yahoo

Yahoo reported results for the quarter ended September 30, 2013.

Revenue was $1,139 million for the third quarter of 2013, a 5 percent decrease from the third quarter of 2012. Revenue excluding traffic acquisition costs (‘revenue ex-TAC’) was $1,081 million for the third quarter of 2013, a one percent decrease compared to the third quarter of 2012. Adjusted EBITDA for the third quarter of 2013 was $331 million, a 19 percent decrease compared to the same period of 2012.

Marissa Mayer (CEO, Yahoo): I’m very pleased with our execution, especially as we’ve continued to invest in and strengthen our core business.

Income from operations was $93 million for the third quarter of 2013, a 39 percent decrease from the third quarter of 2012 (which reflected a restructuring charge of $25 million).

Net earnings for the third quarter of 2013 was $297 million, a 91 percent decrease compared to $3,160 million in the third quarter of 2012 (which included a net gain of $2.8 billion related to the sale of Alibaba Group shares).  

Net earnings per diluted share was 28 cents in the third quarter of 2013, compared to $2.64 in the third quarter of 2012.

Business Highlights

  • During the third quarter, Yahoo made eight acquisitions, including Bignoggins, Qwiki, Xobni, Admovate, Ztelic, Lexity, Rockmelt and IQ Engines.
  • Yahoo hired Ned Brody as senior vice president and head of the Americas, and Dawn Airey as senior vice president and head of EMEA. Yahoo also brought on New York Times journalist and editor Megan Liberman as editor-in-chief for Yahoo News. Jeff Bonforte, who joined Yahoo through the company’s acquisition of Xobni, was appointed as senior vice president of Communications Products; and Mike Kerns was named senior vice president of Homepage and Verticals.

Third Quarter 2013 Financial Highlights

  • Display revenue was $470 million for the third quarter of 2013, a 7 percent decrease compared to $506 million for the third quarter of 2012. The Number of Ads Sold (excluding Korea) increased approximately 1 percent compared to the third quarter of 2012. Price-per-Ad (excluding Korea) decreased approximately 7 percent compared to the third quarter of 2012.
  • Search revenue was $435 million for the third quarter of 2013, an 8 percent decrease compared to $473 million for the third quarter of 2012. Paid Clicks (excluding Korea) increased approximately 21 percent compared to the third quarter of 2012. Price-per-Click (excluding Korea) decreased approximately 4 percent compared to the third quarter of 2012.
  • Cash, cash equivalents, and investments in marketable securities were $3.2 billion as of September 30, 2013 compared to $6 billion as of December 31, 2012, a decrease of $2.8 billion. During the third quarter of 2013, Yahoo repurchased 59 million shares for $1,685 million and used a net $163 million for acquisitions.

[Image courtesy: Yahoo]