Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

Etsy’s Most Active Sellers Get New Support Program

Etsy announced the launch of a new Seller Account Management Program, which it is positioning as another option, in addition to its phones, email forums, and Seller Handbook, for seller support.

The program offers what the company calls “tailored, high-touch support” to the marketplace’s most active sellers. It initially started as a pilot with a few sellers, but now they’re opening up 50 more slots, which active sellers can apply for. You can apply anytime before September 15th, and they’ll open applications to additional sellers next year.

“We’ve found that sellers’ support needs tend to change as their shops grow and they branch into new product lines and sales channels,” says Etsy’s Camilla Gurun. “Sellers in the program are assigned a dedicated Seller Account Manager to provide additional coaching related to their particular needs.”

“First and foremost, the Seller Account Management program is designed for sellers who are aligned with Etsy’s values, and are committed to growing responsibly and transparently on the platform,” she says. “While we have found that the Seller Account Management program tends to be best suited for higher volume sellers, as their basic need for support assistance is much greater, any active seller excited about the opportunity is encouraged to apply. We’re looking forward to hearing from sellers who are ready to utilize this line of support to its fullest advantage and are passionate about developing a relationship with an Etsy expert. As we review applications, we’ll consider the ways a seller envisions using Seller Account Management resources, the amount we think these resources can impact their business, and whether they are in good standing with Etsy.

Here’s the list of things a seller account manager might be able to assist with (per Etsy’s FAQ page):

– Trust & Safety/Marketplace Integrity

– Case review and management

– Issues with reviews

– Issues with non-delivery

– Payments/billing/shipping issues

– Shop critiques

– General support issues

– Education for using Etsy tools and best practices

– Stats, Promoted Listings, tags, etc.

– Providing information about local events and teams

– Proactive support, including the sharing of resources and Help articles that pertain to a seller’s shop

– Fielding of seller feedback to the appropriate internal departments

– Informing sellers of Etsy product prototypes, surveys, or research that might pertain to their shop

– Coaching and guidance for issues that arise as a shop grows. Examples could include: hiring help and scaling sustainably

Etsy has about a million and a half sellers, so obviously the new program is going to be open to a very small percentage. As the company notes, however, many of the same services offered through the program are available through its other channels.

Image via Etsy

August 12, 2015
Bing Merchant Center Is Getting Some Changes

Microsoft announced some coming improvements to Bing Merchant Center, which merchants use for creating stores and catalog feeds for Shopping Campaigns and Product Ads on Bing.

There are changes to feed structure, which the company says it made so advertisers can manage all their feed programs across platforms more seamlessly. It explains in a blog post:

Delimiter rules on product_category and product_type columns are changing. Soon we will only be accepting “ > ” (with a trailing and leading space) as a valid delimiter. Any other value will be treated as invalid and we won’t split the terms .

Accept Unicode characters in the ID (merchant product ID) field. Previously the ID column would only accept alphanumeric characters, now we are starting to accept all valid Unicode characters in that.

Updating Taxonomy for product_category . We are revising our taxonomy to be in line with your other feed programs. Please take a look at the below links as some of the categories have changed quite a bit. With this revision we will also be supporting IDs instead of string values. For example: The use of “305” will be supported instead of “Electronics > Video > Computer Monitors”.

There’s a new graph that lets you view the status of all your items within a store. It shows colors for active, rejected, expiring, and awaiting review. You’ll be able to see the status for all ads within a store for the past 30 days. There will also be graphs for the total number of impressions received and the total number of clicks received by all your ads within a store in the past 30 days.

They’re also expanding historical data to show the past five catalog feeds and corresponding reports.

Finally, they’re adding dual upload support using the Content API. In the past, you’ve been able to either provide product data with the API or via TP upload/Manual Upload/Automatic Download methods. Going forward, you’ll be able to do both.

Microsoft talks more about all the new features here.

In semi-related news, Amazon is suddenly retiring its Product Ads. It sent an email informing advertisers that the’ll be retired on October 31.

Images via Bing

August 12, 2015
Facebook Gets Retailers Prepared For The Holidays

Facebook is advising retail marketers about how to prepare for the holiday season. Yes, it’s August, but according to the company, that means it’s time to start doing some serious planning.

The company laid out eight tips for holiday advertising prep. In a nutshell, these include: refresh your audience profile; identify your key audience segments; add the Facebook pixel and SDK to your site and app; find your customer conversion path; optimize your mobile experience; divide your budget strategically; test creative and ad types; and prepare your catalog.

Of course they elaborate on all of these in the post, saying that these things will help you maximize your advertising efforts on Facebook throughout throughout the holidays.

“People may not be in holiday mode yet, but retail marketers should be,” Facebook says. “Why? Because successful holiday marketing starts with preparation in August and September. As you begin thinking about holiday advertising, keep in mind that this year people are expected to do more holiday shopping on mobile than ever. In fact, sixty-eight percent of UK shoppers use their mobile phone in store.1 People are also spending more time on Facebook and Instagram than any other digital media, and more than half of people in the US say Facebook is somewhat or very influential on their holiday shopping.”

Facebook is offering retail marketers a free holiday guide here. It’s 18 pages, and is almost certainly worth a read in your near future.

According to the National Retail Federation, retail holiday sales increased 4% last year.

Image via Facebook

August 7, 2015
Here’s How The Social Platforms Are Performing For Ecommerce

The social media landscape is getting more complex, but also potentially more helpful for ecommerce businesses almost by the day. The big social platforms like Facebook, Twitter, Instagram, and Pinterest have all been working on features that will help businesses sell products to users. Ultimately, it’s all great for businesses selling online, and will only continue to become more so with increased availability of various features.

That said, there is a clear frontrunner in terms of which of these social platforms is actually helping sellers the most. It should come as no surprise as to which one that is. It’s the one with 1.49 billion monthly active users and that’s had a major motion picture made about it.

Which social media platform has been most helpful to your ecommerce efforts? Why? Let us know in the comments.

ChannelAdvisor has a new report (via MarketingLand) looking at online retail trends based on a poll of 200 online retailers including 100 in the US and 100 in the UK. 35% of US respondents and 38% of UK respondents make over $15 million annually in online sales. 40% of US respondents and 33% of UK respondents make over $29 million in total annual sales. 75% of all of them are privately owned, and most have between 100 and 999 employees. All sell online, while 74% of them also have a brick-and-mortar location.

72% are selling to consumers, while 40% sell to distributors, 36% to wholesalers, and 35% to other companies.

Increasing brand awareness tops the list of main business goals for social media use for a third of the respondents, while 24% of them listed “connecting with a new generation of customers” as a main one. About 20% primarily use social media to advertise deals and promotions.

Facebook is performing better than Twitter, Instagram, Pinterest, and others in terms of conversions from social media platforms for the vast majority of those polled. About two thirds (64%) said Facebook creates the most sales conversions for their businesses. The number is about the same in both countries. 19% said Twitter, while 9% said Instagram, and just 5% said Pinterest, which is often looked looked upon as the ecommerce darling of social media. 2% said “other”.

In June, we looked at research from Jirafe, which studied the impact of Pinterest and Facebook across 80,000 profitable ecommerce sites. It also found that Facebook completely dominated.

“We work with more than 80,000 brands, and we wanted to validate what moves the needle for them right now, so they can start planning their strategy for the future,” said Jirafe CEO Amit Shah. “Hands down Facebook was the clear winner in terms of traffic, revenue, and orders.”

According to that study, Facebook visitors spend 3.5X more than the average visitors from Pinterest, and Facebook traffic converts 17% higher, though the conversion rates for both sources are still less than 1%. Facebook drives much greater traffic at a ratio of 8:1.

The study also found that Facebook drove 23X more orders than Pinterest for merchants over the first five months of the year. Across Jirafe’s merchant base Facebook also drove $32 in revenue for every $1 that Pinterest generated.

So maybe Pinterest isn’t as great for selling as you may have thought? Well, that probably depends on who you are. The fact is that it’s quite good for some.

Recent research from Shopfiy (and this was before the roll-out of the new “Buyable Pins,” mind you) found that the average amount spend per order is higher than other social channels at $50. Pinterest is also the number two source of social media traffic to Shopify stores. According to the firm, 93% use Pinterest to plan purchases and 96% use it to gather product information. These are some pretty huge stats that shouldn’t be ignored. 2 million people post product pins every day. For comparison, 100 thousand people visit the Mall of America on a daily basis.

And let’s not forget about Twitter and Instagram, both of which rank higher in the ChannelAdvisor study. All of these platforms are really just getting started with their ecommerce offerings. Twitter, which recently showed off some product pages and collections that show a lot of selling potential, is said to be readying a big buy button push with Shopify and other ecommerce platforms. Instagram recently announced direct response ads, which will enable users to buy products as well.

But Facebook is doing more than anyone to become a better means of selling products. Beyond its buy button functionality, it’s testing various features, including the ability to shop from Facebook Pages and even a new “Buy & Sell” feature from its main navigation, which will point users to places to buy (and sell) things, basically transforming Facebook into an ecommerce marketplace.

Regardless of which social platform gives you the most bang for your buck (and right now it’s very likely going to be Facebook), it’s clear that social media in general is finally starting to offer up some real potential for selling.

Do you expect to be able to sell more with social media thanks to new and pending features from Facebook? Twitter? Pinterest? Instagram? Discuss.

August 7, 2015
What To Do And What Not To Do On LinkedIn

LinkedIn has 347 million users and reaches 200 countries and territories. Just for comparison, Twitter has 316 million monthly actives.

What strategies and/or tactics have you had success with on LinkedIn? What do you see businesses doing that they should stop? Share your thoughts in the comments.

40% of LinkedIn’s users check it daily, and it’s the most popular social network among CEOs running the top 50 companies in the Fortune Global 500. A new infographic from Salesforce Canada runs down these and other interesting stats about the professional network and some important dos and don’ts for businesses.

Among the “dos” are treating your profile like a professional brochure, providing a detailed description, using simple language, spell-checking turning off notifications when updating your profile, linking to valuable video, choosing your group wisely, being active in groups, nurturing relationships, etc.

On the “don’ts” side of things, it gets into connecting without researching, using the default message, sending spammy messages, posting faulty links, self-promoting, etc.

We recently looked at some developments at LinkedIn that are making it more appealing for businesses for marketing and sales, especially for B2B companies. Among these are the extension of ads to publisher sites, changes to its Pulse news service that better utilize the user’s personal network, and sales tools like new Sales Navigator features and the new Social Selling Index, which kind of lets you know how well you’re doing in terms of the aforementioned do’s and don’ts.

“SSI is the metric LinkedIn developed to help sales professionals benchmark their performance across the 4 pillars of social selling in order to better connect with leads, and ultimately close more deals,” a LinkedIn spokesperson told us. “While the concept of SSI has existed for some time, this is the first time that anyone will be able to log on to LinkedIn and access a score, any time.”

While it may be aimed at sales professionals,it’s available to all users and gives you a good idea of how you’re doing in your LinkedIn efforts in general. To get better at LinkedIn, you’d probably do well to work on bringing that score up, just because it’s a good indicator of those efforts.

What are the biggest mistakes you see businesses making on LinkedIn? Share your thoughts in the comments.

Images via LinkedIn, Salesforce Canada

August 6, 2015
Twitter Reportedly Moving Forward With New Buy Button Integrations

Twitter is about to make a bigger push with its buy button, according to a new report from Re/code citing multiple sources.

It will reportedly do so via integrations with Shopify and other unspecified ecommerce software companies. Jason Del Rey writes:

The social network is in the process of integrating with Shopify and other e-commerce software companies to offer its Buy buttons to a much wider range of businesses, big and small, according to multiple sources.

Shopify alone has somewhere around 100,000 merchants in the U.S. that use its software to run their online shops. With a Twitter deal, those businesses would be able to sell their wares within tweets using Shopify’s software.

Neither Twitter nor Shopify are commenting on this, but it certainly makes a great deal of sense.

Shopify has already recently launched similar integrations with Facebook and Pinterest, and Twitter has been showing off other ecommerce aspirations.

In June, Twitter unveiled its new product pages and collections, which while still in their infancy, show some pretty interesting potential for how ecommerce on Twitter can work.

Businesses have been eager to test out different ways to sell things through Twitter for years, and it looks like some things are finally starting to come together slowly but surely.

Image via Twitter

August 6, 2015
Report Takes An Extensive Look At Pinterest Use

Pinterest is one of the leading drivers of social media referral traffic, and it’s only becoming increasingly important to the marketing mix with improved search, new advertising options, and a push into ecommerce.

With that mind, marketers are going to want to know as much as possible about Pinterest’s use base and how people are actually using it.

Ahalogy recently released its 2015 Pinterest Media Consumption Study, which includes a ton of interesting stats about how people are using it. It literally runs through the who, what, when, where, and why. They polled over 1,000 people and determined that 82% are female and 18% are male, but that men on Pinterest have increased 4% since 2014.

Beyond gender, the study looked at race, education, employment, marital status, age, household size, sexual orientation, pets, kids, and income. 75–80% identified themselves as white compared to 10% and 5% African-American. 45% have graduated college or postgraduate. 56% said they are employed with 15% saying they are a homemaker, 12% unemployed, and 10% students. Respondents were more likely to be single and living alone (33%), and less likely to be divorced (9%).

