Yahoo’s troubles continue as the tech giant posted a first quarter loss of $99m following a sharp drop in net revenue – which is a figure that subtracts ad commissions from total turnover.
When compared to the same quarter last year, the web giant’s net revenue dropped 18% to $859m – the largest drop in net revenue since CEO Marissa Mayer was hired four years ago.
Search revenue fell 15% to $820m, while the number of paid clicks decreased by 21%. Price-per-clicks rose 7% compared to the first quarter of last year.
The company’s GAAP display revenue stood at $463m, down by 1%. The number of ads sold went up by 8% but price-per-ad dropped by 6% in the quarter on year-on-year basis.
Yahoo CEO Marissa Mayer said: "Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth.
"In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders."
Mobile revenue rose to $260m in the January-March period from the $234m reported in the same period last year, while desktop revenue fell to $774m from $873m.
Revenue from the company’s mobile segment accounted for 25% of the company’s traffic-driven revenue for the quarter, compared to 21% in the first quarter of 2015.
Yahoo CFO Ken Goldman said: "We delivered financial results at the high end or above our guidance ranges. We also achieved free cash flow of $297 million through improved working capital efficiencies, excellent cost controls, reduced capital expenditures and a large tax refund."
Yahoo’s board formed a strategic review committee of independent directors to examine "alternatives for the company alongside its continued consideration of a reverse spin."
According to reports earlier this week, Verizon Communications is leading the list of potential bidders for the struggling Yahoo. Time, Google parent Alphabet, AT&T, IAC/InterActiveCorp and Comcast have decided not to make offers for Yahoo.
Citing people familiar with the matter, the Wall Street Journal reported that ahead of a Monday deadline for preliminary bids, Verizon was among a handful of companies moving ahead with offers to acquire Yahoo or parts of it, among 40 firms that had initially shown interest.
During the March quarter, Yahoo appointed Cathy Friedman and Eric Brandt, who have wide experience in complex business matters; as its new directors.
The company introduced an enhanced mobile search experience in the quarter to make it easier for users to get the most relevant, specialised information about sports teams, players, presidential candidates and movies.
It rolled out new features for Yahoo Mail Android and iOS apps that include customizable swipe options, actionable notifications, recent attachment features, new colorful themes and 3D gestures.
It also launched new Yahoo App and Homepage to enable users access related news easily and share commentary.
The company introduced Yahoo Esports aimed at providing improved content experience on its sports offerings. The site features reporting, blogging, video commentary, match pages, team rosters, stats, related schedules, scores and a live chat feature where fans can connect with the community.
