Yahoo reports another sales drop as ad clicks yield less

Yahoo's revenue and profit were both down from last year, though it has more users

CEO Marissa Mayer presents Yahoo's earnings results
CEO Marissa Mayer presents Yahoo's earnings results
  • CEO Marissa Mayer presents Yahoo's earnings results
  • Marissa Mayer and CFO Ken Goldman discuss Yahoo's financial results   in an unusual webcast format
  • Marissa Mayer and CFO Ken Goldman discuss Yahoo's financial results   in an unusual webcast format
View all images

Yahoo reported a 5 per cent drop in revenue for the third quarter, with the money it makes from display and search ads both continuing to decline.

Revenue for the period ended Sept. 30 was $US1.2 billion, down 5 per cent from a year earlier, Yahoo said Tuesday. Excluding traffic acquisition costs, revenue was down 1 percent.

Its profit for the quarter was $US297 million, much lower than last year, when it made a big one-off gain from selling shares in China's Alibaba Group. On an operations basis, Yahoo's profit for the quarter was $US93 million, a drop of 39 per cent.

"I'm very pleased with our execution, especially as we've continued to invest in and strengthen our core business," CEO Marissa Mayer said in a statement.

Mayer took over the company last July and is trying to restore Yahoo to its glory days, by making products like Yahoo Mail cool again. She's also made a string of acquisitions, including Tumblr for $US1.1 billion.

The number of people using Yahoo's services has grown - on Tuesday it said it has 800 million monthly users, up 20 per cent in 15 months - but it hasn't turned those users into top-line growth.

Yahoo sold slightly more display ads last quarter than it did a year earlier, but the price per ad (excluding Korea) fell, bringing display revenue down by 7 per cent, to $US470 million, the company said.

It also sold more clicks on ads -- they were up 21 per cent from last year -- but the price per click (excluding Korea) also declined, by 4 per cent. Search revenue overall fell 8 per cent in the quarter, to $US435 million.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

5 cornerstones of a strong digital culture

Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.

Anthony Stevens

Founder and CEO, Digital Asset Ventures

Should you rebuild your company’s tech stack in blockchain?

The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.

Michelle O'Keeffe

CEO, Engaging.io

Customer value proposition: Getting the brand promise to your customers right

Throughout my career, I have witnessed a litany of brand names that profess to have a unique customer value proposition (CVP). In reality, however, they’ve had little more than a ‘value proposition’: A simple list of benefits applied to a general audience.

Ric Navarro

Global director of marketing and communications, Norman, Disney & Young

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Deloitte TMT Predictions: AR and mobile crucial for marketing success in 2018

Read more

Hi there! Thanks for this interesting article! I love to read about new technology and software that makes our lives easier. I'm looking ...

Julia Summer

Wartsila overhauls Web platforms to create ‘seamless’ brand experience across all devices

Read more

RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...

Ed Fry

Why sales and marketing alignment is more important than ever

Read more

Thank you for the good and very helpful information. It is very interesting. I love all the things you share and see your beautiful creat...

รัตนาวดี ภูมิวรรณ

Former eHarmony marketing chief joins telco startup

Read more

Colin Kaepernick, not Mike Kapernick.

thisisw

Zenith's innovation leader: Mid-digital age not benefitting media, brands or consumers

Read more

Latest Podcast

More podcasts

Sign in