Yahoo! Inc.(NASDAQ:YHOO)‘s second quarter results are out, and the overall performance does not standout to differ from Yahoo’s previous quarter results. During the reported quarter, Yahoo’s adjusted revenue excluding TAC declined by 3% to $1,040 million, and GAAP net income too slipped by 72% year-over-year on account of restructuring charges of $53 million and pre-tax gains from sales of patents of $62 million. CNBC reported that Yahoo’s CEO, Marissa Mayer repeatedly showed her dissatisfaction about the slow pace of progress.
In her statement, Mayer said, “Transformation is not a singular event. It is a series of events and quarters, some more challenging than others and some more successful than others, and it will take time. In the case of Yahoo, I have stated in the past, we believe a transformation of this size and scale will take multiple years. We continue to believe that is the case today. Even so given our top priority of long-term sustainable growth, we are not satisfied.” Further Mayer revealed that the Yahoo! Inc. (NASDAQ:YHOO) recorded achievement in multiple areas, like mobile, native ad and potential ads on Tumblr, but the growth in this area was largely offset by weakness in display ads, which is a major portion of Yahoo’s ad mix.
In the meantime, Yahoo! Inc. (NASDAQ:YHOO) has decided to retain a larger slice of its share in Alibaba.com, which is all set to launch itself in the U.S. On Tuesday, Yahoo declared that it will sell 140 million shares of Alibaba as against the required stake sale of 208 million shares, which is roughly 6% of its stake in the Chinese company. Yahoo! Inc. (NASDAQ:YHOO)’s CFO Kenneth A. Goldman said that the company anticipates that the sale of the shares ahead of Alibaba IPO to be fully taxed as he added that the nature of these transactions will be complicated and could stretch to multiple years. While the retention of more stake in Alibaba sounds comforting as it would give more time to Yahoo, but ultimately the focus would shift to the company’s core business.