November 15, 2024

Yahoo Earnings Handily Beat Forecasts

SAN FRANCISCO — Marissa Mayer, just by being Marissa Mayer, has done more to move Yahoo forward in her first six months as chief executive than any of her five predecessors did over as many years.

An accomplished engineer and executive, Ms. Mayer joined Yahoo from Google as a Silicon Valley celebrity. Since then, just her presence at the company’s Sunnyvale, Calif., headquarters seems to have jolted Yahoo back to life. On Monday, Yahoo reported a good quarter, increasing revenue for the first time in four years and beating Wall Street expectations by 30 percent.

That pushed Yahoo’s stock to $20.91 in after-hours trading — a four-year high (but still well below the $31 Microsoft offered the company back in 2008).

Ms. Mayer attributed growth to a renewed focus on “people and products” in a call with analysts on Monday.

She has added new Yahoo fans by revamping Yahoo’s e-mail service and redesigning Flickr, the firm’s photo-sharing app, which sent the number of photo uploads rising 25 percent. Ms. Mayer said those improvements were a hint of more under way.

“We are off to a very good start,” Ms. Mayer told analysts. “We are making the world’s habits more inspiring and entertaining.”

She has also introduced several morale boosters since joining the company — including free cafeteria food and new iPhones and Android-powered phones — to staff members who were more accustomed to cost-cutting and layoffs. In a further sign that the company was no longer considered a sinking ship, she lured another Silicon Valley tech star, Max Levchin, a PayPal co-founder, to Yahoo’s board last month.

But those were just the office things. Analysts were more impressed with improvements to the company’s search business. Yahoo outsourced it to Microsoft in 2009 and it has languished ever since, propped up only because of a revenue-guarantee clause in its contract with Microsoft that is set to expire in March. Yahoo’s search revenue rose 4 percent in the fourth quarter, to $482 million, compared with $465 million for the period a year earlier.

Over all, Yahoo reported net income in the fourth quarter of $272.3 million, or 23 cents a share, compared with $295.6 million, or 24 cents a share, in the period a year earlier.

Revenue was up 1.6 percent, to $1.35 billion.

The improvement to its search business, however, was offset by continued declines in Yahoo’s display ad revenue. The company said it made $591 million in display ad sales last quarter, a 3 percent decline from the $612 million in the quarter a year ago.

Yahoo, once the biggest seller of display ads in the United States, went from a leading 15.5 percent share of all digital ad revenues in the United States in 2009, to an 8.4 percent share last year, even as total digital ad spending grew, according to eMarketer. Meanwhile, its competitor, Google, increased its share to 41 percent.

“More personalized content and increased product innovation will be key to getting us back to the path for display revenue growth,” Ms. Mayer said on the call.

The fourth-quarter results impressed analysts, but many remained skeptical.

“Marissa will have to protect Yahoo’s legacy business while positioning the company for future growth,” Colin Gillis, an Internet analyst at BGC Partners, said in an interview Monday. “That is not easy.”

With Ms. Mayer’s honeymoon with Wall Street expected to end soon, investors are eager to see whether she can deliver sustained growth. Yahoo, with 700 million monthly users, commands one of the largest audiences on the Web. But until now the company, an Internet pioneer, has been unable to translate its users into sustainable profits.

As Ms. Mayer has acknowledged, Yahoo’s future growth may well depend on its mobile strategy. And without mobile hardware like a tablet computer, a browser or a mobile operating platform of its own, Yahoo has a long way to go.

The company continues to be outspent in research and development by Google, Apple, Facebook and Amazon. It also continues to have a hard time convincing Silicon Valley’s engineering talent to join Yahoo instead of its competitors.

Ms. Mayer has said Yahoo’s mobile growth may come from acquisitions of mobile app companies. In six months, Ms. Mayer has acquired three start-ups — Stamped, OnTheAir and Snip.it — for undisclosed sums, more for the engineering talent than the products.

But, chances are it will be a long, slow slog. “The road will only get harder,” said Mr. Gillis. But compared to Ms. Mayer’s disgraced immediate predecessor, Scott Thompson, who left the company after four months over embellishments on his résumé, Mr. Gillis added, “at least she got a honeymoon.”

This article has been revised to reflect the following correction:

Correction: January 28, 2013

Because of an editing error, an earlier version of this article misstated the percentage increase in Yahoo’s quarterly revenue. It was 1.6 percent, not 1.5 percent.

