Just twelve days ago on April 5 Silverback Marketing released a post discussing the woes of Yahoo. The company is planning on eliminating 2000 employees in 2012, a sad number of layoffs when you consider how well other companies in the Silicon Valley area such as Facebook, Google and Twitter are doing. Once a mighty search engine, Yahoo has seen its top competitor Google dominate the search engine landscape in recent years, part of the reason Yahoo’s numbers have experienced a decline during the same period. Yahoo needed some good news to counteract the loss of employees. The company and its fans recently received the type of news it was seeking.
The morning of Tuesday, April 17, 2012, Yahoo released its first quarter earnings report and to the delight of the company, there is positive information to report. The revenue generated during Q1 by Yahoo, excluding traffic acquisition costs was $1077 million, a 1% increase compared to the same quarter in 2011. During this same period Yahoo’s GAAP revenue was $1221 million, another increase of 1% compared to Q1 of 2011. The actual net earnings reported by Yahoo totaled $286 million, a figure that represents 28% of Yahoo’s Year over Year (YoY) growth.
More good news from the report indicates that Yahoo’s search revenue was up to $470 million, a 3% increase from 2011. However, the total of display ad revenue was down to $511 million, a 2% decrease compared to the first quarter of 2011.
The report inspired the first post on Yahoo!’s Yodel Anecdotal blog from Scott Thompson, Yahoo’s new CEO. The biggest news Thompson reported may be that these figures represent the first increase in YoY revenue since the third quarter of 2008. That is a period of almost four years, terrific news for this company.
Please take some time to read the blog post from Scott Thompson and the Q1 report from Yahoo. This is great news to report and provides hope that Yahoo! will be able to continue and serve its loyal users.