The clumsy, purple, internet behemoth known as Yahoo! had its Q4 earnings call today and let's just say that investors aren't exactly yelling "Yahoo!" (See? That is a corny joke aimed at all of the old people who still used Yahoo!. Hope you enjoyed it.)
The company reported declines in revenue of 2 percent (6 percent counting traffic acquisition costs). Its main revenue source, display ads, dropped 6 percent to $520 million for the quarter. Display ads dropped 9 percent over the full year. That's not particularly surprising, since people have been talking about the death of banner ads for what feels like a decade.
The company's outlook for the next quarter is also largely below estimates, with profits between $130 and $170 million. Shares dipped about 4 points in after-hours trading following the call.
Despite those numbers, the company still has a bright spot in its 24-percent stake in Chinese company Alibaba, whose revenue grew 51 percent year over year. Despite that rate being lower than previous quarters, it's still one of the areas of revenue growth the Yahoo! can reliably depend upon.
So, to recap: Yahoo! itself isn't doing so hot, but a company that Yahoo! has substantial equity in is doing pretty well.
The news of Yahoo!'s struggle to grow revenue comes just weeks after CEO Marissa Mayer fired COO Henrique de Castro, who was in charge of bumping up revenue while Mayer pursued acquisitions like Tumblr, which the company bought for $1 billion.
This article is from the archive of our partner The Wire.
We want to hear what you think about this article. Submit a letter to the editor or write to firstname.lastname@example.org.