82% of daily pinners are under 40. 88% heterosexual, and active pinners are more likely to have pets than not. 61% have dogs while 43% have cats. The number of active pinners with children dropped to 36% from 46% in 2014. Users are also more likely to be affluent with 45% having household incomes of at least $60k and growth in the $60-100k range.

There are really a ton of different comparisons throughout this report, but here’s a look at categories most browsed by active and daily pinners:

This barely scratches the surface of this report, and if you’re seriously interested in expanding your Pinterest marketing efforts, I highly recommend taking a look at it. It’s free, and it’s nearly 50 pages long.

Last month, Pinterest announced its first round of integrations built on its new developers platform, which come from IFTTT and Polyvore. They’re just getting started with that, and as the developer ecosystem continues to grow, Pinterest’s presence will as well, and ultimately, so will marketers’ need to take advantage.

Via Social Media Today

Images via Pinterest, Ahalogy

August 5, 2015
Here’s How LinkedIn Is Getting Better For B2B Sales And Marketing

LinkedIn is the best social media platform for engaging with B2B customers both before and after making a sale, according to new research. As studies have shown, the professional network is only growing in importance to marketers, but in the B2B space, it’s the most important social network of them all to a lot of businesses.

Is LinkedIn a major component of your marketing and/or sales efforts? Let us know in the comments.

A recent study from Social Media Examiner looked at how marketers are using social media to grow their businesses. It didn’t focus exclusively on LinkedIn, but there are a lot signs within it that point to a bigger focus on the network as time goes on.

When allowed to select just one social platform as the most important, 52% of marketers picked Facebook, but 21% picked LinkedIn. It takes the number three spot in terms of those actually being used:

It’s also in third place behind Facebook and Twitter in platforms used by those with less than twelve months experience. As you’d expect, LinkedIn gets more importance placed on it by B2B marketers. Those focused on B2C are placing more emphasis on Facebook, YouTube, Pinterest, and Instagram, while B2B marketers are focused on LinkedIn, Twitter, Google+, and SlideShare (which LinkedIn acquired).

For B2B, LinkedIn completely dominates the pack:

In terms of overall importance to marketers, LinkedIn increased to 21% from 17% since 2014 as Facebook decreased slightly. For the self-employed, LinkedIn scored 23% just behind first-place Facebook (44%).

The study also found that 66% of marketers plan to increase their use of LinkedIn in the future. As you’d guess, B2B marketers are more likely to plan on increasing their use. 80% of B2B marketers plan on doing so versus 56% of B2C marketers. 71% of B2B marketers are interested in learning more about LinkedIn as are 55% of B2C marketers. It’s the number two network behind Facebook when it comes to what marketers want to educate themselves about.

18% of marketers are regularly using LinkedIn ads, the study found. That’s actually down from 20%. Still, 29% plan to increase their us of LinkedIn ads.

Regalix recently put out its B2B Social Media Marketing 2015 report (via eMarketer) finding that LinkedIn is second only to Twitter as the most used social platform by B2B marketers. Both were significantly ahead of Facebook. All three were well ahead of everything else.

LinkedIn is actually on top of of the list when it comes to channels found to be most effective for customer engagement both before and after sales.

“LinkedIn (64%) and Twitter (47%) were the most favoured channels for customer engagement during the pre-sale stage of the buying cycle; they led the pack for the post-sale stage of the buying cycle too, but at lower figures with LinkedIn at 51% and Twitter at 42%,” the report says. “Facebook found greater preference among marketers for post-sale customer engagement (30%) than it did for pre-sale (17%).”

LinkedIn recently extended its ads to publishers sites via LinkedIn Network Display. According to the company, these ads enable marketers to reach a “high-value audience of business professionals” both on and off LinkedIn, while targeting the right people to increase brand awareness with those “who matter most”. You can also track the impact of the ads with its campaign and website analytics.

Looking at content types, the Social Media Examiner study found that 69% of marketers plan on increasing their use of blogs. This could further fuel LinkedIn marketing efforts as its publishing platform, which is essentially a blogging platform, is growing at a healthy clip.

The company announced last month that over a million people had published a post using the platform. They first opened it up to everyone in February of last year. The company says over a million unique publishers publish over 130,000 posts a week, and about 45% of readers are in the upper ranks of their industries, such as managers, VPs, and CEOs. The average post now reaches professionals in 21 industries and 9 countries, it says.

Just today, LinkedIn announced that it’s expanding the publishing platform globally, opening it up to more languages.

“As professionals, we all have our own perspective on the world around us, but until recently, we didn’t always have the right platform to share it on,” said LinkedIn’s Angela Yang. “That’s why it came as no surprise that when we made it possible for all English speaking members to publish long-form posts on LinkedIn, it quickly became one of the fastest growing features on the site.”

In June, LinkedIn launched a new version of its Pulse news reader app, which makes use of the user’s LinkedIn network when determining what content to show them. This should only help with LinkedIn content marketing efforts.

On the sales side of things, LinkedIn is rapidly launching new features to accommodate. In June, it expanded its Sales Navigator tool and added Microsoft Dynamics CRM integration. It’s making its Slideshare product better for lead generation, and this week, LinkedIn gave users a new sales metric called Social Selling Index. All users get their own score to determine how effective they are at establishing their professional brand, finding the “right people, engaging with insights, and building relationships.”

“We know that social selling is a vital component of success for many sales organizations: salespeople who excel at social selling are creating more opportunities and are 51% more likely to hit quota,” says LinkedIn’s Lauren Mullenholz . “It is because of this massive potential that measurement of social selling efforts is all the more important. Empowering salespeople with the knowledge of where they stand with social selling can help them set clear goals and inspire them to become a better social seller.”

The score is updated on a daily basis regardless of whether or not your’e an actual salesperson.

Are you placing increased emphasis on your LinkedIn marketing efforts? Do you expect to as time goes on? Share your thoughts about marketing on the professional social platform.

Images via LinkedIn (Flickr), Social Media Examiner, Regalix

August 4, 2015
LinkedIn Publishing Platform Makes Global Push

LinkedIn just announced that its publishing platform is going global with localized languages. It’s only been available in English until now, but today it’s becoming available in Portuguese. In the coming months, it will add more and more languages. German and French are next up on the list.

As it expands into more languages, it will also feature Influencers in each one. That starts with nearly two dozen in Portuguese right away.

“Over the past few weeks we’ve given early access to some of our members in Brazil, and we’re already seeing thousands of high-quality posts making their way onto LinkedIn,” says LinkedIn’s Angela Yang. “With nearly 22 million members in Brazil, the potential to reach a new audience, be discovered by like-minded professionals and expand the professional reach is tremendous. From building relationships and establishing themselves as experts, to landing new opportunities and growing their businesses — the benefits that LinkedIn members are experiencing make us even more excited to bring these tools to all of our members, around the globe.”

“As professionals, we all have our own perspective on the world around us, but until recently, we didn’t always have the right platform to share it on,” she says. “That’s why it came as no surprise that when we made it possible for all English speaking members to publish long-form posts on LinkedIn, it quickly became one of the fastest growing features on the site. Today, LinkedIn has become known as the definitive professional publishing platform around the world.”

Last month, LinkedIn announced that over a million people had published a post using the platform. They first opened it up to everyone in February of last year. The company says over a million unique publishers publish over 130,000 posts a week, and about 45% of readers are in the upper ranks of their industries, such as managers, VPs, and CEOs. The average post now reaches professionals in 21 industries and 9 countries, it says.

In June, LinkedIn launched a new version of its Pulse news reader app, which makes use of the user’s LinkedIn network when determining what content to show them.

Meanwhile, marketers are increasing their focus on LinkedIn. A recent study from Social Media Examiner asked marketers to select one social platform as the most important. 21% selected LinkedIn, second only to Facebook. For B2B businesses, LinkedIn beats out Facebook based on other studies.

Image via LinkedIn

August 4, 2015
New Facebook Buy & Sell Feature Spotted

It looks like Facebook is testing yet another feature that will help turn it into more of an ecommerce destination. We all know about the buy button, but a new feature has been spotted in the wild that puts a “Buy & Sell” option in the left-hand navigation menu under “Saved”.

Facebook Testing Buy & Sell Button: http://t.co/1wNM5kku7B #facebook pic.twitter.com/be6hMhge25

— SocialTimes/Facebook (@allfacebook) July 31, 2015

AdWeek’s SocialTimes reports it’s being tested in New Zealand city Auckland. Clicking the option takes you to a page for the city that lists different categories including a “popular around you” section and a place for “recent activity”. There’s also a tab for “Your Sales” and a place to search for things.

Look out, eBay and Craigslist: #Facebook is testing a Buy & Sell button. http://t.co/UiaBpXwa8u pic.twitter.com/1RcraQxDtl

— WickMarketing (@WickMarketing) July 31, 2015

It’s unclear how widely this being tested, or if Facebook intends to roll it out yet.

This would just be one of many features Facebook is trying out to make itself a better place to sell stuff. We ran through a bunch here.

Earlier this month, news came out that Facebook is testing new shops with buy buttons on Facebook Pages for select businesses. The buttons enable users to complete the “entire shopping experience” within Facebook “from product discovery to checkout”.

Last month, Shopify announced that its merchants could start using the Facebook Buy Button.

As Facebook continues to offer more options for ecommerce, social media continues to grow faster than any other channel for ecommerce web traffic.

July 31, 2015
Significant eBay Search Issue Uncovered, Could Be Hurting Sellers

There’s yet another issue happening on eBay that likely isn’t going to sit too well with sellers that many probably aren’t aware is even happening.

The finding comes from eCommerce news blog and eBay watchdog eCommerceBytes, which reports that eBay’s search engine is having issues specifically with its Item Specifics and filters. Ina Steiner writes:

I worked with a seller today to try to understand what she discovered with her listings, and the results are disturbing. For some of the examples she supplied me (clothing), if I filtered search results using all the item specifics she had set in a particular listing, eBay search excluded her listing from search results – even though some other sellers’ listings appeared.

This is exactly the opposite of how it’s supposed to work – the seller is being penalized for using Item Specifics when listing her products. And in these cases, she wasn’t alone.

All in all, she says there are two major problems that are happening. Items in listings are reportedly being excluded from searches using when using Item Specific attributes and specific attributes that are being used may be excluded from filters. Either way, it means reduced visibility in cases where users are actually looking for specific things.

Some readers have commented on Stein’s blog that this has been an issue for years or suggested that this is by design.

To eBay’s credit, it did recently announce a new seller requirement for product identifiers aimed at making it easier for sellers to find specific items they’re looking for. This won’t necessarily apply to all types of items, however.

Earlier this week, we reported on another controversial feature eBay has begun to roll out globally, which sellers have also taken issue with. This one lets customers say whether or not they received the item they purchased on or before a specific estimated delivery date.

Image via eBay

July 31, 2015
Amazon Dash Buttons, Still Not a Joke, Go on Sale for Prime Members

In what could still be the the longest-running April Fools joke of all time, Amazon has just made those press-to-order Dash buttons available to all Prime customers

Here’s how Amazon describes its Dash button:

“Amazon Dash Button is simple to set up. Use the Amazon app on your smartphone to easily connect to your home Wi-Fi and select the product you want to reorder with Dash Button. Once connected, a single press automatically places your order. Amazon sends an order alert to your phone, so it’s easy to cancel if you change your mind. Unless you elect otherwise, Dash Button responds only to your first press until your order is delivered.”

Basically, you can set up a Tide-branded dash button near your washing machine, and when you run out of detergent you simply press the button and two days later – more Tide. Or you can place a Huggies-branded Dash button next to the changing table and when you run out of diapers, press the button and two days later – more Huggies.

There are a total of 18 Dash buttons currently available. Some of the products you can order by Dash are Bounty paper towels, Gatorade, SmartWater, Larabars, Gerber formula, Olay beauty products, Clorox wipes, Izze juice, Glad trash bags, and Kraft Mac & Cheese.

You can find all 18 dash buttons here. They run $4.99 a piece. To be fair, it still seems like it could be a joke.

But then again, I always do forget to order paper towels…

July 29, 2015
Google Merchant Center Gets New Feed Enhancements

Google announced a pair of data feed enhancements for Google Merchant Center in an effort to help merchants better update their ads. One of them is geared toward large retailers while the other is for small ones.

For large retailers, Google has added a new feed type called Online product inventory feeds, which let you quickly update price, availability, and sale price on key products. The reason why it’s geared toward big retailers is that they’re more likely to have to change such attributes more frequently.

The feed allows you to submit new info throughout the day to update the attributes and/or submit updates for just a small subset of products. Google notes that if there’s an error in processing your feed, it won’t affect the full product feed. It allows allows fresher info to appear to consumers on Google Shopping.

The other thing is a Google Sheets add-on, which lets you connect spreadsheets to Merchant Center for quicker uploads. This is geared toward small retailers because it makes it easier to get up and running with shopping ads.

“Whether you use Google Sheets or text file formats to upload your products, these new data feed enhancements make it faster and easier to upload your most up-to-date product information to Google Shopping and find more customers online,” says Sven Herschel, Product Manager for Google Merchant Center.

You can validate and/or upload products directly from Sheets. There sidebar in the add-on lets you validate individual rows ore the entire sheet so you can see potential errors and warnings before you upload the data feed. Also from the side-bar, you can upload your whole sheet into Merchant Center without leaving Sheets.

If you have any trouble, you can take a look at this help article.

