Yahoo revenue falls in Q1

Revenue reports are in for Yahoo's Q1, but the results aren't quite what was expected. According to company reports, net income fell 11% in Q1 of 2007.

by Kristina Knight

However, year-over-year revenue from Q1 2006 to Q1 2007 actually rose 7% to $1.67 million. Despite the small setback from net income, the company is very excited about the coming months, thanks in part to Panama.

Susan Decker, Yahoo's Chief Financial Officer said, feels very strongly that they are headed in the right direction with the addition and changes within the Panama platform. "We maintained strong profitability and cash flow, while remaining focused on building innovative products and services," she said. Yahoo's new ad platform is doing well, with all U.S. advertisers switched over to the new system and advertisers in other countries beginning the switch.

With all of the change-over, company executives expect to see a 20% increase in sales by years end. That push will be spurred by a marketing push for Panama's search benefits, Yahoo mobile services and Yahoo Answers.

Yahoo answers showed the largest growth margin between Q1 2006 and Q1 2007 with 578% growth, according to Nielsen//Netratings AdRelevance Report. Yahoo Video also had a strong showing with 168% growth. Yahoo Real Estate (92% growth), Yahoo Widgets (78% growth) and Yahoo Health (77% growth) rounded out the top five growth areas. Overall traffic to Yahoo.com increased 3% year over year.