Yahoo Earnings 3Q
Yahoo Inc (NASDAQ:YHOO) reported earnings of 52 cents a share excluding items, compared to 32 cents expected by analysts, and 34 cents a year ago. Revenue excluding traffic costs came in $1.09 billion compared to $1.05 billion expected.
Proceeds from Alibaba
Yahoo recorded a gain of $6.3 billion net of tax, from selling a portion of its stake in Alibaba. Total earnings came in at $6.70 per share including the gain from Alibaba.
Core business improvement
The much maligned core business of Yahoo showed tremendous progress in the quarter. The cash pile increased by nearly $7 billion, to $12 billion. Yahoo will owe $3.3 billion in taxes in first half of 2015 for their Alibaba shares.
News was not great in Display. While Display Revenue was down 5%-6%, the numbers of ads sold increased 24% year over year. However, price per ad also decreased 24%.
While the number of paid clicks stayed flat year over year, Search revenue increased between 4%-6% year over year, on the strength of Price Per Click rising 17% year over year.
Comments from CEO, Marissa Mayer
“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.”
Latest posts by Steve Vrionis (see all)
- Buffett on What Risks Could Take Down: Berkshire Hathaway Inc. - May 12, 2017 07:26 AM PDT
- Why the AIG Ruling Is No Drag for Federal National Mortgage Association(OTCMKTS:FNMA) & Federal Home Loan Mortgage Corp(OTCMKTS:FMCC) Investors - May 10, 2017 09:09 AM PDT
- Amazon.com, Inc.(NASDAQ:AMZN): Warren Buffett said you shouldn’t have missed this Jeff Bezos Interview - May 9, 2017 08:29 AM PDT