Troubled Yahoo! made a lot of promises to investors during its first earnings call following the ouster of CEO Terry Semel. New CEO and company co-founder Jerry Yang vowed to turn around the company’s lackluster performance.
And lackluster it was during Q2 07. Although revenues rose around 8% year-over-year to $1.7 billion, net income dropped 2% to $160.6 million.
More indicative of Yahoo!’s future performance, however, were the online giant’s key usage metrics, almost all of which showed a basic flattening out, a troubling development that usually presages future declines.
Although the number of unique Yahoo! users grew year-over-year by 12% to reach 463 million by the end of Q2 07, that figure stayed essentially flat from Q1 07 to Q2 07. Active registered users ticked up by only 3% from Q1 07 to Q2 07.
The number of premium users, customers who pay a fee to Yahoo! for at least one service, rose by only 2%.
Page views were flat from Q1 07 to Q2 07 and actually ticked down slightly from 4.645 to 4.637 billion average daily page views.
The bottom-line, revenue per average unique user (excluding traffic acquisition costs) actually dropped 2% year-over-year, from $.92/user/month in Q2 06 to $.90/user/month in Q2 07, although revernue per user per month notched up by 1% from Q1 07 to Q2 07.
Still, even where Yahoo! experienced usage growth or growth in revenue per user, the growth rates were remarkably low compared to those experienced last year and in years past.
Cynthia Brumfield at 12:57 AM|Comments(0)
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