Yahoo! Inc. (NASDAQ:YHOO) has revealed that their business profits in the last three months are up by more than 100 percent. This is a huge boost for the firm that had gone into a deal to sell their core business to Verizon (NYSE:VZ) recently. But that became uncertain after the huge data breach was reported. It was disclosed that the hack affected 500 million user accounts of Yahoo.
Verizon has already said that the hack “could have a material impact” on the deal.
In a release, Yahoo said that for the quarter ending September 30, the business revenue stands at $1.3 billion, which is up by an impressive 6.5 percent. The profits of the firm are $163 million. This time last year, it was just $76.3 million.
Marissa Mayer Happy
Marissa Mayer, who is the Chief Executive, says that the figures underline Yahoo’s value. “We remain very confident, not only in the value of our business but also in the value Yahoo products bring to our users’ lives”, she added.
This is the first financial update since the Verizon and Yahoo deal.
Interestingly, the revenue of Yahoo’s business rival, Google (NASDAQ:GOOGL), has fallen by 14.1 percent in the same period, which is quite a sharp drop for this technology leader. Their search revenue is currently at $752.5 million.
Mavens Revenue Up
Yahoo reports that revenue from Maven – its mobile, native, social media, and video has gone up by 24 percent to reach $524 million. But the best performance came from its mobile operations, where the revenue in the quarter stands at $396 million. This is $271 million more than last year, way beyond 50 percent.
Ms. Mayer was naturally impressed with the results and she said, “We launched several new products and showed solid financial performance across the board”.
Industry analysts are impressed too. Most of them had projected poorer results for the business. They are saying that it is clear that the recent data breach has not caused a massive exodus of users from Yahoo’s email system.
Yahoo has seen falling market presence for many years now. A few years back, the business was valued at $20 billion. But a few months back, when the sell deal was struck with Verizon, Yahoo (NASDAQ:YHOO) was able to fetch just $4.83 billion.
It remains to be seen whether the Verizon-Yahoo deal goes through after this impressive result. Yahoo might want to re-negotiate, or call off the sale.