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What: Yahoo released its Q4 2014 earnings report, posting revenues of US$1.18 billion and earnings of 30 cents, and a 6% decline in revenues versus the same period of 2013. Mobile revenues showed a 23% sequential growth rate to US $254 million while display ad revenues  were down 4% to US$532 million. In addittion, Ads sold increased 17%, while the price per ad decreased 20%.
Why it matters: Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors, in an effort to revamp its slumping business.She also suggested investors should focus on Yahoo’s growth in mobile, native, social and video, a segment that, albeit less than 30% of overall revenues is growing at a high rate.

3fab1a175e2a87010f23435e0aea0f61_400x400Yahoo reported its fourth-quarter financial performance, including full-year revenue but excluding traffic acquisition costs of US $4.618 billion and full-year adjusted EBITDA of US $1.362 billion.

The company posted net revenues of US$1.18 billion and earnings of 30 cents. This means it almost missed what was estimated, sepecially with Wall Street expecting Yahoo to earn 29 cents per share with US $1.19 billion in revenue.Yahoo´s overall revenue fell 6 % in the last three months of the year and company’s shares were down 3.7 percent at US $36.82 in after-hours trading.

Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network.

Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors.

Mayer also commented on Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network. As almost 600,000 apps have the Flurry SDK, which are installed on 1.6 billion devices, if Yahoo can get even a small percentage of these apps to add in monetization via Flurry, it could deliver strong returns.

Mobile and Display

Yahoo reported mobile revenues of US $254 million during the quarter, up from US $200 million in the same period last year and a 23% sequential growth rate. This “Transformative Group,” according to Yahoo, that mobile is part of, along with social, video and other products, has produced US $380 million during the quarter.

Yahoo’s display ad revenues continued to decrease in the Q4 of 2014, down 4% to US$532 million compared to same period in 2013. Total revenues for the quarter, excluding traffic acquisition costs, were US$1.2 billion.Native ads contributed US$100 million in revenue, a 20% increase. Both new ad formats and better targeting were key factor to that increase, boosting the price-per-click.While programmatic ads, contributed to the overall drop of 4% in its display ad business.

In addition, Ads sold increased 17%, while the price per ad decreased 20%.

Search revenue came to US $467 million, with a single percent. Search has been a key revenue source for the company as its deal with Microsoft’s Bing technology, a growing driver of the company’s top line.

Alibaba spin-off

Separately, Yahoo announced its plans for a tax-free spin off of its remaining, multi-billion dollar Alibaba Group stock holdings, which account for the majority of Yahoo’s value, into a newly formed company.

Following the spin-off, the Alibaba stake will become part of a new publicly-traded holding company called SpinCo, which will absorb all of Yahoo’s 384 million Alibaba shares, worth US$40 billion and later distribute them in a pro-rata formula to Yahoo shareholders.

The move will safeguard Yahoo shareholders from the immense taxes they would’ve paid through an outright sale of the assets. Still, Yahoo will continue to operate its core business and hold its 35.5% interest in Yahoo Japan.

In a conference call with investors, Mayer said the spin-off would save shareholders nearly US$16 billion in taxes. The transaction “maximizes value for shareholders,” she said.SpinCo will own a 15.4% stake in Alibaba.

Investors should focus on Yahoo’s efforts in mobile, native, social and video

descargaMayer suggested investors should focus on Yahoo’s efforts in mobile, native, social and video, the fast-growing areas in digital advertising that she wants Yahoo to be a part of.

“Our investment businesses – mobile, video, native, and social – collectively delivered more than US$1.1 billion in GAAP revenue [in full-year 2014], up 95% year-over-year. These growth drivers have really focused our investments and energy on the future of digital advertising.”

“I’m pleased to report that our performance in Q4 and in 2014 continues to show stability in our core business,” she added. “Our mobile strategy and focus has transformed Yahoo and yielded significant results.”

