Yahoo reports lackluster sales as Meyer takes reins

The tech world will be watching to see if Marissa Meyer is on Yahoo's earnings call Tuesday

Marissa Meyer has her work cut out for her at Yahoo. The fading Internet star reported its second-quarter financial results Tuesday, in which revenue and profit both dipped slightly from a year earlier.

Subtracting commissions paid to partners, Yahoo's revenue for the quarter ended June 30 came in at US$1.08 billion, a hair below last year's total. Financial analysts had been expecting revenue of $1.1 billion, according to Thomson Reuters.

Net income was $226.6 million, down from $237.0 million in the same quarter last year. On a per-share basis, earnings were flat at $0.18, Yahoo said.

The tech world will be watching closely Tuesday afternoon to see if Meyer, a longtime Google executive, decides to take part in Yahoo's quarterly earnings call for reporters and analysts. CEOs are normally present on the calls, but this is Meyer's first day in her new job.

Yahoo announced on Monday that it had hired Meyer to be its new president and CEO. The move came as a surprise to many: Meyer had been with Google almost since its inception and has played a prominent role in determining the look and feel of its services.

At Yahoo, she will need to find a way to bolster its share of the search market and improve its display advertising business, which has been in decline for several quarters, according to research firm eMarketer.

Yahoo's share of the U.S. online ad market declined to 9.5 percent last year, from 15.7 percent in 2009, eMarketer said. And while the market overall is expected to grow substantially this year, Yahoo's share will decline further, to 7.4 percent, it predicted.

In the quarter just ended, Yahoo's revenue from display advertising, including traffic acquisition costs, was $535 million, up 2 percent from a year earlier. Its revenue from search, also including acquisition costs, was $461 million, a 1 percent decrease, Yahoo said.

The income figures above include restructuring charges and deal-related expenses. Excluding those charges, Yahoo's net earnings would have been $0.27 per share, it said, ahead of financial analysts' forecast.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?