14 DAY TRIAL // Yahoo has announced its financial results for the second quarter of 2009 showing a 13 percent drop in revenue year over year; however, though it raked in $1.57 billion, it still managed to beat analyst expectations. The company has been going through some turmoil lately, with executive restructuring and the closure of underperforming properties, but that hasn't affected the bottom line that much, also considering the overall economic environment. Meanwhile, Google managed to take home $5.52 billion in revenue in Q2, a 3 percent yearly growth.
The 13 percent drop was also accounted to currency fluctuations having been only 8 percent, excluding their impact. Quarterly revenue dropped 16 percent, coming from a 14 percent decline in the first quarter as well. Net income however grew 8 percent, from $131 million in Q2 2008 to $141 million this year, but this was mostly due to the severe cutbacks and job cuts the company has been undertaking.
Much of the decline can be attributed to the fall advertising earnings, with Yahoo seeing a 15 percent drop in search advertising revenue and display advertising also taking a dive by dropping 14 percent. Overall marketing revenue from all services declined 13 percent in Q2. Advertising revenue from affiliated sites also dropped 9 percent to $520 million. The online advertising market in general is going through some of its roughest times, with all of the major players in the market affected by the economic downturn, and even Google seeing a small decline in advertising revenue.
“Even in this challenging economic environment, Yahoo! had a solid quarter, reflecting the strength of our offerings for our users and advertisers,” newly appointed Yahoo! Chief Financial Officer Tim Morse said. “Moving forward, our goal is to invest in the long-term health of the business so that we are positioned to capture the growth opportunities created by the economic recovery and the ongoing shift to online advertising.”