Yahoo 3Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Our current sprint is deeply focused on product quality and growing traffic and we’ve demonstrated great momentum on both this quarter.”

“Great teams build beautiful engaging products, those products drive increase traffic. The increase traffic generates greater advertiser interest, which ultimately results in revenue growth.”

“We’re committed to constantly innovating our products. We don’t always get them right the first time.”

“After years of global traffic decline in Yahoo, we managed to reverse this negative trend and U.S. 2013, we achieved year-over-year growth, effectively erasing the decline from the prior year. I regarded this as a very good sign.”

“n September, we announced that we have more than 800 million monthly unique users. This represents a 20% increase in monthly unique users over the past 15 months.”

“In Q3, we received more than 17,000 resumes in a single week. This is up from 12,000 in August, 10,000 in May and 2,000 in January, a more than 8x increase year-to-date.”

“Revenue ex-TAC for the quarter is roughly flat year over year. Growth in search and other revenue ex-TAC were once again highlights. Ex-TAC revenue from our display business was lower.”

” We’ve got work to do on delivering revenue growth, and translating the increased engagement to revenue.”

“Today, Yahoo! is the only place where advertisers can execute Display, Search, mobile, video and native campaigns, both through direct and programmatic means. This gives us a strong position in the market and we are investing so we can bring even more value to our clients and partners.”

“Well, the way we define native advertising is advertisements that match the content. They feel like they are part of the experience, they add to the overall experience. Search advertisement has been like this from the very beginning. And what we’re seeing is when you have native advertisements you can get much better performance. The challenges here is that these are our new formats so, we’ve been working with advertisers haven’t adopt these new formats like Yahoo! Stream ads, and over time we think that there is an opportunity to do more here.”

“I will anticipate that sometime within the next year we will begin to grow in line with the — with the traffic, the advertising revenue will start to follow that traffic trend.”

“On the pricing, there has been industry pressure across-the-board on price per click advertising. Part of this is because of the increased volume and part of this has to do with management of affiliate networks, the overall quality of traffic. And so, we have been working really hard to make sure that our affiliate network is incredibly high quality that’s come at the expenses some volume but overall we think it’s better for users. And so we’re very excited about the future.”