Yahoo! CEO Marissa Mayer recently celebrated her one year anniversary at the helm of the Internet giant’s throne: The latest news on the firm failing to meet estimated targets has soon crashed the party however.
The search engine firm’s head honcho battled to encourage investors the firm was on track after a mixed set of half year results created a sense of fear the Internet giant had not progressed as much as had been hoped.
Ms Mayer was quick to point out Yahoo!’s progress with mobile innovation is up considerably, no doubt helped by the firm’s 17 acquisitions – many of which were mobile app creators. She gave Yahoo!’s mobile progress a strong ‘A’ grade and also claimed traffic to Yahoo!’s website was on the up for the first time in more than a year.
Ms Mayer said: “[We have] created a new, supercharged Yahoo!. The energy and excitement on campus is unbelievable.
“We saw continued stability in our business, strengthened our team, and started the year with fast execution against our products and partnerships. We are moving quickly to roll out beautifully designed, more intuitive experiences for our users.”
In the three months up to the end of June, Yahoo! still raked in more than $331m compared to the net income of $227m at the same point last year.
However, revenue was down seven per cent on the same point as last year at $1.14bn. Taking out ad commissions this figure was actually $1.07bn, a one per cent decline on last year.
Unfortunately for Yahoo!, Google and Facebook continue to dominate the digital marketing industry, with advertisers still opting to invest more money in them than Yahoo!, bad news when, at least for now, online ads are still the firm’s bread and butter.
Revenues from display advertising slumped 11% to $423m, but it was not all doom and gloom as paid-for clicks jumped by more than fifth – boosting search revenue to $403m
Yahoo! chief financial officer, Kenneth Goldman, remained confident the firm would soon meet expectations however when he added: “We have a lot of confidence in our business but that has yet to translate to revenue growth.”
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