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April 17, 2012

Yahoo Reports Q1 2012 Results

By Miguel Leiva-Gomez, TMCnet Contributor

Yahoo just posted its earnings results for the first quarter of 2012, showing us that its revenue – without traffic acquisition costs (“revenue ex-TAC”) – was at around $1.08 billion, a 1 percent growth from the first quarter of 2011. Its operations income, however, fell 11 percent, hitting $169 million in this quarter from $190 million at Q1 2011.



GAAP revenue follows revenue ex-TAC, hitting $1.221 billion, increasing by 1 percent from Q1 2011 ($1.214 billion). Net earnings per diluted share also sparked at a 38 percent increase. They rose to $0.23 per share at Q1 2012 from $0.17 at the first quarter of 2011.

Scott Thompson, CEO of Yahoo!, said, “In the first quarter, Yahoo!’s (News - Alert) results came in at the high end of our guidance range and beat consensus on revenue and profits. We also made changes to resize the organization and establish a new leadership structure to quickly deliver the best user and advertiser experiences at scale.”

As far as Yahoo’s business is concerned, it’s changed its leadership hierarchy, putting people into three different groups – Consumer, Technology, and Regions. This allows the company to manage itself more efficiently when catering to its advertisers and users of its technologies.

Its web traffic’s been doing better, seeing an increase of 7 percent in traffic between January and February this year. Each visitor also now spends 14 percent more time on Yahoo’s web properties as a result and 8 percent more time in media properties.

To keep its edge, the company has sued Facebook (News - Alert) in the interests of its investors and employees for the infringement of 10 different patents. The lawsuit started to protect Yahoo’s intellectual property rights and its investments in innovative technologies.

Yahoo’s display revenues weren’t as stellar this quarter, though. The company’s ex-TAC display revenue fell 4 percent from $471 million in Q1 2011 to $454 million in Q1 2012. GAAP display revenue took a similar dip of 2 percent, from $523 million in Q1 2011 to $511 million in Q1 2012. Search engine revenue rose, on the other hand, by eight percent this year from $357 million at Q1 2011 to $384 million in Q1 2012.




Edited by Juliana Kenny
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