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Yahoo above expectation in third quarter

by on22 October 2012 1633 times
marissa mayer

This was the first full quarter for Yahoo's new CEO, Marissa Mayer and she has already achieved great results.  The company made $1.2 billion GAAP (Generally accepted accounting principles), which is just one percent lower than the third quarter in 2012 when they made $1.217 billion. Now you are wondering how that is good; the thing is in Yahoo they like to look at non-GAAP revenues, in which they improved from $1.081 billion in the second quarter to $1.089 billion in the third. This number is excluding traffic acquisition costs and they are the main reason why they are satisfied.

Their shares are on the rise also, so they made $0.35 profit per share on non-GAAP basis and that is not included in their $2.8 million made through the sale of Alibaba shares in September. Even if these earnings are considered as GAAP or non-GAAP it's a big increase from Q2 2012 when it was $0.27 per share, or back in Q3 2011 when it was even lower at $0.23. However, the company's operations revenue is down 14% from the Q3 2011 when it was $177 million, making it now $152 million. The good thing is that Q2 of 2012 was only $55 million so this is significant increase, but they should improve even further.

The expectations were $0.26 for shares and total revenues of $1.08 so Yahoo exceeded that. Their CEO Mayer stated “Yahoo! had a solid third quarter, and we are encouraged by the stabilization in search and display revenue. We’re taking important steps to position Yahoo! for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.” Yahoo cut their staff to 12,000 from 13,700 they had the year before, but also started to buy back their shares; which is a confident move. Will Marisa Mayer be able to bring investors back to Yahoo and put the company next to Google? It will largely depend on her visions for the future, as many investors are eager to hear about them.

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Last modified on 22 October 2012
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