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!

Error: Please check your email address.
Show Comments

Blog Posts

How to leverage the Internet of Things to understand consumer intent

'Intent' is the single largest performance marketing variable. It shapes our search queries, dictates our purchase paths and mediates meaningful interactions with brands regardless of channel, media or content type.

Oliver Smith

Business development, Performics Australia

3 ways customer data can increase online sales conversion

Data has been an increasingly critical factor in improving the efficiency and effectiveness of marketing and business operations.

James Bennett

Chief experience officer, Kalido

Our sharing future is both terrifying and exciting

Discussing the future in a realistic fashion is often a disappointing prospect. For all the talk of hoverboards, jetpacks and lightsabers changing the way we do things, the reality tends to end up being something as mundane as a slightly cheaper way to get around the city.

Jason Dooris

CEO and founder, Atomic 212

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Thanks for the article Jennifer, you raise some interesting points. The supermarket and shopping centre examples particularly struck a c...

Jill Brennan

Why marketers should take note of social robots

Read more

Winning the retail game is really tricky at this point in time. Many retailers have declared themselves as bankrupt. But yes harnessing t...

Vanessa.M.Magers

​Bricks and clicks: Balancing digital and physical to win the retail game

Read more

Latest Podcast

More podcasts

Sign in