 

What: Facebook announced Q4 Earnings of US $3.85 billion, a 49% YoY increase beating forecasts for US$3.77 billion. Net income was of US$701 million and Revenue for the full year 2014 was US$12.47 billion, an increase of 58% YoY.
Why it matters: Facebook is planning to accumulate its next billion users through mobile devices, pulling in people from emerging markets like South America and Southeastern Asia where few people own desktop computers.

Facebook released its fourth-quarter earnings , going beyond expectations: US$701 million in net income, +34% vs the period last year, on revenues of US $3.85 billion. That’s an increase of 49% year over year.The revenue number beat forecasts for US$3.77 billion and earnings at 54 cents a share were well ahead of the consensus estimate for 48 cents.

Revenues would have risen by 53% were it not for the effects of foreign a strong US dollar.If this continues during 2015, revenues could be affected as much as 5%.

Revenue for the full year 2014 was US$12.47 billion, an increase of 58% year over year.

The number of monthly active users(MAUs) was 1.39 billion , while analysts were expecting 1.38 billion (up from 1.35 billion Q3).The number of Daily active users (DAUs) saw a 18% year over year increased with 890 million on average for December 2014.

Mobile first company

Out of the Q4’s US$3.85 billion in revenue, US$3.59 billion came from advertising. The revenue growth was driven by a 99% increase in mobile ad revenue. Mobile nearly accounted for 69% of ad sales, up from 53% at the end of 2013. This amounts to US$2.77 per mobile Facebook user. Revenue from payments and other fees was US$257 million, a 7% increase year over year.

In addition, the social net reported that Mobile DAUs were 745 million on average for December 2014, an increase of 34% year over year. While Mobile MAUs were 1.19 billion as of Dec. 31, 2014, an increase of 26% year over year.

The revenue growth was driven by a 99% increase in mobile ad revenue

Facebook has spent the past few years building a “mobile first” approach, with new products and services for mobile users as the target demographic. Part of the reason is that Facebook is planning to accumulate its next billion users through mobile devices, pulling in people from emerging markets like South America and Southeastern Asia where few people own desktop computers. Were to have a strong mobile user base it would translate in mobile business strategies.

Facebook is planning to accumulate its next billion users through mobile devices, pulling in people from emerging markets like South America and Southeastern Asia where few people own desktop computers

For this reason, the company has been adding more services to its core Facebook product, like Instagram and WhatsApp.

“We got a lot done in 2014,” CEO Mark Zuckerberg says. “Our community continues to grow and we’re making progress towards connecting the world.” Facebook attracts more than 3 billion video views a day, he told analysts in a conference call.

The only thing that did not go up for Facebook upon its Q4 earnings is its share price in after-hours trading: up just 5 cents or 0.07 percent despite strong earnings and sales numbers. This may have to do with the fact that Facebook is still trading up 40 percent or so year over year.

 

What: Facebook announced Q4 Earnings of US $3.85 billion, a 49% YoY increase beating forecasts for US$3.77 billion. Net income was of US$701 million and Revenue for the full year 2014 was US$12.47 billion, an increase of 58% YoY.
Why it matters: US$3.59 billion came from advertising, driven by a 99% increase in mobile ad revenue. Mobile nearly accounted for 69% of ad sales.In light of mobile growth, the social net will continue investing on this business, specially in markets like South America and Southeastern Asia where few people own desktop computers.

proxyFacebook released its fourth-quarter earnings , going beyond expectations: US$701 million in net income, +34% vs the period last year, on revenues of US $3.85 billion. That’s an increase of 49% year over year.The revenue number beat forecasts for US$3.77 billion and earnings at 54 cents a share were well ahead of the consensus estimate for 48 cents.

Revenues would have risen by 53% were it not for the effects of foreign a strong US dollar.If this continues during 2015, revenues could be affected as much as 5%.

Revenue for the full year 2014 was US$12.47 billion, an increase of 58% year over year.

