WEB PORTAL Yahoo reported a rise in profits to $390m, despite declining revenues and burning through over $1bn in cash.
Yahoo's high-profile CEO Marissa Mayer has been trying to generate buzz around the firm and it seems some of her cost cutting measures have resulted in a rise in profits. The firm announced that first quarter 2013 revenues were down seven percent to $1.1bn but that profits rose eight percent to $185m.
While Yahoo's higher profits seem to paint a pretty picture, digging deeper into the firm's financials suggests that the increase might be a one-off event. The firm managed to slash its traffic acquisition costs by over $74m, but more worrying perhaps was that its cash in the bank was more than halved in the past year and now stands at $1.1bn.
Yahoo CEO Marissa Mayer said that the firm will decrease the time it takes between updating its various services and intends to launch many products in the coming months.
She said, "We can really establish a cadence so that we're not just updating our products once a year or once every few years, but we are really making continued improvements and adjustments over time. So I really think what you are going to see is Yahoo products will be releasing with small changes much more frequentually particularly on mobile and on the website. [...]
"We are positioned to have a really nice cadence over the next few quarters of launches, ideally several launches a month, if not at least a week, if not more across the product portfolio."
While Mayer has garnered attention for taking the CEO position at Yahoo, it is still unclear how she intends to set the company up for growth, aside from simply launching a raft of new services.
The firm's web properties are still sliding into irrelevance, and while a one-time profit jump might make those employees happy who are still around after her decision to abolish working from home, Mayer cannot rely on slashing costs to hide falling revenue forever, which is something that HP can confirm. µ