Yahoo revenues continue to fall, reports USD 1.1 Bn in revenue for Q3 FY13

yahoo-logoYahoo just released its Q3 report for FY 2013, disclosing a total revenue of USD 1.136 Bn, which is a 5% decrease from Q3 last year. It seems that with the acquisitions graph rising for Yahoo, the revenue graph will continue to fall, as the same trend was also observed in the previous quarter this year.

With USD 39 Mn as its operating income for Q3, the company reported a 39% fall, compared to the same quarter last year along with a 1% decrease in its revenue (minus TAC), leading to USD 1.081 Bn. The company’s growth is quite neutral in this perspective as it had registered a similar amount of USD 1.071 Bn in revenue for Q2 this year.

Further, Net earnings for this quarter was USD 297 Mn, which is a whopping 91% decrease compared to USD 3.160 Bn in the third quarter of 2012. However, we can not neglect the fact here that Q3 2012 earnings also included a net gain of USD 2.8 Bn related to the sale of Alibaba Group shares. Also, there has been a decrease of 10.27% in net earnings for Q3 FY13 from USD 331 Mn in Q2 this year.

Amidst all these sufferings, on a positive note, the company earned 34 cents per share on its exTAC revenue of USD 1.08 Bn . These figures are not so surprising considering Yahoo was on an acquisition spree in Q3, acquiring around 8 companies and thereby investing money to create long term opportunities for the company.

With analysts all around the world giving their take on Yahoo’s Q3 FY13 filing, Yahoo’s CEO Marissa Mayer seems content with the latest report.

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” I’m very pleased with our execution, especially as we’ve continued to invest in and strengthen our core business. Now with more than 800 million monthly users on Yahoo — up 20 percent over the past 15 months — we’re achieving meaningful increases in user engagement and traffic”, said Marissa Mayer.

This quarter Yahoo launched many new user experiences such as Yahoo Screen, My Yahoo, Fantasy Sports, and more. Yahoo also rolled out a new logo after more than 18 years without a major redesign.

Thus, such outlook of Marissa, could be an insight into Yahoo product centric strategy where they are focusing on building the product portfolio and are looking ahead for the future revenue growth, sacrificing a bit from present. Also, in a recent update, Yahoo announced today that it has entered into an amendment to the share repurchase and preference sale agreement with Alibaba Group. The amendment reduces Yahoo’s sale of Alibaba shares by 20 percent.

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To contact the author, write to sugandh.dhawan@wirefootindia.com

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