Yahoo! reported a net loss of USD 99 million or 10 cents a share for the first quarter, compared to a profit of USD 21 million or 2 cents a share a year ago. Revenues fell to USD 1.087 billion from USD 1.226 billion, and adjusted operating profit plunged to USD 7 million from USD 80 million.
Yahoo suffered a 9 percent drop in search revenue to USD 492 million, while its traffic acquisition costs jumped 44 percent to USD 144 million. The number of paid clicks was down 21 percent, and the price per click rose 7 percent. Display ad revenues were also down, by 1 percent to USD 463 million, while TAC in this area rose 1 percent to USD 83 million. Mobile revenue did increase slightly to USD 260 million and accounted for 25 percent of traffic-driven revenue. Revenue also grew in Yahoo's Mavens strategic areas, to USD 390 million from USD 365 million a year ago.
The company said the results were near the high end of its expectations and it was making progress on its initiatives to reduce costs and stimulate growth. It also generated USD 297 million in positive free cash flow, finishing the period with a total USD 7.1 billion in cash.
Yahoo provided little information on its ongoing strategic review, saying only that it was a "top priority". According to CEO Marissa Mayer: "we have made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders."
