Yahoo’s quaterly profit following data hack scandal surprises Wall St. experts

yahoos-quaterly-profit-following-data-hack-scandal-surprises-wall-st-experts

Yahoo Inc reported better-than-expected quarterly adjusted profit on Tuesday, a boost for the beleaguered company whose deal to sell its core business to Verizon Communications Inc has been shaken by a massive data breach.

Verizon’s general counsel said last week that the hack, which affected at least 500 million email accounts in 2014, could have a material impact, possibly allowing Verizon to withdraw from the $4.83 billion deal. Tuesday’s results provided at least an initial indication that the data breach has not led to a quick exodus of Yahoo customers, as some had feared. Customer trends showed growth in pageviews and email usage, Yahoo said.

Another positive sign for Yahoo was that revenue from Mavens – the mobile, video, native and social advertising units that Chief Executive Marissa Mayer touts as its emerging businesses – rose 24.2 percent to $524 million. Still, the business showed continuing declines in major revenue categories. Gross search revenue fell 14.1 percent to $752.5 million.

Total revenue rose 6.5 percent to $1.31 billion, just beating the average analyst estimate of $1.30 billion. However after deducting fees paid to partner websites, revenue fell to $857.7 million from $1 billion. Yahoo said it would not hold a call or webcast after the release of the results, citing the Verizon deal. Analysts at Needham & Co said in a note on Tuesday that decision troubled them, given doubts cast over the Verizon deal by the data hack, and they cut their rating on Yahoo to ‘hold’ from ‘buy’.

Be the first to comment on "Yahoo’s quaterly profit following data hack scandal surprises Wall St. experts"

Leave a comment

Your email address will not be published.


*