Is Mayer Already Delivering at Yahoo?
Yahoo (NASDAQ:YHOO) has brought out its first report card under Marissa Mayer and the news is good for the new chief executive. On Monday, the company reported its third quarter earnings, with both the revenue and profit figures beating analysts’ expectations. Investors reacted positively to the news, and shares were up 3 percent at $16.25 in after-hours trading.
Yahoo’s revenue over the three months ending in September grew 2 percent to $1.09 billion, while the company’s earnings for the time period came in at 35 cents per share. Wall Street had consensus estimates of $1.08 billion in revenue on earnings of 26 cents per share. Excluding a $2.8 billion gain related to the sale of Alibaba shares, Yahoo earned $177 million in income from operations. Mayer has been trying to bring the company’s focus back to the U.S. and the company also announced last week that it will shut its South Korea business.
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“Yahoo had a solid third quarter, and we are encouraged by the stabilization in search and display revenue,” Mayer, who came over from Google (NASDAQ:GOOG) on July 17, said in a statement on Monday. “We’re taking important steps to position Yahoo for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”
Revenue from display ads came in at $506 million, up 1 percent from last year, while search revenue minus traffic acquisition costs was $414 million, up 11 percent from last year. The company said it had seen over 3 billion page views during the London Olympic Games, more than its page views for the Beijing and Vancouver Games combined. It also saw 45 percent more page views and 35 percent more time spent on its election-related experiences during the first two weeks of the political conventions compared to 2008 numbers.
Yahoo has seen several top-level changes since Mayer took over, with chief financial officer Tim Morse being replaced by Ken Goldman this week. Interestingly, the company did not provide a forecast along with its report on Monday, a practice that Mayer seems to have brought forward from Google.
Check out the earnings presentation for the eye candy: