One of Yahoo's most important businesses stopped growing and could face a lot of questions on Monday

Before you go, we thought you'd like these...
Before you go close icon

Yahoo! Q2 Preview: Wall Street Watching Bottom Line and Bidders

Yahoo CEO Marissa Mayer has long touted Mavens, short for mobile, video, native, and social revenue, as the company's new growth driver.

Indeed, Mavens business has grown into a $1.6 billion revenue business last year, after being almost non-existent before Mayer arrived in 2012.

But Mavens growth came to a screeching halt last quarter, when it saw only a 7% year-on-year revenue increase in the first three months of the year. That's a serious slowdown compared to previous quarters: Mavens grew 58% in the same quarter of last year, and 26% in the three months preceding last quarter.

Mavens will once again be under the spotlight come Monday when Yahoo reports its second quarter earnings. Another slowdown will be a serious blow to Yahoo and Mayer's legacy as CEO, as Mavens has been one of the few bright spots during her 3 year tenure. It could also send Yahoo stock down as the company's other legacy businesses have already been in decline for years now.

"We will be looking closely at the performance of the Mavens segment to determine if Yahoo can offset the declines seen in its traditional advertising segments," RBC Capital Markets writes in a recent note.

Yahoo expects to see more than $1.8 billion in Mavens revenue this year, but RBC says that implies "relatively limited growth." On top of that, RBC forecasts further declines in Yahoo's traditional search and display revenues, which is why it expects revenue, excluding traffic acquisition costs, to come in below consensus.

Here's what analysts are expecting, according to Yahoo Finance:

  • Q2 adjusted earnings per share (EPS): $0.10, down from $0.16 in Q2 2015.
  • Q2 Revenue: $1.08 billion, down about 13.4% from $1.24 billion in the year-ago period.

SEE ALSO: Marissa Mayer Yahoo CEO

marissa mayer yahoo CEO
See Gallery
marissa mayer yahoo CEO
Marissa Mayer, president and CEO of Yahoo!, arrives at The Metropolitan Museum of Art's Costume Institute benefit gala celebrating "China: Through the Looking Glass" on Monday, May 4, 2015, in New York. (Photo by Evan Agostini/Invision/AP)
In this Feb. 19, 2015 photo, Yahoo President and CEO Marissa Mayer delivers the keynote address at the first-ever Yahoo Mobile Developer's Conference, in San Francisco. Mayer was the highest paid female CEO in 2014, according to a study carried out by executive compensation data firm Equilar and The Associated Press. (AP Photo/Eric Risberg)
FILE- In this Monday, April 19, 2010 file photo, Google vice president of search products and user experience, Marissa Mayer, attends the 2010 Matrix Awards presented by the New York Women in Communications at the Waldorf-Astoria Hotel in New York. Yahoo announced Monday, July 16, 2012, that it is hiring longtime Google executive Marissa Mayer to be its next CEO, the fifth in five years as the company struggles to rebound from years of financial malaise and internal turmoil. Mayer, who starts at Yahoo Inc. on Tuesday, was one of Googleâs earliest employees and was most recently responsible for its mapping, local and location services. (AP Photo/Evan Agostini)
Marissa Mayer attends the Glamour Magazine 2009 Women of the Year Awards at Carnegie Hall on Monday, Nov. 9, 2009 in New York. (AP Photo/Evan Agostini)
Marissa Mayer, Vice President of Search Products and User Experience at Goggle Inc., speaks about the new Google Earth 5.0 at the California Academy of Sciences in San Francisco, Monday, Feb. 2, 2009. Google Inc. is launching a new version of Google Earth that will let users explore the oceans, view images of Mars and watch the Earth's surface change over time. (AP Photo/Jeff Chiu)
Marissa Mayer, president and chief executive officer of Yahoo! Inc., speaks during the 2015 Fortune Global Forum in San Francisco, California, U.S., on Tuesday, Nov. 3, 2015. The forum gathers Global 500 CEO's and innovators, builders, and technologists from some of the most dynamic, emerging companies all over the world to facilitate relationship building at the highest levels. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, president and chief executive officer at Yahoo! Inc., smiles during the 2015 Bloomberg Technology Conference in San Francisco, California, U.S., on Tuesday, June 16, 2015. Mayer said that the company's spinoff of its stake in Alibaba Group Holding Ltd. is proceeding as planned. Photographer: David Paul Morris/Bloomberg via Getty Images
NEW YORK, NY - MAY 04: Marissa Mayer, President and CEO of Yahoo attends 'China: Through The Looking Glass' Costume Institute Benefit Gala - Press Preview at Metropolitan Museum of Art on May 4, 2015 in New York City. (Photo by Bennett Raglin/WireImage)
NEW YORK, NY - APRIL 27: Yahoo CEO Marissa Mayer attends the 2015 Yahoo Digital Content NewFronts at Avery Fisher Hall on April 27, 2015 in New York City. (Photo by Cindy Ord/Getty Images for Yahoo)
Marissa Mayer, president and chief executive officer at Yahoo! Inc., smiles during a press conference at the Yahoo! Inc. Mobile Developer Conference in San Francisco, California, U.S., on Thursday, Feb. 19, 2015. Mayer unveiled a suite of development tools for mobile applications that integrate its own advertising services with features it acquired with analytics startup Flurry Inc. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, chief executive officer of Yahoo! Inc., listens during a panel session on day four of the World Economic Forum (WEF) in Davos, Switzerland, on Saturday, Jan. 25, 2014. World leaders, influential executives, bankers and policy makers attend the 44th annual meeting of the World Economic Forum in Davos, the five day event runs from Jan. 22-25. Photographer: Jason Alden/Bloomberg via Getty Images
Yahoo CEO Marissa Mayer speaks during her keynote address at the 2014 International CES in Las Vegas, Nevada, January 7, 2014. AFP PHOTO / ROBYN BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
Marissa Mayer, president and chief executive officer of Yahoo! Inc., reacts during the DreamForce Conference in San Francisco, California, U.S., on Tuesday, Nov. 19, 2013. Yahoo boosted its stock-buyback plan by $5 billion, returning more cash to shareholders as Mayer seeks to revive growth at the largest U.S. Internet portal. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, chief executive officer of Yahoo! Inc., smiles at the TechCrunch Disrupt SF 2013 conference in San Francisco, California, U.S., on Wednesday, Sept. 11, 2013. Yahoo! Mayer said the Web portal has surpassed 800 million active monthly users, a 20 percent increase since she joined the company in July 2012. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, CEO of Yahoo, attends the Cannes Lions 2014, 61st International Advertising Festival in Cannes, southern France, Tuesday, June 17, 2014. The Cannes Lions International Advertising Festival is a world's meeting place for professionals in the communications industry.(AP Photo/Lionel Cironneau)

But all this could end up just being a mere sideshow on Monday, which is also reported to be the final deadline for making bids on Yahoo's core business. Companies like Verizon, AT&T, and a bunch of private equity firms are reported to be in the race for Yahoo's internet business.

It's unclear if Yahoo will announce the buyer, or will decide not to sell itself after all on Monday, but in any case, it could mark the end of Yahoo's long, tumultuous history, according to BGC Partners.

"While we understand investor concern that a transaction does not materialize, we place faith on the new board members to end the process and complete a sale," BGC Partners wrote in a note Friday. "Yahoo is over in our eyes."

NOW WATCH: IKEA built a smart kitchen of the future — and it's unlike anything we've ever seen

See Also:

SEE ALSO: A top Wall Street analyst believes there's a chance Yahoo won't even be sold

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners