Yahoo Shows Big Profit Increase on Still-Soft Revenue (All the Slides and Numbers Here)
Yahoo said its net income spiked to $310 million, or 22 cents a share, in the first quarter. Revenue, after subtracting what Yahoo pays in advertising commissions, was $1.13 billion.
Wall Street was expecting earnings of nine cents per share and net revenue of $1.17 billion.
A year ago, Yahoo (YHOO) earned $117.6 million, or eight cents per share.
“We had a good quarter, delivering income from operations higher than our outlook,” Yahoo CEO Carol Bartz said in a statement.
Yahoo benefited from a seven cent per share gain from the sale of Zimbra, as well as cost savings from its newish search and advertising partnership with Microsoft (MSFT).
Removing unusual items, EPS was 15 cents, up 77 percent year over year.
While the profit increase is a good thing, Wall Street is still looking for revenue growth from the Silicon Valley Internet giant and so is Bartz, who has promised increases.
Without taking out the ad commissions, revenue was up just one percent to $1.6 billion.
In any case, it is the best performance under the leadership of Bartz yet, helped by the turnaround in the online advertising industry.
Another strong note: Display ads were up 20 percent year over year, said Yahoo, much higher than analysts’ expectations of about 12 percent. But search growth was down again, this time 14 percent compared with last year.
Yahoo shares declined in after-hours trading, dropping to $17.96 after closing at $18.38.
BoomTown liveblogged the Yahoo earnings call at 2 pm PT.
Here’s the full press release from Yahoo embedded below, as well as the company’s earnings slides and condensed financial information: