Ex-Googler Marissa Mayer’s first quarter as CEO of Yahoo! got off to a fair start with solid third-quarter 2012 results that saw revenues come in at US$1.2bn, down 1pc on the previous year.
Revenue excluding traffic acquisition costs was US$1,089m for the third quarter of 2012, a 2pc increase compared to the third quarter of 2011.
On a GAAP (general accounting principles) basis, income from operations decreased 14pc to US$152m in the third quarter of 2012, compared to US$177m in the third quarter of 2011.
“Yahoo! had a solid third quarter, and we are encouraged by the stabilisation in search and display revenue,” said Mayer.
“We’re taking important steps to position Yahoo! for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”
Yahoo! is seen by many as one of the first born on the internet companies and whose legacy was allowed to peter out due to bad management decisions (and indecision) that allowed others, namely Google, to surpass it in terms of innovation.
While Mayer may have her hands full turning the company around – she’ll have to decide is it a content company or a core technology company – she has plenty to work with.
During the third quarter, new immersive experiences launched across PC, mobile, tablet and various connected devices resulted in more than 3bn page views during the 2012 London Games.
The company launched IntoNow 3.0, a new mobile and connected device technology that allows users to connect with friends while watching TV – the number of TV shows tagged is up 80pc year-on-year.
Also during the quarter, Yahoo! closed the initial stage of its share repurchase agreement with Alibaba, receiving pre-tax proceeds valued at US$7.6bn.
If Mayer succeeds in establishing a sense of common purpose at Yahoo!, she has the opportunity to make the company a leader again.
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