Yahoo reported revenues of $1.33bn for the Q1 of 2017, representing a jump of 22.1%, with the company reporting its anticipated planned sale to Verizon Wireless would close by the end of the second quarter this year.
Revenues beat earlier analyst expectations, with revenues from both its Mavens operations ($529m) and non-Mavens operations ($742m) both up significantly compared to the year-ago period (see chart below) although the total cost of revenue ($494m) also up significantly compared to 12 months earlier when that number came in at $228m.
Revenue from mobile devices was also up significantly from $260m during the opening quarter of 2016, to $412m in Q1 this year, with Yahoo noting that this increase was facilitated by its doubling the number of users enrolled in Yahoo Account Key during the last quarter, thus allowing users to more easily sign in to their Yahoo account using their mobile phone.
However, not every area of the business saw increases, with search revenues tumbling from $492m 12 months ago, to $475m in Q1 this year, and display ad revenues seeing a 2% decrease year-over-year coming in at $456m for the period.
In a statement, Marissa Mayer, chief executive of Yahoo, said: "As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon. With the transaction anticipated to complete in June, I've never been more proud of the improvements we've made to the business and the value we've delivered to our shareholders."
When Verizon’s $4.4bn acquisition of Yahoo finally closes and the former merges Yahoo with its existing AOL unit, the combined entity will reportedly get a new name: Oath.
Last month, documents filed with The Securities and Exchange Commission (SEC) revealed that Mayer will step down as Yahoo's once the deal with Verizon closes although it is expected that she will remain with the resulting entity in some capacity after stepping down from her current position. In addition, the documents also reveal that Yahoo’s chief revenue officer Ken Goldman will also exit his position post the closure of the Verizon takeover.