Yahoo! Inc. (NASDAQ:YHOO) announced better than expected third quarter financial results after market close yesterday. And perhaps more interesting for investors, new CEO Marissa Mayer outlined her vision for the company in a conference call.
Revenues and earnings from ongoing operations were better than expected, plus Yahoo! recognized a net gain of $2.8 billion from selling a significant portion of its stake in Alibaba. (You can see our report here.) Most of the after tax cash flow from the Alibaba sale will be returned to Yahoo! shareholders.
During the conference call, which was also the first earnings conference call for Yahoo!’s new CFO Ken Goldman, Ms. Mayer said that the core of Yahoo! was sound and that she did not plan a major “pivot”. Rather she plans to focus on the basics including search and email, improve the user experience and make Yahoo! more of a habit with its hundreds of millions of users. She noted Yahoo! already produces a lot of the content that people look for most.
But as might be expected, she does plan to greatly increase Yahoo!’s presence on mobile devices – calling a focused, coherent mobile strategy a top priority.
As to acquisitions, Ms. Mayer said acquisitions would tend to be targeted and smallish. This likely comes as a relief to many investors who thought she would try to make her mark with big, risky acquisitions.