Mayer scrambles as Yahoo misses earnings, revenue
Yahoo CEO Marissa Mayer tried to reassure investors on Tuesday that the struggling tech giant is still on a path to success, even as key executives are leaving and the company failed to meet analysts’ expectations.
During her three years as CEO, Mayer has beefed up Yahoo’s efforts in mobile, social, video and native advertising, acquiring promising companies and recruiting talent.
“She’s done a good job of pivoting the business from desktop to mobile but I think she’s done a lousy job of making money and growing their core advertising business,” said Neil Doshi, a senior analyst at Mizuho Securities USA Inc.
Mayer said in a Tuesday earnings presentation that she has “aggressive expectations” for Yahoo’s core business, and the leadership team is “the strongest in my tenure.”
Company officials said the top priority is spinning off its Alibaba stake and small business division into a separate company.
On Tuesday, Mayer touted the company’s efforts in mobile, video, social and native advertising, a growing portion of Yahoo’s business.
The company beat analysts’ expectations on adjusted earnings — the amount before interest, taxes, depreciation and amortization.
Mayer often touts her belief in the virtuous cycle — that hiring talented people will result in great products, which in turn leads to appealing to new audiences and advertisers.
“The virtuous cycle sounds really good, but if you can’t retain people, you can’t finish it,” said Rob Enderle with advisory services firm Enderle Group.