Yahoo! ‘not satisfied’ with Q2 financial results

16 Jul 2014

Marissa Mayer, CEO of Yahoo! Image via JD Lasica/Flickr

Yahoo! CEO Marissa Mayer has declared “we are not satisified” after the internet giant posted a 4pc decline in second-quarter revenue, from US$1.13m in the year-ago quarter to US$1.08m.

Yahoo!’s second-quarter net profit also sank, by 19pc, from US$331m a year ago to US$270m this year.

“Our top priority is revenue growth and by that measure, we are not satisfied with our Q2 results,” Mayer said. “While several areas showed strength, their growth was offset by declines.”

Yahoo! Search pulled in revenue of US$428m for the second quarter of 2014, a 2pc increase from US$418m for the year-ago quarter (which included the Microsoft RPS (revenue per search) guarantee).

The number of Paid Clicks increased about 3pc compared to the second quarter of 2013, and price-per-click also rose, by 15pc, compared to the same time last year.

Yahoo!’s display advertising drew revenue of US$436m in the second quarter, reflecting an 8pc decrease compared to US$472m from the year-ago period.

Display revenue excluding TAC (traffic acquisition costs) amounted to US$394m for Q2, a 7pc decline compared to US$423m for Q2 of 2013.

“Display remains an area of investment and transition,” said Mayer. “In Q2, we saw display revenue decline, further highlighting the fact that we need to work faster to ameliorate the negative trends.

“I believe we can and will do better moving forward,” Mayer added. “Overall, I remain confident in Yahoo’s future, our strategy, and our return to long-term growth.”

Tina Costanza was a journalist and sub-editor at Silicon Republic