Yahoo posted 4th quarter earnings report that narrowly beat the street’s estimates on Monday with new Yahoo CEO Marissa Mayer leading the pioneer internet company as it seeks to navigate through a quickly evolving web ecosystem that is increasingly becoming more mobile.
Yahoo posted a 2% revenue increase for its fourth quarter from gains in areas like advertising and search. The company’s net income fell 7.9 percent to $272.3 million on revenue of $1.22 billion which slightly beat estimates of $1.21 billion. That compares to profits of $295 million on revenue of $1.17 billion a year ago.
Yahoo’s lower revenue in the 4th quarter is attributed in large part to one time charges related to the closure of its Korea business.
“During the quarter we made progress by growing our executive team, signing key partnerships including those with NBC Sports and CBS Television, and launching terrific mobile experiences for Yahoo!Mail and Flickr. At the same time, we achieved tremendous internal transformation in the culture, energy and execution of the company” Mayer said during the conference call.
Some large challenges remain for Yahoo in the months ahead as seeks to compete against bigger companies like Google and Facebook that have already made big investments in mobile and social networking to keep their sites popular.
According to EMarketer, Yahoo’s page views and search queries are declining while its share of digital advertising revenues in the United States fell year over year.
Yahoo as a Tech Company
CEO Marissa Mayer is attempting to bring in some new talent to the company and compete better as a tech company.
Paul Sweeney from Bloomberg Industries said yesterday on Bloomberg’s Taking Stock with Pimm Fox that the hiring of CEO Marissa Mayer last July from Google signals to Silicon Valley and to investors that Yahoo is serious about being a serious technology company that hopes to become a place where tech executives and talent come.
“They want it to be a hot tech place once again where they can attract the best and brightest” Sweeney said.
During a recent Bloomberg interview at Davos, Switzerland CEO Mayer explained that she has some new plans for Yahoo in the coming months that will guide people’s daily habits with news, search, sports, and photo sharing.
Although Mayer did not reveal all of her plans during the interview, she gave some hints that Yahoo might be moving in the direction of becoming more social focused.
“Yahoo groups has not been refreshed in like 11 years. It will go a long way if we actually start modernize some of these products” Mayer said.
Some of the new Yahoo developments that were reported during the conference call includes the following:
Yahoo! signed distribution and branding deals to strengthen two of its leading media properties.
1) Yahoo! Sports and NBC Sports announced a partnership to deliver news, fantasy games, and video coverage of sporting events.
2) Yahoo! and CBS Television Distribution launched omg! Insider, a multi-platform entertainment news series that combines the popularity of CBS Television Distribution’s The Insider with the online reach of omg!.
Yahoo! also expanded its partnership with Samsung, enabling Samsung SmartTV users to engage more with their favorite shows and commercials.