updated 06:20 pm EDT, Tue October 15, 2013
Yahoo recovery progressing despite challenging online advertising market
Yahoo today reported results for the quarter ended September 30. The company posted $1.139 billion for the third quarter of 2013, a five percent decrease from the third quarter of 2012. Revenue, excluding traffic acquisition costs, was $1.081 billion -- a one percent decrease compared to the year-ago quarter.
"I'm very pleased with our execution, especially as we've continued to invest in and strengthen our core business," said Yahoo CEO Marissa Mayer. "In Q3, we launched new user experiences across many of our digital daily habits. Now with more than 800 million monthly users on Yahoo -- up 20 percent over the past 15 months -- we're achieving meaningful increases in user engagement and traffic."
Paid clicks increased approximately 21 percent compared to the third quarter of 2012, with Price-per-Click decreasing approximately four percent in the same time period. Overall Price-per-Ad decreased approximately seven percent versus the year-ago quarter.
The company noted that it has launched new experiences for users' most-visited services across desktop, mobile and tablets including Yahoo Screen, Sports, Fantasy Sports, Movies, Music, TV, omg!, Games and Weather, as well as a new camera experience on Flickr for iPhone. Yahoo made eight acquisitions in the recent past to strengthen its products, content offerings, core technology and talent -- including Bignoggins, Qwiki, Xobni, Admovate, Ztelic, Lexity, Rockmelt and IQ Engines.
"In Q3, we generated free cash flow of $249 million and returned an additional $1.7 billion to shareholders through buybacks," said Ken Goldman, CFO of Yahoo. "As we exit Q3, we are extremely pleased with the strength of our balance sheet, with nearly $3.2 billion in cash and securities."