Yahoo still stuck in the rut in the second quarter earnings, quiet running Internet company president Melissa Meyer (Marissa Mayer) in the first year celebrations.
Figures released Tuesday show that Yahoo's earnings are still rising, but they also emphasized the challenges facing the company as it loses ground rivals Google and Facebook in the online advertising market, the company generated most of its revenue.
Yahoo's display advertising sold slightly less than it did last year fell by 12%, sales price, are willing to pay too much space. Headquartered in Sunnyvale, California company mainly by Google in the Internet advertising market made some small progress, but it still was not enough to prevent slipping Yahoo's revenue in the first quarter, the digital advertising market in the United States increased by 15%, according to the study firm eMarketer estimates.
Google's second quarter earnings report, due on Thursday, is expected to show stronger growth.
Yahoo's advertising nagging headache initially dragged down the company's stock in after-hours trading over 2%, but reversed after sales management to assure investors that it intends to continue to repurchase the company's stock. After Yahoo has already spent about $ 3.6 billion to buy back its shares of 190 million, the last year, to fulfill a promise made shortly after Meyer, the company realized a $ 7.6 one billion sale of half of its profits In the Chinese Internet company Alibaba shares to bear.
Wall Street happy, because it should help support Yahoo's stock price in the coming months to repurchase shares of the expansion. In addition to helping to promote the repurchased stock demand, helping to increase earnings per share decreased volume of shares outstanding. Yahoo now has 10% of the outstanding shares, less than last year. The company said it may spend another $ $ 1.9 billion stock buyback, which would be enough to take off the market at the current price of about 70 million shares.
As of Tuesday night, Yahoo's shares rose 22 cents, $ 27.10 in after-hours trading. Mayer's leadership, the company's stock rose more than 70%.
In an unusual stream live video presentation on Yahoo's Web site, Meyer focus on other things, in addition to finance, while examining the company's progress, because she defected to a top job at Google a year ago trying to revitalize the Internet's most well-known brands.
Meyer said that Yahoo's employee turnover rate has dropped by 59% in the mobile innovation is all the way up, in large part thanks to her completed acquisitions, including a $ 1.1 billion deal for the Internet blog service QQ share space 17. Yahoo website traffic is also up for the first time in more than a year, according to Meyer.
"We have created a new, supercharged Yahoo," she boasted in the video presentation.
Meyer, 38 years old, has been a great shock, the rapid growth of the company, Yahoo spent $ 100 million in exchange for a 40% stake in the eight years ago from Alibaba.
After the sale of part of its holdings, Alibaba last year, Yahoo still owns 24% of the shares, an additional $ 1 billion to $ 20 billion in the coming years is expected to bring.
Yahoo's Alibaba also enhance sustainable profitability in the second quarter report shows. Yahoo made more money from its operations in Alibaba and Yahoo Japan's investment in the second quarter than it did in the U.S. business. This is the second consecutive quarter has occurred.
Yahoo's revenue of $ 331 million, or 30 cents per share, in the three months ended June. Net income was $ 227 million, or 18 cents per share, compared to last year.
If it is not because of its ongoing activities of a number of projects, Yahoo said it would get 35 cents per share. This is the acceptable average estimate of analysts polled by FactSet or more of nickel.
Cut costs to boost profits. The company's 11,500 workers in wages by the end of June, in the past year decreased by 9%.
Revenue for the period decreased by 7%, while last year's 1.14 billion dollars.
After stripping out advertising commissions, Yahoo's revenue came to 1.07 billion dollars. Slightly below analysts' forecasts, which marks down 1% from a year earlier. This is the first time that Yahoo's net revenue has declined since Meyer took over.
Yahoo is another possible support in the quarter ending September slump. The company forecast its revenue, minus advertising commission, will range from $ 106 to 1100 million U.S. dollars. The lower end of the forecast, down from last year's net revenue of 1.09 billion dollars. On average, analysts had expected current-quarter revenue of $ 1.12 billion.
 



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