Yahoo! today announced first quarter 2009 results that were not so bright. First of all, their revenues have declined 13% over the first quarter of 2008 to $1.58 billion. Search was dragged down with the overall decline, with a 3% decrease. Display advertising saw a 13% drop. In the first quarter of 2009, search had been a bright spot in otherwise dim earnings.
As a result, Yahoo! plans to cut 5% of its workforce over the coming two weeks.
"Yahoo! is not immune to the ongoing economic downturn, but careful cost management
in the first quarter allowed our operating cash flow to come in near the high end of our
outlook range," said Yahoo! chief executive officer Carol Bartz. "While we experienced
pressure in both display and search advertising in the first quarter, we believe Yahoo!
remains one of the most compelling advertising buys on the Internet. With our leading
audience properties, substantial reach and innovative advertising solutions, we are
confident Yahoo! will be well positioned when online brand advertising resumes its
AdGooroo recently released data showing that first page advertisers on Yahoo! grew by 10% in the first quarter, but apparently that wasn't enough to stop the decline.