Yahoo 1Q14 Earnings Call Notes

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A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Moved the core to stability

“We believe we’ve moved from our core business being in decline to a point of stable to modest growth. Well, we believe we still — we believe that this hyper growth we like to see will take multiple years.”

Seeing user growth

“great products have driven user growth. As I mentioned earlier today, we have surpassed 430 million monthly mobile users, which we really think is tremendous progress. Our growing traffic has attracted the attention of advertisers and we have seen significant growth in our mobile revenue as a result.”

Working on brand advertisers

“We have been really working on our relationships with advertisers as well as our offering for them and we’ve made good strides across the board particularly in consumer packaged goods. We’re continuing to meet with them and really cultivating the relationship. I think that when you look at — we’re certainly on the radar of all of the AdAge 100 most of them, the vast majority of them spend with Yahoo! and advertise on our sites.”

How to spend Alibaba proceeds

“On the question on the Alibaba proceeds, I would echo what Ken has talked about. We understand this is an issue of critical importance for the shareholders. We intend to be good stewards of our capital and we have been to date. When we look at the investments we need to make in the business, you’ll see the same type of mix we’ve been making to-date, some strategic acquisitions, some tuck-in acquisitions. And we really need to see what opportunities arise in terms of the ways we can deploy the cash at that time and we’ll do it in conjunction with our Board.”

Goal to grow off-network display business

“And so one of the reasons why for example, you will see, you’ve heard Ken referenced the fact that TAC is likely to increase in the future is because we think our Display TAC will go up as we take more of those ads and begin moving them off-network. We are obviously going to continue to place ads on our core Yahoo! Properties, but we also want to grow off-network business, which to date has been reasonably small on the Display side.”