Yahoo Q2 2014 Conference Call Summary
Yahoo (NASDAQ: YHOO) released its Q2 2014 conference call in a entertaining webcast video format, releasing sales and guidance.
Before the conference call, Yahoo missed consensus EPS expectations for the company's second quarter, reporting EPS of $0.37 versus analysts EPS of $0.38. Revenue came in at $1.04 billion compared to estimated of $1.09 billion.
Sales decreased by three percent year-over-year.
Related Link: Yahoo Shares Up Slightly After Q2 Earnings Miss
Highlights From The Call:
Yahoo repurchased nearly 21 million shares of stock at the average price of $34.94 for $719 million in the second quarter.
- Yahoo CEO Marissa Mayer announced the company is displeased with its second quarter results, reporting $1.04 billion in revenue ex-TAC.
- Avait increase users by two and a half times in the first quarter when released.
- Mobile display revenue and mobile revenue each grew by 100 percent.
- Pageviews on Yahoo Mail increased by 70 percent.
- Digital Magazines consisting of Yahoo Movies, Travel and Beauty and most recent Yahoo Health seeing shares on higher rates than any other segment. Integration of Tumblr in magazines presents future opportunity.
- Yahoo Video announced in June will release the sixth season of the show Community and announced a live concert every day of the year starting Tuesday with Dave Matthews.
- 29 percent page active views.
- Issues of auto transition in Yahoo add manager plus that is said to only last in the short run. Lower than expected add content revenue.
- The progress saw this quarter, especially with new add technology will have a long term growth influence for quarters to come.
- $62 million patent sales contributing to Yahoo's balance sheet.
- Revenue ex-TAC came out to $1.04 billion, Adjusted EBITDA of $340 million, down eight percent from prior year.
- GAAP Search revenue grew two percent for the quarter, GAAP paid clicks increase three percent year-over-year, GAAP Display revenue decreased seven percent for the quarter.
- Other revenues ex-TAC decreased by 10 percent for the quarter.
- Traffic revenue decreased 32 percent from prior year.
- Non GAAP tax rate of 28 percent.
- Mobile use increased by 86 percent year-over-year, with Mobile users increasing by 36 percent year-over-year.
- In Q3 the company expects GAAP revenue of $1.06 billion to $1.1 billion.
- Management expects nearly 80 percent of US digital data advertisement business to be bought out.
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