The number of monthly active users(MAUs) was 1.39 billion , while analysts were expecting 1.38 billion (up from 1.35 billion Q3).The number of Daily active users (DAUs) saw a 18% year over year increased with 890 million on average for December 2014.

Mobile first company

Out of the Q4’s US$3.85 billion in revenue, US$3.59 billion came from advertising. The revenue growth was driven by a 99% increase in mobile ad revenue. Mobile nearly accounted for 69% of ad sales, up from 53% at the end of 2013. This amounts to US$2.77 per mobile Facebook user. Revenue from payments and other fees was US$257 million, a 7% increase year over year.

In addition, the social net reported that Mobile DAUs were 745 million on average for December 2014, an increase of 34% year over year. While Mobile MAUs were 1.19 billion as of Dec. 31, 2014, an increase of 26% year over year.

The revenue growth was driven by a 99% increase in mobile ad revenue

Facebook has spent the past few years building a “mobile first” approach, with new products and services for mobile users as the target demographic. Part of the reason is that Facebook is planning to accumulate its next billion users through mobile devices, pulling in people from emerging markets like South America and Southeastern Asia where few people own desktop computers. Were to have a strong mobile user base it would translate in mobile business strategies.

For this reason, the company has been adding more services to its core Facebook product, like Instagram and WhatsApp.

“We got a lot done in 2014,” CEO Mark Zuckerberg says. “Our community continues to grow and we’re making progress towards connecting the world.” Facebook attracts more than 3 billion video views a day, he told analysts in a conference call.

The only thing that did not go up for Facebook upon its Q4 earnings is its share price in after-hours trading: up just 5 cents or 0.07 percent despite strong earnings and sales numbers. This may have to do with the fact that Facebook is still trading up 40 percent or so year over year.

 

What: Yahoo released its Q4 2014 earnings report, posting revenues of US$1.18 billion and earnings of 30 cents, and a 6% decline in revenues versus the same period of 2013. Mobile revenues showed a 23% sequential growth rate to US $254 million while display ad revenues  were down 4% to US$532 million. In addittion, Ads sold increased 17%, while the price per ad decreased 20%.
Why it matters: Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors, in an effort to revamp its slumping business.She also suggested investors should focus on Yahoo’s growth in mobile, native, social and video, a segment that, albeit less than 30% of overall revenues is growing at a high rate.

3fab1a175e2a87010f23435e0aea0f61_400x400Yahoo reported its fourth-quarter financial performance, including full-year revenue but excluding traffic acquisition costs of US $4.618 billion and full-year adjusted EBITDA of US $1.362 billion.

The company posted net revenues of US$1.18 billion and earnings of 30 cents. This means it almost missed what was estimated, sepecially with Wall Street expecting Yahoo to earn 29 cents per share with US $1.19 billion in revenue.Yahoo´s overall revenue fell 6 % in the last three months of the year and company’s shares were down 3.7 percent at US $36.82 in after-hours trading.

Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network.

Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors.

Mayer also commented on Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network. As almost 600,000 apps have the Flurry SDK, which are installed on 1.6 billion devices, if Yahoo can get even a small percentage of these apps to add in monetization via Flurry, it could deliver strong returns.

Mobile and Display

Yahoo reported mobile revenues of US $254 million during the quarter, up from US $200 million in the same period last year and a 23% sequential growth rate. This “Transformative Group,” according to Yahoo, that mobile is part of, along with social, video and other products, has produced US $380 million during the quarter.

Yahoo’s display ad revenues continued to decrease in the Q4 of 2014, down 4% to US$532 million compared to same period in 2013. Total revenues for the quarter, excluding traffic acquisition costs, were US$1.2 billion.Native ads contributed US$100 million in revenue, a 20% increase. Both new ad formats and better targeting were key factor to that increase, boosting the price-per-click.While programmatic ads, contributed to the overall drop of 4% in its display ad business.

In addition, Ads sold increased 17%, while the price per ad decreased 20%.

