Wednesday, January 28th, 2009
Fourth quarter financial results for 2008 are in at both Yahoo (pdf) and Google, and while Google still showed a sizable profit, the numbers show that 2009 may be a tough year for both search giants.
In Q4, Yahoo saw revenues down 1% compared to the same period, ringing in at $1,806 million. While revenues approaching $2 billion sounds good on the surface, when you take away the expenses and the dust settles, they were left with a net loss of more than $303 million!
2008 on the whole wasn’t a total loss for Yahoo. Their revenues finished with a 3 percent increase compared to 2007, at $7,209 million and an overall net income of over $424 million. This number is certainly reasonable, at least by my standards, but when you look at the huge loss in the 4th quarter alone, unless things get turned around, 2009 could show to be a tough year for Yahoo.
Just like Yahoo, Google also took a hit in the fourth quarter of 2008, only their hit managed to remain on the plus side. Compared to the three quarters preceding (all over $1.2 billion) Q4 saw a net income of only $382 million.
While 2008 saw total revenues reach nearly $5 billion more than 2007, at $21.7 billion, Google’s net income for 2008 was nearly identical, only about $20 million more than 2007.