In what is likely Yahoo’s last earnings report, the company failed to meet an already low set of Wall Street expectations. Wall Street expected a measly 10 cents per share from Yahoo during the second quarter, yet Yahoo said it earned only nine cents.
Yahoo’s revenue was up five percent to $1.3 billion, but excluding traffic acquisition costs, revenue dropped 19 percent to $842 million. Yahoo also wrote off $482 million of the $1.1 billion it paid for Tumblr in 2013. Add that on top of the $230 million Tumblr writeoff last quarter and Yahoo is saying that Tumblr is essentially worthless.
Yahoo is currently negotiating its sale, so it’s not surprising earnings were sluggish. Still, there was Yahoo CEO Marissa Mayer, trying to put lipstick on a pig.
“With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan,” Mayer said, in what is probably her last earnings report statement. “In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.”
Sure you are. Sure you are.