Yahoo reports higher revenue, led by mobile, but earnings miss estimates
The long awaited rebirth of Yahoo will have to wait a while longer, as the company missed investor estimates for earnings.
The company reported higher revenue in its Q1 2015 report, led by strong mobile growth. But earnings slipped.
“We anticipated that we would grow GAAP revenue ahead of revenue ex-TAC and EBITDA, and that’s precisely what we saw this quarter. For the next phase of the transformation, we will focus on accelerating our GAAP revenue growth while managing our margins and costs,” said Marissa Mayer, CEO of Yahoo.
“This quarter, we saw encouraging revenue growth of 8%, with display revenue growing a modest 2% and search growing 20% on a GAAP basis. Our mobile GAAP revenue reached $234 million in Q1, growing 61% year-over-year.”
Total revenue rose to $1.225 billion in the quarter, an 8 percent increase, while mobile revenue grew to $234 million. But revenue, minus traffic acquisition costs, were $1.04 billion, missing investor forecasts.
Then were was earnings, which also missed.
Search and mobile revenue growth is in a fight to overcome sluggish display advertising. This issue is compounded by the fact that Yahoo’s CEO is currently seen as an easy target, with tech sites like re/code more than willing to blast the company for failing to grow as promised (and Mayer sure has promised).