Yahoo has reported its third quarterly earnings for 2012 and its first since former Google top female exec, Marissa Mayer, took over. The company made US$1.089-billion in revenue, just two percent higher than last year.
The Sunnyvale company reports that its GAAP revenue was only US$1.202-million for this third quarter of 2012, down one percent from the third quarter of 2011 and also slightly down from the second quarter this year.
According to the internet veteran, “Excluding restructuring charges for both years, operating income on a non-GAAP basis was US$177-million in the third quarter of 2012 compared to US$175-million in the third quarter of 2011. On a GAAP basis, income from operations decreased 14 percent to $152 million in the third quarter of 2012, compared to US$177-million in the third quarter of 2011.”
Ouch. Compared to search rival Google, Yahoo is making a peanuts and seeing very little growth. Even Facebook seems to be showing more growth, despite the plummeting trajectory of its stocks.
Interestingly enough, the quarter call was little higher than predicted by analyst who projected the company making US$0.26 in revenue as opposed to the US$1.08 it made.
None of this however is as important as Mayer’s direction for the company. The new CEO isn’t perturbed by the lackluster profits:
“Yahoo! had a solid third quarter, and we are encouraged by the stabilization in search and display revenue. We’re taking important steps to position Yahoo! for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders,” Mayer said in statement.
According to a report from tech news site, All Things D, Mayer’s goals for the company are “simple”: she aims “to execute fast, attract best talent and make Yahoo the best place to work.”
Mayer’s key objectives are to fix specific areas at Yahoo such as search, communications and to invest in mobile. The 37-year old CEO says that the company’s “top priority is a focused, coherent” strategy around mobile.
All of Yahoo’s competitors recognise this and have been working at their mobile strategy so it makes sense that the Silicon Valley company wants to catch up to the big boys here. Mayer is also intent on “delighting users,” as well as improving advertising and personalisation.
Mayer doesn’t intend to “pivot” the company by turning into a new business, she hopes to improve on what the company currently does by taking it back to its roots. “No one wants Yahoo to grow more than the people who work here. We believe Yahoo’s best days lie ahead… and we intend to win,” she adds.
Though her strategy seems non specific, Mayer does notes that “it’s time for Yahoo to execute” and bring its “results back to growth.” The next few months should be very interesting to see how Mayer achieves this with her “world-class team”.