This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2016/04/20/technology/yahoo-reports-falling-revenue-and-a-quarterly-loss.html
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Yahoo Reports Falling Revenue and a Quarterly Loss | Yahoo Reports Falling Revenue and a Quarterly Loss |
| (about 1 hour later) | |
| Yahoo said on Tuesday that its business continued to deteriorate in the first quarter, putting more pressure on the company to find a buyer quickly for its Internet operations. | Yahoo said on Tuesday that its business continued to deteriorate in the first quarter, putting more pressure on the company to find a buyer quickly for its Internet operations. |
| Yahoo, based in Sunnyvale, Calif., said revenue fell 11 percent to $1.09 billion, and its net loss was $99 million, or 10 cents a share, in contrast to revenue of $1.23 billion and net income of $21 million, or 2 cents a share, in the same quarter a year ago. | Yahoo, based in Sunnyvale, Calif., said revenue fell 11 percent to $1.09 billion, and its net loss was $99 million, or 10 cents a share, in contrast to revenue of $1.23 billion and net income of $21 million, or 2 cents a share, in the same quarter a year ago. |
| After deducting payments Yahoo made to advertising partners for traffic, its revenue exceeded Wall Street’s expectations. Profits after adjusting for certain items also slightly beat projections, although shareholders are much more focused on the potential sale of the company than on the quarter’s financial results. | After deducting payments Yahoo made to advertising partners for traffic, its revenue exceeded Wall Street’s expectations. Profits after adjusting for certain items also slightly beat projections, although shareholders are much more focused on the potential sale of the company than on the quarter’s financial results. |
| Yahoo shares were up slightly in after-hours trading. | |
| The first bids for Yahoo’s core Internet business were due Monday. Verizon Communications, the mobile phone carrier that owns AOL, was widely viewed as the leading contender. Other bidders include the private equity firm TPG. | The first bids for Yahoo’s core Internet business were due Monday. Verizon Communications, the mobile phone carrier that owns AOL, was widely viewed as the leading contender. Other bidders include the private equity firm TPG. |
| A special committee of Yahoo’s board is now expected to sort through the preliminary offers to decide which to pursue further. | A special committee of Yahoo’s board is now expected to sort through the preliminary offers to decide which to pursue further. |
| In February, the company offered a gloomy financial outlook for the year as it restructured its operations and began exploring a sale. Yahoo did not update those projections in announcing its results on Tuesday. | In February, the company offered a gloomy financial outlook for the year as it restructured its operations and began exploring a sale. Yahoo did not update those projections in announcing its results on Tuesday. |
| Yahoo, a leading content portal in the early days of the web, missed the shift to mobile devices and has been struggling to compete against Google, Facebook and specialty apps for advertising dollars and user loyalty. | Yahoo, a leading content portal in the early days of the web, missed the shift to mobile devices and has been struggling to compete against Google, Facebook and specialty apps for advertising dollars and user loyalty. |
| Marissa Mayer, Yahoo’s chief executive since 2012, has failed to turn around the company. Restive shareholders are pressing the board to sell the Internet businesses and unlock Yahoo’s large stakes in Alibaba, a Chinese e-commerce company, and Yahoo Japan, an independently traded company. | |
| Together, those two investments have a face value of about $40 billion — more than the $35 billion stock market value of all of Yahoo, based on Tuesday’s stock prices. | Together, those two investments have a face value of about $40 billion — more than the $35 billion stock market value of all of Yahoo, based on Tuesday’s stock prices. |
| Yahoo’s management team, led by Ms. Mayer, has continued to run the business. Yahoo said it continued to increase mobile revenue in the quarter, but continued declines in search and display advertising revenue more than offset that growth. | Yahoo’s management team, led by Ms. Mayer, has continued to run the business. Yahoo said it continued to increase mobile revenue in the quarter, but continued declines in search and display advertising revenue more than offset that growth. |
| Jeffrey Smith, the chief executive of the Starboard Value hedge fund, said on Tuesday that he intended to keep the pressure on Yahoo. Starboard has proposed an alternative slate of nine directors to replace Yahoo’s entire board at the company’s next annual shareholder meeting, expected in June or July. | Jeffrey Smith, the chief executive of the Starboard Value hedge fund, said on Tuesday that he intended to keep the pressure on Yahoo. Starboard has proposed an alternative slate of nine directors to replace Yahoo’s entire board at the company’s next annual shareholder meeting, expected in June or July. |
| In an interview with CNBC, Mr. Smith, who has pressed for a sale of Yahoo’s assets for months, said he expected the board to move forward and negotiate a deal with a buyer. | In an interview with CNBC, Mr. Smith, who has pressed for a sale of Yahoo’s assets for months, said he expected the board to move forward and negotiate a deal with a buyer. |
| “If we get to the end, and they haven’t been successful as it relates to getting the company sold — the core business sold — well, we’re going to need to pick up the pieces,” he said. | “If we get to the end, and they haven’t been successful as it relates to getting the company sold — the core business sold — well, we’re going to need to pick up the pieces,” he said. |