THE NUMBERS ARE IN.OVERALL THEME: Yahoo beat profit expectations and revenues are where everyone expected them to be: down year-over-year.
In other words, this was a typical Carol Bartz era quarter.
ACTUAL: $1.07 – down 5% y/y.
Consensus: $1.07 billion
Guidance: $1.05 to $1.1 billion
Consensus: $.17 EPS
Down 21% y/y.
- Display revenue ex-TAC was $449 million, which was flat compared to $448 million for the third quarter of 2010.
- Search revenue ex-TAC was $374 million, a 13 per cent decrease compared to $428 million for the third quarter of 2010.
- ex-TAC revenues: $1.25 billion to $1.24 billion.
- GAAP revenue: $1.275 billion to $1.395 billion.
- Income from operations: $200 million to $260 million.
Yahoo will host an earnings call at 5pm eastern.
We’ll take notes from that call here.
Anything not in quotes is not a quote.
4:59 – We’re on the call early. The music is very mellow. If you’re looking for something to read while we wait, check out Apple’s disappointing earnings.
5:00 – We’re starting! Tim Morse is on the call. That’s it!
5:03 – Reveneue, operating income and EPS were above consensus says Tim. Not sure that’s true.
5:03 – Tim says the board is actively looking at the full range of options available to return to growth and create value for employees, advertisers, users and shareholders.
5:03 – The rest of the call is going to be about Q3 and Q4 guidance.
5:05 – Yahoo bought 43 million shares during the quarter.
5:06 – Sell-through, sold impressions are up in premium placements. Non-premium was done.
5:07 – Sales force headcount has stabilised. Sales productivity is ramping up. You see it in sell-through, Tim says.
5:09 – He’s going through product announcements from the quarter. You can read about them here.
5:11 – Thanks to the MSFT deal, Yahoo has closed 30% of the revenue-per-search gap it posted in April.
5:11 – Yahoo still expects to completely switch to MSFT algorithmic search by the end of this year. Only one remains: Korea.
5:12 – Yahoo Japan is worth $6.4 billion. Yahoo is working on a way to unlock the value for shareholders, tax-free. Yahoo’s investment in the Alibaba group is worth $14 billion on a pre-tax basis.
5:14 – Tim thanks Yahoo employees for remaining focused during the chaos.
5:16 – July was weak, but August and September were solid for display sales, says Tim. Expect a normal sequential bump in Q4.
5:26 – Morse says the RPS guaruntee with MSFT has been extended for an extra year – through March 2013. Same terms.
5:38 – Morse confirms that there is a CEO search underway.
5:38 – An analyst wants to know when the board is going to announce any of its decisions. By when? The end of the year?
5:38 – Morse dodges the question.
5:46 – Morse talks about non-premium’s declines. It’s volume and yield. It’s in Mail, News, and Finance. “We need to tweak and optimise.”
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