BNXS

Towards the end of last year Yahoo seemed to hit the headlines for all the wrong reasons. The company was planning to sunset a number of its properties and a lay off of some employees was expected in December. So it must have been quite a good surprise when the balance sheet totals reflected a 16 percent increase in the display ad revenue. The quarter saw the revenue rise to $567 million from a previous $465million. Unfortunately this good news was not going to make it any better for those who had already been laid off in December neither does it seem enough to salvage the other 1 percent that is set to be laid off in the coming months. The other side is also the sad fact that search ad revenue got a drop of 18 percent. When all the figures are put together Yahoo incurred a loss of 4 percent in its total revenue. So who is to blame for this? According to ClickZ, Yahoo places the fault with outside forces. The drop was occasioned by the revenue share that was paid to Microsoft, the discontinuation of the company’s paid inclusion ad product that saw it lose $27 million and the sale of the e-mail firm Zimbra and HotJobs. Although Yahoo is still number one in display ads, Google and Facebook are not too far off. The company is however still non committal on whether there will be more layoffs in the near future.