Yahoo profit up, but revenue falls short of forecasts

Second-quarter revenue for Yahoo was $US1.60 billion, up 2 per cent over last year

Yahoo's second-quarter revenue was $US1.60 billion, coming in on the low end of the company's expectations and falling short of analyst predictions.

Revenue for the quarter ending June 30 was up just 2 percent from the same quarter last year. Yahoo had expected second-quarter revenue to fall between $US1.60 billion and $1.68 billion.

Subtracting commission and other fees paid to partners, revenue was $US1.13 billion, short the $1.16 billion that analysts polled by Thomson Financial were hoping for.

The results are not likely to appease investors who have been growing impatient waiting for a turnaround at Yahoo. Google, the search giant and a competitor to Yahoo, recently reported second-quarter revenue that was up 24 percent over last year.

Yahoo's profit, however, rose faster than expected. Net income for the quarter was $213 million, up 51 percent over the same period last year.

On a pro forma basis, which excludes certain items, net income was $219.88 million, or $0.16 per share, more than the $0.14 that analysts were expecting and up from $145.40 million and $0.10 a year ago.

In a statement, Yahoo's CEO Carol Bartz said she was pleased with the results, pointing out "healthy" growth in display advertising, which was up 19 percent in the quarter compared to the same period in 2009.

Yahoo reported that revenue from marketing services, or advertising revenue, was up 4 percent while revenue from fees, associated with services like Flickr Pro, was down 16 percent over the same quarter last year.

Yahoo said that revenue for the third quarter is expected to be in the range of $1.57 billion to $1.65 billion.

Company executives plan to speak further about the results in a conference call.

Tags advertisingbusiness issuesYahoofinancial resultsinternetsearch engines

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?