Yahoo! ad revenue and income falls in Q2 earnings report
The second quarter earnings report was disappointing for Yahoo! Inc. as the company reported both lower revenue and lower profits. Total revenue was down 4 percent for the quarter, and display revenue fell 8 percent.
“Our top priority is revenue growth and by that measure, we are not satisfied with our Q2 results,” said Yahoo CEO Marissa Mayer. “While several areas showed strength, their growth was offset by declines. Yahoo Search, for example, had a strong quarter, growing 6% year-over-year on a revenue ex-TAC basis and 19% year-over-year in search click-driven revenue. Our social, mobile, video and native areas also grew with significant momentum, collectively gaining nearly 90% year-over-year. However, display remains an area of investment and transition. In Q2, we saw display revenue decline, further highlighting the fact that we need to work faster to ameliorate the negative trends. I believe we can and will do better moving forward.”
There wasn’t much positive to report in Q2, so Yahoo listed as one of its business highlights an amendment to its share repurchase agreement with Alibaba Group. If that is what the company has been working on this past three months things are indeed bleak.
GAAP income from operations was $38 million for Q2, a 72 percent decrease from the the same quarter in 2013.