14 DAY TRIAL // Yahoo is known to have been struggling ever since CEO Marissa Mayer took over the company almost three years ago and the release of its first-quarter earnings is just another proof of the fact that the company’s value has decreased considerably.
Soon after the numbers were released, Wall Street investors showed their concern in Yahoo’s seemingly approaching downfall, forcing Yahoo's chief financial officer, Ken Goldman, to release a statement and a promise to cut costs and even hint at an upcoming spinoff of the company's stake in Japan, CNBC reports.
Although the earnings were more encouraging, the company still failed to meet analysts’ expectations. They had forecast about 18 cents (€0.16) per share, while the numbers showed only 15 cents (€0.13) per share on $1.04 billion (€0.96) in revenue. If we were to compare last year’s earnings of about 38 cents (€0.35) per share, the failure is more than obvious.
On top of that, Yahoo’s stock market value declined considerably shortly after the report was released.
The CEO is positive that the situation will soon improve
“Yahoo is amidst a multi-year transformation to return an iconic company to greatness," CEO Marissa Mayer said in the company's earnings release.
But it wasn't all bad news for Yahoo as it was reported that, after the partnership the company closed with Mozilla, an increase of about 20 percent compared to the previous year was recorded.
But it remains to be seen if this ray of light and the increasing number of applicants who want a job at Yahoo, as reported by the CEO, are enough to help Marissa Mayer keep her job, since everyone is laying the blame on her for Yahoo’s breakdown.
However, it should be mentioned that the quarter ended before the company announced the amended renewal of the partnership with Microsoft, which involves a greater share revenue for Yahoo.
The recent changes that the CEO has implemented seem to have taken a toll on the company, but she claims that they are in a process of transformation meant to boost up the value of the company and that it won’t be long until the results are visible.