Image via Google

July 29, 2015

Yelp Earnings Disappoint As Chairman Leaves And Company Moves Away From Display Ads

Yelp reported its second quarter earnings on Tuesday with better than expected revenue, but worse than expected profit, sending shares tumbling. But that wasn’t the only news to come out of the company. Yelp also announced the resignation of Max Levchin from its Board of Directors, and said it will discontinue display advertising by the end of the year.

Levchin Leaves

Let’s start with Levchin leaving. He was Chairman and Director, and he is officially leaving “to pursue other interests”. His departure is effective immediately. The Board has yet to appoint a replacement Chairman, but says it “plans to consider the issue at the next Board meeting in September.”

“We thank Max for all his contributions to Yelp since its founding in 2004 when he provided the seed capital to start the company,” said CEO Jeremy Stoppelman. “Max saw Yelp grow from just an idea in my head to a company worth billions of dollars with Yelpers around the world. We have mutually agreed this is the right time for him to step down given the demands on his time. I am grateful for his contributions to Yelp’s success and wish him all the best going forward.”

“I am extremely proud of what Yelp has accomplished over the last 11 years and believe I leave it well-positioned to take advantage of the large local advertising market,” said Levchin. “I spoke with Jeremy and felt now is the right time to transition off the board. I’m confident that Yelp is prepared to continue its success as I increase my focus on my CEO responsibilities at Affirm, along with other demands on my time.”

Display No More

During the company’s earnings conference call, Stoppelman revealed that Yelp will phase out display advertising by the end of 2015 as it turns its ad focus to native and local products. Here’s what he had to say about it (via SeekingAlpha’s transcript of the call):

Our mission is to connect people with great local businesses. Consumers are increasingly relying on our 83 million reviews when choosing where to spend their money, making Yelp the ideal place for local businesses to advertise. To better leverage Yelp’s strengths with consumers and local businesses, we decided to phase out brand advertising by the end of the year. We believe that eliminating brand advertising, which we also refer to as our display advertising product, will benefit the company over the long-term. The industry trend towards increasingly disruptive display advertising is at odds with our focus on the consumer experience, particularly within the app.

Direct brand advertising sales is in decline, while programmatic advertising has its own challenges with privacy implications, ever declining CPMs, and lower ad quality. For example, ads that play video or audio intrude upon the consumer experience increasing load times and data usage on smartphones. We believe that prioritizing the consumer experience while delivering highly relevant native local advertising will provide us with the strategic long-term advantage. Given that our brand advertising as a percent of total revenues declined from 25% in 2010 to 6% in the second quarter of 2015 now is the right time for us to reallocate those resources to our highly differentiated core business

The Results

Yelp reported net revenue of $133.9 million for the quarter, which is up 51% year-over-year. It also reported a $0.02 per share loss, which put off Wall Street, which expected a positive $0.01 per share net income.

Cumulative reviews grew 35% year-over-year, reaching 83 million, while mobile unique visitors surpassed the desktop number for the first time, growing 22% to 83 million on a monthly average basis. Local advertising accounts grew 40% year over year to 97,1004.

Brand ad revenue was $8.3 million, which is a decrease of 8%.

Here’s the full earnings release:

SAN FRANCISCO, July 28, 2015 /PRNewswire/ — Yelp Inc. (NYSE: YELP), the company that connects consumers with great local businesses, today announced financial results for the second quarter ended June 30, 2015.

Net revenue was $133.9 million in the second quarter of 2015 reflecting 51% growth over the second quarter of 2014.

Adjusted EBITDA for the second quarter of 2015 was $22.7 million, reflecting a 32% increase over the second quarter of 2014.

Cumulative reviews grew 35% year over year to approximately 83 million.

Mobile Unique Visitors¹ surpassed the number of Desktop Unique Visitors² for the first time, growing 22% year over year to approximately 83 million on a monthly average basis. App Unique Devices grew 51% year over year to approximately 18 million on a monthly average basis³.

Local advertising accounts grew 40% year over year to approximately 97,100⁴.

Net loss in the second quarter of 2015 was $(1.3) million, or $(0.02) per share, compared to a net income of $2.7 million, or $0.04 per share, in the second quarter of 2014.

Non-GAAP net income, which consists of net income excluding stock-based compensation and amortization was$9.4 million, or $0.12 per share, for the second quarter of 2015.

Net revenue for the six months ended June 30, 2015 was $252.4 million, an increase of 53% compared to $165.2 million in the same period last year. Adjusted EBITDA for the six months ended June 30, 2015 was $39.1 millioncompared to $25.8 million in the first six months of 2014. Net loss for the six months ended June 30, 2015 was$(2.6) million, or $(0.03) per share, compared to net income of $0.1 million, or $0.00 per share, in the comparable period in 2014. Non-GAAP net income for the six months ended June 30, 2015 was $17.3 million, or $0.22 per share, compared to non-GAAP net income of $15.0 million, or $0.19 per share, in the comparable period in 2014.

“We continue to demonstrate solid topline growth, with total net revenue increasing 51% year over year to approximately $134 million,” said Jeremy Stoppelman, Yelp’s chief executive officer. “Consumers are increasingly turning to apps when using their mobile phones, and we are excited about the growth we’ve seen in app usage which accelerated to 51% year over year. We believe our rich content married with our highly-differentiated local advertising product will position us well to capture a meaningful share of the large local market.”

“Our core local advertising business remains strong, and we are investing in Yelp’s future,” added Rob Krolik, Yelp’s chief financial officer. “We expect local advertising will continue to be our primary driver of growth as we work towards our goal of generating one billion dollars of revenue in 2017.”

Second Quarter Operating Summary

Local advertising revenue totaled $107.9 million, representing 43% growth over the second quarter of 2014.

Transactions revenue, which was previously included in Other revenue and will be broken out separately going forward, totaled $11.3 million, compared to $1.2 million in the second quarter of 2014, primarily due to the acquisition of Eat24 in the first quarter of 2015. Transactions revenue is comprised of Eat24, Platform transactions, Yelp Deals and Gift Certificates.

Brand advertising revenue totaled $8.3 million, representing an 8% decrease compared to the second quarter of 2014. As of today, Yelp is announcing that it plans to phase out its brand advertising product by the end of 2015 to continue its focus on the consumer experience and its native, local advertising products.

Other revenue totaled $6.4 million, representing 128% growth over the second quarter of 2014. Other revenue is primarily comprised of revenue from partnership arrangements.

Business Highlights

Mobile Traffic: Mobile Unique Visitors surpassed Desktop Unique Visitors for the first time in company history in the second quarter of 2015, growing to approximately 83 million compared to approximately 79 million Desktop Unique Visitors. Growth in unique devices accessing the Yelp app accelerated to 51% over the second quarter of 2014. The majority of Yelp consumer engagement now occurs on the app with approximately 70% of new reviews and photos and approximately 70% of calls, clicks for directions and map views coming via the Yelp app.

Local Advertising: With the full rollout of its packaged cost-per-click (CPC) advertising package inSeptember 2014, Yelp increased the percent of local revenue generated by CPC advertisers to 46% in the second quarter of 2015, an increase from 40% in the first quarter of 2015. Based on Yelp’s internal analysis, local advertisers on Yelp receive on average approximately 270% ROI on their advertising spend, demonstrating the compelling nature of its highly relevant, native advertising products.

Business Outlook

Yelp is providing its outlook for the third quarter and lowering its outlook for the full year of 2015 based on slower sales headcount growth and the elimination of its brand advertising product.

For the third quarter of 2015, net revenue is expected to be in the range of $139 million to $142 million, representing growth of approximately 37% compared to the third quarter of 2014. Adjusted EBITDA is expected to be in the range of $12 million to $15 million. Stock-based compensation is expected to be in the range of $16 million to $17 million, and depreciation and amortization is expected to be 5%-6% of revenue.

For the full year of 2015, net revenue is expected to be in the range of $544 million to $550 million, representing growth of approximately 45% compared to full year 2014. Adjusted EBITDA is expected to be in the range of $72 million to $78 million. Stock-based compensation is expected to be in the range of $62 million to $64 million, and depreciation and amortization is expected to be 5%-6% of revenue.

Quarterly Conference Call

To access the call, please dial 1 (800) 708-4539, or outside the U.S. 1 (847) 619-6396, with Passcode 40205168, at least five minutes prior to the 1:30 p.m. PT start time. A live webcast of the call will also be available at http://www.yelp-ir.com under the Events & Presentations menu. An audio replay will be available between 4:00 p.m. PT July 28, 2015 and 11:59 p.m. PT August 4, 2015 by calling 1 (888) 843-7419 or 1 (630) 652-3042, with Passcode 40205168. The replay will also be available on Yelp’s website at http://www.yelp-ir.com.

About Yelp

Yelp Inc. (http://www.yelp.com) connects people with great local businesses. Yelp was founded in San Franciscoin July 2004. Since then, Yelp communities have taken hold in major metros across 31 countries. Approximately 83 million unique visitors visited Yelp via their mobile device¹, including approximately 18 million unique devices accessing the Yelp app³, and approximately 79 million unique visitors visited Yelp via a desktop computer² on a monthly average basis during the second quarter of 2015. By the end of the same quarter, Yelpers had written approximately 83 million rich, local reviews, making Yelp the leading local guide for real word-of-mouth on everything from boutiques and mechanics to restaurants and dentists.

¹ Calculated as the number of “users,” as measured by Google Analytics, accessing Yelp via mobile web plus unique devices accessing the app, each on a monthly average basis over a given three-month period.

²Calculated as the number of “users,” as measured by Google Analytics, accessing Yelp via desktop computer on an average monthly basis over a given three-month period.

³Calculated as the number of unique devices accessing the app on a monthly average basis over a given three-month period, according to internal Yelp logs.

⁴ Local advertising accounts comprise all local business accounts from which we recognize local advertising revenue in a given three-month period.

Non-GAAP Financial Measures

This press release includes information relating to adjusted EBITDA, non-GAAP net income and non-GAAP net income per share, each of which the Securities and Exchange Commission has defined as a “non-GAAP financial measure.” Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share have been included in this press release because they are key measures used by Yelp management and board of directors to understand and evaluate core operating performance and trends, to prepare and approve its annual budget and to develop short- and long-term operational plans. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”).

Adjusted EBITDA and non-GAAP net income have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of Yelp’s financial results as reported under GAAP. Some of these limitations are:

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA and non-GAAP net income do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp’s working capital needs;

adjusted EBITDA and non-GAAP net income do not consider the potentially dilutive impact of equity-based compensation;

adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to Yelp; and

other companies, including those in Yelp’s industry, may calculate adjusted EBITDA and non-GAAP net income differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider adjusted EBITDA, non-GAAP net income and non-GAAP net income per share alongside other financial performance measures, including various cash flow metrics, net income (loss) and Yelp’s other GAAP results. Additionally, Yelp has not reconciled its adjusted EBITDA outlook for the third quarter and full year 2015 to its net income (loss) outlook because it does not provide an outlook for other income (expense) and provision for income taxes, which are reconciling items between net income (loss) and adjusted EBITDA. As items that impact net income (loss) are out of Yelp’s control and cannot be reasonably predicted, Yelp is unable to provide such an outlook. Accordingly, reconciliation to net income (loss) outlook for the third quarter and full year 2015 is not available without unreasonable effort. For a reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see the non-GAAP reconciliations included below in this press release.

Forward-Looking Statements

This press release contains forward-looking statements relating to, among other things, the future performance of Yelp and its consolidated subsidiaries that are based on Yelp’s current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the third quarter and full year 2015, Yelp’s ability to capture a meaningful share of the large local market, Yelp’s target revenue for 2017 and its expectations regarding local advertising as the primary driver of growth, Yelp’s estimates regarding local advertisers’ ROI on advertising spend, the future growth in Yelp revenue and continued investing by Yelp in its future growth, and Yelp’s ability to drive daily usage and engagement (particularly on mobile), increase awareness of Yelp among consumers, and deliver value to local businesses. Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: Yelp’s short operating history in an evolving industry; Yelp’s ability to generate sufficient revenue to maintain profitability, particularly in light of its significant ongoing sales and marketing expenses; the impact of Yelp phasing out its brand advertising products by the end of 2015; Yelp’s ability to attract, retain and motivate well-qualified employees, particularly in sales and marketing; successfully manage acquisitions of new businesses, solutions or technologies, such as Eat24, and to integrate those businesses, solutions or technologies; Yelp’s reliance on traffic to its website from search engines like Googleand Bing; Yelp’s ability to generate and maintain sufficient high quality content from its users; maintaining a strong brand and managing negative publicity that may arise; maintaining and expanding Yelp’s base of advertisers; changes in political, business and economic conditions, including any European or general economic downturn or crisis and any conditions that affect ecommerce growth; fluctuations in foreign currency exchange rates; Yelp’s ability to deal with the increasingly competitive local search environment; Yelp’s need and ability to manage other regulatory, tax and litigation risks as its services are offered in more jurisdictions and applicable laws become more restrictive; the competitive and regulatory environment while Yelp continues to expand geographically and introduce new products and as new laws and regulations related to Internet companies come into effect; Yelp’s ability to timely upgrade and develop its systems, infrastructure and customer service capabilities. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.

More information about factors that could affect Yelp’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Quarterly Report on Form 10-Q at http://www.yelp-ir.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to Yelp on the date hereof. Yelp assumes no obligation to update such statements.

