After hiring Marissa Mayer as CEO, Yahoo says profit dropped 4.4%
On Marissa Mayer’s first day as CEO, Yahoo announced its second-quarter earnings, reporting a 4.4% decline in profit compared with the same period last year.
The Internet company attributed its poor results to restructuring costs of nearly $130 million, which dragged its profit down to nearly $227 million.
Yahoo saw no change in its earnings per share, which remained at 18 cents, nor its revenue excluding fees paid to partners, which remained at $1.08 billion. However, the company did not meet analysts’ expectations of $1.1 billion, according to Reuters.
Yahoo’s display-ad revenue increased 1% while search increased 4%, according to the company.
Mayer did not participate in Yahoo’s conference call with analysts Tuesday. Instead, CFO Tim Morse led the call.
“Since this is Marissa’s first day on the job she will not be joining us on the call,” Morse said, according to Reuters. “However, she is very mindful of the importance of the investor community, and I’m sure that you’ll be hearing from her soon.”
Morse also said Yahoo wanted to give Mayer time to get acclimated with the company before she began providing financial projections, according to Reuters.
Ross Levinsohn, Yahoo’s interim CEO until Tuesday, also skipped the call. Since the announcement of Mayer’s hiring Monday afternoon, Levinsohn’s future at the company has remained in doubt.
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