Search revenue came to US $467 million, with a single percent. Search has been a key revenue source for the company as its deal with Microsoft’s Bing technology, a growing driver of the company’s top line.

Alibaba spin-off

Separately, Yahoo announced its plans for a tax-free spin off of its remaining, multi-billion dollar Alibaba Group stock holdings, which account for the majority of Yahoo’s value, into a newly formed company.

Following the spin-off, the Alibaba stake will become part of a new publicly-traded holding company called SpinCo, which will absorb all of Yahoo’s 384 million Alibaba shares, worth US$40 billion and later distribute them in a pro-rata formula to Yahoo shareholders.

The move will safeguard Yahoo shareholders from the immense taxes they would’ve paid through an outright sale of the assets. Still, Yahoo will continue to operate its core business and hold its 35.5% interest in Yahoo Japan.

In a conference call with investors, Mayer said the spin-off would save shareholders nearly US$16 billion in taxes. The transaction “maximizes value for shareholders,” she said.SpinCo will own a 15.4% stake in Alibaba.

Investors should focus on Yahoo’s efforts in mobile, native, social and video

descargaMayer suggested investors should focus on Yahoo’s efforts in mobile, native, social and video, the fast-growing areas in digital advertising that she wants Yahoo to be a part of.

“Our investment businesses – mobile, video, native, and social – collectively delivered more than US$1.1 billion in GAAP revenue [in full-year 2014], up 95% year-over-year. These growth drivers have really focused our investments and energy on the future of digital advertising.”

“I’m pleased to report that our performance in Q4 and in 2014 continues to show stability in our core business,” she added. “Our mobile strategy and focus has transformed Yahoo and yielded significant results.”

 

What: Although it had a US $132 million net loss, Twitter revenues in 2014 first quarter were of US $250 million , almost doubling last year´s figure.
Why it matters:  Growth was mainly fueled by a substantial increase in dvertising revenue. The bad news is that the user growth rate declined. Twitter’s stock tanked by 10% after the earnings announcement.

twitterTwitter released its first quarter financial results, revealing a US $132 million net loss, or 23 cents per share.The good news is that Q1 revenues increased to US $250 million, up 119% year-over-year, doubling 2013 revenues of US $ 114.3 million  and beating most of  Wall Street analysts´ expectations.  This growth was mainly fueled by an increase in advertising revenue, which totaled US $226 million during the first quarter, a 125% year-over-year increase. Mobile advertising revenue accounted for approximately 80% of total advertising revenue.Data licensing and other revenue totaled US $24 million, an increase of 76% year-over-year.Regarding International revenue,which represents at least 28% of total revenue, the number  totaled US $70 million, an increase of 183% year-over-year.

Sluggish user growth?

Despite the revenue growth, Twitter sluggish user growth  ended up attracting the most attention, as it is a lingering concern among Wall Street investors and tech observers. Twitter’s stock fell nearly 10 percent after the figures went public.In its second earnings statement as a public company, Twitter reported 255 million monthly active users, up from 241 million from the last quarter but falling short of analysts’ projections of 257 million. The San Francisco-based digital platform’s user base grew by 25 percent in Q1 compared to the same period in 2013. That’s down from a 30 percent year-over-year increase in Q4 ’13 and a 39 percent YOY increase in Q3 over their respective prior-year quarters.

 

“Timeline views”

Timeline views measure how often users refresh their own Twitter account or someone else’s. These measurement reached US $ 157 billion for the first quarter of 2014, an increase of 15% year-over-year.Advertising revenue per thousand timeline views, reached US $1.44 in the first quarter, doubling last year´s figure.

Monthly active users grew to 255 million in the first quarter, including re-acceleration in twitter´s largest market, the U.S., which added 3 million net new users. Mobile active users  reached 198 million in the same period, an increase of 31% year-over-year, representing 78% of total MAUs.

The company has so far launched improved tools for advertisers, allowing them to create tailored audiences from email lists and CRM databases, target TV conversations for Spanish-language television, and connect with users through Promoted Accounts in search.

