Marissa Mayer reported Yahoo's best revenue growth in nearly a decade, but the company is spending a lot of money and actually took a loss, overall.
"I'm extremely pleased with our achievements in Q2, with revenue growing 15 percent year-over-year, marking our most substantial GAAP revenue growth in almost 9 years," Mayer said in the earnings statement today. "Our Mavens investment businesses across mobile, video, native and social grew to nearly $400 million in revenue this quarter, delivering 60 percent GAAP growth year-over-year. Further, our display business saw the most substantial revenue growth since 2010. Yahoo's transformation continues to make great progress."
Yahoo's total revenue was $1.24 billion, up from $1.08 billion at this time last year. Losses jumped to $22 million—compare that with last year, when there was a profit of $270 million in the second quarter.
Here is a look at the most important numbers:
- Mobile, video, native and social ad revenue was up 60 percent over last year to $400 million.
- Display revenue hit $500 million, price per ad increased 10 percent, and number of ads sold rose 9 percent.
- Search revenue of $521 million represented an increase of 22 percent.
- Yahoo spent $200 million on traffic acquisition, up from $4 million last year.
- Revenue is expected stay relatively flat next quarter at up to $1.27 billion with even higher costs.