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Yahoo officially released its results for the first quarter of 2011 with revenues at $1.064 billion, compared to $1.13 billion reported in the first quarter of 2010 – a drop of 6%. Furthermore, total profits for Q1 in 2011 were $223 million compared to $310 million in Q1 of 2010, resulting in a 28% drop. All in all, not particularly good reading.
Despite the drop in revenue and profit, CEO Carol Bartz explained that the company’s “overall turnaround is proceeding on schedule”. This means their corporate turnaround isn’t quite complete yet as they are still ironing out problems with their Microsoft partnership, as well as selling off assets and investing in new areas.
The partnership [See: Are You Ready for the Yahoo/Bing Merger?] sees Yahoo use Microsoft’s search technology as a way of improving its advertising revenue, but as the figures suggest, it’s not yet paying off as YaBing are awaiting improvements in their AdCenter technology.
The figures are once again a mixed bag for Yahoo, who reported in the fourth quarter of last year profits of $312 and a slump in revenues of $1.2 billion [See: Yahoo Earnings Slip Despite Posting Profit in Q4]. As you can see, comparing to the last quarter, Yahoo have once again seen a drop in both revenue and profit.
Putting the figures into perspective, last week we reported Google’s Q1 earnings [See: Google’s Rise in Revenues for Q1 2011 is overshadowed by Expenses] which dwarfed the figures reported by Yahoo by a ratio of 45:1 ($1.064 billion for Yahoo in Q1 of 2011 compared to 48.58 billion for Q1 in 2011 for Google).
The good news for Yahoo is that their quarterly earnings are ahead of analysts’ forecast; and despite the drop, they purport to be on schedule with their corporate turnaround. This has been reflected their share price rising over 3% in the after hours trading on Wall Street.
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