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Yahoo Search Engine and Directory Forum

Yahoo's Earnings Down
4th Quarter Net Income Dropped 23% from Q4 2006

 11:37 pm on Jan 29, 2008 (gmt 0)

Looks like Yahoo is losing steam.
They attribute to rising cost or is it lost customers?




 12:38 am on Jan 30, 2008 (gmt 0)

>>>They attribute to rising cost or is it lost customers?

According to the article you linked to, Yahoo is struggling to attract teens and young adults.

Last year marked the first time Yahoo's earnings have dropped from the previous year since the company lost $93 million in 2001 during the aftermath of the dot-com bust.

Unlike in 2001, Yahoo hasn't stopped making money. But the company's 2007 profit fell 12 percent to $660 million even though advertisers spent more than ever on the Internet, where Yahoo still draws one of the Web's largest audiences.

They took in more money, but earned less profit.


 3:41 am on Jan 30, 2008 (gmt 0)

Which means they have high overhead (expenses). Cutbacks are in order, you know it.

According to the article you linked to, Yahoo is struggling to attract teens and young adults

Before I even read the link I knew that somebody was going to point to social media.

Yahoo also has been struggling to attract teenagers and young adults who are gravitating to more trendy online hangouts like Facebook.com and News Corp.'s MySpace.com.


 1:07 pm on Jan 30, 2008 (gmt 0)

Regarding attracting young adults and teens... I wear a Google t-shirt from time to time. I seem to get comments from young kids, teenagers and even younger, about my shirt. They always say something like, "Google... Cool shirt!".

Interesting... I had no idea how they did it, but Google is considered "cool" to the younger generation, and hence they are probably loyal users.


 1:13 pm on Jan 30, 2008 (gmt 0)

I think Yahoo has lots going for it with regards to content. It has the best email -- way better than Gmail or MSN Hotmail. The New version of the Yahoo mail (I pay for mine yearly and get the premium).

I was watching MSNBC the other night and they were talking about Y Answers and you keep hearing about their OMG site. I think its a great time to invest in Yahoo while their stock is down.

Y! is not going anywhere.


 1:54 pm on Jan 30, 2008 (gmt 0)

Interesting, I actually like Yahoo. They have a little of everything, however I tend to use Google search - by habit.


 2:22 pm on Jan 30, 2008 (gmt 0)

tictoc mentioned Y Answers, and it amazes me how often a Y Answer comes up when I'm search for something in Google. It amazes me even more how often the Y Answer is the quick factoid I was looking for.

I've been hearing predictions about the impending demise of Yahoo since the last dot-bust, and they still keep slogging on, coming up with new services, and managing to turn a profit.

I think Y is suffering a bit because of the perpetual comparison to Google, which is a bit unfair. Y is primarily a content presence, G is primarily a search engine and advertising platform.

Also Y tends to be more open in their reporting and governance, so it gives the press fodder every time they make a move. G is opaque when it comes to governance and their reporting. That will only work for G until they have a bad quarter or two (which every company eventually does), and then the investors will revolt and force the G management to, you know, do what they're supposed to do and tell the investors what's going on underneath the infamous G cone of silence.


 3:30 pm on Jan 30, 2008 (gmt 0)

or is it lost customers?

yes, they lost most of my ad money last month. nobody wants to pay for non-converting junk coming out of their content network.


 3:54 pm on Jan 30, 2008 (gmt 0)

Yahoo sucks, if they want a portal with it all in one place, get rid of their JUNK search and make a deal with Google or MSN as Yahoo, CLEARLY, has no clue and simply cannot figure it out.

Another thing that really pisses me off is how Yahoo does its e-mail...every time I get a complaint from a member saying they didn't get their confirmation e-mail it's a Yahoo customer (or AOL, but mostly Yahoo now). I decided to test a sign-up with my old Yahoo e-mail account. It DID show up in the spam filter, but it did NOT show any in there until I clicked on the spam box just to make sure and voilą, there it was. No wonder people are getting mad at them! They are making it miserable to do anything on the web and let real spam and crap through! I mean they are just getting worse by the day. IDK, they are, most certainly, in trouble...YEARS of crap service are catching up now.

Heck, I tried getting our Yahoo listing changed some time ago and not ONE peep. I, for one, am fed up with them. Just MHO!

[edited by: WiseWebDude at 4:03 pm (utc) on Jan. 30, 2008]


 3:57 pm on Jan 30, 2008 (gmt 0)

buy; chop up; sell; make profit. Too bad the private equity money dried out.


 4:41 pm on Jan 30, 2008 (gmt 0)

Sorry to hear this...layoffs are not a good thing for those being layed off, but often times can help recover losses and clean out the dead wood "dead wood".


 5:18 pm on Jan 30, 2008 (gmt 0)

For the people on WebmasterWorld I think the most interesting stat from the earnings call was that revenue from 3rd party publishers (read YPN) was down 20%. That is people dropping YPN for other programs, perhaps Adsense. Also, even though Yahoo still is still the #1 largest audience on the web, revenue growth was only 8%. Compare that to Google 100%+ revenue growth. Finally, G total revenues now far outpace Y annual revenues.


 5:33 pm on Jan 30, 2008 (gmt 0)

I think the most interesting stat from the earnings call was that revenue from 3rd party publishers (read YPN) was down 20%. That is people dropping YPN for other programs

I would have thought YPN publishers contributed a tiny amount compared to YSM search partners. I personally think the revenue from 3rd party publishers being down is more likely to be due to decreasing bid prices, than people leaving for different networks.

Gumball Monkey

 11:43 pm on Jan 30, 2008 (gmt 0)

I would imagine the 20% drop can be attributed to arbitrage. Traffic acquisition has become increasingly difficult during the last two quarters for such partners. In addition, Yahoo has made a concerted effort during the last couple of months to remove partners with poorly converting traffic.


 8:11 am on Jan 31, 2008 (gmt 0)

I used to visit their site a couple of times a day but stopped in the last few months because the homepage was being taken over by celebrity drivel.


 12:04 pm on Jan 31, 2008 (gmt 0)

Hey - they'll have to cut a lot more than 7% jobs - they need to completely cull and restructure to make any difference.

In the UK they may as well give up the ghost - they have to get market share in order to boost the YSM PPC rates and attract more advertisers - that way they will make more money...

That ain't gonna happen!

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