Online ad revenue hasn’t slumped this much since the dot-com bust, analysts say.
The reality is hitting Yahoo! with a vengeance. The company will cut 600-700 more jobs, or about 5 percent of its workforce, in the next couple of weeks as it tries to protect its profits. Yes, Yahoo! still is earning money although less than it did even a year ago. The company today reported net income of $118 million, a tidy sum until one considers that Yahoo! posted a $537 million profit during the same period a year ago.
Revenue, meanwhile, also was down – to $1.58 billion from $1.82 billion in 2008’s first quarter. Excluding the advertising sales Yahoo! shares with partners, the company sold $1.16 billion worth of goods; analysts polled by Reuters Estimates forecast revenue of $1.1.6 billion.
Yahoo! held its conference call with analysts Tuesday after the bell. The company’s stocks were up 1.81 percent in after-hours trading.