Table: Internet Veterans Are Starting to Cash In

After more than a few bumps, Web companies are turning profitable. Once they're in the black, earnings can rise quickly because each extra sale requires little new spending.


The search engine's first-quarter revenues jumped 175%, to $143 million, while expenses rose 93%. Result: First-quarter profits of $29.3 million, vs. a $6.7 million loss a year earlier.

EBAY (No. 83)

The auction site shows that operating leverage can rise even after a company is big. First-quarter sales were up 59%, to $245 million, as costs rose just 39%. Result: Profits jumped to $47.6 million, from $21.1 million a year ago.


The hotel-reservation site boosted first-quarter sales 57%, to $165 million, while profits jumped sevenfold, to $12.9 million. The company expects earnings of about $60 million for the year.

EXPEDIA (No. 87)

The travel site's first-quarter sales climbed 103%, to $116 million, while expenses were up 8%. That helped the company make a $5.7 million profit, vs. a $20 million loss a year ago.

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