Yahoo Announces New CEO, Flat Net Revenue

by Jordan Richardson on July 18, 2012

On Monday, Yahoo announced the appointment of Marissa Mayer, formerly of Google, as the new CEO of the company. On Tuesday, Yahoo delivered its second quarter earnings call and Mayer was not present.

The appointment of Mayer is being put over by the company as the hiring of a “superstar” in the tech world. While outsiders may not know what that particularly means, Yahoo insists that they’ve snagged something special. Mayer was Google’s 20th employee and was responsible for products like Gmail and Google News.

“There aren’t too many tech people who are genuine superstars, and she is one of them,” said Yahoo shareholder Eric Jackson, founder of Ironfire Capital LLC. “There must be something good at Yahoo if she left Google to take this position.”

Mayer certainly has her work cut out for her. Yahoo has been losing ground to the likes of Facebook and other hot web destinations, so it’ll need to turn things around. It’s still a reasonably popular site, but “reasonably popular” isn’t good enough in the fickle world of Internet culture.

The earnings call saw a reporting of flat net revenue and a minor profit decline over the second fiscal quarter. Shares rose 10 cents in after-hours trading on Tuesday.

Yahoo’s net revenue, a number that includes cash paid out to its many partner websites, clocked in at $1.081 billion in the three months ended June 30.

Second quarter net income was $226.6 million. In the same period a year prior, net income was around $237 million.

Yahoo claimed to earn 27 cents per share, excluding “certain terms.” That put it above the 22 cents per share that analysts predicted. Revenue from online display advertisements was up two percent year-on-year to $535 million, while search revenue saw a one percent dip.

The numbers, as you can see, don’t look all that bad. Yahoo isn’t as big or fiscally powerful as its rivals at Google or Facebook, but it pulls in some good numbers and has enjoyed consistent success. Nothing much has changed over the years, though, and that’s not a good thing for companies in Silicon Valley’s go-go world.

The hope is that Mayer stabilizes the company somewhat, pulling it out of a managerial tailspin that saw the likes of Scott Thompson fall by the wayside over a less-than-forthright resume and Carol Bartz stumble to meet targets.

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Written by: Jordan Richardson. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitterFacebook, or YouTube.

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