Investor Relations Contact Information
Wendy Lim, Allie Dalglish
(415) 635-2412
[email protected]

Yelp Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

June 30, December 31,

2015 2014

Assets

Current assets:

Cash and cash equivalents $ 181,460 $ 247,312

Short-term marketable securities 186,673 118,498

Accounts receivable, net 41,339 35,593

Prepaid expenses and other current assets 22,713 19,355

Total current assets 432,185 420,758

Long-term marketable securities – 38,612

Property, equipment and software, net 72,603 62,761

Goodwill 173,296 67,307

Intangibles, net 42,458 5,786

Restricted cash 16,285 17,943

Other assets 4,560 16,483

Total assets $ 741,387 $ 629,650

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable $ 1,706 $ 1,398

Accrued liabilities 37,716 29,581

Deferred revenue 2,546 2,994

Total current liabilities 41,968 33,973

Long-term liabilities 13,254 7,527

Total liabilities 55,222 41,500

Commitments and contingencies

Stockholders’ equity

Common stock – –

Additional paid-in capital 734,867 627,742

Accumulated other comprehensive loss (12,130) (5,609)

Accumulated deficit (36,572) (33,983)

Total stockholders’ equity 686,165 588,150

Total liabilities and stockholders’ equity $ 741,387 $ 629,650

Yelp Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2015 2014 2015 2014

Net revenue $ 133,913 $ 88,787 $ 252,421 $ 165,194

Cost and expenses

Cost of revenue (1) 13,057 5,845 21,756 10,922

Sales and marketing (1) 68,014 47,798 131,280 92,919

Product development (1) 26,345 14,726 50,305 28,708

General and administrative (1) 19,280 13,257 39,217 26,427

Depreciation and amortization 7,167 4,034 14,062 7,695

Total cost and expenses 133,863 85,660 256,620 166,671

Income (loss) from operations 50 3,127 (4,199) (1,477)

Other income (expense), net 329 (15) 891 (17)

Income (loss) before income taxes 379 3,112 (3,308) (1,494)

Benefit (provision) for income taxes (1,684) (369) 719 1,602

Net income (loss) attributable to common stockholders $ (1,305) $ 2,743 $ (2,589) $ 108

Net (income) loss per share attributable to common stockholders:

Basic $ (0.02) $ 0.04 $ (0.03) $ 0.00

Diluted $ (0.02) $ 0.04 $ (0.03) $ 0.00

Weighted-average shares used to compute net loss per share attributable to common stockholders:

Basic 74,631 71,714 74,009 71,444

Diluted 74,631 77,056 74,009 76,903

(1) Includes stock-based compensation expense as follows:

Three Months Ended Six Months Ended

June 30, June 30,

2015 2014 2015 2014

Cost of revenue $ 222 $ 119 $ 346 $ 269

Sales and marketing 5,654 3,728 10,591 7,125

Product development 6,065 3,456 11,170 6,498

General and administrative 3,575 2,780 7,080 5,647

Total stock-based compensation $ 15,516 $ 10,083 $ 29,187 $ 19,539

Yelp Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six Months Ended

June 30,

2015 2014

Operating activities

Net income (loss) $ (2,589) $ 108

Adjustments to reconcile net income (loss) to net

cash provided by (used in) operating activities:

Depreciation and amortization 14,062 7,695

Provision for doubtful accounts and sales returns 6,076 2,581

Stock-based compensation 29,187 19,539

Loss (gain) on disposal of assets and website development costs 144 (5)

Premium amortization, net, on securities held-to-maturity 481 93

Excess tax benefit from share-based award activity (3,952) (460)

Changes in operating assets and liabilities:

Accounts receivable (7,855) (6,716)

Prepaid expenses and other assets (7,079) (5,980)

Accounts payable, accrued expenses and other liabilities 15,616 3,567

Deferred revenue (426) (433)

Net cash provided by operating activities 43,665 19,989

Investing activities

Acquisitions, net of cash received (73,422) –

Purchases of property, equipment and software (18,059) (7,212)

Capitalized website and software development costs (6,012) (4,327)

Change in restricted cash 1,672 (397)

Purchase of intangibles (314) –

Proceeds from sale of property and equipment 109 14

Purchases of investment securities held-to-maturity (93,914) (122,226)

Maturities of investment securities held-to-maturity 63,870 –

Cash used in investing activities (126,070) (134,148)

Financing activities

Proceeds from exercise of employee stock options 8,534 10,841

Proceeds from issuance of common stock for Employee Stock Purchase Plan 5,061 4,087

Excess tax benefit from share-based award activity 3,952 460

Repurchase of common stock (396) (642)

Net cash provided by financing activities 17,151 14,746

Effect of exchange rate changes on cash and cash equivalents (598) 35

Net decrease in cash and cash equivalents (65,852) (99,378)

Cash and cash equivalents at beginning of period 247,312 389,764

Cash and cash equivalents at end of period 181,460 $ 290,386

Yelp Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2015 2014 2015 2014

Adjusted EBITDA:

Net income (loss) $ (1,305) $ 2,743 $ (2,589) $ 108

Provision (benefit) for income taxes 1,684 369 (719) (1,602)

Other (income) expense, net (329) 15 (891) 17

Depreciation and amortization 7,167 4,034 14,062 7,695

Stock-based compensation 15,516 10,083 29,187 19,539

Adjusted EBITDA $ 22,733 $ 17,244 $ 39,050 $ 25,757

Non-GAAP net income and income per share:

GAAP net income (loss) attributable to common

shareholders

$ (1,305) $ 2,743 $ (2,589) $ 108

   Add back: stock-based compensation 15,516 10,083 29,187 19,539

   Add back: amortization of intangible assets 1,803 629 3,034 1,255

   Less: tax effect of stock-based compensation & amortization of intangible assets

(6,660) (4,039) (12,376) (7,899)

   Add back: valuation allowance release (net of tax) – – – 1,958

NON-GAAP NET INCOME $ 9,354 $ 9,416 $ 17,256 $ 14,961

GAAP diluted shares 78,749 77,056 78,205 76,903

NON-GAAP NET INCOME PER SHARE $ 0.12 $ 0.12 $ 0.22 $ 0.19

Image via Yelp (Flickr)

July 29, 2015

Etsy Changes How People Find Your Products

Etsy is launching some changes to its search feature aimed at helping users find more items of interest, but the reaction to the changes from sellers is pretty mixed, if not leaning toward negative.

When you’re selling products in any online marketplace, the way the search feature works is of great importance. Of course appearing in web searches on search engines like Google and Bing can help too, but obviously you really want the marketplace’s own search functionality to point potential customers in your direction.

Now that Etsy is a public company, it’s certainly within its interest to please buyers and sellers alike, and that starts with a good user experience.

Etsy’s Jaime DeLanghe explains in a blog post:

Previously, shoppers who searched with broad keywords wouldn’t readily see the breadth of items available to them. With this update to search, our community will now be able to more easily find the most relevant products for them, whether browsing by category — such as home, wedding, or women’s products — feature, or product type.

With streamlined categories, our enhanced search will serve as a kind of guided conversation with visual cues that aid and encourage deeper exploration. For example, when searching jewelry, shoppers will now be presented with streamlined sub-categories like necklaces, bracelets, and rings, versus having to identify a specific type of product from the beginning. Similarly, someone searching with a broad term — like wool — will be led to relevant categories with items that more closely match their search, making it easier to narrow in on specific items. For example, wool accessories, wool clothing and wool craft supplies will appear as suggestions.

Let’s say I’m a horror movie fanatic and want to see what kind of cool Michael Myers stuff I can find. I’ll just search for “Michael Myers,” and here’s what I get:

In addition to the lower section, which just lumps all listings together, I’m presented with Arts & Collectibles, Books, Movies & Music, Clothing, Accessories, and Home & Living.

Hmm, I probably have enough Michael Myers clothes and accessories for now. I surely have all the required media. My house could probably use a lot more Myers-related décor. Let’s check out Home & Living.

Coffe mugs, ash trays, wine glasses, candles…ah pillows. Perfect. And what do you know? It’s even a sponsored listing.

The category is broken down into additional sub-categories like: Home Décor, Kitchen & Dining, Lighting, Food & Drink, and Storage & Organization, which I can browse individually if I like.

Obviously as a seller, you’re going to want to optimize your listings accordingly. That likely means being as descriptive as possible, considering the keywords you’d expect people to search for if they were looking for your product. I’d recommend taking the new search for a test drive and trying to follow the ideal path for arriving at your item and working from there.

Etsy has been testing the new functionality since the spring, and it says the response from the community has been great, “especially round its effectiveness to boost inspiration and a feeling of accessibility to Etsy’s vast array of offerings.”

The company says it has seen an increase in search engagement metrics by over 10% with a “more pronounced effect” on the mobile web version.

“Respondents reported better experiences with product browsing, particularly with narrowing results and finding products they need, and even that they felt better overall about the range and quality of items available on Etsy,” says DeLanghe.

Still, sellers aren’t necessarily convinced that the new search is really in their best interest. Ecommercebytes covered the changes, and the reader comments were largely negative. Here are the concerns one reader expressed:

Here’s the line in the article that raised my antenna: “It’s designed to engage the shopper and guide them to products they may find interesting. ”

This sounds very much like steering a customer away from what they are actually looking for and steering them to what some machine learning mechanism “thinks” that they are looking for. CASSINI anyone? On eBay, I can simply check completed listings on eBay to see what an item has sold for, and all of a sudden eBay think that I want that item. I am then bombarded with eBay showing me those items and anything related to them. Looks like this is where Etsy is headed.

Another commented:

Every time Etsy ”fixes” the search function, it gets worse. The search function they had years ago, while not perfect, seemed much better than the current one. (I had fewer products listed and sold more.) Each time they ”improve” search, my sales, and those of other sellers I know, go down.

Another who sells custom pet portraits, however, called the move “brilliant”.

It could very much be a case of helping sellers in some categories more than others. Either way, the change is here, and sellers will need to adjust accordingly.

Etsy claims to have over 30 million unique product listings. The new search is on desktop and mobile web for now. It will hit the mobile apps in the near future.

Images via Etsy

July 28, 2015
Demandware Gives An Update On Buyable Pins

About a month ago, Pinterest announced that it began to launch Buyable Pins on iPhone and iPad, enabling users to purchase items directly from he app from select partners. These include Macy’s, Neiman Marcus and Nordstrom, as well as Shopfiy stores and retailers powered by Demandware’s enterprise ecommerce platform, the Demandware Commerce Cloud.

Demandware announced on Monday that their offering is live, and said it is working with a small number of retailers across different verticals on their initial Buyable Pins rollouts. Gardener’s Supply Company is one such retailer that has already gone live with the pins.

Cole Haan is also an early adopter. Demandware’s Buyable Pins will be more broadly available later this year, when it will be offered as a “cartridge”.

“With more than 70 million monthly active users (according to ComScore), 50 billion pins and one billion boards, Pinterest is an active community that is ripe with potential buyers,” says Demandware senior writer Lisa Lee. “In fact, 93% of active pinners said they use Pinterest to plan for purchases, and 87% said they’ve purchased something because of Pinterest.”

“According to the Demandware Shopping Index, in Q1 2015, phones accounted for 35% of traffic and 18% of orders worldwide, a year-over-year increase of 38% and 59% respectively,” she adds. “That explosive growth is a clear indication that Buyable Pins present an enormous opportunity for retailers to drive conversion and convert browsers to buyers. In fact, Pinterest says that Buyable Pins have been one of the most requested features since the company’s inception.”

We actually took a closer look at the Shopping Index here. More on what businesses should know about Buyable Pins here.

Image via Pinterest, Demandware

July 28, 2015
Controversial eBay Feature That Was In Testing Gets Global Roll-Out

Last week, we reported on a feature that eBay has been testing. It lets customers say whether or not they received the item they purchased on or before a specific estimated delivery date. Yes and no are the only options. There is no field for additional details or comment.

While eBay has let buyers leave more detailed comments on a seller’s shipping time in “detailed seller ratings” in the past, this narrows the scope of the question, and some sellers are concerned that eBay could misrepresent their efforts.

It was looking like the company was starting to roll it out to all users, but since our article on the subject, the company has formally announced it. eBay said in an announcement:

Since March, a growing number of buyers have begun seeing a test question (shown below) as they leave feedback, asking whether their item arrived in its estimated delivery period. Starting this month, this question will be presented globally to all buyers leaving feedback. There is no additional action required of sellers with the addition of this question.

This new question is designed to give eBay additional insight into the on-time item delivery experience—especially on transactions where tracking is limited. Answering this question is optional for buyers.

The company tells sellers they don’t need to take any additional action at this time, but that they should continue to deliver on the shipping methods and handling times stated in their listings.

Based on what we’ve seen in the forums and internet comments, sellers aren’t happy with the change, and generally think it gives buyers more reason to have a negative perception of their buying experience, which in some cases could be out of the sellers’ hands. You can peruse some examples of what people have been saying about the feature here.

eBay has tips for uploading tracking info, setting handling times, and scheduling for USPS pickups here.

July 27, 2015
PayPal Updates Online Invoicing Offering

PayPal just launched a new online invoicing product, which utilizes the functionality of the existing PayPal invoicing and adds features to help merchants bill more efficiently and get paid faster.

There are new invoice template options, partial payment functionality, the ability to record cash or check payments, the ability to CC others on an email invoice, the ability to share invoice links to customers directly, and the ability to save a PDF of the invoice for your records.

There are three new template options: Quantity (for breaking out the quantity sold), Hours (for billing by an hourly rate), and Amount only (when quantity or hours don’t apply).

