Encouraging Yahoo CEO predicts Tumblr will raise £62m in revenue by 2015

Tumblr, the microblogging social media platform, is set to generate over $100 million (£62 million) in revenue according to parent company Yahoo's chief executive Marissa Mayer.

Yahoo acquired the blogging site for more than $1 billion (£620 million) in May last year. The company assuaged fan fears at the time by promising "not to screw it up".

"Tumblr is redefining creative expression online," CEO Mayer said at the time. "Fundamentally, Tumblr and Yahoo are both all about users, design, and finding surprise and inspiration amidst the everyday."

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According to the Wall Street Journal Mayer, speaking during a Yahoo conference call on third-quarter earnings, quipped that the site will achieve "positive Ebitda" – meaning its earnings (prior to tax) will be largely in the black. According to CEO Tumblr's audience has also grown by 40 per cent to 420 million users, while the number of active blogs has doubled since Yahoo's takeover.

Most important of all, however, is that users are spending much more time on the site, up to an average of 28 minutes. Along with the increase in user engagement is a possible increase in profit for Yahoo – the website signed a deal with a photo-recognition firm earlier this year to analyse brand-related data on the blogging site.

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The news comes amidst an unusual silence on the fate of Tumblr in recent months. Critics had begun to wonder if Yahoo regretted its acquisition entirely after splashing such a large amount of cash.