The company also said CFO Peter Klein will be leaving Microsoft at the end of the current fiscal year, after nearly four years in the role and 11 years at the company. Microsoft will be naming a new CFO from its finance leadership team in the next several weeks.
The company's PayPal business saw strong revenue growth, up 18% year over year to $1.5 billion. PayPal added another 5 million registered accounts to end the quarter with 128 million, as net total payment volume (TPV) grew 21% to $41 billion.
Yahoo!'s ( YHOO ) first-quarter earnings beat Wall Street estimates, but some of the shine is off CEO Marissa Mayer as the core of the business continues to take a long time to turn around. Marissa Mayer's Star Is Dimming Yahoo! reported first-quarter non-GAAP earnings of 38 cents per share on $1.14 billion in revenue, excluding traffic acquisition costs. Including TAC, sales were $1.07 billion, missing estimates. Analysts polled by Thomson Reuters expected Yahoo! to earn 24 cents per share on $1.099 billion in revenue for the first quarter. The company noted display revenue ex-TAC was $409 million for the first quarter of 2013, down 11% year over year. Search revenue ex-TAC was up 6% year-over-ear to $402 million, but price-per-click (PPC) fell 7% annually, as mobile ads continue to monetize at a weaker rate than desktop. Mayer noted that Yahoo! is really positioned well to take advantage of the growth in mobile, particularly tablets. Poor monetization from mobile, however, isn't demonstrating Yahoo!'s strengths right now. As such, investors remain in a wait-and-see mode, says UBS analyst Eric Sheridan. "We remain skeptical that investors will see an inflection in the core business (especially pricing of Display & Search products) in the medium term," Sheridan wrote in his note. He rates shares "buy" with a $27 price target.
Facebook (FB) is bringing some of the best features from Facebook Home to Apple's (AAPL) iOS in an updated version of its app as the company attempts to solve the problem of slowing engagement with Facebook Home. One popular feature the social network is incorporating from its recently released Facebook Home app is Chat heads. Chat heads allows the user to chat with friends while checking newsfeeds, the company announced. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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