With partial payments, you can enable partial payments and minimum payment amounts. This way a customer can pay a deposit up front for example. An invoice will have a partially paid status until it’s been completely paid.

“Our new invoicing product adds to the list of value-add products/services PayPal extends to merchants, in addition to things like PayPal Working Capital (extending credit to merchants to help them stock inventories and scale) and PayPal Here (enabling merchants to have a mobile POS that accepts all types of payments from mag stripe to EMV to NFC),” a spokesperson for PayPal tells WebProNews.

“As always, we’ll continue to support our existing invoicing features to help businesses send, track and manage customized invoices and get paid quickly and efficiently,” the company says.

According to the company, 2.5 million businesses sent PayPal invoices last year.

Image via PayPal

July 22, 2015

Yahoo Revenue Better Than Expected, Earnings Not Quite

Yahoo just released its earnings report for the second quarter with revenue up 15% year-over-year. The company reported a net loss of $21.6 million. Revenue after costs paid to partners was pretty much flat.

Gross search revenue was also up 15% at $920 million while GAAP search revenue was up 22% at $521 million. Paid clicks were up 13% and price-per-click increased 4%.

On the display side of things, GAAP display revenue was $500 million, up 15% year-over-year. The number of ads sold increased by 9% and pre-per-ad was up 10%.

CEO Marissa Mayer said, “I’m extremely pleased with our achievements in Q2, with revenue growing 15% year-over-year, marking our most substantial GAAP revenue growth in almost 9 years. Our Mavens investment businesses across mobile, video, native and social grew to nearly $400 million in revenue this quarter, delivering 60% GAAP growth year-over-year. Further, our display business saw the most substantial revenue growth since 2010. Yahoo’s transformation continues to make great progress.”

The company beat Wall Street estimates on revenue, but fell short on EPS at $0.16 (versus estimated $0.18).

Here’s the full earnings release:

SUNNYVALE, Calif.–(BUSINESS WIRE)– Yahoo! Inc. (NASDAQ: YHOO) today reported results for the quarter ended June 30, 2015.

“I’m extremely pleased with our achievements in Q2, with revenue growing 15% year-over-year, marking our most substantial GAAP revenue growth in almost 9 years,” saidMarissa Mayer, CEO of Yahoo. “Our Mavens investment businesses across mobile, video, native and social grew to nearly $400 million in revenue this quarter, delivering 60% GAAP growth year-over-year. Further, our display business saw the most substantial revenue growth since 2010. Yahoo’s transformation continues to make great progress.”

Q2 2014 Q2 2015

GAAP revenue $1,084 million $1,243 million

Cost of revenue – TAC $44 million $200 million

Income (loss) from operations $38 million $(45) million

Non-GAAP income from operations $194 million $108 million

Adjusted EBITDA $340 million $262 million

Net earnings (loss) $270 million $(22) million

GAAP net earnings (loss) per diluted share $0.26 ($0.02)

Non-GAAP net earnings per diluted share $0.37 $0.16

Business Highlights

Search:

Over the past year, Yahoo’s search presence has steadily grown through innovation and partnerships with industry leaders. In Q2, Yahoo introduced a new mobile search experience in the U.S. that connects users immediately to the people, places and things they care about by using context and location cues to deliver the most relevant search results.

Communications:

In Q2, Yahoo delivered several new features in Mail including Yahoo Mail on Firefox Share which allows users to instantly share web pages when using Firefox; integration of Twitter and LinkedIn information in Contacts; and the addition of breaking news notifications to the Mail news feed tab.

Digital Content:

In July, the Company launched Daily Fantasy, now available in the Yahoo Fantasy app, giving users the chance to win money every day with new fantasy lineups.

Yahoo announced a partnership with the NFL to live stream an International Series Game between the Buffalo Bills and the Jacksonville Jaguars from London this fall.

Yahoo launched new daily live finance, news and entertainment programming including Ultimate DJ, a global Electronic Music competition-style live series that is executive produced by Simon Cowell. The Company also announced 14 new shows across Yahoo’s digital magazine channels including Riding Shotgun withMichelle Rodriguez.

In Q2, Live Nation and Yahoo continued their partnership by kicking off a music festival live stream series to bring artists’ performances from this year’s most anticipated music festivals to our global audience.

Ad Technology:

Yahoo announced the availability of independent viewability and fraud measurement for display and video advertising across the Company’s programmatic buying platform, including Yahoo Properties. Advertisers can now choose from leading accredited, third-party measurement solutions to independently validate for viewability and fraud across display and video at every stage of the campaign lifecycle.

Yahoo introduced new powerful formats to help advertisers reach their audiences: native video and video app-install ads. With native video ads, brand content can be as compelling as video while beautifully integrated into other experiences on Yahoo’s homepage, digital magazines and apps. For marketers and developers looking to drive installs, the Company now offers a format that combines the engagement of video and the performance of install ads.

Second Quarter 2015 Financial Highlights

Mavens Revenue:

Q2 2014 Q2 2015

Mavens revenue $ 249 million $ 399 million

Non-Mavens revenue 742 million 725 million

Total traffic-driven revenue $ 991 million $1,124 million

Non-traffic-driven revenue 93 million 119 million

GAAP revenue $1,084 million $1,243 million

Mavens revenue represented 25 percent of traffic-driven revenue in the second quarter of 2014, and increased to 35 percent in the second quarter of 2015.

Mobile Revenue:

Q2 2014 Q2 2015

Mobile revenue $ 163 million $ 252 million

PC revenue 828 million 872 million

Total traffic-driven revenue $ 991 million $1,124 million

Non-traffic-driven revenue 93 million 119 million

GAAP revenue $1,084 million $1,243 million

Mobile revenue represented 16 percent of traffic-driven revenue in the second quarter of 2014, and increased to 22 percent in the second quarter of 2015.

Gross mobile revenue for the second quarter of 2014 and 2015 was approximately $272 million and $415 million, respectively.

Search Revenue:

Gross search revenue was $920 million for the second quarter of 2015, an increase of 15 percent compared to the second quarter of 2014.

GAAP search revenue was $521 million for the second quarter of 2015, an increase of 22 percent compared to the second quarter of 2014.

Cost of revenue -TAC paid to search partners was $106 million for the second quarter of 2015 compared to less than $1 million in the second quarter of 2014.

The number of Paid Clicks increased approximately 13 percent compared to the second quarter of 2014.

Price-per-Click increased approximately 4 percent compared to the second quarter of 2014.

Display Revenue:

GAAP display revenue was $500 million for the second quarter of 2015, a 15 percent increase compared to the second quarter of 2014.

Cost of revenue – TAC paid to display partners was $94 million for the second quarter of 2015 compared to $42 million in the second quarter of 2014.

The number of Ads Sold increased approximately 9 percent compared to the second quarter of 2014.

Price-per-Ad increased approximately 10 percent compared to the second quarter of 2014.

Cash, Cash Equivalents, and Marketable Securities:

Cash, cash equivalents, and marketable securities were $7.0 billion as of June 30, 2015 compared to $10.2 billion as of December 31, 2014, a decrease of $3.2 billion. In the first quarter of 2015, the Company satisfied the $3.3 billion income tax liability related to the sale of Alibaba Group ADSs in 2014.

“In addition to revenue outperformance, we reduced $30 million in sequential cash operating expenses driven by strategic headcount and footprint reductions, tight management of our discretionary costs and the benefit from IP monetization,” said CFOKen Goldman. “As we continued to reduce our workforce to fewer than 11,000 full-time employees over the last quarter, we have also continued to realign our resources as we become a more efficient business.”

Live Stream

Yahoo will live stream a video broadcast of the Company’s second quarter 2015 financial results at 2 p.m. Pacific Time/5 p.m. Eastern Time today. The live stream will be broadcast from Yahoo’s Sunnyvale studio and will be available exclusively on Yahoo Finance at finance.yahoo.com. The Company will provide its business outlook for the third quarter during the presentation. Supplemental financial information can be accessed through the Company’s Investor Relations website at investor.yahoo.net. The video will be archived after the event at investor.yahoo.net and will be available for 90 days following the broadcast.

Non-GAAP Financial Measures

This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (“SEC”): gross mobile revenue; gross search revenue; revenue ex-TAC; adjusted EBITDA; non-GAAP income from operations; non-GAAP net earnings; non-GAAP net earnings per share – diluted; and free cash flow.

Gross mobile revenue is GAAP mobile revenue plus the related revenue share with third parties. Gross search revenue is GAAP search revenue plus the related revenue share with third parties. Revenue ex-TAC is GAAP revenue less cost of revenue — TAC. Adjusted EBITDA, non-GAAP income from operations, non-GAAP net earnings, and non-GAAP net earnings per share – diluted, exclude from the most comparable GAAP financial measures certain gains, losses, and expenses that we do not believe are indicative of ongoing results, and exclude stock-based compensation expense. Adjusted EBITDA also excludes taxes, depreciation, amortization of intangible assets, other income, net (which includes interest), earnings in equity interests, and net income attributable to noncontrolling interests. Free cash flow is GAAP net cash provided by (used in) operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net and dividends received from equity investees.

These measures may be different than non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles (“GAAP”). Explanations of the Company’s non-GAAP financial measures and reconciliations of these financial measures to the GAAP financial measures the Company considers most comparable are included in the accompanying “Note to Unaudited Condensed Consolidated Financial Statements,” “Supplemental Financial Data and GAAP to Non-GAAP Reconciliations,” and “GAAP to Non-GAAP Reconciliations.”

About Yahoo

Yahoo is a guide focused on informing, connecting, and entertaining our users. By creating highly personalized experiences for our users, we keep people connected to what matters most to them, across devices and around the world. In turn, we create value for advertisers by connecting them with the audiences that build their businesses.Yahoo is headquartered in Sunnyvale, California, and has offices located throughout theAmericas, Asia Pacific (APAC) and the Europe, Middle East and Africa (EMEA) regions. For more information, visit the pressroom (pressroom.yahoo.net) or the Company’s blog(yahoo.tumblr.com).

“Ads Sold” consist of display ad impressions for paying advertisers on Yahoo Propertiesand Affiliate sites.

“Affiliates” refers to the third-party entities that have integrated Yahoo’s advertising offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”).

“Alibaba Group” means Alibaba Group Holding Limited.

“Gross mobile revenue” is GAAP mobile revenue plus the related revenue share with third parties.

“Gross search revenue” is GAAP search revenue plus the related revenue share with third parties.

“Mavens revenue” is revenue generated from, without duplication: (i) mobile (as defined below), (ii) video ads and video ad packages, (iii) native ads, and (iv) Tumblr ads and fees.

“Mobile revenue” is revenue generated in connection with user activity on mobile devices, including smartphones and tablets, regardless of whether the device is accessing a mobile-optimized service. Mobile revenue is generated primarily from search and display ads. Mobile revenue also includes leads, listings and fees revenue and ecommerce revenue allocated to user activity on mobile devices.

“Net earnings” means net income attributable to Yahoo! Inc., and “net earnings per diluted share” means net income attributable to Yahoo! Inc. common stockholders per share – diluted.

“Non-Mavens revenue” is revenue generated from search ads and traditional (i.e., non-native, non-video, non-Tumblr) display ads served on PCs and also includes leads, listings and fees revenue and ecommerce revenue allocated to user activity on PCs.

“Non-traffic-driven revenue” is revenue not arising from user activity on Yahoo Propertiesor Affiliate sites, and includes royalty revenue, license fee revenue, amortization under the technology and intellectual property license agreement with Alibaba Group, and all other revenue that is not traffic-driven.

“Paid Clicks” are clicks by end-users on sponsored search listings (excluding native ads) on Yahoo Properties and Affiliate sites.

“PC” means a desktop computer, and “PC revenue” is revenue generated from search and display ads served on PCs and also includes leads, listings and fees revenue and ecommerce revenue allocated to user activity on PCs.

“Price-per-Ad” is defined as display revenue divided by our total number of Ads Sold.

“Price-per-Click” is defined as Search click-driven revenue divided by our total number of Paid Clicks.

“Search Agreement” refers to the Search and Advertising Services and Sales Agreement between Yahoo and Microsoft Corporation, as amended.

“Search click-driven revenue” is gross search revenue excluding the Microsoft RPS guarantee and search revenue from Yahoo Japan.

“TAC” refers to traffic acquisition costs. TAC consists of payments to Affiliates and payments made to companies that direct consumer and business traffic to Yahoo Properties.

“Yahoo,” “Company,” and “we” refer to Yahoo! Inc. and its consolidated subsidiaries.

“Yahoo Properties” refers to the online properties and services that Yahoo provides to users.

We periodically review, refine and update our methodologies for monitoring, gathering, and counting number of Ads Sold and Paid Clicks, and for calculating Search click-driven revenue, Price-per-Ad, and Price-per-Click.

Additional information about how “Ads Sold,” “Paid Clicks,” “Price-per-Ad,” “Price-per-Click,” and “Search click-driven revenue” are defined and calculated is included under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q for the quarter endedMarch 31, 2015, which is on file with the SEC and available on the SEC’s website atwww.sec.gov.

