In a surprise move, Yahoo CEO Scott Thompson has stepped down amid questions about his academic credentials. The company's board of directors has appointed Ross Levinsohn, the company's executive vice president of the Americas, as interim CEO.
Despite the recent controversy, Yahoo's first-quarter results showed some signs of progress. Revenue increased 2% to $1.14 billion, beating analyst estimates. Non-GAAP earnings per share came in at $0.31, also ahead of expectations.
Yahoo's search business continued to struggle, with revenue declining 10%, but the company's display advertising business grew 13%. Mobile advertising revenue also increased 38%, showing that Yahoo is making some progress in adapting to the changing landscape of the digital advertising market.
Overall, Yahoo's first-quarter results were a mixed bag, with some positive signs of progress but also some challenges that need to be addressed. The company is still in the early stages of its turnaround, and it remains to be seen whether it can ultimately succeed in reviving its growth and profitability.
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Yahoo's 1Q Results Show Progress Under New CEO
Yahoo Inc. (YHOO) reported its first-quarter results on Thursday, showing some progress under new CEO Scott Thompson.
Revenue increased 2% to $1.14 billion, beating analyst estimates. Non-GAAP earnings per share came in at $0.31, also ahead of expectations.
Yahoo's search business continued to struggle, with revenue declining 10%, but the company's display advertising business grew 13%. Mobile advertising revenue also increased 38%, showing that Yahoo is making some progress in adapting to the changing landscape of the digital advertising market.
"We continue to make solid progress in our turnaround and had a solid start to 2012," said Thompson in a statement. "We have a focused strategy, a talented management team, and great people executing against our plan."
Yahoo has been struggling to revive its growth and profitability in recent years, but Thompson's restructuring efforts are starting to show some results. The company is shedding non-core assets, investing in its core businesses, and making progress in mobile advertising.
However, Yahoo still faces some challenges. The search business is still declining, and the company is facing increasing competition from Google (GOOG) and Facebook (FB). Yahoo also needs to generate more revenue from its display advertising business, which is still relatively small compared to Google's.
Overall, Yahoo's first-quarter results were a mixed bag, with some positive signs of progress but also some challenges that need to be addressed. The company is still in the early stages of its turnaround, and it remains to be seen whether it can ultimately succeed in reviving its growth and profitability.
