility in net profit margins and a general stagnation in revenue growth. While the period began with strong profitability, the subsequent decade was marked by erratic swings in net income that frequently decoupled from revenue trends, suggesting that bottom-line results were heavily influenced by non-operating items or extraordinary gains and losses rather than organic operational growth.
- Revenue Trends and Operational Stability
- Revenue peaked in 2008 at approximately 7.2 billion US dollars before entering a period of gradual decline, reaching a low of 4.6 billion US dollars in 2014. Although a slight recovery was observed by 2016, the overall trend indicates a lack of sustained top-line growth, which contrasts sharply with the volatility seen in net income.
- Margin Erosion and Recovery (2005-2011)
- A significant contraction in the net profit margin occurred between 2005 and 2008, falling from 36.07% to a low of 5.89%. This decline reflects a period of reduced operational efficiency or increased costs. A subsequent recovery phase was observed from 2009 to 2011, where the margin steadily climbed back to 21.04%.
- Anomalous Profitability Spikes (2012-2014)
- The period between 2012 and 2014 is marked by atypical margin expansion. In 2012, the net profit margin surged to 79.12%, followed by an extreme spike to 162.87% in 2014. Because the net income in 2014 (7.5 billion US dollars) significantly exceeded the total revenue (4.6 billion US dollars), these figures indicate the realization of substantial non-operating gains or one-time asset sales rather than core business profitability.
- Transition to Net Losses (2015-2016)
- A sharp reversal occurred in 2015, with the net profit margin plunging to -87.74%, corresponding to a net loss of approximately 4.36 billion US dollars. While the margin improved to -4.15% by 2016, the company remained in a deficit, concluding the analyzed period in a state of net loss despite a slight increase in annual revenue.
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Comparison to Competitors
Yahoo! Inc., net profit margin, long-term trends, comparison to competitors
| Yahoo! Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -4.15% | 11.82% | 19.96% | — | 11.18% | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Dec 31, 2015 | -87.74% | 9.28% | 13.13% | — | 14.83% | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Dec 31, 2014 | 162.87% | 9.23% | 6.47% | — | 10.05% | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Dec 31, 2013 | 29.19% | 10.80% | 7.15% | — | 11.25% | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Dec 31, 2012 | 79.12% | 8.58% | 18.91% | — | 33.17% | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Dec 31, 2011 | 21.04% | 8.33% | 19.75% | — | 6.28% | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Dec 31, 2010 | 19.47% | 7.71% | 20.39% | — | 13.52% | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Dec 31, 2009 | 9.26% | 6.86% | 13.12% | — | -17.58% | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
| Dec 31, 2008 | 5.89% | 6.68% | 24.35% | — | -178.51% | — | 11.90% | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | 14.21% | — |
| Dec 31, 2007 | 9.47% | 5.79% | 22.92% | — | 18.34% | — | 10.55% | 16.46% | 27.51% | 23.75% | — | — | 0.10% | — | 10.76% | — |
| Dec 31, 2006 | 11.69% | 5.34% | 19.64% | — | 9.61% | — | 10.38% | 17.80% | 28.45% | 23.51% | — | — | 9.19% | — | 2.26% | — |
| Dec 31, 2005 | 36.07% | 5.50% | 30.66% | — | 3.71% | — | 8.71% | 18.73% | 30.80% | 24.46% | — | — | 4.16% | — | -1.56% | — |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Yahoo! Inc., net profit margin, long-term trends, comparison to sector (software & services)
| Yahoo! Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2016 | -4.15% | 16.49% |
| Dec 31, 2015 | -87.74% | 14.57% |
| Dec 31, 2014 | 162.87% | 18.21% |
| Dec 31, 2013 | 29.19% | 20.55% |
| Dec 31, 2012 | 79.12% | 18.62% |
| Dec 31, 2011 | 21.04% | 20.48% |
| Dec 31, 2010 | 19.47% | 19.41% |
| Dec 31, 2009 | 9.26% | 17.17% |
| Dec 31, 2008 | 5.89% | 16.67% |
| Dec 31, 2007 | 9.47% | 15.91% |
| Dec 31, 2006 | 11.69% | 15.65% |
| Dec 31, 2005 | 36.07% | 15.06% |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Yahoo! Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Yahoo! Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2016 | -4.15% | 17.58% |
| Dec 31, 2015 | -87.74% | 18.32% |
| Dec 31, 2014 | 162.87% | 19.33% |
| Dec 31, 2013 | 29.19% | 20.15% |
| Dec 31, 2012 | 79.12% | 20.07% |
| Dec 31, 2011 | 21.04% | 20.71% |
| Dec 31, 2010 | 19.47% | 20.19% |
| Dec 31, 2009 | 9.26% | 14.45% |
| Dec 31, 2008 | 5.89% | 15.07% |
| Dec 31, 2007 | 9.47% | 15.71% |
| Dec 31, 2006 | 11.69% | 16.26% |
| Dec 31, 2005 | 36.07% | 16.64% |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).