This press release contains forward-looking statements concerning Yahoo’s expected financial performance and Yahoo’s strategic and operational plans (including, without limitation, the quotations from management). Risks and uncertainties may cause actual results to differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, possible delays or failure in satisfying conditions to completion of our proposed spin-off of our remaining stake in Alibaba Group into a newly-formed registered investment company; other factors related to the spin-off, including adverse regulatory developments or determinations or adverse changes in, or interpretations of, U.S. or foreign tax laws, rules or regulations, that could delay or prevent completion of the proposed spin-off or cause the terms of the proposed spin-off to be modified; risks related to realization of the expected benefits of the spin-off to Yahoo and its shareholders; risks related to acceptance by users of new products and services (including, without limitation, products and services for mobile devices and alternative platforms); risks related to Yahoo’s ability to compete with new or existing competitors; reduction in spending by, or loss of, advertising customers; risks associated with the Search Agreement with Microsoft Corporation; risks related to acquiring or developing compelling content; risks related to joint ventures and the integration of acquisitions; risks related to possible impairment of goodwill or other assets; risks related to Yahoo’s ability to protect its intellectual property and the value of its brands; adverse results in litigation; security breaches; interruptions or delays in the provision of Yahoo’s services; risks related to Yahoo’s regulatory environment; risks related to fluctuations in foreign currency exchange rates; risks related to Yahoo’s international operations; dependence on third parties for technology, services, content, and distribution; risks related to the calculation of our key operational metrics; and general economic conditions. All information set forth in this press release and its attachments is as of July 21, 2015. Yahoo does not intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances. More information about potential factors that could affect the Company’s business and financial results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, which are on file with the SEC and available on the SEC’s website at www.sec.gov. Additional information will also be set forth in those sections in Yahoo’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, which will be filed with the SEC in the third quarter of 2015.

Yahoo!, the Yahoo family of marks, and the associated logos are trademarks and/or registered trademarks of Yahoo! Inc. Tumblr is a registered trademark of Tumblr, Inc.Other names are trademarks and/or registered trademarks of their respective owners.

Yahoo! Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

December 31, June 30,

2014 2015

ASSETS

Current assets:

Cash and cash equivalents $ 2,664,098 $ 1,188,169

Short-term marketable securities 5,327,412 4,636,152

Accounts receivable, net 1,032,704 999,646

Prepaid expenses and other current assets 671,075 756,965

Total current assets 9,695,289 7,580,932

Long-term marketable securities 2,230,892 1,169,671

Property and equipment, net 1,487,684 1,524,539

Goodwill 5,163,654 5,146,579

Intangible assets, net 470,842 412,235

Other long-term assets and investments 554,616 475,497

Investments in Alibaba Group 39,867,789 31,555,927

Investments in equity interests 2,489,578 2,326,436

Total assets $ 61,960,344 $ 50,191,816

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 238,018 $ 301,433

Income taxes payable related to sale of Alibaba Group ADSs 3,282,293 –

Other accrued expenses and current liabilities 671,307 903,005

Deferred revenue 336,963 202,246

Total current liabilities 4,528,581 1,406,684

Convertible notes 1,170,423 1,201,540

Long-term deferred revenue 20,774 23,442

Other long-term liabilities 143,095 126,138

Deferred tax liabilities related to investment in Alibaba Group 16,154,906 12,768,155

Deferred and other long-term tax liabilities 1,156,973 1,102,007

Total liabilities 23,174,752 16,627,966

Total Yahoo! Inc. stockholders’ equity 38,741,837 33,532,602

Noncontrolling interests 43,755 31,248

Total equity 38,785,592 33,563,850

Total liabilities and equity $ 61,960,344 $ 50,191,816

Yahoo! Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Three Months Ended Six Months Ended

June 30, June 30,

2014 2015 2014 2015

Revenue $ 1,084,191 $ 1,243,265 $ 2,216,921 $ 2,469,235

Operating expenses:

Cost of revenue – traffic acquisition costs 43,826 200,230 89,735 383,369

Cost of revenue – other 295,786 295,932 589,389 581,195

Sales and marketing 253,198 274,304 555,523 549,661

Product development 291,778 306,428 560,042 633,175

General and administrative 154,881 180,595 319,504 354,108

Amortization of intangibles 15,164 19,982 33,504 40,055

Gain on sale of patents (61,500 ) (9,100 ) (61,500 ) (11,100 )

Restructuring charges, net 52,621 19,688 62,108 70,920

Total operating expenses 1,045,754 1,288,059 2,148,305 2,601,383

Income (loss) from operations 38,437 (44,794 ) 68,616 (132,148 )

Other expense, net (13,589 ) (11,741 ) (27,042 ) (42,804 )

Income (loss) before income taxes and earnings in equity interests 24,848 (56,535 ) 41,574 (174,952 )

Provision for income taxes (8,143 ) (58,495 ) (12,360 ) (17,595 )

Earnings in equity interests 255,852 95,841 557,254 195,531

Net income (loss) 272,557 (19,189 ) 586,468 2,984

Less: Net income attributable to noncontrolling interests (2,850 ) (2,365 ) (5,183 ) (3,340 )

Net income (loss) attributable toYahoo! Inc. $ 269,707 $ (21,554 ) $ 581,285 $ (356 )

Net income (loss) attributable toYahoo! Inc.common stockholders per share – diluted ⁽¹⁾ $ 0.26 $ (0.02 ) $ 0.55 $ (0.00 )

Shares used in per share calculation – diluted 1,014,692 937,569 1,023,056 936,159

Stock-based compensation expense by function:

Cost of revenue – other $ 5,356 $ 7,200 $ 30,007 $ 13,209

Sales and marketing 31,233 39,978 81,907 78,099

Product development 39,507 50,762 53,434 98,983

General and administrative 26,349 27,190 46,278 50,535

Restructuring charges, net – – – 2,705

Supplemental Financial Data:

Revenue ex-TAC $ 1,040,365 $ 1,043,035 $ 2,127,186 $ 2,085,866

Adjusted EBITDA $ 340,363 $ 261,703 $ 646,744 $ 492,816

Free cash flow⁽²⁾ $ 185,915 $ (24,780 ) $ 299,877 $ (3,059,702 )

⁽¹⁾ The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s diluted earnings per share by $0.01 for the three months ended June 30, 2014, and by $0.02 for the six months ended June 30, 2014.

⁽²⁾ During the six months ended June 30, 2015, the Company satisfied the$3.3 billion income tax liability related to the sale of Alibaba Group ADSs in September 2014.

Yahoo! Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2014 2015 2014 2015

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) $ 272,557 $ (19,189 ) $ 586,468 $ 2,984

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation 116,446 119,633 239,631 236,694

Amortization of intangible assets 30,414 34,046 64,763 68,524

Accretion of convertible notes discount 14,860 15,660 29,526 31,117

Stock-based compensation expense 102,445 125,130 211,626 243,531

Non-cash restructuring (credits) charges (7,031 ) (74 ) (7,031 ) (933 )

Losses from sale of investments, assets, and other, net 15,117 10,539 18,667 44,847

Gain on sale of patents (61,500 ) (9,100 ) (61,500 ) (11,100 )

(Gain) loss on Hortonworks warrants – (5,449 ) – 6,460

Earnings in equity interests (255,852 ) (95,841 ) (557,254 ) (195,531 )

Tax benefits (detriments) from stock-based awards 19,161 (36,439 ) 76,828 (3,617 )

Excess tax benefits from stock-based awards (19,544 ) 35,620 (79,100 ) (1,850 )

Deferred income taxes (303 ) (30,227 ) 14,185 (13,218 )

Dividends received from equity investee 83,685 141,670 83,685 141,670

Changes in assets and liabilities, net of effects of acquisitions:

Accounts receivable 55,725 (71,583 ) 154,129 18,340

Prepaid expenses and other assets 22,803 (11,292 ) 13,592 (75,537 )

Accounts payable (29,567 ) 6,892 (10,075 ) 37,505

Accrued expenses and other liabilities 38,033 165,744 (202,142 ) 255,678

Income taxes payable related to sale of Alibaba Group ADSs – – – (3,282,293 )

Deferred revenue (40,035 ) (67,788 ) (79,523 ) (132,790 )

Net cash provided by (used in) operating activities 357,414 307,952 496,475 (2,629,519 )

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment, net (107,358 ) (155,442 ) (192,013 ) (290,363 )

Purchases of marketable securities (451,739 ) (1,614,068 ) (1,363,836 ) (2,326,886 )

Proceeds from sales of marketable securities 212,028 301,423 380,954 473,775

Proceeds from maturities of marketable securities 408,356 1,224,829 690,018 3,584,596

Purchases of intangible assets (984 ) (3,451 ) (2,174 ) (4,611 )

Proceeds from sales of patents 1,500 – 1,500 20,000

Proceeds from the settlement of derivative hedge contracts 170,457 45,140 173,258 64,767

Payments for the settlement of derivative hedge contracts (4,016 ) (1,731 ) (4,616 ) (3,882 )

Acquisitions, net of cash acquired – 1,782 (21,661 ) (21,291 )

Payments for equity investments in privately held companies – – (10,399 ) –

Other investing activities, net (74 ) (115 ) (640 ) (153 )

Net cash provided by (used in) investing activities 228,170 (201,633 ) (349,609 ) 1,495,952

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock 84,760 10,588 163,737 46,777

Repurchases of common stock (718,628 ) – (1,168,206 ) (203,771 )

Excess tax benefits from stock-based awards 19,544 (35,620 ) 79,100 1,850

Tax withholdings related to net share settlements of restricted stock units (34,178 ) (52,534 ) (159,581 ) (149,960 )

Distributions to noncontrolling interests (22,344 ) (15,847 ) (22,344 ) (15,847 )

Other financing activities, net (3,037 ) (4,442 ) (6,130 ) (9,015 )

Net cash used in financing activities (673,883 ) (97,855 ) (1,113,424 ) (329,966 )

Effect of exchange rate changes on cash and cash equivalents 4,869 5,048 3,554 (12,396 )

Net change in cash and cash equivalents (83,430 ) 13,512 (963,004 ) (1,475,929 )

Cash and cash equivalents, beginning of period 1,198,016 1,174,657 2,077,590 2,664,098

Cash and cash equivalents, end of period $ 1,114,586 $ 1,188,169 $ 1,114,586 $ 1,188,169

Yahoo! Inc.
Note to Unaudited Condensed Consolidated Financial Statements

This press release and its attachments include the non-GAAP financial measures of revenue excluding traffic acquisition costs (“revenue ex-TAC”); gross mobile revenue; gross search revenue; adjusted EBITDA; non-GAAP income from operations; non-GAAP net earnings; non-GAAP net earnings per diluted share; and free cash flow, which are reconciled to revenue (in the case of revenue ex-TAC, gross mobile revenue, and gross search revenue); net income (loss) attributable to Yahoo! Inc. (in the case of adjusted EBITDA and non-GAAP net earnings); income (loss) from operations; net income (loss) attributable to Yahoo! Inc. common stockholders per share – diluted; and net cash provided by (used in) operating activities, which we believe are the most comparable GAAP measures. Yahoo! Inc. (together with its consolidated subsidiaries, “Yahoo,” the “Company,” or “we”) uses these non-GAAP financial measures for internal managerial purposes and to facilitate period-to-period comparisons. We describe limitations specific to each non-GAAP financial measure below. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Further, management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, revenue, net income (loss) attributable to Yahoo! Inc., income (loss) from operations, net income (loss) attributable to Yahoo! Inc. common stockholders per share – diluted, and net cash provided by (used in) operating activities calculated in accordance with GAAP.

Revenue ex-TAC is a non-GAAP financial measure defined as GAAP revenue less TAC that has been recorded as a cost of revenue. TAC consists of payments made to Affiliates, and payments made to companies that direct consumer and business traffic toYahoo Properties. Based on applicable accounting principles, TAC is recorded either as a cost of revenue or as a reduction of revenue. We present revenue ex-TAC to provide investors a metric used by the Company for evaluation and decision-making purposes and to provide investors with comparable revenue numbers when comparing to our historical reported financial information. A limitation of revenue ex-TAC is that it is a measure we defined for internal and investor purposes that may be unique to the Company, and therefore it may not enhance the comparability of our results to those of other companies in our industry who have similar business arrangements but address the impact of TAC differently. Management compensates for these limitations by also relying on the comparable GAAP financial measures of revenue and cost of revenue—TAC.

Each of gross mobile revenue and gross search revenue is a non-GAAP financial measure. Gross mobile revenue is defined as GAAP mobile revenue plus the related revenue share with third parties. Gross search revenue is defined as GAAP search revenue plus the related revenue share with third parties. We present these amounts to provide investors with additional metrics used by the Company for evaluation and decision-making purposes and as an indicator of the size of our presence in the relevant business. To this end, gross mobile revenue and gross search revenue report the total receipts generated on Yahoo Properties and Affiliate sites by the specified relevantYahoo business (i.e., mobile or search), before any TAC or other revenue share is paid to the Affiliates and before any revenue share is allocated to Microsoft or other parties. A limitation of these non-GAAP measures is that they include revenue that is recognized by one or more third parties and not by Yahoo; furthermore, they are measures we defined for internal and investor purposes that may be unique to us, and therefore may not enhance the comparability of our results to those of other companies in our industry who have similar business arrangements but address the impact of TAC and revenue sharing differently. Management compensates for these limitations by also relying on the comparable financial measure GAAP revenue.

