Yahoo reported results for the quarter ended March 31, 2014.
Yahoo’s revenue was $1,133 million for the first quarter of 2014, a 1 percent decrease from the first quarter of 2013. Revenue excluding traffic acquisition costs was $1,087 million for the first quarter of 2014, a 1 percent increase compared to the first quarter of 2013.
Marissa Mayer (CEO, Yahoo): Q1 was an early and important sign of growth in our core business. And, with mobile pivotal to our future growth, we’re delighted to now see more than 430 million monthly mobile users accessing Yahoo’s new products.
Adjusted EBITDA for the first quarter of 2014 was $306 million, a 21 percent decrease compared to the first quarter of 2013.
Income from operations was $30 million for the first quarter of 2014 (which included net restructuring charges of $9 million), an 84 percent decrease from the first quarter of 2013 (which included restructuring reversals of $7 million).
Earnings for the first quarter of 2014 was $312 million (which included net restructuring charges of $6 million), a 20 percent decrease compared to $390 million in the first quarter of 2013 (which included restructuring reversals of $4 million).
Earnings per diluted share was 29 cents in the first quarter of 2014, compared to 35 cents in the first quarter of 2013.
First Quarter 2014 – Financial Highlights
- Display: Display revenue was $453 million for the first quarter of 2014, flat compared to the first quarter of 2013.
- Display revenue ex-TAC was $409 million for the first quarter of 2014, a 2 percent increase compared to $402 million for the first quarter of 2013.
- The number of ads sold increased approximately 7 percent compared to the first quarter of 2013.
- Price-per-ad decreased approximately 5 percent compared to the first quarter of 2013.
- Search: Search revenue was $445 million for the first quarter of 2014, a 5 percent increase compared to $425 million for the first quarter of 2013.
- Search revenue ex-TAC was $444 million for the first quarter of 2014, a 9 percent increase compared to $409 million for the first quarter of 2013.
- Paid clicks increased approximately 6 percent compared to the first quarter of 2013.
- Price-per-click increased approximately 8 percent compared to the first quarter of 2013.
Cash Balance: Cash, cash equivalents, and investments in marketable securities were $4.6 billion as of March 31, 2014 compared to $5 billion as of December 31, 2013, a decrease of $0.4 billion.
During the first quarter of 2014, Yahoo repurchased 12 million shares for $450 million and used a net $22 million for acquisitions.
Yahoo says it will continue to focus on repurchasing shares. The company’s total repurchases are just under $6 billion since the beginning of 2012, including repurchases of $450 million in the first quarter.