Yahoo! Raises Full-Year Forecasts After Healthy Q1

11 April 2003

Yahoo! is raising its 2003 revenue forecasts after a better-than-expected first quarter.

The dotcom giant’s Q1 sales jumped 47% year-on-year to $282.9 million (€261.9m; £180.7m) – well ahead of forecasts of around $273m – thanks to sharp rises in income from marketing, classifieds and content fees. Net profits stood at $46.7m, up from a loss of $53.6m a year earlier.

As a result, Yahoo! has increased its full-year revenue projections to between $1.22 billion and $1.28bn, up from $1.15bn to $1.22bn. It also raised its forecast EBITDA (earnings before interest, tax, depreciation and amortization) from $295m–$330m to $350m–$380m.

All the group’s revenue streams performed strongly in the first quarter. Marketing revenues, buoyed by rising sales of sponsored searches, jumped 38% to $191m; fees from content surged 61% to $63.7m as Yahoo!’s paying customer base rose 0.7m from the start of the year to 2.9m; and classified income, which relies on job listings, rocketed 89% to $29.3m.

Data sourced from: multiple sources; additional content by WARC staff