Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

Yahoo! Q4 Results Fail to Impress

Shares of Yahoo! (NASDAQ: YHOO  ) fell more than 5% after hours on weaker-than-expected display ad sales. Fourth quarter earnings topped targets.

Revenue fell 2% year-over-year to $1.2 billion, after accounting for traffic acquisition costs, or TAC. Adjusted earnings nevertheless climbed 31% to $0.46 a share. Analysts had been looking for $0.38 a share in profit on $1.2 billion in revenue, according to data compiled by Yahoo! Finance.

For all of 2013, revenue fell 1% to $4.426 billion ex-TAC while non-GAAP profit rose 16% to $1.52 a share. An 11% year-over-year decline in diluted shares outstanding helped boost Q4 and full-year profits.

Segment results also varied. Display ad sales ex-TAC fell 6% for the quarter and 9% for the year, and that's in spite of a 3% increase in ads sold everywhere except South Korea. Price per ad (again, excluding South Korea) fell 7%. The results may help to explain why former top Yahoo! ad executive Henrique de Castro left the company earlier this month.

Search ad revenue ex-TAC climbed 8% in Q4 and 6% for all of 2013. Paid clicks also rose 17% while price per click decreased 3%, a recurring trend now that Yahoo! and peers are serving more ads to mobile devices.

If there was a bright spot to the report, it's that Yahoo! is adding traffic, as CEO Marissa Mayer and her team are aiming to bring more original content directly to readers.

"In Q4, we launched the new Yahoo Mail, Yahoo Finance, and our new Flickr photo books, while quickening our pace of experimentation," Mayer said in a statement. "We are extremely heartened by the year-over-year traffic increase we experienced in 2013, an early sign of return on our investments and the acquisitions we've made."

Notably, Yahoo! delivered more overall traffic than Google (NASDAQ: GOOGL  ) in July of last year -- the first such victory in two years.

 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2813686, ~/Articles/ArticleHandler.aspx, 7/1/2015 11:44:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tim Beyers
TMFMileHigh

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At Fool.com, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at timbeyers.me or send email to tbeyers@fool.com. For more insights, follow Tim on Google+ and Twitter.

Today's Market

updated Moments ago Sponsored by:
DOW 17,751.43 131.92 0.75%
S&P 500 2,077.29 14.18 0.69%
NASD 5,020.34 33.48 0.67%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/1/2015 11:29 AM
YHOO $39.42 Up +0.13 +0.33%
Yahoo CAPS Rating: ***
GOOGL $542.82 Up +2.78 +0.51%
Google (A shares) CAPS Rating: ****

Advertisement