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Tuesday, October 23, 2012

Yahoo! Inc. (NASDAQ:YHOO)’s results show that Mayer means business


Yahoo! Inc.(NASDAQ:YHOO)’s encouraging quarterly results show that new chief executive Marissa Mayer has bent to the task of revamping the internet portal and bringing it back to its winning ways.

While obviously the company has a long way to go before it can regain anything of its former glory, the results announced by the company show that it is on the right track.

The figures themselves were much better than what analysts had forecast. This is the third straight year that its revenues have risen and this sustained and consistent performance underscores the seriousness of the top management and their commitment to improve the fundamentals of the company.

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Yahoo earned $3.2 billion, or $2.64 per share, during the three months that ended in September. It earned $293 million, or 23 cents per share, at the same time last year.Net revenue in the latest quarter rose 2 percent to $1.09 billion. That was about $10 million more than analysts had predicted.

Mayer's determination to hit the ground running was proved when she took on the assignment when she was still pregnant with her first baby and then returning to work just a few weeks after the baby was born on September 30th.

When she had initially joined and she had made some sweeping changes to the way of functioning at the company, especially with regard to rewarding shareholders from the sale of Yahoo's stake in Alibaba, she had met with some criticism.

Some of her critics said that she was trying to mould the company in the image of Google, her former employer.

However the results have proved that whatever the means, it is yielding results.

Mayer has said that she wants to make Yahoo a `daily habit' for its 700 million users. She has set in motion a plan to revamp the Yahoo interface and its homepage as well as the content that is available now.

Apart from applications for smartphones and tablets for delivery of Yahoo's services, there are also plans to increase the range of services through acquisitions.

"Our products will change how people learn, share and communicate," Mayer said. "We will inspire, innovate and entertain."

Shares of YHOO jumped over 4% in the pre-open session.

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