Search revenue increased by 5 percent in the first quarter of 2014, while display ad revenue saw a modest uptick of 2 percent.
Yahoo released their first quarter earnings report for 2014, and they just barely beat Wall Street estimates for their earnings. Analysts predicted that Yahoo would report earnings of $0.37 per share on a revenue of $1.08 billion, while they actually earned $0.38 a share on $1.087 billion in revenue.
Both search and paid click revenue increased for the company. Search revenue increased 5 percent over the first quarter of 2013 to $445 million. Their paid clicks increased by 6 percent, while the price per click rose 8 percent compared to the first quarter of 2013. Yahoo's display advertising didn't perform nearly as well, despite an increase of 2 percent in overall revenue. The price per display ad went down by 5 percent, however they sold 7 percent more display ads.
Yahoo has $4.6 billion in cash as of March 31, 2014. The company used $450 million to repurchase shares and paid a net $22 million for acquisitions during the first quarter.
Marissa Mayer, chief executive (CEO) of Yahoo, was pleased with the results and pointed to mobile as the anticipated driver of continued growth. "I am really pleased by our first quarter performance... And, with mobile pivotal to our future growth, we're delighted to now see more than 430 million monthly mobile users accessing Yahoo's new products."
After the earnings were announced, Yahoo stock went up, however that was largely attributed to the fact that the company has a 24 percent stake in China's Alibaba, which saw its revenue increase by 66 percent in the fourth quarter, a 110 percent increase. Alibaba is expected to go public this fall.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Jennifer Slegg began as a freelance writer, and turned to search engine optimization and writing content for the web in 1998. She has created numerous content-rich sites in niche markets and works with many clients on content creation, strategy, and monetization. She writes about many search industry and social media topics on her blog, JenniferSlegg.com and is a frequent speaker at search industry conferences on SEO, content marketing and content monetization. Acknowledged as the leading expert on the Google AdSense contextual advertising program, she runs JenSense, a blog dealing exclusively with contextual advertising. She is also the founder and editor of The SEM Post. She is known by many as her handle Jenstar on various webmaster forums.
Hong Kong, May 5-6, 2015
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT