Yahoo financials continue to disappoint
Company pins hopes of revival on new chief executive, Scott Thompson
Yahoo earned $296 million in Q4 2011, down 5% from $312m a year earlier, this is just the latest in four years of disappointing financial results, which has seen the company hire its fourth chief executive in five years to try and stem its poor performance.
Yahoo's former chief executive, Carol Bartz, was fired four months ago after failing to turn around the company's financial malaise. She was recently replaced by PayPal executive Scott Thompson, who has promised to move quickly to try to fix the problems. "There is no question we need to do better and we will," Thompson told the Press Association.
Thompson said it was too early to share exact details about his turnaround strategy for the company, but said he would be closing some Yahoo services, which could mean layoffs. Yahoo added 400 employees in the fourth quarter to end the year with 14,100 workers.
It lost one of its co-founders last week when Jerry Yang resigned from the company's board and gave up his role as ‘Chief Yahoo'.
Yahoo's Fourth-quarter revenue dropped 13% from 2010 to $1.32bn, after subtracting advertising commissions; Yahoo's revenue totalled $1.17bn, $20m below analyst projections.
This marks the 13th straight quarter that the company's net revenue has declined from the prior year.