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July 22, 2015

Yahoo reports loss despite highest revenue rise in nine years

Mavens generated 25% of traffic-driven revenue.

By CBR Staff Writer

Yahoo recorded the highest quarterly revenue increase in nine years, with revenues increasing 15% to $1.24bn in Q2 2015.

However, the company recorded a net loss of $22m due to the acquisition costs that it had to pay search partners including Mozilla and Oracle.

Yahoo said that its financial metric unit, Mavens, which tracks mobile, video, native and social ads helped it in generating 25% of traffic-driven revenue for the company.

The company managed to earn $406.7m from display ads which rose 3.3% in a year-on -year comparison.

Yahoo CEO Marissa Mayer said: "I’m extremely pleased with our achievements in Q2, with revenue growing 15% year-over-year, marking our most substantial GAAP revenue growth in almost 9 years.

"Our Mavens investment businesses across mobile, video, native and social grew to nearly $400 million in revenue this quarter, delivering 60% GAAP growth year-over-year.

"Further, our display business saw the most substantial revenue growth since 2010. Yahoo’s transformation continues to make great progress."

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Yahoo’s Mobile revenue represented 22% of traffic-driven revenue in the second quarter of 2015, which was just 14% last year.

Gross mobile revenue rose from $272m in Q2 2014 to $415 m this year.

The company’s gross search revenue stood at $920m in Q2 2015, a 15% increase when compared to the revenue it generated from the unit in the second quarter of 2014.

Yahoo CFO Ken Goldman said: "In addition to revenue outperformance, we reduced $30 million in sequential cash operating expenses driven by strategic headcount and footprint reductions, tight management of our discretionary costs and the benefit from IP monetization."

"As we continued to reduce our workforce to fewer than 11,000 full-time employees over the last quarter, we have also continued to realign our resources as we become a more efficient business."

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