Yahoo says it’s made ‘substantial progress’ on selling or spinning off the company

Yahoo just reported its first-quarter earnings after the bell today.

The numbers show Yahoo’s core business is continuing to shrink, seeing declines across the board from last year. Yet, expectations were already pretty low, and the stock is roughly trading flat in after hours.

Here are the most important numbers:

  • EPS: $0.08 per share vs. $0.07 per share (non-GAAP)
  • Revenue: $1.09 billion vs. $1.08 billion (down 11% year-over-year)
  • Revenue ex-TAC: $859.4 million vs $846.3 millioin (down 18% year-over-year)

Yahoo’s net profit dipped into the red in the first quarter, posting a loss of $99 million. That’s down 12% from the same period of last year when it had $21 million in net profit.

Yahoo also gave second quarter guidance in the range of $1.05 billion and $1.09 billion, slightly below street estimates of $1.10 billion.

Yahoo’s legacy business, including search and display, continued to slide this quarter. Search revenue was down 15% to $820 million, while display revenue dropped 1% to $463 million for the quarter.

But revenue from Mavens, which stand for mobile, video, native advertising, and social, was up 7% to $390 million. Mobile revenue also went up 11% to $260 million. Mavens growth has been a focal point of Mayer’s 3-year turnaround plan.

“I’m pleased that we delivered Q1 results in line with our expectations. Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth,” Yahoo CEO Marissa Mayer said in a statement. “In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders.”

Yahoo ex tac revenue

Yahoo is currently seeking a buyer for its core internet business, while dealing with a proxy fight from activist investor Starboard Value. On top of that, Yahoo CEO Marissa Mayer continues to pursue her 3 year turnaround plan.

Yahoo’s quarterly conference call is eagerly awaited on Wall Street, as it’s the company’s first big update since putting its core internet business up for sale in February.

The deadline for placing bids was reported to be Monday, and companies like Verizon, TPG, and Bain Capital are rumoured to be the main interested parties. Yahoo hasn’t commented on the bidding process yet.

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