THE NUMBERS ARE OUT:
- EPS: $.32 vs $.28 consensus
- Revenue excluding traffic acquisition costs: $1.22 billion vs $1.21 billion expected
- Revenue growth 2% y/y.
- Here's the release.
QUICK TAKE:
- Revenue totally in line.
- Profits are a nice beat.
- Search revenue excluding traffic acquisition costs is up big - 14% y/y.
- Display advertising shrank 5% y/y.
OVERALL TAKE: Ex-Googler Mayer seems to have optimized search revenues, which is nice. It's terrible news that display revenues shrank. That's Yahoo's core business. It will only turn around when the company begins to figure out new ways to attract and engage new users.
Yahoo will host a call to go over the results at 5PM. We will also cover that live, so stick around.
Here what we want to hear about:
- Does Yahoo think it can continue to accelerate search revenues?
- What is Yahoo going to do to grow consumer reach and usage on desktop and mobile?
Earlier today, we heard from a major Yahoo client who wants the company to be more transparent about its long-term plans.
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