Feeds

Yahoo! revenues! dip! 4! per! cent!

Microsoft marriage pains

Eight steps to building an HP BladeSystem

Yahoo! revenues dipped 4 per cent during its fourth quarter as the company adjusts to life as a Microsoft spouse.

During the quarter ending December 31, Yahoo!' pulled in $1.2bn if you exclude traffic acquisition costs, down from $1.26bn in the same quarter last year. The company said the 4 per cent drop was due in large part to its search revenue–sharing agreement with Microsoft.

Nonetheless, the company's fourth quarter profits climbed to $312 million, a 104 per cent increase over the previous year. "We just completed a very encouraging quarter and year for Yahoo! We made substantial strides to improve profitability," CEO Carol Bartz said during a conference call with reporters and analysts, pointing out that the company doubled not only operating income but also operating margins, earnings per share, and return on invested capital.

And Bartz continues to cut costs. Before unveiling its fourth quarter financial results on Tuesday afternoon, Yahoo! announced that it's cutting another one per cent of its staff, or roughly 135 employees. "To increase profitability," Bartz said, "we have to be focused and efficient."

The move is in stark contrast to the news that emerged from Mountain View on Tuesday. Google told the world that in 2011 it would set a new hiring record, topping the 6,000 hires it made in 2007. In 2010, the search giant added about 4,000 employees.

Yahoo! had previously said that its Q4 revenues would be down due to its revenue-sharing deal with Microsoft and the decision to offload its Zimbra and HotJobs units. If you exclude these items, Bartz said today, revenues would have climbed 2 per cent.

"As we said last quarter, this is all part of our plan to turn the company around," Bartz said.

Though Yahoo!'s underlying search and search-ad infrastructure is now operated by Microsoft, Bartz reiterated that search is still an "important part" of the company's business, and that she expects to see search revenue grow by the end of the year. "Whenever you make big changes, as we're doing with our search alliance, it takes some time for the marketplace to adjust," Bartz said.

Meanwhile, the company's display-ad business is growing. According to Bartz, display-ad dollars grew 16 per cent over the previous year and 27 per cent over the previous quarter. On the whole, display revenue for 2010 grew 17 per cent over 2009. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.