Yahoo Has Another Bad Quarter
Yahoo issued its quarterly earnings report, and the results continue to dissapoint. While Yahoo is growing, albeit much slower than Google, Yahoo’s profits dropped from the previous year, with operating income falling from $230 million in the same quarter in 2006 to $185 million this quarter. That 19% decrease meant that an 8% increase in revenue (to $1.7 billion) wasn’t enough to offset rising expenses. A big part of the problem was that while advertising from Yahoo-owned sites rose 18%, ad revenue from affiliates fell 5%.
Yahoo’s cash on hand is $44 million less than it was a year ago. Yahoo’s assets are $106 million less than a year ago. If Yahoo is shrinking in some areas, eventually there won’t be a company left to save. Hopefully, the opinions that CEO Jerry Yang was waiting until after this bad quarter to announce his plan to save the company were accurate.
Yahoo stock is down 4.46% in after-hours trading. Google releases on Thursday.
UPDATE: Valleywag analyzes Yahoo’s earnings conference call. It looks like Yahoo plans to monetize user data, and go on a spending spree to grow new businesses. Sue Decker seems to want to use Yahoo Mail as a social network of sorts, an area Yahoo has failed ot innovate and failed to buy into.
