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Marissa! Mayer! ends! 21! month! dry! spell! as! Yahoo! sales! grow!

Purple Palace finally tilts revenue upwards ... but income downwards

Yahoo! is living in hope of a financial resurgence as the company logged a rare uptick in revenues.

The Purple Palace said its third-quarter GAAP revenues rose one per cent over the same period last year to $1.148bn, up from $1.139bn in 2013. This marks the first time in seven quarters the firm was able to increase GAAP revenues.

The web giant reported a GAAP income of $42m from the third quarter, down 55 per cent on the previous year's $93m. Non-GAAP income from operations in Q3, ended September 30, was down 10 per cent, year on year, to $156m from $173m.

Earnings per share for Yahoo! came in at $0.52, well above the $0.30 analysts had expected. Yahoo!'s stock closed up 2.29 per cent on the day to $40.18.

"We saw continued stability in the business, and our investments allowed us to bring beautiful products to our users and establish a strong foundation for revenue growth," said CEO Marissa Mayer, who joined the biz in 2012.

"We are extremely heartened by the year-over-year traffic increase we experienced in 2013, an early sign of return on our investments and the acquisitions we've made."

The company noted an increase in search revenue on the quarter, as it pulled $452m, up four per cent on the year-ago period. Display ads, meanwhile, were down five per cent to clock in at $447m. The company also noted that mobile was a contributor for the first time as it accounted for $200m in revenues.

Yahoo! also disclosed just how much cash it pulled in from last month's Alibaba initial public offering, reporting, after taxes, a haul of $6.3bn from its sale of part of its stock in the Chinese web bazaar.

While Yahoo! has been able to maintain quarterly revenues around the billion dollar mark, the company had struggled with slowly eroding figures as quarterly reports were constantly falling in comparison to the previous year.

With the firm in the midst of a makeover under Mayer, Yahoo! has been working to get itself back on the right side with more of a focus on ads and acquiring startups to boost its appeal with marketers.

Yahoo! will report its full year figures early next year when it gives its Q4 figures ending 31 December. ®

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