Yahoo surprised analysts Tuesday with better than expected third-quarter results that included revenue of $1.31 billion and increased usage of its e-mail service, despite the recent disclosure of a massive 2014 data breach.
Yahoo posted adjusted earnings of 20 cents per share, which surpassed analysts’ predictions of 14 cents per share.
That Yahoo was able to more than double its profits during the quarter was unexpected, to say the least. The Internet firm has had a grim few months since going public with the hacking incident that targeted more than 500 million Yahoo account holders. It was announced last week by Verizon’s top attorney that the telecommunications firm’s agreement to buy Yahoo’s Internet division for $4.83-billion could be in jeopardy.
Verizon General Counsel Craig Silliman said the hack may have a “material” effect on the acquisition, meaning it might not happen.
CEO Marissa Mayer has said she remains confident in the value of the business.
She said the company “launched several new products and showed solid financial performance across the board.”
“In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon,” Mayer added. “We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives.”
Yahoo and Verizon struck their multi-billion-dollar-all-cash deal back in July.
If the deal goes ahead, it is to be finalized in the first quarter of 2017. At that time, Yahoo is to be integrated with AOL under Marni Walden, EVP and president of the product innovation and new businesses organization at Verizon.
Once the Yahoo acquisition became official, Verizon would boast one of the largest portfolios of owned and partnered global brands. AOL and Yahoo together would have more than 25 popular brands in its portfolio. Yahoo’s key assets include its finance, news and sports content as well as its popular e-mail service, serving roughly 225 million monthly active users.
Jennifer Cowan is the Managing Editor for SiteProNews.