Yahoo has reported a net profit of $390.3 million for the first quarter of 2013 that ended March 31, 2013, registering a 36% growth from $286.34 million profit in the same quarter last year. It reported a revenue excluding traffic acquisition costs (“Revenue ex-TAC”) of $1.074 billion, which was flat in the quarter on a YOY basis. It posted a total revenue of $1.140 billion for the quarter, down by 7% from $1.221 billion it had reported in the same quarter last year.

Highlights

-Yahoo launched a personalized Yahoo.com homepage, with a customizable news feed, infinite scroll, and intuitive interface optimized for mobile devices, tablets and the Web.
Announced a partnership with Dropbox to enabling users to share and store larger files as attachments.

– Acquisitions: Yahoo acquired Snip.it, Alike, and Jybe, and also acquired Summly, a company that creates summaries of news articles. It has noted that Yahoo acquired Summly’s technology and intellectual property which is plans to integrate across its mobile offerings.

– It hired Sandy Gould, senior vice president of talent acquisition and development; and Bob Stohrer, senior vice president of brand creative.

– It signed a non-exclusive agreement with Google to display ads on various Yahoo properties and co-branded sites using Google’s Adsense for content and AdMob.

– It launched second season of Burning Love series, which aired on cable television for the first time.

Display Revenues

Global-display-trends

Yahoo reported a decline in display revenues for the quarter. It reported a total revenue of $455 million for the first quarter of 2013, an 11% decrease compared to $511 million for the first quarter of 2012. Excluding the traffic acquisition costs, Yahoo reported display revenues of $402 million for the first quarter of 2013, an 11% decrease compared to $454 million for the first quarter of 2012. Yahoo said that the number of display ads sold declined by 7% year-on-year (YoY) while the price-per-ad decreased 2% YoY.

Search Revenues

Global-search-trends

Yahoo reported a total search revenue of  $425 million for the first quarter of 2013, a 10% decrease compared to $470 million for the first quarter of 2012. Excluding the traffic acquisition costs, Yahoo reported search revenues of $409 million for the first quarter of 2013, a 6% increase compared to $384 million for the first quarter of 2012. Yahoo said that the number of paid clicks increased by 16% YoY while the price-per-click decreased by 7% YoY. It’s worth noting that ever since the number of paid clicks have shown an upward trend, the price-per-click has only gradually decreased, although Yahoo does not explain the sudden decrease of 7% in price-per-click in this quarter.

APAC Revenues

Revenue ex-tac

The revenue generated from the APAC region declined to $203 million for the quarter, from $251 million revenues in Q1 2012. Excluding the traffic acquisition costs, the revenue from the APAC region stood at $186 million for the quarter, down from $196 million in Q1 2012. Note that ex-TAC revenues in APAC region make up a tiny 16.5% of the total revenue that Yahoo has reported. While the Americas revenue has shown an increase, both APAC and EMEA region, have shown a decline.

Cash Balance

Yahoo reported that its cash, cash equivalents, and investments in marketable debt securities were $5.4 billion as of March 31, 2013 compared to $6 billion as of December 31, 2012. During the first quarter of 2013, Yahoo repurchased 38 million shares for $775 million. It also notes that it has $778 million remaining under the $3.65 billion commitment from the Alibaba proceeds made in September. 

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