Yahoo Inc’s First Quarter Profits Fail to Match the Analysts’ Expectations

Yahoo Inc’s First Quarter Profits Fail to Match the Analysts’ ExpectationsOn Tuesday, Yahoo Inc. reported its first quarter profits which dropped along with the quarterly revenue and failed to keep up with the analysts' expectations. The plunge is attributed to the lower prices for advert display and also the stock related compensation expense along with charges that were incurred for restructuring.

The not so bright first quarter, increases challenges for Marissa Mayer, the CEO of Yahoo and her plans to turnaround the company.

According to, Mayer Yahoo is in the middle of a alteration into greatness and that is a multiyear process. She said, "For the next phase of the transformation, we will focus on accelerating our GAAP revenue growth while managing our margins and costs."

Since Mayer took over, Yahoo Inc. has enhanced its content and given more focus to the mobile business, although it faces a tough time to give its display advertisement business a face lift.

The company said, in the first quarter, its display revenue which excludes traffic acquisition costs fell seven percent as compared to the previous year. Price of ads dropped seventeen percent although the number of adverts sold boosted by around twenty nine percent.