Yahoo reported fourth quarter and full year 2013 results on Tuesday. The company’s revenue was $1,266 million for the fourth quarter of 2013, a 6 percent decrease from the fourth quarter of 2012. Revenue excluding traffic acquisition costs (revenue ex-TAC) was $1,200 million for the fourth quarter of 2013, a 2 percent decrease compared to the fourth quarter of 2012. Revenue was $4,680 million for the full year of 2013, a 6 percent decrease compared to the prior year. Revenue ex-TAC was $4,426 million for the full year of 2013, a 1 percent decrease compared to the prior year.
Adjusted EBITDA for the fourth quarter of 2013 was $478 million, a 6 percent decrease compared to the fourth quarter of 2012. Adjusted EBITDA was $1,564 million for the full year of 2013, an 8 percent decrease compared to the prior year.
Income from operations was $174 million for the fourth quarter of 2013, an 8 percent decrease from the fourth quarter of 2012. Income from operations was $590 million for the full year of 2013, a 4 percent increase compared to the prior year.
Marissa Mayer (CEO, Yahoo): I’m encouraged by Yahoo’s performance in Q4 and 2013 overall. We are extremely heartened by the year-over-year traffic increase we experienced in 2013, an early sign of return on our investments and the acquisitions we’ve made.
Net earnings for the fourth quarter of 2013 was $348 million, a 28 percent increase compared to $272 million in the fourth quarter of 2012. Net earnings for the full year of 2013 was $1,366 million, a 65 percent decrease compared to $3,945 million for the prior year.
Net earnings per diluted share was 33 cents in the fourth quarter of 2013, compared to 23 cents in the fourth quarter of 2012. Net earnings per diluted share was $1.26 for the full year of 2013, compared to $3.28 for the prior year.
Fourth Quarter and Full Year 2013 Highlights
Acquisitions: During the fourth quarter, Yahoo acquired Aviate (ThumbsUp Labs), PeerCDN (Instant IO), Evntlive, Ptch, SkyPhrase, LookFlow, Bread Labs and Hitpost.
Display: Display revenue was $553 million for the fourth quarter of 2013, a 6 percent decrease compared to $591 million for the fourth quarter of 2012. Display revenue was $1,950 million for the full year of 2013, a 9 percent decrease compared to $2,143 million for the prior year.
The Number of Ads Sold (excluding Korea) increased approximately 3 percent compared to the fourth quarter of 2012.
Price-per-Ad (excluding Korea) decreased approximately 7 percent compared to the fourth quarter of 2012.
Search: Search revenue was $464 million for the fourth quarter of 2013, a 4 percent decrease compared to $482 million for the fourth quarter of 2012. Search revenue was $1,742 million for the full year of 2013, an 8 percent decrease compared to $1,886 million for the prior year.
Paid Clicks (excluding Korea) increased approximately 17 percent compared to the fourth quarter of 2012.
Price-per-Click (excluding Korea) decreased approximately 3 percent compared to the fourth quarter of 2012.
Cash Balance: Cash, cash equivalents, and investments in marketable securities were $5 billion as of December 31, 2013 compared to $6 billion as of December 31, 2012, a decrease of $1 billion.
[Image courtesy: Yahoo]