Yahoo reports modest growth in revenue, expects mobile revenue to exceed $1.2 billion in 2014
The Internet brand Yahoo today reported Q3 earnings after the bell today, stating that revenue grew 1 percent for the quarter, but net income exploded thanks to the sale of $6.3 billion worth of Alibaba Group shares.
“We had a good, solid third quarter. We delivered $1.094 billion in revenue ex-TAC and $1.148 billion in GAAP revenue. This represents 1% growth in revenue ex-TAC and 1% growth in GAAP revenue. We achieved this revenue growth through strong growth in our new areas of investment – mobile, social, native and video – despite industry headwinds in some of our large, legacy businesses,” said Marissa Mayer, CEO of Yahoo.
“I am also pleased to report today that our revenue in mobile is now material. In Q3, we saw mobile revenues in excess of $200 million on a GAAP basis. Further, we estimate that our gross revenues in mobile will exceed $1.2 billion in revenue this year. We have invested deeply in mobile and we are seeing those investments pay off. Not only are our mobile products attracting praise and engagement from users and industry awards, they are generating meaningful revenue for Yahoo.”
Investors will be eager to hear what plans Yahoo has for their cash now that the sale of Alibaba shares has been completed.