Yahoo! Inc. (YHOO)’s Second Quarter No Surprise; Leaves Marissa Mayer Dissatisfied

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.

Yahoo icon

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.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!