Yahoo profit jumps by 36 per cent amid a decline in revenue

In its latest earnings results, CEO Marissa Mayer cites a "continued stability" in the company's business

Yahoo's profits rose more than 30 percent in the first quarter, due to a variety of factors including lowered operating costs, though sales at the company declined.

Net earnings for the quarter ended March 31 were $US390 million, a 36 per cent increase from the same quarter last year, Yahoo reported.

However, revenue fell by seven percent during the quarter to $US1.14 billion. Subtracting commissions and fees paid to advertising partners, the company's first-quarter sales were $US1.07 billion, roughly flat compared to last year.

The company's net earnings per share of $US0.35 were significantly higher than the consensus expectations of $US0.24 from analysts polled by Thomson Financial.

Yahoo CEO Marissa Mayer described the quarterly results in a statement as "pleasing," and identified "continued stability in our business" as a factor behind the gains in earnings, adding that improvements to the Yahoo's products "will set up the company for long-term growth."

After subtracting partner commissions, search advertising revenue increased by 6 percent to $409 million, compared to $US384 million during the same quarter last year. Mayer, formerly one of Google's top executives, has faced pressure to boost the company's search revenue as it struggles to compete against her alma mater. She took the CEO job at Yahoo last year.

Yahoo reached a global advertising deal with Google in February aimed at giving Yahoo more ads to populate its Web properties, which include Yahoo Sports and Yahoo News.

"By adding Google to its list of world-class contextual ad partners, Yahoo can serve users with ads that are even more meaningful and personal," the company said in its statement.

Display advertising revenue, however, decreased by 11 per cent to $US402 million, compared to $US454 million last year.

Yahoo has signaled in recent months that it wants to make changes to its business in an effort to stay relevant to users as they engage more with mobile devices and social media. Unlike other Silicon Valley giants like Google, Facebook and Apple, Yahoo does not offer its own mobile device or social network.

In mobile, some recent acquisitions include Yahoo's purchase of Summly, a London-based company behind a news summarization app, and Alike, a location discovery service.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesGoogleMailsocial networkingsocial mediainternetsearch enginesFacebookAppleYahoo

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?