Yahoo Surprises Slightly in 2Q Earnings, But Not on Revenues
Yahoo said it had earned 15 cents a share in net income–a rise of 53 percent compared to last year-in its second-quarters earnings today, after the markets closed, on an only slight rise in revenue.
Wall Street had expected the Internet giant to earn 14 cents a share in the three months.
But gross revenue at the Silicon Valley Internet giant rose only two percent, And minus costs associated with traffic acquisition–called non-GAAP revenue–revenue was only $1.128 billion compared to $1.136 billion a year ago.
Yahoo (YHOO) CEO Carol Bartz has been touting improved margins and stronger operating income over longer-term worries about lack of innovative vision.
But the lack of revenue growth is the real issue.
Most encouraging: Display advertising, Yahoo’s core business, grew 19 percent from a year ago.
But revenue from owned-and-operated search declined yet again, although less dramatically, down eight percent year-over-year.
Page views were also down four percent, according to Yahoo, while employee numbers rose eight percent.