Yahoo CEO Marissa Mayer has already shrunk the company’s workforce by a third in the past four years.
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The company says it earned about $1.31 billion, up from $1.24 billion past year and ahead of the expected $1.08 billion. Revenue for the second quarter of past year was $1.2 billion.
Yahoo is also expected to share details about the buyout bids it has received for its core businesses. In fact, Susquehanna is out with a research note today saying to load up on YHOO stock in anticipation of the sale – regardless of what this week’s earnings bring. Then, on top of this, the company took a non-cash goodwill impairment charge of $395 million and a non-cash intangibles impairment charge of $87 million related to Tumblr.
Even with a full 15 per cent reduction in staff from the start of the first quarter, Yahoo would still be more bloated than its rivals and potential telecom suitors.
Hired in 2012, Marissa Mayer was the fifth CEO to join Yahoo within a span of six years. But those new revenue figures reflected changes in revenue presentation that added $119 million to MAVENS and mobile.
Insider Activity: Insiders look pessimistic about the prospects of the company that they seem to offload shares while they are 13.41 up so far this year. This may indeed have been the last time Yahoo will report its financials, and it’s not surprising that it was kind of a meh result. Among the uncertainties, he noted possible payouts a buyer could owe current Yahoo partners such as Mozilla, which may be due more than $1 billion if it is unhappy with the new owner of Yahoo’s core business – a deal reported last week by tech news site Recode. Traffic acquisition costs more than doubled, up from $200 million to $466 million in the second quarter this year. A lot of discussion about the subject has been made on the web; however, it is still too early to know the future of Yahoo’s properties, maybe it will all depend on the bidder who makes the best bid to Yahoo. “The Mayer era at Yahoo is pretty much over”. While Google has also wheeled out an array of products, its dominance in search gives consumers a strong touchpoint, VanBoskirk said. Yahoo drew offers that valued the core assets at around $US3.75 billion to about $US6 billion, people with the matter have said.
Among the reported bidders for Yahoo are AT&T; Verizon; a consortium that includes Warren Buffett’s firm Berkshire Hathaway and Dan Gilbert, founder of Quicken Loans and owner of the NBA’s Cleveland Cavaliers; and private investment firm TPG.
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In a January letter to Yahoo’s board, Starboard cited annual operating costs that increased by about $US500 million over Mayer’s tenure, and $US2.3 billion in acquisitions.
