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Yahoo Search Engine and Directory Forum

Yahoo '07 2nd Quarter Revenues Rise 8%
Net Income Remains Same as '06

 4:28 am on Jul 18, 2007 (gmt 0)

From the NYTimes [nytimes.com]:

Yahoo said today that its net income for the second quarter was $161 million... almost unchanged from the same period a year ago, as revenues rose 8 percent to $1.7 billion.

...The quarterly results reflect gains from Yahoo’s new advertising system, known internally as Project Panama, which is helping the company increase the ad revenue it earns for every search query. But Yahoo’s gains from Panama were largely erased by weakness in display advertising...



 1:39 pm on Jul 18, 2007 (gmt 0)

A bit of mixed news as the story turned out to be that Yahoo lost market share in the content/publisher network.


 1:47 pm on Jul 18, 2007 (gmt 0)

How about Yahoo's gains being erased by the failure to adequately run their Publisher program?

Google brings in over $1 billion/QTR with Adsense, and Yahoo seems to have 1 high school student running the Publisher program!

I've read too many times about webmasters having their accounts and/or targeting turned off for asking questions, and that their targeting is just plain broken (started the week they launched Panama), and the recent Publisher outage should have been fixed in 6 hours, not 2 weeks.

(Rant over)

It's just sad to see a company with Yahoo's resources and talent unable to keep up. They can't compete with Google until they overcome their own internal problems.


 2:43 pm on Jul 18, 2007 (gmt 0)

I don't think its fair to say they can't keep up with google when the reality of the market is it has LITTLE to do with being fair and everything to do with how to control the market.

I'd say through patents, most people are prohibited from competing on the same level without ultimately paying to play.

A quick search of google patents on google/patents you see they cover their bases pretty well. Of course overture has a few in there but everyone from Big Blue to Intel is in on the advertising patents.


 2:50 pm on Jul 18, 2007 (gmt 0)

It's just sad to see a company with Yahoo's resources and talent unable to keep up. They can't compete with Google until they overcome their own internal problems.

Yes, I absolutely agree.

It is incredibly sad to see Yahoo! fail so big. What once was thought to be a potential competitor to Google seems to have become just your typical corporate, bloated, unable to commuicate properly, unable to make some clear decisions.

- Look at the Yahoo! Photos disaster.
- Look at the Flickr disaster.
- Look at the unhindered flooding of arbitrage folks exploiting the YPN.
- Look at the product management for YPN (e.g. global rollout)
- Look at technical problems in several areas (e.g. Yahoo! Domains)
- Look at the bonus program for their former CEO.

Now combine that with their unsuitable arrogance (at least unsuitable for the shape Yahoo! is in) - and you have all the ingredients for a big problem.

Too bad. That will leave only MSN Adcenter to come to the rescue. But my hope are low for big M$ to get their act together.


 4:09 pm on Jul 18, 2007 (gmt 0)

Seems like weakness in display advertising, not Panama, is what's dragging Yahoo down. Certainly YPN issues doesn't inspire warm fuzzies.


 6:04 pm on Jul 19, 2007 (gmt 0)

please elaborate on the flickr disaster...


 7:43 pm on Jul 19, 2007 (gmt 0)


Yahoo! Photos is closing, and most of the accounts are invited to migrate to Flickr. There is quite an uproar (revolt?) on this over at the Flickr support forum. Apparently the target group for Yahoo! Photos is quite different from the Flickr target group...


 4:33 pm on Jul 20, 2007 (gmt 0)

the uproar makes sonse: Yahoo photo is a first generation photo application, where everyone from your cat to your grand mother posted 50 kb pictures of their houses, whereas Flickr has a status, with high quality digital pictures, info about the camera and it's settings, pictures organized in topics, albums... You get the idea, Yahoo Picture = post photos for your aunt when emails took only 1 meg attachments, Flickr = post photos because you think you're an artist and you just spent 1000$ on a camera you don't really know how to use.

It definitely isn't the same target market and it just creates pollution for Flickr. But what's funny is that it just exposes how superior Flickr thinks it is and their hypocrisy: isn't the goal of Flickr to encourage the people to create art and share it ;)


 5:34 am on Jul 23, 2007 (gmt 0)

If the stock falls far enough, somebody will step up with an LBO or other buyout arrangement and take them over.

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