Yahoo reported first-quarter gains in earnings and revenue Tuesday, beating Wall Street's expectations and posting its first growth period in nearly three years.
That wasn't enough for new CEO Scott Thompson, who oversaw his first full quarter at the helm, and likely not for shareholders of the web portal. The report did send Yahoo shares up 2 percent in after-hours trading Tuesday, however.
“I am not satisfied with the pace of top-line growth,” said Thompson, who added he would not be until Yahoo was keeping up with others like Google, which turned in a much stronger report last week.
Also read: Yahoo Begins Layoffs of 2,000 Employees
Thompson announced the layoffs of 2,000 employees — roughly 14 percent of Yahoo's workforce — earlier this month and a reorganization designed to increase profit and reverse a sales slump.
“Yahoo has been doing way too much for too long and has only been doing a few thing well,” Thompson said. “We have to be clearer going forward about what we do and won’t do.”
Pressed for specifics on what Yahoo wouldn't be doing — translated, where will further cuts come — Thompson offered guidance but few specifics.
Also read: Yahoo CEO Scott Thompson to Wall Street: Trust Me
“We don’t have to reinvent who we are, but we do need to reinvent our user experiences … We have to move and think like a growth company,” he said.
As many as 50 properties could be shut down, Thompson said, but wouldn't name any, and said platforms would be consolidated in the process. Research and development will be limited to only Yahoo owned-and-operated properties, according to Thompson.
The company's earnings came in at 24 cents per share, up from 17 cents in the same period a year earlier. Net income hit $286 million from $223 million. Revenue crept up 2 percent to $1.08 billion, from $1.06 billion a year ago.
Analysts had expected the company to report flat earnings of 17 cents a share on $1.06 billion in revenue, according to a consensus estimate from Thomson Reuters.
Thompson touched on several issues during a Q&A session in his first earnings conference call as CEO:
>> On Facebook: He defended his decision to sue Facebook over patent infringement, saying it was about a level playing field in which all the players would pay for rivals' initiatives. “Facebook must do the same or change its practices,” he said.
>> On Asian holdings: Thompson said the company is in “active” talks with its Asian partners, Softbank of Japan and Alibaba of China. He noted that because the Japanese assets have a gap in valuation at this time, Yahoo is focusing on selling the Chinese ones.
>> On mobile initiatives: Thompson acknowledge it was one of Yahoo’s weakest sectors and said change was essential. “We need to get good real fast in mobile … and we’re not there today.”
>> On a potential sale of its struggling ad unit: Thompson said that there has been a lot of evaluating, but that “we have not come to a conclusion.”
>> On possible dividends: Apple just gave them out, but Yahoo will be sticking with stock buybacks, Thompson said.
On Monday, the company named Sam Shrauger and Mollie Spilman to head its new consumer-commerce business. Shrauger worked with Thompson at PayPal, while Spilman oversaw Yahoo’s marketing in its Americas region.
For the current quarter, Yahoo said it expects net revenue to come in the range of $1.03 billion to $1.14 billion. Wall Street projects $1.08 billion.