Yahoo is still struggling but with CEO Marissa Mayer at the helm, the company’s future is looking not as grim as it was before she came into the picture. Yahoo has recently reported that its thrid quarter earnings beat the analysts expectations.
In a report from Yahoo itself, Ms Mayer called the company’s performance as “solid” as it tries to focus on the company’s “stabilization in search and display revenue.”
The third quarter revenue at $1.09 billion is above the forecasts of analysts. Total earnings increased to 66 percent according to the report.
The tech giant’s search revenue also increased to 11 percent over the year to $414 million. Yahoo’s display revenue, which has seen dramatic dives previously, remained flat at $452 million.
Yahoo’s share price rose more than 4 percent after the announcement.
Asked to choose between search and display, Ms Mayer replied that she’s “bullish on both” although she did say that an opportunity for display is “particularly compelling”. The partnership of Yahoo with Bing, Microsoft’s search engine, according to Mayer was “disappointing” during the third quarter. She did not say that Yahoo is planning to change anything on that front though.
Yahoo’s biggest target to date, it seems, is the mobile space as Mayer spoke in length about it. She said that Yahoo’s “top priority is a focused, coherent mobile strategy.”
The past three months had been a busy quarter for Mayer. She took over the top position of the company last July, a day after it released its mediocre performance during the previous quarter. She right away get down to business by reviewing the entire company’s business strategy and discussing the results in an all-staff meeting two months later.
The said private meeting revealed Mayer’s overarching strategy to allow personalization of Yahoo to its user base, according to people familiar with the matter. She encouraged the staff to interact with the Web just like what Yahoo’s users do. To demonstrate point, she stopped the company practice of issuing BlackBerry to the staff and instead gave out Apple’s iPhones as well as phones running Android.
Personally, Mayer also had to tend to her newborn son. She returned to work on September 30 after a two-week maternity leave.
Mayer’s coming also signals the exodus of several top Yahoo officers in a few departments including in sales and HR. The most notable personality who left was the chief financial officer Tim Morse. Mayer did not waste time replacing him with Ken Goldman from Fortinet.
Mayer replaced the disgraced Scott Thompson after he was ousted due to a scandal related to his academic credentials. Mayer tied some loose ends left by her predecessor like returning some $3 billion to shareholders after Yahoo sold its stake in Chinese company Alibaba for $1.7 billion.
Now, Mayer’s main job is use the remaining cash at hand to steer the embattled internet pioneer to the right track. Considered one of the first companies that made money as the internet exploded decades ago, it is now falling behind new company upstarts like Facebook and Google.