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.
Here’s the full press release (and click here to see Yahoo’s slides on the earnings and here to read the liveblog of the management call on the results):