Article source: http://www.nytimes.com/2013/01/29/technology/yahoo-earnings-beat-forecasts.html?partner=rss&emc=rss

Social Media Strategy Crucial for Transit Agencies After Storm

“I have asked nicely several times about what’s going on with the 317 bus,” the rider, who identified herself as Mary Scandell, fumed on the Facebook page of New Jersey Transit a few days after Hurricane Sandy. “Now I’m gonna ask in a nasty way.”

Change the scene to New York. A commuter named Jim Temple posted a question on the Long Island Rail Road’s Facebook page, asking for a status update of the damaged Long Beach line. The railroad promptly replied. “Thank you for the info,” Mr. Temple answered.

If there is one lesson transit officials have learned from Hurricane Sandy, it is that in the Internet era, keeping riders up to date is just as important as tracks and rolling stock. Blow it, and they will let you know. As workers raced to bring washed-out tracks, flooded tunnels and swamped electrical equipment back online, they also faced the daunting task of keeping millions of riders informed of conditions and schedules that sometimes shifted by the minute, using tools that included Facebook, Twitter, Flickr and YouTube.

A look at how New Jersey Transit and the Long Island Rail Road communicated, as viewed through the prism of Facebook, showed how approaches to messaging could make the difference between shaping expectations or fueling the ire of customers forced to find new ways to get to work and home.

The Long Island Rail Road continually updated its Facebook page with photographs and videos of storm preparations before Hurricane Sandy hit. The dispatches continued as high winds and surge waters ripped down power lines and clogged rail lines with wayward boats and other debris. The agency frequently answered passengers’ questions and posted other helpful updates, like where to seek federal assistance for damaged homes.

New Jersey Transit also regularly updated its page — but did not start posting photographs until after noon on Oct. 30, after the storm had barreled through. It answered riders’ questions sporadically, sometimes referring them to incorrect information on its Web site, even as commuters grew more confused trying to figure out shifting schedules.

The result: the Long Island Rail Road conveyed a narrative of shared pain, of workers fighting back against unprecedented damage that was beyond their control. Passengers frequently and vociferously critical of the railroad suddenly sympathized and even praised communication efforts that, if not perfect, were viewed as improved.

New Jersey Transit’s communications, on the other hand, became for many commuters yet another source of misery.

“Long Island Rail Road learned the lesson of telling their riders what’s going on,” said Mitchell Moss, director of the Rudin Center for Transportation at the New York University Wagner Graduate School of Public Service. “And it turns out that is as important as the level of service you are providing.”

The Long Island Rail Road and New Jersey Transit also used Twitter extensively. But The New York Times examined the Facebook pages of each agency because they allow for more detailed comments — providing a deeper look at how passengers were viewing communications — and more of a back-and-forth discussion. The Port Authority of New York and New Jersey, which was also criticized for its communications, used Twitter but does not have a Facebook page.

New Jersey Transit has come under scrutiny after the storm damaged more than 300 train cars and locomotives parked in rail yards in Hoboken and the Meadowlands that prestorm warnings indicated would flood.

But even before that decision became widely known, passenger tensions were spiking.

New Jersey Transit officials defended their communications throughout and after the storm.

“We were tweeting information practically 24 hours a day,” said John Durso Jr., the agency’s spokesman. He said the agency also continually updated its Web site; sent out e-mail alerts; placed advertisements in newspapers on emergency shuttle, bus and ferry service; and made frequent appearances on television and radio broadcasts.

Article source: http://www.nytimes.com/2012/12/15/nyregion/social-media-strategy-crucial-for-transit-agencies-after-storm.html?partner=rss&emc=rss

Ethical Quandary for Social Sites

“I thought I was being hacked,” said Mr. el-Hamalawy, a prominent Egyptian blogger and human rights activist who had uploaded the headshots of the police from CDs found by activists early this month at the State Security Police headquarters in Nasr City.

He later learned in an e-mail from Flickr that the photos had been removed because he did not take the images himself, a violation of the site’s community rules.

“That is totally ludicrous,” he said. “Flickr is full of accounts with photos that people did not take themselves.”

Built as a platform for amateur and professional photographers to share their work, Flickr is among the social media networks, like Facebook, Twitter and YouTube, that are increasingly being used by activists and pro-democracy forces especially in the Middle East and North Africa.

That new role for social media has put these companies in a difficult position: how to accommodate the growing use for political purposes while appearing neutral and maintaining the practices and policies that made these services popular in the first place.

YouTube was one of the first social media networks to wrestle with content posted by a human rights advocate that conflicted with its terms of service. In November 2007, YouTube removed videos flagged as “inappropriate” by a community member that showed a person in Egypt being tortured by the police.

They were uploaded by Wael Abbas, another Egyptian blogger involved in opposing torture in Egypt. After a public outcry, YouTube staff members reviewed the videos and restored them. The company, owned by Google, now has a process in place to deal with such questions.

