Yahoo CEO Marissa Mayer

Yahoo Q3 results fail to meet Wall Street expectations

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Yahoo CEO Marissa Mayer at CES 2014. Source: IDGNS

22 October 2015

Yahoo CEO Marissa Mayer has promised a renewed focus from the company as financial results from the third quarter of 2015 failed again to meet Wall Street expectations this week.

Financial results for the quarter showed total revenue of $1.2 billion, far short of analysts’ expectations of $1.33 billion but still ahead of the $1.1 billion for the same quarter in quarter of 2013.

Traffic-driven revenue for the quarter showed an improvement over Q3 2014. Revenue from mobile jumped almost $70 million from the same quarter last year to 271 million from 207 million. Revenue from PC increased to $844 million from $815 million.

There was bad news, however, from its Mavens income derived from mobile, video, native ads and Tumblr ads, which dipped from $727 million to $693 million. Non-traffic revenue also dipped from $126 million to $111 million year-on-year.

In October, the Company reached an agreement with Google to provide search results and advertising. Yahoo said the deal will not impact Yahoo’s current arrangement with Microsoft to use its search and advertising products.

The quarter showed continued expansion in Yahoo’s content offering. The company introduced Yahoo News Live with popular US news anchor Katie Couric and the Yahoo News Team, a daily live stream bringing consumers the latest on the biggest stories and people in the news.

The content play hasn’t been entirely successful as the resurrected cult sitcom Community and original series Sin City Saints and Other Space ended up losing a combined $42 million.

Mayer has also promised to spin off its remaining interest in Chinese e-commerce giant Alibaba Group into a new company, Aabaco.

Commenting on the results, Yahoo CEO Marissa Mayer said: “As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability. In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings. This is an important moment for the company, and we continue to strive to complete the spin as quickly as we can.”

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