Yahoo’s troubles just don’t seem to ever end. Following a very public shitstorm which led to the ouster of its former CEO Scott Thompson after he misstated his academic credentials, almost everyone had given up hope. However, it managed to bring Marissa Mayer on board as its CEO yesterday, which has renewed interest in the dying internet giant.
Today, it reported its earnings for Q2 2012, which have been pretty lackluster, as expected. It reported gross revenues of $1.2 billion, which was actually 1% down year-on-year. Its operating income actually dropped 71% to just $55 million due to restructuring costs and deal expenses related to the offloading of part of its stake in Alibaba.
While no one expected Yahoo to post very impressive earnings growth, the reported numbers just confirm Yahoo’s decline over the years.
Hopefully, Marissa Mayer will be able to turn Yahoo around, by focusing more on its flagship products which still attract a large number of users despite being much worse compared to the competition.
Yahoo also did some actual work last quarter, instead of just hiring and firing CEOs. It settled with Facebook and entered a new ad partnership with it. It also sold off about half of its stake in Alibaba for $7.1 billion. It launched new products like the Axis browser and Genome, an online ad solution. It also partnered with CNBC and Spotify to get additional news and media content on its platform.
It still depends on search and display advertising for its revenues, both of which grew a couple of percentage points this quarter.
via Yahoo – SEC