With Marissa Mayer at the helm, Yahoo has been gunning hard for a financial turnaround, investing in software redesigns, focusing on mobile and media, and making eight acquisitions in the third quarter alone. But are all of Mayerโ€™s efforts paying off? According to Yahooโ€™s quarterly earnings, reported Tuesday, the answer is not yet.
Yahooโ€™s third-quarter net revenue, excluding traffic acquisition costs, came in at $1.08 billion, down 1 percent from a year ago, but matching analyst forecasts. Earnings came in at 34 cents per share, also down from a year ago, but modestly exceeding expectations by a cent. While these figures may not indicate company growth, Mayer says Yahooโ€™s online user numbers do. With a reported 800 million monthly unique usersโ€”up 20 percent since Mayer joined Yahoo about 15 months agoโ€”the company expects traffic increases to translate into real revenue gains.
But when?
Techonomyโ€™s David Kirkpatrick appeared on Bloombergโ€™s โ€œTaking Stockโ€ on Tuesday to talk about Yahooโ€™s financial outlook. โ€œItโ€™s the classic model of โ€ฆ the money will come,โ€ he said. โ€œI think the money hasnโ€™t come in the way that a lot of people would like, but she has righted the ship and steadied it. Itโ€™s a matter of turning up the gas a little bit.โ€
While itโ€™s clear Yahoo has a long road ahead of it, Kirkpatrick said Mayer is acutely aware of the challenges she facesโ€”namely those challenges imposed by todayโ€™s rapidly shifting market that demands more than just high-quality products to succeed. Yahooโ€™s struggles, Kirkpatrick added, are โ€œemblematicโ€ of the changing world of business, and thinking about and understanding these changes is becoming increasingly important. Itโ€™s this philosophy thatโ€™s central to Techonomy.
โ€œWe believe everythingโ€™s changing at extraordinary speed and leaders need to think harder about it. Marissa understands that deeply,โ€ Kirkpatrick said of Mayer, who spoke at the Techonomy conference in 2011.