Menu
Yahoo squeezes out some growth

Yahoo squeezes out some growth

The company's mobile revenue was material enough to report for the first time, the company said

Yahoo reported a 1 percent sales increase on Tuesday, a marked shift after multiple quarters of decline, though results in its critical ad business were mixed.

The company also said its mobile revenue had become significant enough to report for the first time, passing $200 million [m]. That was a minor victory for CEO Marissa Mayer, who's been trying hard to get more traction for Yahoo on smartphones and tablets.

"We had a good, solid third quarter," Mayer said in the company's announcement Tuesday.

Total sales for the quarter, ended Sept. 30, were US$1.15 billion, up from $1.14 billion last year, the company reported. Excluding traffic acquisition costs, revenue was $1.09 billion and slightly ahead of analyst expectations, as polled by Thomson Reuters.

Net income was $6.77 billion, or $6.70 a share, driven largely by an after-tax profit of $6.3 billion from the sale of Yahoo's stake in e-commerce giant Alibaba in the Chinese company's IPO last month.

Yahoo's adjusted earnings per share was $0.52, clobbering analyst estimates of $0.30.

Much of the success in mobile came from so-called native ads, which are designed to look like the editorial content that appears around them.

"We are moving from a company that makes web pages and money through banner ads to a company that makes mobile apps and monetizes them through native ads," Mayer said in a conference call to discuss the results.

Since she took over as CEO in 2012, the company has made numerous mobile acquisitions and revamped mobile offerings in the areas of news, email, weather, and photos with Flickr.

But declines in traditional desktop display ads persisted, Mayer said.

Display ad revenue rose by 5 percent to $447 million [m], and the number of display ads sold increased by 24 percent. But the amount paid for those ads dropped by 24 percent.

In search advertising, revenue rose by 4 percent. The number of paid clicks was flat, and the price-per-click paid rose by about 17 percent, Yahoo said.

In the after-hours market, Yahoo's stock was trading at $41.33 at the time of this report, up 2.3 percent from the close of regular trading.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesadvertisingInternet-based applications and servicesYahoofinancial resultsinternetsearch engines

Featured

Slideshows

Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Top 15 Kiwi tech storylines to follow in 2017

Top 15 Kiwi tech storylines to follow in 2017

​The New Year brings the usual new round of humdrum technology predictions, glaringly general, unashamedly safe and perpetually predictable. But while the industry no longer sees value in “cloud is now the norm” type projections, value can be found in following developments of the year previous, analysing behaviours and patterns to formulate a plan for the 12 months ahead. Consequently, here’s the top Kiwi tech storylines to follow in 2017...

Top 15 Kiwi tech storylines to follow in 2017
Show Comments