As expected, the ad market’s woes continued to take their toll on Yahoo’s results, as the company reported its fourth consecutive quarter of declining sales. Net revenue plummeted 15 percent, as display ad sales fell 8 percent and search ad revenue tumbled 19 percent. However, net income and earnings per share were both up, as the company benefited from aggressive cost cutting. Surprisingly, Yahoo’s biggest operating expense — sales and marketing — dropped nearly 28 percent during the quarter, despite the debut of a $100 million branding campaign.
|3Q 2008||3Q 2009||Estimate|
The results beat analysts’ low expectations — and Yahoo (NSDQ: YHOO) CEO Carol Bartz put a positive spin on the numbers.