updated 04:38 pm EDT, Tue July 16, 2013
New product launches cited for quarterly results
Yahoo has posted its quarterly earnings report results, seeing little actual improvement to its bottom line. The search engine posted revenue at $1.135 billion for the second quarter of 2013, a seven percent decrease from the second quarter of 2012. Income at $137 million for the quarter is claimed to be 150 percent of the second quarter of 2012, but the second quarter of 2012 included a restructuring charge of $129 million. Not including the restructuring charge, income actually fell 26 percent from the second quarter of 2012.
Yahoo CEO Marissa Mayer was upbeat about the results, saying "I'm encouraged by Yahoo's performance in the second quarter. Our business saw continued stability, and we launched more products than ever before -- introducing a significant new product almost every week. From the new Yahoo News, the new Yahoo Sports app, the redesigned Yahoo search, the new Flickr, the new Yahoo Mail for tablet, the Yahoo Weather app, our new Yahoo app with Summly -- this quarter drove tremendous improvements in our product line, and our users responded with increased usage and engagement."
During the second quarter of 2013, Yahoo repurchased 25 million shares for $653 million, and used a net $1 billion in cash for acquisitions -- including a net $970 million to acquire Tumblr. These outflows were offset by $846 million in cash from the Alibaba Group to redeem the Alibaba Group Preference Shares. The cash received represents the redemption value and includes the stated value of $800 million plus dividends of $46 million.
Yahoo cited two new advertising formats launched this quarter designed to enhance the content experience. Yahoo Stream Ads offer unobtrusive native ads that are part of a user's Yahoo news stream. The company also unveiled a new Yahoo.com Billboard ad, designed to deliver richer content interactions to users and increased effectiveness to advertisers. Additionally, the company also announced a partnership between Yahoo and Broadway Video Entertainment, along with NBC Entertainment, to bring the "Saturday Night Live" archive clips from 1975 to 2013 exclusively to Yahoo.