The internet technology and media company posted third-quarter earnings per share of 20 cents, adjusted, on revenue of $ 1.31 billion. Analysts polled by Thomson Reuters expect Yahoo to report earnings of about 14 cents a share on $ 1.31 billion in revenue.
The company said in July they were expecting third quarter revenue of $ 1.275 billion to $ 1.325 billion on agenerally accepted accounting principles (GAAP) basis. That’s up slightly from 15 cents per share on $ 1.27 billion in revenue in the year-ago period.
It comes as more details come to light about Yahoo’s data breach, which built upon an August investigation of 200 million breached accounts.
Following the revelations, numerous media outlets, including the New York Times and Reuters, probed Yahoo’s attitude about cybersecurity and its compliance with government surveillance. A report from the New York Post, unconfirmed by CNBC, indicated that Verizon may demand a price negotiation on their deal.
“That is just total speculation — we still see a real value to the asset there,” Lowell McAdam, CEO of Verizon, said earlier this month at the Internet Association’s Virtuous Circle conference in Menlo Park, California. “But in fairness, we’re still understanding what was going on, to define whether it’s a material impact to the business or not. But the industrial logic of doing this merger still makes a lot of sense … I’m hoping we can get through all this stuff and get to the close [of the deal].”
On Tuesday, Bloomberg reported that the lack of progress on Yahoo’s hacking probe has “dismayed” Verizon. Yahoo reiterated to CNBC that it was continuing to work towards integration with Verizon.
Despite a large user base, Yahoo has failed to cling to its share of digital ad revenue as rivals like Facebook and Alphabet continue to grow rapidly. Yahoo will capture 1.5 percent in total worldwide digital ad sales this year, down from 2.1 percent last year, eMarketer estimates.
The company’s “Mavens” revenue, meant to measure forward-looking technologies like mobile, video, native and social, hit $ 524 million for the quarter, up from $ 422 million a year ago, the company said.
Search revenue was $ 703 million for the third quarter, up from $ 516 million on a GAAP basis from this time last year, and beating FactSet consensus estimates of $ 682.2 million. But the number of paid clicks decreased 22 percent year over year.
Display revenue was $ 476 million for the third quarter, a 7 percent year-over-year decline and below the $ 496.2 million expected by analysts surveyed by FactSet, as fewer ads were sold.
Looking ahead to the fourth quarter, the company expects revenue of $ 1.36 billion to $ 1.4 billion on a GAAP basis.
— Reporting by CNBC’s Julia Boorstin
This is breaking news. Please check back for updates.
No comments:
Post a Comment