Yahoo's Turnaround Continues Apace - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Yahoo's Turnaround Continues Apace

A fourth consecutive profitable quarter for the Web portal.

Yahoo Inc. made it four profitable quarters in a row, continuing its about-face after the tech wreck.

The company Wednesday reported earnings of $46.7 million, or 8 cents per share, for its first quarter. That's a big turnaround from a loss of $53.6 million, or 9 cents per share, for the same quarter last year. First-quarter revenue was $282.9 million, a 47% improvement over the $192.7 million tallied a year ago.

Yahoo, which posted a $92.8 million loss in fiscal 2001, says advertisers are willing to pay for prominent display in its search results, and subscribers are turning to its Web portal for high-speed Internet access. With that money, Yahoo is weaning itself from the unsteady flow of revenue generated by selling banner and other kinds of site ads.

Revenue categorized as coming from fees, which includes its Internet-access deal with SBC Communications Inc., rose 61%, to $63.7 million in the first quarter, ended March 31. Revenue from companies buying a top position in search displays was up 89%, to $29.3 million. Marketing-services revenue was up 38%, to $190 million.

Yahoo reacted to the 2001 ad slump by hiring former movie studio executive Terry Semel to reorganize the business, a move that seems to have paid off. Company execs expect more good times. They predict revenue of as much as $315 million in the second quarter.

During a conference call Wednesday, Semel said, "We intend to maintain our focus on providing the best experience on the Web, which we believe will lead to increased user engagement and, ultimately, greater success for our company."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
10 Ways to Prepare Your IT Organization for the Next Crisis
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/20/2020
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll