Yahoo announced its second quarter earnings on Tuesday, and while the company has seen its stock price rise 73 percent under CEO Marissa Mayer’s tenure, Yahoo still hasn’t seen the gains in revenue that investors are looking for, and overall, the second quarter results didn’t impress.
Yahoo announced $1.07 billion in revenue excluding traffic aquisitions costs for this past quarter, the company announced Tuesday, which is down 1 percent from the same quarter last year. Net earnings for the second quarter was $331 million, up 46 percent from the same period of 2012, and this translated to second-quarter earnings of $0.30 per share. Analysts predicted that the company would report $0.30 cents a share in profit and $1.08 billion in revenue.
The company is still struggling to produce real gains in revenue, having seen declines in unique visitors over the past year, as well as challenges in advertising, an industry that’s still adapting to the web. But Mayer remained optimistic on the call, pointing to increases in traffic and a renewed focus on mobile.
“The engine is now up and running. As I hit my first anniversary, it’s clear we’re hitting our second spring,” she said.
Mayer and CFO Ken Goldman did the company’s first earnings call and Q&A session as a television-news style video, although it didn’t necessarily make the event more engaging, as the company had hoped. Mayer and Goldman discussed the company’s outlook in a variety of areas including mail, mobile, advertising, and video.
Mayer responded to questions about the company’s recently acquisition spree — it acquired nine companies alone this past quarter — most notably Tumblr. She said that all of the companies except Tumblr were primarily mobile-focused startups that Yahoo was able to easily integrate into the company, and set those teams working on existing Yahoo products. But she reiterated that Tumblr will remain independent, as everyone already knew. Mayer said users are creating 250,000 new blogs on Tumblr every day and creating 75 million new posts a day.
“We’re going to continue on a pace of doing these smaller deals,” she said.
You can watch the full earnings video (if you’re so inclined) on Yahoo Finance here: