Yahoo Q2 Misses Revenue, Beats EPS Estimate
Just a day after the surprise announcement of ex-Google executive Marissa Mayer as the new Yahoo CEO, the struggling company reported second quarter results that underscore the challenge she faces in reviving its growth. Yahoo posted net revenue of $1.08 billion in the quarter, flat with a year ago, and slightly below Wall Street analysts’ expectation of $1.1 billion. Net earnings of 27 cents per share, however, were up 47% from 18 cents a year ago, easily beating the consensus estimate of 23 cents a share.
Among other highlights:
-Display revenue ex-TAC was $473 million, a 1% increase from $467 million for the second quarter of 2011.
-GAAP display revenue was $535 million, a 2% increase from $524 million.
-Search revenue ex-TAC was $385 million, a 4% increase from $371 million.
-GAAP search revenue was $461 million, a 1% decrease from $467 million.
"In the second quarter, non-GAAP earnings per share exceeded consensus and both display and search revenue ex-TAC showed modest growth," said Tim Morse, chief financial officer, in a statement. "We also moved aggressively with new strategic agreements with Alibaba and Facebook and announced several new partnerships including CNBC, Clear Channel and Spotify."
More to come after the conference call, at which Mayer is not expected to take part.