updated 05:18 pm EDT, Tue July 17, 2012
Performance exceeds analyst projections
Just one day after signing on a new CEO, Yahoo has disclosed quarterly financial information that points to stagnating revenues and a continued decline in profits. Year-over-year revenues shrank by one percent to $1.22 billion, while profits fell by 4.2 percent to $228.5 million.
The quarterly results suggest Yahoo's ongoing restructuring and transformation have yet to bear fruit. The company early this year announced 2,000 layoffs, before transitioning between several CEOs later in the year. The change in leadership has brought shifts in strategy, as executives attempt to refocus on stronger product groups to bolster profitability.
The latest CEO, Marissa Mayer, is a Google veteran that hails Yahoo as one of the "best brands on the Internet." She had been credited with designing to many of Google's most lucrative products, including Gmail, Google News and Google Images, among others.
Despite the lackluster results, some analysts view the level revenues as a sign that the company may be poised to begin gaining traction if the restructuring strategy proves effective.