Yahoo's Posts Record Profits, but Only Because of Alibaba Sale

Still, its Q3 results surprised everyone by not being utterly terrible

By on October 23rd, 2012 12:02 GMT

Marissa Mayer's optimistic outlook on Yahoo was helped by the company's decent financial results for the third quarter. There were no big surprises and that's a good thing.

Revenue after traffic acquisition costs saw a two percent rise from the same period last year, an inconsequential number, but definitely better than a drop.

It went from $1.072 billion,€ 821 million in 2011 to $1.089 billion, €834 million this year. Experts were expecting $1.08 billion, €827 million.

Profit saw a huge, but unsubstantiated gain going from $0.23, €0.17 per share to $2.64, €2.02 per share, due to the Alibaba sale.

Excluding the sale, Yahoo still made $0.35, €0.27 per share, way above what analysts were expecting, $0.26, €0.20 per share.

But there's a tough road ahead as Yahoo, once again, embarks on a journey to redefine or at least rediscover itself, this time led by Mayer.

"Yahoo! had a solid third quarter, and we are encouraged by the stabilization in search and display revenue," she said in the traditional financial results quote.

"We're taking important steps to position Yahoo! for long-term success, and we're confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders," she added.

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