Yahoo 1Q15 Earnings Call Notes

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People, products, revenue, traffic

“For my update today we will use the framework of our virtuous cycle: people, products, traffic, and revenue. We believe with the right people you build great products that the market responds to through increased traffic and engagement leading to greater revenue. This is one of the key operating principles in our transformation and one reason we focus on hiring and retaining the right people and really improving the user experience and product features we offer.”

Employee count has come down over last two years

“Over the past two years, two and a half years, we have retooled our culture to be extremely performance oriented, concentrate our efforts in high productivity locations, closing 17 office locations in total, (4:14) approximately 80 products, reduced the number of contractors by nearly 2,000 and reduced our full-time employee count by nearly 3,000 people, including our recent reduction of about 1,100 full-time employees this past quarter.”

Tumblr approaching half a billion users

“The Tumblr audience is approaching the half-a-billion mark with an audience of more than 474 million monthly people, and we saw tremendous mobile engagement with users on the mobile app up more than 10% quarter-over-quarter.”

Steep declines in premium and programmatic PC advertising

“e continue to see steep year-over-year declines in premium and programmatic PC advertising. This has accelerated in Q4 and Q1, where we’ve seen more than $100 million of decline in each quarter. Our premium advertising declined 40% year-over-year, mostly due to a decline in sales booked directly to our properties. Audience declined 19% year-over-year due to lower prices paid per ad through programmatic pricing. We continue to do everything we can to stabilize and slow this decline, but new, more attractive formats like mobile, native and video are key to offsetting it.”

There are two types of search emerging

“there are two types of products that are emerging. The classic web search, call it deep reference web search which is classic Google search, Bing search, and there’s a new class of products that’s really arising with Cortana, Siri, Google Now. And those products are really heavily differentiated both from each other as well as from the historic legacy products”

An indispensible guide to digital info

“Our strategy is to be the indispensable guide to digital information, or at least one of the indispensable guides.”