Yahoo has reported net income of $331 million, or 30 cents per share, for its second quarter. That’s an increase of 46% over earnings of $226 billion, or 18 cents a share, one year earlier. With the omission of stock-based compensation and other items, earnings come in at 35 cents per share on revenue of 1.135 billion including traffic acquisition costs. Revenue was $1.07 billion with the exclusion of those costs, which puts it around analyst expectations of $1.08 billion in revenue and per share earnings of 30 cents.
The tech company is working to rebuild its ad business and has focused on growing its audience. Yahoo has also been a busy buyer lately with a string of acquisitions, the most notable of which is Tumblr. The purchase of Tumblr for $1.1 billion netted Yahoo a social networking site and access to a younger demographic than the majority of its customer base. Yahoo’s other acquisitions have largely been focused on mobile apps and mobile development, confirming that it, and everyone else, is looking to mobile as the source of future growth.
Since former Google executive Marissa Mayer joined the company as CEO, Yahoo has slowly been building itself up to be a major player once again. However, Mayer said that it would take several years before Yahoo reached the growth rate she wants to see. For the next quarter, Yahoo is expecting revenue between $1.06 billion and $1.1 billion, while Wall Street analysts are looking for $1.12 billion in revenue and 34 cents per share. Yahoo predicted revenue for the year to fall in the range between $4.45 billion and $4.55 billion.