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
Error: Please check your email address.
Show Comments

Blog Posts

Why doing your job well is the key to innovation

The words ‘power company’ and ‘innovation’ probably don’t seem like a natural combination. In fact, when I first went for a marketing role with an electricity company, I semi-dreaded the work I thought I’d be doing.

Catherine Anderson

Head of marketing, Powershop Australia

The great unlearning: How brands can assist with the adoption of voice

Mainstream adoption of voice technology will be all about what consumers are learning not to do.

Ash Mustchin

Director, digital and experiences, Principals

Why getting intimate is key to creating a great customer experience

According to CMO’s State of the CMO 2017 research, 83 per cent of CMOs believe customer experience to be central to their role. An interesting stat considering few of us experience great brand experiences.

Pip Stocks

CEO and founder, BrandHook

'to lesson screen time'LOL someone needs a lesson on how to lessen typos.

Andrew Ward

Golden Circles invests in content play to drive brand purpose

Read more

Hey Nadia, interesting read. We have all read about what your chatbots should offer or have but haven't came across with anything about w...

Ashish K Jain

What not to do when building chatbots and voice-based brand interactions

Read more

There are some many other great solutions compared to the ones you listed here. Our clients left some of those and switched to MARA (getM...

Alexandru Rada

CMO's top 10 martech stories for the week - 9 June

Read more

Charming Shane. You know this is a public forum, right ?

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

I agree customer intimacy is a great way of creating better customer experience. Especially in the Insurance and Financial industry. Her...

Jessicalopez1989

Why getting intimate is key to creating a great customer experience and optimising customer value

Read more

Latest Podcast

More podcasts

Sign in