Yahoo squeezes out some growth

The company's mobile revenue was material enough to report for the first time, the company said

Yahoo reported a 1 percent sales increase on Tuesday, a marked shift after multiple quarters of decline, though results in its critical ad business were mixed.

The company also said its mobile revenue had become significant enough to report for the first time, passing $200 million [m]. That was a minor victory for CEO Marissa Mayer, who's been trying hard to get more traction for Yahoo on smartphones and tablets.

"We had a good, solid third quarter," Mayer said in the company's announcement Tuesday.

Total sales for the quarter, ended Sept. 30, were US$1.15 billion, up from $1.14 billion last year, the company reported. Excluding traffic acquisition costs, revenue was $1.09 billion and slightly ahead of analyst expectations, as polled by Thomson Reuters.

Net income was $6.77 billion, or $6.70 a share, driven largely by an after-tax profit of $6.3 billion from the sale of Yahoo's stake in e-commerce giant Alibaba in the Chinese company's IPO last month.

Yahoo's adjusted earnings per share was $0.52, clobbering analyst estimates of $0.30.

Much of the success in mobile came from so-called native ads, which are designed to look like the editorial content that appears around them.

"We are moving from a company that makes web pages and money through banner ads to a company that makes mobile apps and monetizes them through native ads," Mayer said in a conference call to discuss the results.

Since she took over as CEO in 2012, the company has made numerous mobile acquisitions and revamped mobile offerings in the areas of news, email, weather, and photos with Flickr.

But declines in traditional desktop display ads persisted, Mayer said.

Display ad revenue rose by 5 percent to $447 million [m], and the number of display ads sold increased by 24 percent. But the amount paid for those ads dropped by 24 percent.

In search advertising, revenue rose by 4 percent. The number of paid clicks was flat, and the price-per-click paid rose by about 17 percent, Yahoo said.

In the after-hours market, Yahoo's stock was trading at $41.33 at the time of this report, up 2.3 percent from the close of regular trading.

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 business issuesadvertisingInternet-based applications and servicesYahoofinancial resultsinternetsearch engines

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

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

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

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

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

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

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 x360

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!

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?