Yahoo reports lackluster sales as Meyer takes reins

The tech world will be watching to see if Marissa Meyer is on Yahoo's earnings call Tuesday

Marissa Meyer has her work cut out for her at Yahoo. The fading Internet star reported its second-quarter financial results Tuesday, in which revenue and profit both dipped slightly from a year earlier.

Subtracting commissions paid to partners, Yahoo's revenue for the quarter ended June 30 came in at US$1.08 billion, a hair below last year's total. Financial analysts had been expecting revenue of $1.1 billion, according to Thomson Reuters.

Net income was $226.6 million, down from $237.0 million in the same quarter last year. On a per-share basis, earnings were flat at $0.18, Yahoo said.

The tech world will be watching closely Tuesday afternoon to see if Meyer, a longtime Google executive, decides to take part in Yahoo's quarterly earnings call for reporters and analysts. CEOs are normally present on the calls, but this is Meyer's first day in her new job.

Yahoo announced on Monday that it had hired Meyer to be its new president and CEO. The move came as a surprise to many: Meyer had been with Google almost since its inception and has played a prominent role in determining the look and feel of its services.

At Yahoo, she will need to find a way to bolster its share of the search market and improve its display advertising business, which has been in decline for several quarters, according to research firm eMarketer.

Yahoo's share of the U.S. online ad market declined to 9.5 percent last year, from 15.7 percent in 2009, eMarketer said. And while the market overall is expected to grow substantially this year, Yahoo's share will decline further, to 7.4 percent, it predicted.

In the quarter just ended, Yahoo's revenue from display advertising, including traffic acquisition costs, was $535 million, up 2 percent from a year earlier. Its revenue from search, also including acquisition costs, was $461 million, a 1 percent decrease, Yahoo said.

The income figures above include restructuring charges and deal-related expenses. Excluding those charges, Yahoo's net earnings would have been $0.27 per share, it said, ahead of financial analysts' forecast.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?