In what may be one of its final financial results ahead of its sell-off of a number of its major assets, Yahoo has revealed less-than impressive revenues.
Yahoo as a company is in a state of flux as its financial woes and struggling business has resulted in an imminent sell-off of its search and advertising businesses, the core of much of its very existence.
And now, the company has faced the fact that its latest financial report is out showing a business that is struggling to turn its misfortunes around.
With market analysts having predicted an adjusted earnings of 10c per share, Yahoo actually performed worse in many aspects achieving just 9c per share.
But perhaps the hardest-hitting of all was the announcement that Yahoo was to write-down the value of the photo-sharing service by $482m just three years after it purchased the site for $1.1bn.
This has resulted in a net loss of $439.9m, which is considerably more than the loss of $21.6m at the same time last year.
While total revenues increased on the same time last year – $1.31bn compared to $1.24bn – its actual revenue fell to $841.2m this year compared to $1.04bn last year.
Tumblr is worth ‘nothing’
Elsewhere, much hope had been put on its mobile and social advertising business, referred to as Mavens which has shown to have increased by 25.7pc to $504m in revenies.
However, its gross search revenue has declined considerably by 17pc to $765m with no expectations of recovery.
The cofounder and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber, said in conversation with Reuters that following this report Tumblr as a business in now worth “nothing” resulting in lower-than expected bids for Yahoo’s businesses.
It’s now just a matter of waiting to see who purchases Yahoo’s core businesses with expectations being that a winning bid will be chosen by the end of the week.
Among the front-runners expected to purchase its businesses are communication giants Verizon and AT&T, although previously, media companies like the Daily Mail were considering a bid.
Yahoo Finance app image via GokGak/Shutterstock