Yahoo Results: Light or Not?

There seems to be some confusion about Yahoo’s Q3 earnings tonight. Did it beat the Street or not?

Well, the stock-income adjusted earnings came in at $0.11, which is in line with the First Call number, which is, I think, a stock-adjusted figure. The revenue number is $1.12-billion, which is a little lower than the Street number. Am I missing something? The stock is up, so I’m wondering.

Whoops, Yahoo’s stock has apparently reversed course. I guess we are in agreement that the results were light after all.


  1. Revenue light, eps inline. Next quarter revenue very light and operating profit very light.
    Stock is down.
    Each quarter it moves oddly because of the TAC inclusion in their revenue number.

  2. Is it just me or is there a lot of throat clearing on this call. Everyone sick or nervous or hiding something…
    Anyone else think Panama is the big red herring for this company? I would put big money betting that this newfangled highfalutin system won’t earn them a penny more than their old system.

  3. Agreed on Panama. I think it’s a canard and a distraction, and I’m not convinced that Yahoo’s problems aren’t deeper than a technology change on its ad network.

  4. I’m sure there’s a lot of nervous-ness, because if there isn’t a big exec clear-out / reshuffle coming, there should be…
    Yahoo has a great display biz, but it’s cyclical. Since Google is eating their lunch, breakfast and dinner on search, Yahoo looks a lot worse going into the display downcycle.
    You could blame other things – like lack of bold acquisitions, bureaucratic infighting, hollywood distractions or even the fact that Semel commutes, but for Yahoo, the lack of search growth and lack of search ad technology has really left them exposed to the display ad cycle – and the “glut” they are whinging about…
    So Panama’s lateness isn’t a canard, nor a distraction (the fact that Panama is so late proves that it wasn’t a distraction ).
    Basically, Yahoo’s inability to:
    – improve search traffic
    – monetize search traffic
    HAS hurt a lot. Panama may be too late to help, and their lost momentum and lost inventory (i.e. no AOL, no MySpace, no YouTube, weak AdSense competitor) will mean Panama won’t have as big an impact as if it had been launched on time.
    In sum – Panama was desperately needed 1 year ago. Their now deeper problems ARE a result of botching their technology and not being able to build the advertisers & inventory on the search side.

  5. Panama is a canard. It’s late because it doesn’t really do anything. The results are not there. So they keep trying to tweak it and tweak it until some results come of it. Implementing ideas like this does not take that long. Creating algorithms that work can take forever.

  6. Someone help me out: Google has submitted a patent on Adsense (you can, uh, google for it.)
    how strong is that perceived to be and would it impinge on yahoo’s ability to compete in the area of keyword based ad serving?
    How does Panama differ in technology/features from what is out there already? Catchup or learpfrog?
    Or vaporware?