Yahoo reports solid earnings following blockbuster Mayer appointment

One day after appointing Google's Marissa Mayer as its new chief executive, Yahoo reported second quarter earnings that were slightly better than expected, but not spectacular.

Given that Tuesday was her first day as CEO, Mayer did not make an appearance on an afternoon earnings call. Tim Morse, Yahoo's chief financial officer, however, said Mayer "is very mindful of the importance of the investor community" and is looking forward to talking to them in future.

When asked about why Yahoo selected Mayer, Morse touted her tech expertise and said "her resume speaks for itself."

Yahoo reported revenue of $1.22 billion (£780 million), which was up 1 per cent from last year, but the same as the first quarter. Earnings landed at $228.5 million (£146m), down 4 per cent. In the first quarter, Yahoo reported profit growth of 28 per cent.

Mayer, of course, comes from search powerhouse Google. On the search front, Yahoo reported revenue of $461 million (£295m), a 1 per cent drop from last year. Display ad revenue came in at $535 million (£342m), a 2 per cent jump.

Morse talked up the content deals Yahoo landed in the second quarter, including ABC News, CNBC, EuroSport, Spotify, and Clear Channel.

The effects of those deals, Morse said, will first be evident on the desktop, but he expected it to branch out to all devices as Yahoo makes the transition to a "mobile first philosophy."

Going forward, the London Olympics and 2012 US Presidential Election will likely be major events for Yahoo, Morse said.

Yahoo said a combination of technology - with which Mayer is very familiar - and content will drive Yahoo in the future. "Finding that right mix" will be a major focus, he said. "We need to be really great at certain technology and we need to be great at content."

"It's going to be a powerful combination when we get it right," according to Morse.

Yahoo did not provide any specific financial guidance for the next quarter. "We believe it's best to give our CEO time to get acclimated to Yahoo before giving any guidance," Morse said.

Earlier this month, Facebook and Yahoo settled a patent dispute with a new ad partnership that expands on their existing relationship. "We feel good to be on a steady footing ahead," Morse said when asked about Yahoo's relationship with Facebook.

Mayer was named Yahoo's CEO earlier in the week. Her appointment came about two months after Scott Thompson stepped down as CEO after it was discovered that he inflated portions of his resume. Thompson, former president of eBay's PayPal unit, was hired in early January.

Mayer joined Google in 1999 as its 20th ever employee and first female engineer. Most recently, she served as vice president of location and local services.

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