“Content creators, publishers and marketers care about 2 things: scale and engagement, and our platform increasingly delivers both of those,” said Dick Costolo, CEO of Twitter.

“We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth.We also continue to rapidly increase our reach and scale. With the integration of MoPub, we now reach more than 1 billion iOS and Android users each month, making us one of the largest in-app mobile ad exchanges in the world and the only one at scale to offer native in-app advertising,”he added.

Twitter’s outlook for the second quarter of 2014 ,projects a revenue ranging between US $270 million to US $280 million, with an adjusted EBITDA of US $25 million to US $30 million.

For the full year, the company expects US $1,2million to US $1,25 million, with Adjusted EBITDA of US $180 million to US $205 million. However, analysts’ forecast a US $1.24 billion revenue.

What: Although it had a US $132 million net loss, Twitter revenues in 2014 first quarter were of US $250 million , almost doubling last year´s figure.
Why it matters:  Growth was mainly fueled by a substantial increase in dvertising revenue. The bad news is that the user growth rate declined. Twitter’s stock tanked by 10% after the earnings announcement.

twitterTwitter released its first quarter financial results, revealing a US $132 million net loss, or 23 cents per share.The good news is that Q1 revenues increased to US $250 million, up 119% year-over-year, doubling 2013 revenues of US $ 114.3 million  and beating most of  Wall Street analysts´ expectations.  This growth was mainly fueled by an increase in advertising revenue, which totaled US $226 million during the first quarter, a 125% year-over-year increase. Mobile advertising revenue accounted for approximately 80% of total advertising revenue.Data licensing and other revenue totaled US $24 million, an increase of 76% year-over-year.Regarding International revenue,which represents at least 28% of total revenue, the number  totaled US $70 million, an increase of 183% year-over-year.

Sluggish user growth?

Despite the revenue growth, Twitter sluggish user growth  ended up attracting the most attention, as it is a lingering concern among Wall Street investors and tech observers. Twitter’s stock fell nearly 10 percent after the figures went public.In its second earnings statement as a public company, Twitter reported 255 million monthly active users, up from 241 million from the last quarter but falling short of analysts’ projections of 257 million. The San Francisco-based digital platform’s user base grew by 25 percent in Q1 compared to the same period in 2013. That’s down from a 30 percent year-over-year increase in Q4 ’13 and a 39 percent YOY increase in Q3 over their respective prior-year quarters.

 

“Timeline views”

Timeline views measure how often users refresh their own Twitter account or someone else’s. These measurement reached US $ 157 billion for the first quarter of 2014, an increase of 15% year-over-year.Advertising revenue per thousand timeline views, reached US $1.44 in the first quarter, doubling last year´s figure.

Monthly active users grew to 255 million in the first quarter, including re-acceleration in twitter´s largest market, the U.S., which added 3 million net new users. Mobile active users  reached 198 million in the same period, an increase of 31% year-over-year, representing 78% of total MAUs.

The company has so far launched improved tools for advertisers, allowing them to create tailored audiences from email lists and CRM databases, target TV conversations for Spanish-language television, and connect with users through Promoted Accounts in search.

“Content creators, publishers and marketers care about 2 things: scale and engagement, and our platform increasingly delivers both of those,” said Dick Costolo, CEO of Twitter.

“We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth.We also continue to rapidly increase our reach and scale. With the integration of MoPub, we now reach more than 1 billion iOS and Android users each month, making us one of the largest in-app mobile ad exchanges in the world and the only one at scale to offer native in-app advertising,”he added.

Twitter’s outlook for the second quarter of 2014 ,projects a revenue ranging between US $270 million to US $280 million, with an adjusted EBITDA of US $25 million to US $30 million.

For the full year, the company expects US $1,2million to US $1,25 million, with Adjusted EBITDA of US $180 million to US $205 million. However, analysts’ forecast a US $1.24 billion revenue.

 

 

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