Adjusted EBITDA is defined as net income (loss) attributable to Yahoo! Inc. before taxes, depreciation, amortization of intangible assets, stock-based compensation expense, other income, net (which includes interest), earnings in equity interests, net income attributable to noncontrolling interests and other gains, losses, and expenses that we do not believe are indicative of our ongoing results. We present adjusted EBITDA because the exclusion of certain gains, losses, and expenses facilitates comparisons of the operating performance of the Company on a period to period basis. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for results reported under GAAP. These limitations include: adjusted EBITDA does not reflect tax payments and such payments reflect a reduction in cash available to us; adjusted EBITDA does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our businesses; adjusted EBITDA does not include stock-based compensation expense related to the Company’s workforce; adjusted EBITDA also excludes other income, net (which includes interest), earnings in equity interests, net income attributable to noncontrolling interests and other gains, losses, and expenses that we do not believe are indicative of our ongoing results, and these items may represent a reduction or increase in cash available to us; and adjusted EBITDA is a measure that may be unique to the Company, and therefore it may not enhance the comparability of our results to other companies in our industry. Management compensates for these limitations by also relying on the comparable GAAP financial measure of net income (loss) attributable to Yahoo! Inc., which includes taxes, depreciation, amortization, stock-based compensation expense, other income, net (which includes interest), earnings in equity interests, net income attributable to noncontrolling interests and the other gains, losses and expenses that are excluded from adjusted EBITDA.

Non-GAAP income from operations is defined as income from operations excluding certain gains, losses, and expenses that we do not believe are indicative of our ongoing operating results and further adjusted to exclude stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation expense enhances the ability of management and investors to understand the impact of stock-based compensation expense on income from operations. We consider non-GAAP income from operations to be a profitability measure which facilitates the forecasting of our operating results for future periods and allows for the comparison of our results to historical periods. A limitation of non-GAAP income from operations is that it does not include all items that impact our income from operations for the period. Management compensates for this limitation by also relying on the comparable GAAP financial measure of income from operations which includes the gains, losses, and expenses that are excluded from non-GAAP income from operations.

Non-GAAP net earnings is defined as net income (loss) attributable to Yahoo! Inc. (which we sometimes refer to as net earnings) excluding certain gains, losses, expenses, and their related tax effects that we do not believe are indicative of our ongoing results and further adjusted to exclude stock-based compensation expense and its related tax effects. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation expense enhances the ability of management and investors to understand the impact of stock-based compensation expense on net income and net income per share. We consider non-GAAP net earnings and non-GAAP net earnings per diluted share to be profitability measures which facilitate the forecasting of our results for future periods and allow for the comparison of our results to historical periods. A limitation of non-GAAP net earnings and non-GAAP net earnings per diluted share is that they do not include all items that impact our net income and net income per diluted share for the period. Management compensates for this limitation by also relying on the comparable GAAP financial measures of net income (loss) attributable to Yahoo! Inc. and net income attributable to Yahoo! Inc. common stockholders per share – diluted, both of which include the gains, losses, expenses and related tax effects that are excluded from non-GAAP net earnings and non-GAAP net earnings per diluted share.

Free cash flow is a non-GAAP financial measure defined as net cash provided by (used in) operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net and dividends received from equity investees. We consider free cash flow to be a liquidity measure which provides useful information to management and investors about the amount of cash generated by the business after the acquisition of property and equipment, which can then be used for strategic opportunities including, among others, investing in the Company’s business, making strategic acquisitions, strengthening the balance sheet, and repurchasing stock. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for this limitation by also relying on the net change in cash and cash equivalents as presented in the Company’s unaudited condensed consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.

Yahoo! Inc.

Supplemental Financial Data and GAAP to Non-GAAP Reconciliations

(in thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2014 2015 2014 2015

Revenue for groups of similar services:

Search $ 428,418 $ 521,126 $ 873,185 $ 1,052,792

Display 436,053 500,376 889,277 964,109

Other 219,720 221,763 454,459 452,334

Total revenue $ 1,084,191 $ 1,243,265 $ 2,216,921 $ 2,469,235

Revenue excluding traffic acquisition costs recorded as cost of revenue (“revenue ex-TAC”) for groups of similar services:

GAAP search revenue $ 428,418 $ 521,126 $ 873,185 $ 1,052,792

TAC associated with search revenue (784 ) (105,876 ) (1,470 ) (205,885 )

Search revenue ex-TAC $ 427,634 $ 415,250 $ 871,715 $ 846,907

GAAP display revenue $ 436,053 $ 500,376 $ 889,277 $ 964,109

TAC associated with display revenue (42,217 ) (93,682 ) (86,579 ) (176,116 )

Display revenue ex-TAC $ 393,836 $ 406,694 $ 802,698 $ 787,993

Other GAAP revenue $ 219,720 $ 221,763 $ 454,459 $ 452,334

TAC associated with other GAAP revenue (825 ) (672 ) (1,686 ) (1,368 )

Other revenue ex-TAC $ 218,895 $ 221,091 $ 452,773 $ 450,966

Revenue ex-TAC:

GAAP revenue $ 1,084,191 $ 1,243,265 $ 2,216,921 $ 2,469,235

TAC (43,826 ) (200,230 ) (89,735 ) (383,369 )

Revenue ex-TAC $ 1,040,365 $ 1,043,035 $ 2,127,186 $ 2,085,866

Revenue ex-TAC by segment:

Americas:

GAAP revenue $ 805,535 $ 992,210 $ 1,672,463 $ 1,976,931

TAC (30,296 ) (180,822 ) (64,390 ) (347,477 )

Revenue ex-TAC $ 775,239 $ 811,388 $ 1,608,073 $ 1,629,454

EMEA:

GAAP revenue $ 97,847 $ 85,830 $ 189,417 $ 166,916

TAC (10,212 ) (12,950 ) (19,405 ) (24,654 )

Revenue ex-TAC $ 87,635 $ 72,880 $ 170,012 $ 142,262

Asia Pacific:

GAAP revenue $ 180,809 $ 165,225 $ 355,041 $ 325,388

TAC (3,318 ) (6,458 ) (5,940 ) (11,238 )

Revenue ex-TAC $ 177,491 $ 158,767 $ 349,101 $ 314,150

Total revenue ex-TAC $ 1,040,365 $ 1,043,035 $ 2,127,186 $ 2,085,866

Direct costs by segment⁽³⁾:

Americas $ 60,167 $ 76,148 $ 120,977 $ 134,892

EMEA 21,395 20,551 43,339 40,702

Asia Pacific 48,139 51,818 94,967 102,550

Global operating costs ⁽⁴⁾ 631,801 649,915 1,282,659 1,334,006

Gain on sale of patents (61,500 ) (9,100 ) (61,500 ) (11,100 )

Restructuring charges, net 52,621 19,688 62,108 70,920

Depreciation and amortization 146,860 153,679 304,394 305,218

Stock-based compensation expense 102,445 125,130 211,626 240,826

Income (loss) from operations $ 38,437 $ (44,794 ) $ 68,616 $ (132,148 )

⁽³⁾ Direct costs for each segment include certain cost of revenue-other and costs associated with the local sales teams. Prior to the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and ad operation costs were managed locally and included as direct costs for each segment. Prior period amounts have been revised to conform to the current presentation.

⁽⁴⁾ Global operating costs include product development, marketing, real estate workplace, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. Beginning in the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and other ad operation costs are managed globally and included as global costs. Prior period amounts have been revised to conform to the current presentation.

Yahoo! Inc.

Supplemental Financial Data and GAAP to Non-GAAP Reconciliations (continued)

(in thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2014 2015 2014 2015

Reconciliation of net income (loss) attributable toYahoo! Inc. to adjusted EBITDA:

Net income (loss) attributable toYahoo! Inc. $ 269,707 $ (21,554 ) $ 581,285 $ (356 )

Advisory fees – 8,000 – 8,000

Depreciation and amortization 146,860 153,679 304,394 305,218

Stock-based compensation expense 102,445 125,130 211,626 240,826

Restructuring charges, net 52,621 19,688 62,108 70,920

Other expense, net 13,589 11,741 27,042 42,804

Provision for income taxes 8,143 58,495 12,360 17,595

Earnings in equity interests (255,852 ) (95,841 ) (557,254 ) (195,531 )

Net income attributable to noncontrolling interests 2,850 2,365 5,183 3,340

Adjusted EBITDA $ 340,363 $ 261,703 $ 646,744 $ 492,816

Reconciliation of net cash provided by (used in) operating activities to free cash flow:

Net cash provided by (used in) operating activities $ 357,414 $ 307,952 $ 496,475 $ (2,629,519 )

Acquisition of property and equipment, net (107,358 ) (155,442 ) (192,013 ) (290,363 )

Dividends received from equity investee (83,685 ) (141,670 ) (83,685 ) (141,670 )

Excess tax benefits from stock-based awards 19,544 (35,620 ) 79,100 1,850

Free cash flow⁽²⁾ $ 185,915 $ (24,780 ) $ 299,877 $ (3,059,702 )

Three Months Ended Six Months Ended

June 30, June 30,

2014 2015 2014 2015

Reconciliation of GAAP mobile revenue to gross mobile revenue:

GAAP mobile revenue $ 163,007 $ 251,846 $ 307,679 $ 485,439

Revenue share with third parties 108,634 162,801 195,352 320,678

Gross mobile revenue $ 271,641 $ 414,647 $ 503,031 $ 806,117

Reconciliation of GAAP search revenue to gross search revenue:

GAAP search revenue $ 428,418 $ 521,126 $ 873,185 $ 1,052,792

Revenue share with third parties 368,592 398,710 722,978 822,809

Gross search revenue $ 797,010 $ 919,836 $ 1,596,163 $ 1,875,601

⁽²⁾ During the six months ended June 30, 2015, the Company satisfied the$3.3 billion income tax liability related to the sale of Alibaba Group ADSs in September 2014.

Yahoo! Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except per share amounts)

Three Months Ended

June 30,

2014 2015

GAAP income (loss) from operations $ 38,437 $ (44,794 )

(a) Restructuring charges, net 52,621 19,688

(b) Stock-based compensation expense 102,445 125,130

(c) Advisory fees – 8,000

Non-GAAP income (loss) from operations $ 193,503 $ 108,024

GAAP net income (loss) attributable to Yahoo! Inc. $ 269,707 $ (21,554 )

(a) Restructuring charges, net 52,621 19,688

(b) Stock-based compensation expense 102,445 125,130

(c) Advisory fees – 8,000

(d) Gain on Hortonworks warrants – (5,449 )

(e) To adjust the provision for income taxes to reflect an effective tax rate of 35% for the three months ended June 30, 2015and to exclude the tax impact of items (a) through (d) above for the three months ended June 30, 2014 (43,032 ) 26,703

Non-GAAP net earnings $ 381,741 $ 152,518

GAAP net income (loss) attributable to Yahoo! Inc. common stockholders per share – diluted⁽¹⁾ $ 0.26 $ (0.02 )

Non-GAAP net earnings per share – diluted ⁽⁵⁾ $ 0.37 $ 0.16

Shares used in non-GAAP per share calculation – diluted 1,014,692 947,775

Six Months Ended

June 30,

2014 2015

GAAP income (loss) from operations $ 68,616 $ (132,148 )

(a) Restructuring charges, net 62,108 70,920

(b) Stock-based compensation 211,626 240,826

(c) Advisory fees – 8,000

Non-GAAP income from operations $ 342,350 $ 187,598

GAAP net income attributable to Yahoo! Inc. $ 581,285 $ (356 )

(a) Restructuring charges, net 62,108 70,920

(b) Stock-based compensation 211,626 240,826

(c) Advisory fees – 8,000

(d) Loss on Hortonworks warrants – 6,460

(e) To adjust the provision for income taxes to reflect an effective tax rate of 35% in the six months ended June 30, 2015 and to exclude the tax impact of items (a) through (d) above for the six months ended June 30, 2014 (71,654 ) (35,344 )

Non-GAAP net earnings $ 783,365 $ 290,506

GAAP net income attributable to Yahoo! Inc.common stockholders per share – diluted⁽¹⁾ $ 0.55 $ (0.00 )

Non-GAAP net earnings per share – diluted⁽⁵⁾ $ 0.74 $ 0.31

Shares used in non-GAAP per share calculation – diluted 1,023,056 947,877

⁽¹⁾ The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s diluted earnings per share by $0.01 for the three months ended June 30, 2014, and by $0.02 for the six months endedJune 30, 2014.

⁽⁵⁾ The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s non-GAAP diluted earnings per share by $0.01for the three months ended June 30, 2014, and by $0.02 for the six months ended June 30, 2014.

View source version on businesswire.com:http://www.businesswire.com/news/home/20150721006511/en/

Media Relations Contact:
Yahoo! Inc.
Sarah Meron, 408-349-4040
[email protected]
or
Investor Relations Contact:
Yahoo! Inc.
Joon Huh, 408-349-3382
[email protected]

Source: Yahoo! Inc.

Image via Wikimedia Commons

July 21, 2015

Recently Added Google Ranking Signal Benefits Etsy Sellers

It’s a good time to be an Etsy seller as far as visibility in Google search is concerned. Earlier this year, Google announced two major pieces of news with regards to how it ranks search results on mobile devices. The one that got the majority of industry coverage was related to the mobile-friendliness of sites. The other was that Google started using app indexing as a ranking signal, and has even expanded that signal since the initial announcement.

Etsy has a very popular mobile app, and Google’s app indexing signal seems to be benefiting its content greatly. In fact, Google specifically named Etsy as a developer that is seeing a boost in traffic from it.

