Internet and media company Yahoo reported a revenue of $1.3 billion in the third quarter of 2016, up 6.1% from $1.23 billion in the same quarter last year. The company reported an uptake in users after September 22nd, the day it was revealed that data from 500 million Yahoo accounts was hacked.
Overall the company reported an uptake in page views on its properties, in mails sent and read, and in page views on core verticals. While Yahoo cites this as growth, it is more likely a result of users logging in to check if they were hacked, and/or to migrate to other services. Interestingly, around the same time Yahoo made it more difficult to migrate user accounts. The company had also revealed in October that it had scanned all customer emails for information tied to a suspected terrorist group.
Given these concerns, the growth rate will be far more convincing if Yahoo is able to maintain it over the next few quarters. Even more glaringly, these issues have caused doubt over Verizon’s acquisition of Yahoo.
Verizon had said last week that it has a ‘reasonable basis’ to believe Yahoo’s data breach represented a material impact that could allow it to withdraw from the $4.8 billion deal. The company is apparently looking to get a $1 billion discount on the Yahoo deal, although this was not confirmed by either party. Overall, despite the better looking numbers, Yahoo seems to be on a downward spiral. Even more damningly, the company even cancelled the concall with CEO Marissa Mayer after the results were announced this quarter. Yahoo’s cited the Verizon deal as a reason to skip the concall.
Yahoo reported a net revenue of $1.305 billion for the quarter ended October 2016, up 6.1% from $1.23 billion in the same quarter last year. Net losses at the company stood at $52 million compared to the net loss of $86 million in the same period last year.
– At the end of the third quarter, Yahoo had cash, cash equivalents, and marketable securities worth $7.78 billion compared to $6.8 billion in Q3’FY15, an increase of nearly $1 billion.
– Revenue from the mobile, video, native and social (MAVENs) business stood at $524 million, an increase of 24% from $422 million in the same quarter last year.
– Mobile revenues came in at $396 million, a rise of 46% from $271 million in the same quarter last year.
– Revenues from PC also increased 1% to $854 million from $844 million in the same period last year.
– The company reduced its headcount which now stands at 8,500, down around 2,200 year on year.