Yahoo! earnings miss expectations, cost-cutting plans to go ahead
Yahoo! is expected to open down by more than 2% on Wednesday, after the technology group’s quarterly earnings missed expectations.
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Yahoo! Inc.
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14:25 11/03/24
The internet search provider posted second quarter earnings of 16 cents per share, falling short of consensus of 18 cents per share, although at $1.04bn revenue was slightly higher than the $1.03bn analysts were expecting.
The company cited higher spending used to attract visitors to its website in a bid to compete with Google and Facebook as the reason for the lower-than-expected earnings.
In the three months to 30 June, Yahoo! reported a net loss attributable to its shareholders of $21.6m compared with a profit of $269.7m in the corresponding period a year earlier.
However, group chief executive Marissa Mayer described the period as a “good quarter”, adding she was pleased with the momentum generated by the company’s display ad division.
The California-headquartered company, which has cut its staff by approximately 1,000 over the last 12 months in a bid to cut costs, said it expects revenue for the third quarter to be between $1bn and $1.04bn, lower than previously announced guidance of $1.07bn.
Ken Goldman, the group’s chief financial officer, said the company will continue to streamline its resources to become more efficient.
"We reduced $30m in sequential cash operating expenses driven by strategic headcount and footprint reductions, tight management of our discretionary costs and the benefit from IP monetization," he said.
"As we continued to reduce our workforce to fewer than 11,000 full-time employees over the last quarter, we have also continued to realign our resources as we become a more efficient business."