Yahoo just reported Q1 earnings.
It missed revenue expectations badly, and the stock immediately dropped 4%.
The main problem is that traffic is down and display advertising revenues went with it.
Some thought search, CEO Marissa Mayer’s expertise, would bail Yahoo out this quarter.
It did not.
- Adjusted EPS: $0.38 versus $0.24 expected.
- Revenues Ex-TAC: $1.07 billion versus $1.10 billion expected.
- Display revenues ex-TAC came in at $402 million, an 11% decrease versus the same quarter a year ago. That’s below Anmuth’s projection of $416 million.
- Search revenues ex-TAC came in at $409 million, for a 6% y/y increase. That’s less than the $432 million predicted by JP Morgan analyst Doug Anmuth.
- Bloomberg‘s Jon Erlichman reports: “paid clicks rose 16%, while price per click declined 7%”
- Yahoo is projecting Q2 revenues ex-TAC to be $1.06 billion to $1.09 billion, lower than the consensus estimate of $1.11 billion.
Here’s a great chart from Doug Anmuth at JP Morgan on more expected numbers: