Yahoo has just reported a more than 22 percent bump in quarterly revenue, on Tuesday, as it approaches the sale of its core internet business to telecom company Verizon Communications. Regarding the sale, Yahoo CEO Marissa Mayer comments, “As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon.”
She goes on to say, “With the transaction anticipated to complete in June, I’ve never been more proud of the improvements we’ve made to the business and the value we’ve delivered to our shareholders.”
The company also comments that revenue from its mobile, video, native, and social advertising unit Maven, which has been a key emerging business for them, rose by a massive 35.6 percent to hit $529 million in the first quarter of the year (ending March 31).
With that, Yahoo’s attributable net income fell just shy of $99.5 million; the equivalent of 10 cents per share, on the quarter. This is easily an improvement over the company’s net loss of $99.2 million (also the equivalent of about 10 cents per share) from last year.In addition, revenues bumped up from $1.09 billion to $1.33 billion.
Verizon agreed to buy Yahoo’s proprietary business back in February, a sale which included internet search and email assets. This deal was originally worth just shy of $5 billion but the eventual price fell to $4.48 billion on the heels of two massive cyber attacks.
This delay in the sale has greatly benefited Yahoo competitors Google and Facebook who have been respectively scooping up all the digital advertising Yahoo (and Verizon) have not been fit to handle in the aftermath. Indeed, Pivotal Research analyst Brian Wieser comments, “[Google and Facebook] are taking the bulk of the growth in the industry. The industry is evolving and Verizon kind of has to wait to get this deal done. I’m sure they’re making a lot of other plans. But they can’t really execute.”
Still, Yahoo managed to raise its year over year performance in the first quarter of 2017, Yahoo reaching $1.3 billion in revenue and, effectively, exchanging a $99 million loss for a $99 million profit to most certainly beat Wall Street’s early expectations.