Google held its quarterly earnings conference call last week, and during that, Senior Vice President and Chief Business Officer Omid Kordestani had this to say about the company’s mobile efforts (via Seeking Alpha’s transcript of the call):

More Google searches now take place on mobile devices than on computers in ten countries, including the U.S. and Japan, two of our largest markets. And we know that when people search on their mobile phones, they’re looking for immediacy and action. In fact, 30% of mobile queries are related to location and our efforts around local search are helping consumers to find relevant information fast.

…

Our teams have made great strides to help users find what they need within third-party apps through indexing. We now have 50 billion links within apps index and 25% of signed in Google searches on Android now return deep links, taking users right to content within an app or to a link so they can install it. We also recently started showing such links in search results on iOS, developers like Etsy are really seeing a boost in traffic as a result of deep linking. We also added now cards for more than 100 apps like OpenTable and Spotify and we have extended Google Voice actions to third party developers, so we can say things like, okay Google listen to MPR.

That Etsy name-drop has proven quite popular among the company’s investors as Etsy shares have “soared” since the call.

Update: Well, the shares are sinking again, but that doesn’t change the fact that Google’s comments are good news for sellers.

Etsy itself went public only a few months ago, and the company has done quite a bit to make its service better for sellers in preparing to do so.

Etsy reported its first quarterly earnings as a public company in May. The company said it would spend more on marketing in the following quarter.

If you have your own app, and wish to increase the visibility of its content, check out How To Set Up App Indexing For Ranking In Google.

Image via Etsy

July 20, 2015
eBay Delivery Feedback Feature Draws Ire From Sellers

eBay has been testing a new feedback feature that reportedly may be rolling out to all users. It enables customers to say whether or not they received the item they purchased on or before a specific estimated delivery date. Yes and no are the only options. There is no field for additional details or comment.

While eBay has let buyers leave more detailed comments on a seller’s shipping time in “detailed seller ratings” in the past, this narrows the scope of the question, and some sellers are concerned that eBay could misrepresent their efforts.

Ina Steiner at EcommerceBytes points to some comments on her own site as well as in the official eBay forum where sellers are airing their grievances. Here are some samples from the forum:

“Just great, not only does ebay provide aggresive estimated delivery dates, they remind the buyer of them during feedback”

“Just by asking it in that way, at that time, it makes it seem even more like a promise instead of an estimate.”

“It SHOULD say, seller promised to ship by X, actual shipment date Y. This company seriously could care less about it’s customers – the silver lining of watching our sales dwindle is knowing ebay is on it’s way out too.”

“Oh, for cryin’ in the rain! Just one more thing to rate sellers on……Isn’t there enough already? Wonder how this will play out with holiday estimated delivery times, the winter months etc. I think I’ll just have a glass of wine now.”

“Looks like another way to put seller[s] out of business.”

“This is absolutely ridiculous! USPS is now about to fully close the Toledo Ohio sort facility and everything will have to go to Detroit , MI sort facility! What a mess this is going to cause for northern Ohio sellers! Already cases on the news where two day deliveries are taking TWO WEEKS! Once it leaves our hands it is completely out of our control but yet EBAY finds another standard by which they give give the buyer to leave us low ratings and a potential defect! WHAT ON EARTH IS EBAY DOING TO PROMOTE POSITIVE RESULTS ON THIS SITE?”

Are these overreactions? Even if they are, it’s clear that sellers aren’t happy about the change. There are pages of these types of comments in the forum. There isn’t much in the way of people defending the feature.

The overall theme throughout most of the comments on the feature seems to be that it is unnecessary at best with few seeing it as a positive for anyone involved. Many think eBay already has the data it needs when it comes to deliveries.

Image via eBay Forum

July 20, 2015

Yelp Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	June 30,	December 31,
	2015	2014
Assets
Current assets:
Cash and cash equivalents	$ 181,460	$ 247,312
Short-term marketable securities	186,673	118,498
Accounts receivable, net	41,339	35,593
Prepaid expenses and other current assets	22,713	19,355
Total current assets	432,185	420,758

Long-term marketable securities	–	38,612
Property, equipment and software, net	72,603	62,761
Goodwill	173,296	67,307
Intangibles, net	42,458	5,786
Restricted cash	16,285	17,943
Other assets	4,560	16,483
Total assets	$ 741,387	$ 629,650

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$ 1,706	$ 1,398
Accrued liabilities	37,716	29,581
Deferred revenue	2,546	2,994
Total current liabilities	41,968	33,973
Long-term liabilities	13,254	7,527
Total liabilities	55,222	41,500

Commitments and contingencies

Stockholders’ equity
Common stock	–	–
Additional paid-in capital	734,867	627,742
Accumulated other comprehensive loss	(12,130)	(5,609)
Accumulated deficit	(36,572)	(33,983)
Total stockholders’ equity	686,165	588,150
Total liabilities and stockholders’ equity	$ 741,387	$ 629,650

Yelp Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014

Net revenue	$ 133,913	$ 88,787	$ 252,421	$ 165,194

Cost and expenses
Cost of revenue (1)	13,057	5,845	21,756	10,922
Sales and marketing (1)	68,014	47,798	131,280	92,919
Product development (1)	26,345	14,726	50,305	28,708
General and administrative (1)	19,280	13,257	39,217	26,427
Depreciation and amortization	7,167	4,034	14,062	7,695

Total cost and expenses	133,863	85,660	256,620	166,671
Income (loss) from operations	50	3,127	(4,199)	(1,477)
Other income (expense), net	329	(15)	891	(17)
Income (loss) before income taxes	379	3,112	(3,308)	(1,494)
Benefit (provision) for income taxes	(1,684)	(369)	719	1,602
Net income (loss) attributable to common stockholders	$ (1,305)	$ 2,743	$ (2,589)	$ 108

Net (income) loss per share attributable to common stockholders:
Basic	$ (0.02)	$ 0.04	$ (0.03)	$ 0.00
Diluted	$ (0.02)	$ 0.04	$ (0.03)	$ 0.00
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic	74,631	71,714	74,009	71,444
Diluted	74,631	77,056	74,009	76,903



(1) Includes stock-based compensation expense as follows:
	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014
Cost of revenue	$ 222	$ 119	$ 346	$ 269
Sales and marketing	5,654	3,728	10,591	7,125
Product development	6,065	3,456	11,170	6,498
General and administrative	3,575	2,780	7,080	5,647
Total stock-based compensation	$ 15,516	$ 10,083	$ 29,187	$ 19,539

Yelp Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended
	June 30,
	2015	2014
Operating activities
Net income (loss)	$ (2,589)	$ 108
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization	14,062	7,695
Provision for doubtful accounts and sales returns	6,076	2,581
Stock-based compensation	29,187	19,539
Loss (gain) on disposal of assets and website development costs	144	(5)
Premium amortization, net, on securities held-to-maturity	481	93
Excess tax benefit from share-based award activity	(3,952)	(460)

Changes in operating assets and liabilities:
Accounts receivable	(7,855)	(6,716)
Prepaid expenses and other assets	(7,079)	(5,980)
Accounts payable, accrued expenses and other liabilities	15,616	3,567
Deferred revenue	(426)	(433)
Net cash provided by operating activities	43,665	19,989

Investing activities
Acquisitions, net of cash received	(73,422)	–
Purchases of property, equipment and software	(18,059)	(7,212)
Capitalized website and software development costs	(6,012)	(4,327)
Change in restricted cash	1,672	(397)
Purchase of intangibles	(314)	–
Proceeds from sale of property and equipment	109	14
Purchases of investment securities held-to-maturity	(93,914)	(122,226)
Maturities of investment securities held-to-maturity	63,870	–
Cash used in investing activities	(126,070)	(134,148)

Financing activities
Proceeds from exercise of employee stock options	8,534	10,841
Proceeds from issuance of common stock for Employee Stock Purchase Plan	5,061	4,087
Excess tax benefit from share-based award activity	3,952	460
Repurchase of common stock	(396)	(642)

Net cash provided by financing activities	17,151	14,746

Effect of exchange rate changes on cash and cash equivalents	(598)	35

Net decrease in cash and cash equivalents	(65,852)	(99,378)
Cash and cash equivalents at beginning of period	247,312	389,764
Cash and cash equivalents at end of period	181,460	$ 290,386

	Yelp Inc.
	Reconciliation of GAAP to Non-GAAP Financial Measures
	(In thousands)
	(Unaudited)

		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2015	2014	2015	2014

Adjusted EBITDA:
	Net income (loss)	$ (1,305)	$ 2,743	$ (2,589)	$ 108
	Provision (benefit) for income taxes	1,684	369	(719)	(1,602)
	Other (income) expense, net	(329)	15	(891)	17
	Depreciation and amortization	7,167	4,034	14,062	7,695
	Stock-based compensation	15,516	10,083	29,187	19,539
	Adjusted EBITDA	$ 22,733	$ 17,244	$ 39,050	$ 25,757

Non-GAAP net income and income per share:
	GAAP net income (loss) attributable to common shareholders
	GAAP net income (loss) attributable to common shareholders	$ (1,305)	$ 2,743	$ (2,589)	$ 108
	Add back: stock-based compensation	15,516	10,083	29,187	19,539
	Add back: amortization of intangible assets	1,803	629	3,034	1,255
	Less: tax effect of stock-based compensation & amortization of intangible assets
		(6,660)	(4,039)	(12,376)	(7,899)
	Add back: valuation allowance release (net of tax)	–	–	–	1,958
	NON-GAAP NET INCOME	$ 9,354	$ 9,416	$ 17,256	$ 14,961

	GAAP diluted shares	78,749	77,056	78,205	76,903

NON-GAAP NET INCOME PER SHARE		$ 0.12	$ 0.12	$ 0.22	$ 0.19


	Q2 2014	Q2 2015
GAAP revenue	$1,084 million	$1,243 million
Cost of revenue – TAC	$44 million	$200 million
Income (loss) from operations	$38 million	$(45) million
Non-GAAP income from operations	$194 million	$108 million
Adjusted EBITDA	$340 million	$262 million
Net earnings (loss)	$270 million	$(22) million
GAAP net earnings (loss) per diluted share	$0.26	($0.02)
Non-GAAP net earnings per diluted share	$0.37	$0.16


	Q2 2014	Q2 2015
Mavens revenue	$ 249 million	$ 399 million
Non-Mavens revenue	742 million	725 million
Total traffic-driven revenue	$ 991 million	$1,124 million
Non-traffic-driven revenue	93 million	119 million
GAAP revenue	$1,084 million	$1,243 million


	Q2 2014	Q2 2015
Mobile revenue	$ 163 million	$ 252 million
PC revenue	828 million	872 million
Total traffic-driven revenue	$ 991 million	$1,124 million
Non-traffic-driven revenue	93 million	119 million
GAAP revenue	$1,084 million	$1,243 million


Yahoo! Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)

	December 31,		June 30,
	2014		2015

ASSETS
Current assets:
Cash and cash equivalents	$	2,664,098	$	1,188,169
Short-term marketable securities		5,327,412		4,636,152
Accounts receivable, net		1,032,704		999,646
Prepaid expenses and other current assets		671,075		756,965
Total current assets		9,695,289		7,580,932

Long-term marketable securities		2,230,892		1,169,671
Property and equipment, net		1,487,684		1,524,539
Goodwill		5,163,654		5,146,579
Intangible assets, net		470,842		412,235
Other long-term assets and investments		554,616		475,497
Investments in Alibaba Group		39,867,789		31,555,927
Investments in equity interests		2,489,578		2,326,436

Total assets	$	61,960,344	$	50,191,816


LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	238,018	$	301,433
Income taxes payable related to sale of Alibaba Group ADSs		3,282,293		–
Other accrued expenses and current liabilities		671,307		903,005
Deferred revenue		336,963		202,246
Total current liabilities		4,528,581		1,406,684

Convertible notes		1,170,423		1,201,540
Long-term deferred revenue		20,774		23,442
Other long-term liabilities		143,095		126,138
Deferred tax liabilities related to investment in Alibaba Group		16,154,906		12,768,155
Deferred and other long-term tax liabilities		1,156,973		1,102,007
Total liabilities		23,174,752		16,627,966

Total Yahoo! Inc. stockholders’ equity		38,741,837		33,532,602
Noncontrolling interests		43,755		31,248
Total equity		38,785,592		33,563,850

Total liabilities and equity	$	61,960,344	$	50,191,816

⁽¹⁾		The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s diluted earnings per share by $0.01 for the three months ended June 30, 2014, and by $0.02 for the six months ended June 30, 2014.
⁽²⁾		During the six months ended June 30, 2015, the Company satisfied the$3.3 billion income tax liability related to the sale of Alibaba Group ADSs in September 2014.

⁽³⁾		Direct costs for each segment include certain cost of revenue-other and costs associated with the local sales teams. Prior to the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and ad operation costs were managed locally and included as direct costs for each segment. Prior period amounts have been revised to conform to the current presentation.
⁽⁴⁾		Global operating costs include product development, marketing, real estate workplace, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. Beginning in the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and other ad operation costs are managed globally and included as global costs. Prior period amounts have been revised to conform to the current presentation.

⁽¹⁾		The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s diluted earnings per share by $0.01 for the three months ended June 30, 2014, and by $0.02 for the six months endedJune 30, 2014.
⁽⁵⁾		The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s non-GAAP diluted earnings per share by $0.01for the three months ended June 30, 2014, and by $0.02 for the six months ended June 30, 2014.