Facebook has remained mostly quiet about its increasing role among activists in the Middle East who use the site to connect dissident groups, spread information about government activities and mobilize protests. But Facebook is now finding itself drawn into the Israeli-Palestinian conflict and has been pushed to defend its neutral approach and terms of service to some supporters of Israel, including an Israeli government official.

Yuli Edelstein, an Israeli minister of diplomacy and diaspora affairs, sent a letter last week to Facebook’s chief executive, Mark Zuckerberg, asking him to remove a Facebook page created on March 6 named the Third Palestinian Intifada. The page, which calls for an uprising in the occupied Palestinian territory in May, has more than 240,000 members.

“As Facebook’s C.E.O. and founder, you are obviously aware of the site’s great potential to rally the masses around good causes, and we are all thankful for that,” Mr. Edelstein wrote. “However, such potential comes hand in hand with the ability to cause great harm, such as in the case of the wild incitement displayed on the above-mentioned page.”

Facebook has, so far, not removed the page. The administrators are not advocating violence, and therefore, it falls within the company’s definition of acceptable speech, company officials said.

“We want Facebook to be a place where people can openly discuss issues and express their views, while respecting the rights and feelings of others,” said Andrew Noyes, a spokesman for public policy at the company.

Human rights advocates have also criticized Facebook for not being more flexible with some of its policies, specifically its rule requiring users to create accounts with their real names. Danny O’Brien, the Internet advocacy coordinator for the Committee to Protect Journalists, cited the case of Michael Anti, an independent journalist and blogger from China whose Facebook account was deactivated in January because he had not used his state-given name to create it.

In addition to losing the ability to publish and communicate on Facebook, and not wanting to use his real name because of China’s strict rules governing freedom of speech and harsh response to those activists who violate them, he has lost the contact information for thousands of people in his Facebook community.

“One can’t expect all of these services to provide everything to everyone,” said Mr. O’Brien. “I think that part of the solution is to provide people with a dignified way of leaving the service.”

Since 2008, Mr. el-Hamalawy has been posting on Flickr photos of Egypt’s security police that he has taken at demonstrations. He found the site so useful he had even put together a manual in Arabic so that more people in the Middle East and North Africa could learn to use it effectively.

He uploaded the police headshots in the hope that more people would come forward with information about police members who had been involved in spying, abuse and torture to help bring them to justice and prevent them from taking new roles in the transitional government.

“We wanted to profile them and put their pictures up so that anyone with information could expose their crimes,” he said. “We don’t want any of those guys to be present in the post-Mubarak government.” He also said that the revolution is unfinished in Egypt: “If we don’t put any pressure on the streets or in cyberspace, we will not see prosecutions of these police officers happen.”

Ebele Okobi-Harris, the director of the business and human rights program at Yahoo, which owns Flickr, said that the case involving Mr. el-Hamalawy’s photos illustrated the challenges of balancing the existing rules and terms of service for users with the new ways that activists are using these tools.

“Flickr was set up as a community for people who love photography to share their photographs,” she said. “In this particular case, we had someone who wanted to use Flickr, not for photographs that he took, but for photographs that he found somewhere else. The community rules are about sharing your own content. You can’t upload photos that are not your own.”

Ms. Okobi-Harris acknowledged Mr. el-Hamalawy was correct in noting that Flickr’s community rules are not applied consistently. But the case has prompted internal discussions, she said, about whether Flickr should reconsider its approach.

“As the uses of these social networks evolve, we have to start thinking about how to create rules or how to apply rules that also facilitate human rights activists using these tools,” she said.

One challenge is whether a company should maintain its commitment to remain neutral about content, even when politicized content could offend users or even put people in danger. “Does a company take responsibility for the content?” Ms. Okobi-Harris asked. For instance, what would the company do if a group that opposes abortion wanted to post photographs of doctors who perform abortions?

Mr. el-Hamalawy said Flickr’s decision to take down the photos left him not only frustrated and angry but also terrified. “Everyone knew that I had released those photos,” he said. “Then the photos were gone. I couldn’t sleep. I was thinking that at any minute, they were going to come for me.”

After Flickr took down the photos, he received help from members of Anonymous, a loosely affiliated group of activist computer hackers, who helped use Picasa, Google’s photo system, to present the photos of the security police.

“I thought it was a good platform,” he said of Flickr. “Now, for me, it is an unethical platform, and I would not recommend it to anyone.”

Article source: http://feeds.nytimes.com/click.phdo?i=03a9d83e9361620ebe59d8fe069351ef