Yahoo! reported first-quarter earnings yesterday that beat Wall Street expectations, earning 38 cents a share on $1.087 billion in revenue, which excluded traffic acquisition costs (TAC).
Video is one of the Sunnyvale, Calif.-based company's four key areas of business, which also includes mobile, social, and native (advertising). Mayer said on Tuesdays' earnings conference call that the company experienced "30% sequential growth in video streams that led to additional monetizable video inventory" last quarter.
"We are really encouraged by the progress we saw in Q1," Mayer said. "Our constraint on video has always been inventory and our investment in building our library in the Yahoo! screen brand is helping us to address this. We have continued to grow users and monthly streams and that's beginning to translate into revenue growth. While we are only getting started, we're very focused on this growth business in 2014."For example, in the past, Yahoo! has produced more than 70 original web shows. Moving forward, we will continue to bring our users great original content. We will do so with much more focus and quality. Smart, more strategic investments in video can really help us grow our user offerings, traffic and ultimately revenue," Mayer continued. Mayer also noted Yahoo! Screen launched on Apple (AAPL) TV in the fourth quarter, and in the first-quarter, the app was launched on Roku's streaming device. "With this launch, users have more ways to enjoy clips from Saturday Night Live, The Daily Show with Jon Stewart, live news, events, music and Yahoo! Originals," she said.