Yahoo Reports Mixed Q2 Results, Display Down But Search Up
Yahoo reported second quarter results today. Earnings beat consensus estimates, though revenues missed very slightly. Total Q2 revenue was just under $1.14 billion, which is down 7 percent vs. last year. Revenue ex-TAC was roughly $1.1 billion.
Display ad revenue came in at $423 million, representing an 11 percent decline compared to $473 million last year. By contrast, search revenue gained: $403 million in Q2, a 5 percent increase vs. $385 million last year.
Paid search clicks increased 21 percent, but PPC prices declined 8 percent vs. a year ago.
Yahoo said that during the quarter it repurchased “25.3 million shares of stock at an average price of $25.76 for $653 million.” That was financed by proceeds of the sale of half of its interest in Chinese online marketplace Alibaba. The company will reap billions more when the second half of its Alibaba interest sells.
The chart below indicates a range of key metrics and financial data “at a glance.”
These basically flat Q2 results will bolster assertions and arguments among skeptics that Mayer hasn’t yet had an impact where it counts most: revenue growth. However I think she’s done a great job in laying the foundation for a longer-term Yahoo comeback.
Yahoo’s stock is trading down slightly after hours.
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(Some images used under license from Shutterstock.com.)
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