Yahoo’s Second Quarter Results are Poor
Yahoo’s Second Quarter Results are Poor

American multinational technology company Yahoo is still facing several difficulties as the Internet company is preparing to shed the financial support that has been propping up its stock during the three-years of control under CEO Marissa Mayer.

The company on Tuesday released its second-quarter earnings reports, which showed that the company suffered loss of nearly $22 million. Soaring ad commission paid to its partners is said to be the major factor by which the loss has been driven.

Net revenue of the company remained unchanged from the previous year at $1.04 billion. Yahoo said it would have earned 16 cents per share, but the figures showed it was 2 cents per share below the average estimate among analysts polled by Zacks.

Yahoo's stock fell 55 cents, or 1.4 %, to $39.18 in extended trading after the numbers came out. Investors focus on Yahoo's net revenue because it reflects how much money the company keeps after paying its ad commissions, which is also known as 'traffic acquisition costs'.

Yahoo's revenue has been backpedaling while its rivals such as Google Inc. and Facebook Inc. have been sprinting further ahead in the race for Web surfers' attention and marketing dollars.

Mayer has been promising to engineer about turnaround since Yahoo Inc. hired her away from Google, but only has made grudging progress so far. Presently Yahoo's net revenue has decreased or been unchanged from the previous year in eight of the previous 10 quarters.

The Sunnyvale, California, company predicted that its net revenue will decline once again in the current quarter ending in September.

Yahoo's stock has more than doubled under Mayer's leadership, though the gain has had little to do with her strategy.