Yahoo has announced a 3% decrease in display revenue for the final quarter of 2012. Actual GAAP display revenue stood at $591 million in Q4 2012 compared to $612 million the year before.
The company’s display activities didn’t fare much better across the whole year either. Yahoo revealed that full year GAAP revenue from display fell by 1% from $2.2 billion in 2011 to $2.1 billion in 2012.
Poor display financials were likely caused by a decrease of 10% in the number of ads sold on core Yahoo Properties when compared to the same figures from the fourth quarter of 2011. However, there was a 3% rise compared to Q3 2012 suggesting a seasonal spike.
Search ventures into the black
Yahoo may still be struggling slightly with its display segment, but its search revenue showed no such hardship. GAAP Search Revenue for the company’s fourth quarter of 2012 was $482 million, up 4% on 2011’s fourth quarter of $465 million.
Across all 12 months of 2012, Yahoo managed $1.9 billion of GAAP search revenue. It’s a 2% improvement on the $1.85 billion it amassed in 2011. Although the increase is marginal, it’s a completely different story to search’s 26% year-on-year decline in 2011’s financials.
Paid clicks have been of great assistance to Yahoo’s bottom line. Clicks on sponsored listings at Yahoo Properties and affiliate sites exhibited growth of 11% compared to the fourth quarter. There was also an increase of 8% on 2012’s third quarter.
There are signs of recovery for Yahoo in both of its digital advertising branches. Not only did the company successfully halt the big drop in search, it also curtailed last year’s 4% year-on-year decreases in display.
The green shoots have seeped through to the rest of Yahoo, which saw company-wide GAAP revenue of $1.4 billion for 2012. The 4% increase was the first piece of revenue growth at Yahoo for a number of years, a fact the company’s CEO, Marissa Meyer, was quick to communicate.
"I'm proud of Yahoo!'s 2012 and fourth quarter results," she said. “In 2012, Yahoo! exhibited revenue growth for the first time in 4 years, with revenue up 2 percent year-over-year.”