Revenue and business highlights
In 2Q15, Yahoo! (YHOO) reported revenues of $1.243 billion compared to $1.084 billion in 2Q14 and $1.226 billion in 1Q15. Gross profit increased marginally from $745 million in 2Q14 to $747 million in 2Q15.
Operating income decreased YoY (year-over-year) from $38 million in 2Q14 to -$45 million in 2Q15. Net income decreased as well, from $270 million to -$2 million in the same period. Earnings per share (or EPS) for 2Q14 was $0.27 compared to -$0.02 in 2Q15.
Over the last 12 months, Yahoo!’s search presence has grown at a steady pace, driven by innovation and partnerships with industry leaders. In 2Q15, Yahoo! introduced a new mobile search experience in the United States, connecting users to places, people, and things they care about “by using context and location cues to deliver the most relevant search results.” The major competitors for Yahoo! in this space include Google (GOOG) and Bing.
Communications and digital content
In 2Q15, Yahoo! introduced new features in mail, including Yahoo! Mail on Firefox Share. Yahoo! Mail allowing users to share web pages using Firefox as well as integrate Twitter (TWTR) and LinkedIn (LNKD) information into contacts.
In July 2015, Yahoo! launched its Yahoo Fantasy app that provides users with an opportunity to win money every day with new fantasy lineups. The company also announced its partnership with the NFL (National Football League) to live stream an International Series game between the Buffalo Bills and the Jacksonville Jaguars from London later this year.
Marissa Mayer, CEO (chief executive officer) of Yahoo!, 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.”
Mayer went on to say, “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.”
For a diversified exposure to Yahoo!, you can invest in the SPDR S&P 500 ETF (SPY) and the Technology Select Sector SPDR ETF (XLK). SPY and XLK invest about 0.16% and 0.70% of their holdings, respectively, in Yahoo!
Correction: This post originally appeared under the title “Yahoo! Revenues Increase 14% Year-over-Year.” However, this title did not clarify that this increase was reported with the last quarter’s results and not at the time of publication. We have since updated the title to clarify this distinction. We apologize for this oversight.