Yahoo! Inc (NASDAQ:YHOO) reported a 5.2% increase in revenue for the second quarter, a sign that the company is making progress in turning around its business.
Earlier this year, Yahoo CEO Marissa Mayer announced an aggressive strategic plan including job cuts, office closures and other initiatives to accelerate the company’s transformation towards growth and profitability.
The company is currently in the process of selling its search and advertising business, and it is expected to select the final bidder on July 18. Some of the bidders include Verizon Communications (NYSE:VZ), TP Capital, and a group of investors led by Dan Gilbert, the founder of Quicken Loans and is supported by Warren Buffett.
Yahoo second-quarter financial results
Yahoo posted $1.308 billion in revenue for the second quarter, up from $1.234 billion in the same period a year earlier. Its Mavens revenue was $504 million and Non-Mavens revenue was $749 million.
According to the company, its total traffic-driven revenue was $1.235 billion and non-traffic driven revenue was $55 million.
Its GAAP display revenue was $470 million; the number of Ads sold increased 9% and the price-per-ad declined 15%.
Yahoo’s GAAP search revenue was $711 million; the number of paid clicks declined by 24% and the price-per-click rose 8%.
Yahoo reported that its loss from operations was $490 million and non-GAAP income from operations was $39 million. Its net loss was $440 million or $0.46 per share. Its adjusted earnings were $0.09 per share compared with $0.10 per share expected by analysts.
The company wrote down non-cash goodwill impairment charge of $395 million related to its Tumblr unit. As of June 30, Yahoo has $7.66 billion in cash, cash equivalents, and marketable securities, up from $6.83 billion on Dec 31, 2015.
Yahoo Board focused on delivering shareholder value
In a statement, Mayer said, “With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan. Through disciplined expense management and focused execution, we delivered Q2 results that met guidance across the board and in some areas exceeded it.”
She added that the company’s Board “has made a great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.”
Yahoo generated additional value for shareholders by selling its real estate in Santa Clara. Its net cash proceeds from the transaction were $246 million.
The company established Excalibur LLC to explore the divestiture of more than 4,000 non-strategic patents and pending applications.