Yahoo back to business
After the company’s exceptional 3rd quarter results, the company decided to increase its operating profit in the next 3 years. They have decided to boost its growth and regain the confidence of its investors. Yahoo’s CEO, Carol Bartz on its presentation to investors on Wednesday said Yahoo had left many people confused about its purpose in recent years and disappointed by its lackluster financial performance. Yahoo managed to have only 6% of operating margin in the third quarter, which Bartz described as “pathetic” earlier on Wednesday.
“Along the way, here we are a 14-year-old Internet company that somehow got boring,” said Bartz, who said the company’s 6 percent operating margins were “pathetic” and “unacceptable.”
“Today is the beginning of a journey back to respect,” Bartz said.
Since Yahoo changed its homepage in July, page views have increased 9% while time spent on the site has increased 20%, according to Tapan Bhat, SVP (Integrated Consumer Experience). He also said that, Click-throughs on the advertisements on the front page have increased 10%. Also, since Bartz took over as CEO, the company laid off 5% of its staff and shut down its several businesses.
Yahoo also announced its 10 year partnership with Microsoft Corporation in July. This will let Microsoft provide search technology to Yahoo and compete with Google, the world’s No. 1 search engine.