Yahoo! has declared its third quarter results (pdf) this morning. Its profits have grown more than three times as compared to Q3 2008, whereas, its revenues have taken a 12% hit compared to the same period last year. Its marketing services revenues from both Owned and Operated sites as well as Affiliate sites declined as compared to Q3 2008. US still remains to be its highest revenue generating geography.
This sudden surge in the net profits can be attributed to the cost cutting measures taken by Yahoo! in the recent past. Over 1000 layoffs in the recent past served as the major cost cutting measure for Yahoo! This result has come out as a positive sign for Yahoo!, who has been struggling in the recent past by changing three CEOs and fighting a hostile bid by Microsoft. Although Yahoo! and Bing deal is yet to be approved by the antitrust, but analysts predict that as a good chance for Yahoo! to fight back in the global search market share.
With the signs of stabilization both inside Yahoo! and in the global economy, we expect both search and display advertising to pick up and hence a better Q4 result. Yahoo! stocks fell by 5 cents to close at $17.17 in the regular trading but they surged 5.07% to close at $18.04 in after hours trading.
Yahoo! expects its revenues to be in the range of 1.6 – 1.7 billion dollars for the next quarter.
Given the fact that Yahoo is gone on major global advertising spree it seems its determined to bite back into the online scene which seems to be getting dominated by the Giant G (with gmail overtaking Yahoo in India) and the new kids on the block like Facebook and Twitter.
