Yahoo Falls Below Earnings Expectations, Grows Revenue on Strong Mobile Performance

“I’m extremely pleased with our achievements in Q2, with revenue growing 15 percent year-over-year,” CEO Marissa Mayer says

Last Updated: July 21, 2015 @ 2:06 PM

Yahoo fell short of Wall Street expectations for the second quarter, delivering earnings slightly below forecasts, but beat revenue expectations.

Wall Street forecasts projected a per-share price of $0.18 on $1.03 billion in revenue, according to Thompson Reuters.

The media giant delivered $0.16 per share, down from $0.37 per share a year ago, while reporting $1.04 billion in revenue, almost flat year-over-year, the company reported on Tuesday.

Mobile was a bright spot for Yahoo — a business unit CEO Marissa Mayer has repeatedly cited over the last year. Yahoo earned $252 million in mobile revenue compared to $163 million during the same period last year. Mobile revenue increased to 22 percent of traffic-driven revenue, up from 16 percent in 2014’s Q2.

On Friday, Yahoo filed its plans with the SEC to spin off its 384 million shares of Alibaba, valued at nearly $30 billion, into a new company called Aabaco. If U.S. and Chinese regulators approve the spin-off, it is scheduled to be completed by the fourth quarter.

Mayer cited the company’s highest revenue growth in nine years.

“I’m extremely pleased with our achievements in Q2, with revenue growing 15 percent year-over-year, marking our most substantial GAAP revenue growth in almost 9 years,” she said. “Our Mavens investment businesses across mobile, video, native and social grew to nearly $400 million in revenue this quarter, delivering 60 percent GAAP growth year-over-year. Further, our display business saw the most substantial revenue growth since 2010. Yahoo’s transformation continues to make great progress.”

On the company’s earnings call, Mayer reiterated that Yahoo is doing everything possible to spin off its Alibaba shares into the new Aabaco company.

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