Name: Yahoo! Inc. (NASDAQ:YHOO) | Income Statement
Creator: Stock Analysis on Net

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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Yahoo! Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Revenue	5,169,135)	4,968,301)	4,618,133)	4,680,380)	4,986,566)
Traffic acquisition costs	(1,650,786)	(877,514)	(217,531)	(254,442)	(518,906)
Other	(1,068,108)	(1,200,234)	(1,080,783)	(1,094,938)	(1,101,660)
Cost of revenue	(2,718,894)	(2,077,748)	(1,298,314)	(1,349,380)	(1,620,566)
Gross profit	2,450,241)	2,890,553)	3,319,819)	3,331,000)	3,366,000)
Sales and marketing	(881,521)	(1,080,718)	(1,234,268)	(1,130,820)	(1,101,572)
Product development	(1,055,462)	(1,177,923)	(1,207,146)	(1,008,487)	(885,824)
General and administrative	(650,708)	(687,804)	(574,743)	(569,555)	(540,247)
Amortization of intangibles	(58,302)	(79,042)	(66,750)	(44,841)	(35,819)
Gain on sale of patents and land	121,559)	11,100)	97,894)	79,950)	—)
Asset impairment charge	—)	(44,381)	—)	—)	—)
Goodwill impairment charge	(394,901)	(4,460,837)	(88,414)	(63,555)	—)
Intangibles impairment charge	(87,335)	(15,423)	—)	—)	—)
Restructuring charges, net	(88,629)	(104,019)	(103,450)	(3,766)	(236,170)
Income (loss) from operations	(645,058)	(4,748,494)	142,942)	589,926)	566,368)
Interest and investment income	60,931)	34,383)	26,309)	57,544)	41,673)
Interest expense	(73,783)	(71,865)	(68,851)	(14,319)	(9,297)
Gain related to the sale of Alibaba Group Shares	—)	—)	—)	—)	4,603,322)
Gain on sale of Alibaba Group ADSs	—)	—)	10,319,437)	—)	—)
Gain (loss) on Hortonworks warrants	(50,046)	(19,201)	98,062)	—)	—)
Foreign exchange gain (loss)	4,282)	(22,226)	(14,687)	(6,197)	—)
Other	4,700)	3,127)	9,169)	6,329)	12,141)
Other income (expense), net	(53,916)	(75,782)	10,369,439)	43,357)	4,647,839)
Income (loss) before income taxes and earnings in equity interests	(698,974)	(4,824,276)	10,512,381)	633,283)	5,214,207)
(Provision) benefit for income taxes	126,228)	89,598)	(4,038,102)	(153,392)	(1,940,043)
Earnings in equity interests, net of tax	363,283)	383,571)	1,057,863)	896,675)	676,438)
Net income (loss)	(209,463)	(4,351,107)	7,532,142)	1,376,566)	3,950,602)
Net income attributable to noncontrolling interests	(4,858)	(7,975)	(10,411)	(10,285)	(5,123)
Net income (loss) attributable to Yahoo! Inc.	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)

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).

The financial performance from 2012 to 2016 is characterized by a significant divergence between core operational results and non-operating financial gains. While total revenue remained relatively stagnant, fluctuations in net income were driven primarily by extraordinary items, including the divestment of equity interests and substantial asset impairment charges.

Revenue and Gross Profit Trends: Revenue exhibited a period of stagnation between 2012 and 2014, followed by a modest recovery to 5.17 billion US$ by 2016. Despite this recovery in top-line revenue, gross profit declined consistently from 3.37 billion US$ in 2012 to 2.45 billion US$ in 2016. This contraction in gross margin is directly attributable to a sharp increase in the cost of revenue, specifically driven by traffic acquisition costs, which rose from 217.5 million US$ in 2014 to 1.65 billion US$ in 2016.
Operational Performance and Impairments: Operating income transitioned from a positive position of 566.4 million US$ in 2012 to a severe operating loss of 4.75 billion US$ in 2015. The 2015 loss was primarily the result of a non-cash goodwill impairment charge totaling 4.46 billion US$. While the operating loss narrowed to 645.1 million US$ in 2016, the core business remained unable to generate an operating profit, despite a reduction in sales and marketing expenses from 1.23 billion US$ in 2014 to 881.5 million US$ in 2016.
Non-Operating Income and Extraordinary Gains: The net income figures were heavily distorted by massive non-operating gains related to the sale of Alibaba Group shares and ADSs. A gain of 4.60 billion US$ was recorded in 2012, and a significantly larger gain of 10.32 billion US$ was realized in 2014. These windfalls provided temporary liquidity and artificial inflation of net income, masking the underlying deterioration in operational profitability during those periods.
Net Income Volatility: Net income attributable to the company showed extreme volatility, swinging from 7.52 billion US$ in 2014 to a loss of 4.36 billion US$ in 2015. The trajectory illustrates a pattern where the entity relied on asset monetization to offset operational deficits. By 2016, the absence of major investment gains, combined with ongoing operating losses, resulted in a net loss of 214.3 million US$.

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