Yahoo! Inc. (NASDAQ: YHOO) reported first quarter financial result on Tuesday after market close. Revenue fell 11 per cent to US$1.09 billion, and the net loss was US$99 million, or 10 U.S. cents a share, in contrast to revenue of US$1.23 billion and net income of US$21 million, or 2 USA cents a share, in the same quarter a year ago.
Advertisement
Gross revenue during the quarter dropped as well compared to last year, at it reached $1.09 billion in comparison to $1.23 billion from last year’s first quarter.
In her almost four years as Yahoo’s CEO, Mayer has made little progress in her attempts to win back market share from bigger internet players such Facebook Inc and Alphabet Inc’s Google.
So far, Yahoo! has reportedly attracted the interest of the parent company of the UK’s Daily Mail, Verizon Communications, AT&T, Google’s parent body Alphabet, Time and Microsoft – but Verizon is now the front-runner and is expected to advance to the second round of bidding, according to Reuters.
“Our efforts to date reflect clear, decisive action to move forward quickly and in a way that we believe will yield enhanced value”, Mayer said Tuesday in a call with analysts to discuss the company’s quarterly earnings report.
That has left those who monitor the company wondering what, if anything, Yahoo will disclose about its potential sale in its 2 p.m. call with investors.
Yahoo! shares are up 55 cents, or 1.5%, at $36.88, in late trading. An array of suitors had been considering bids for either the entire company or certain parts, most notably its Web business.
Apax Partners LLP, TPG Capital LP, Bain Capital LLC, Apollo Global Management LLC (APO.N) and Warburg Pincus LLC were among the private equity firms that submitted first-round bids, the people said. Yahoo’s performance puts it in a vulnerable state to justify higher bids for the sale of its core business.
The lackluster earnings come as the company has begun shopping its core business around for a buyer, after increasing pressure from activist hedge fund Starboard and other investors.
Murali Sankar, Boenning & Scattergood Inc analyst said the company is meeting its guidance mostly because it has lowered its own expectations for the future – a trend he expects to continue.
In line with this, Yahoo CEO, Marissa Mayer was all praise for the company’s accomplishments in the quarter despite less than impressive results. Time Inc. reportedlyabandoned the idea of making an offer for Yahoo because they thought the business was simply too hard to save, according to The Wall Street Journal (paywall).
The company’s shares rose almost 1 per cent to $36.66 in light volumes in extended trading on Tuesday.
Advertisement
Estimates on the value of Yahoo’s internet operations have ranged from 4-10 billion dollars.
