Yesterday after market close, Yahoo reported its earnings for the second quarter of 2013.
One year after Marissa Mayer took over as CEO, the company's results were okayish but didn't really show signs of a major turnaround yet.
Yahoo posted a net profit of $331 million for the quarter. Unfortunately, the substantial 46 percent increase over last year's profit can be attributed mainly to gains in the company's investment holdings, while Yahoo's core business continues to slump.
GAAP revenue declined 7 percent to $1.14 billion, as Yahoo’s ad business performed disappointingly. A 5 percent increase in search revenue wasn't enough to offset the 11 percent drop in display ad revenue. Yahoo's recent acquisition of Tumblr didn't contribute any significant revenue yet and Mayer stated that she doesn't expect it to do until next year.
The results show that even though Marissa Mayer managed to turn around the public perception of Yahoo, turning around the company's core business might prove more challenging. In the past year, Mayer has earned the trust of investors
but at some point in the near future, she will have to repay that trust with some actual results.