It looks like Yahoo chief executive Carol Bartz made real progress in turning the company around. In its earnings report for the first quarter of 2010, profits were up dramatically compared to the same period last year, even as revenue remained relatively stable.
Wall Street analysts had predicted Yahoo would earn 9 cents per share, and the company cleared that substantially, reporting 22 cents per share. It brought in $1.6 billion in revenue, only up 1 percent from the year before.
Profits, on the other hand, nearly doubled from $101 million to $188 million. The company’s search and advertising deal with Microsoft, which was approved in February, pushed those numbers up. Microsoft will be providing search results and advertising on Yahoo pages while the companies share revenue, but more immediately Microsoft is paying Yahoo for some of the costs of implementing the deal. Yahoo also benefited from the sale of its Zimbra division to VMWare.
Bartz joined Yahoo last year and did a lot of talking about getting the company’s finances in order. Judging from these earnings and last quarter’s, it sounds like she has had success on that front. The next challenge is whether she can turn Yahoo into a company that’s growing and innovating.
People: Carol Bartz