Earnings Recap Part 2: Alphabet (Google), Yahoo, Microsoft

We’re back with Part 2 of our earnings season recap. Read on for coverage, audience data, and Verto’s view on the earnings reports from Alphabet (Google), Yahoo, and Microsoft. Also to note, the Verto Stickiness Index compares the average number of daily users divided by the number of monthly users. The higher the stickiness rank, the larger the share of daily users. Enjoy the post, and weigh in @VertoAnalytics #VertoViews.


* MICROSOFT: Newer bets beat expectations

Key coverage:

Verto data:

  • Net reach (of online universe) is 91% (225.3M users)
    Mobile reach (among mobile users) is 57% (101.6M users)
  • 25% of all time spent has something to do with Microsoft (including time spent on Internet Explorer browsing non-Microsoft content)
  • On average, a Microsoft user spends 33 hours per month on a Microsoft app or website
  • Skype is the most popular Microsoft mobile app used by 12% (21.2M users) of users, Microsoft Outlook is 7% (12.2 M users), One Drive is 5% (9.1M users), and Bing Search is 4% (7.3M users) [Note: Android only]
  • The average time spent per user per month on Skype (PC or mobile) is 5.6 hours
  • Internet Explorer and Microsoft Word remain the most used digital properties for Microsoft with 116.6M and 90M monthly users respectively
  • Microsoft’s Stickiness Index ranking is 65%

Verto View:

Microsoft continues to push their platform-agnostic strategy with services like Office released for web and mobile platforms, and they have correspondingly strong results across all platforms. Even though Microsoft does not have a controlling stake among mobile platforms, their mobile apps have achieved strong user bases relatively quickly. Skype remains their top app with 21M users monthly, followed by the Outlook email app (12M users), and One Drive app (9M users). Despite the strong push into mobile apps, Microsoft remains behind other mobile properties like Amazon, with 151M users versus 102m monthly users for Microsoft. Instead of mobile or web properties, where companies like Facebook and Google shine, Microsoft’s top two properties are still desktop-centric. The Internet Explorer browser app has 117M monthly users, and Microsoft Word is used by 90M Americans monthly. It remains to be seen whether Microsoft’s push into mobile and web properties will lead to stronger growth in the future and ever seriously challenge its top contenders, Google and Yahoo.

* ALPHABET (GOOGLE): Follow the money

Key coverage:

Verto data:

  • Google’s net reach (of online universe) is 98% (242.M users)
  • Google flagship service, Google Search, remains the dominant service in the space with a monthly reach of 235.5M users, nearly double the number of users using Microsoft Bing at 138.7M and Yahoo at 115.4M
  • Google owns 17 of the top 100 online properties, of which 6 are in the top 10: Google Search, YouTube, Chrome, Google Maps, Google+, and Gmail
  • 82% of Google’s users use at least one of Google properties on every day of the month. By comparison, Facebook’s 74%, Microsoft 65%, Yahoo 49% and Amazon 34%
  • Android reach among mobile users is 59% (104.5M users), while the reach of iOS is around 51% (90M users) [Note: many users utilize both platforms]
  • 39% of all time spent on mobile by both Android and iOS users has something to do with Google whether it is an Android system app, Chrome browser, or any of Google’s online services like YouTube, Gmail, or Google+
  • Google’s Stickiness Index ranking is 82%

Verto view:

Despite the strong competition by Apple on the hardware side of the mobile ecosystem, Google is the clear winner when it comes to solutions, services, apps, and properties. With the exception of social (Google+), they have been able to build a strong business around mobile advertising, and Google search takes almost 10% of all time spent on mobile web and apps. Additionally, YouTube is a huge success for short-form video, and Gmail is the top email app in mobile. This shows a strong product portfolio and a significant, loyal user base. For the next few years, the big question is how much of this audience and engagement can Google monetize?  YouTube and search are successful examples of revenue-generating mobile properties, but can Google replicate this across its wider portfolio of mobile properties?

* YAHOO: Despite reach and loyalty, growth metrics are questioned

Key coverage:

Verto data:

  • Yahoo’s net reach (of online universe) is 93% (229M users)
  • Mobile reach (among mobile users) is 77% (135.6M mobile users)
  • 15% of all time spent on digital devices has something to do with Yahoo
  • On average, Yahoo users spend 18 hours a month on any of Yahoo’s properties
  • Yahoo Messenger (13 hrs/month/user) and Tumblr (8 hrs/month/user) engagement levels are higher than almost any of Google’s properties including popular properties such as YouTube (6 hrs/month/user) Yahoo’s challenge appears to lie in growing its user base to match Google’s
  • Yahoo Mail is another bright spot, though it has lost ground to Gmail over the years. A Yahoo Mail user spends more time on his/her email (2 hours a month) than a Gmail user (1.5 hours a month). Also, Yahoo Mail users tend to generate more sessions than Gmail users
  • Yahoo’s Stickiness Index ranking is 50%.

Verto view:

The 90s were Yahoo’s golden years, but the company remains relatively well stacked in today’s digital environment with a relatively strong portfolio of services and apps, many of which are being used a lot on mobile. Yahoo’s flagship app/site reaches 46M U.S. consumers per month on mobile, and both Yahoo Mail and Tumblr have sizable mobile audiences, with 35M and 32M unique monthly mobile users respectively. In the U.S., 15% of total online time spent has something to do with Yahoo. While behind Facebook and Google, Yahoo is well positioned to play a strong game in the future, too, however current shareholders are not making it easy for the executive team to focus on the execution on top of these media assets.

Next, we’ll post Part 3 with earnings data from Twitter, Pandora, and Zynga. Learn more about how we measure the digital, mobile consumer and our methodology for audience measurement. Subscribe to our newsletter or contact us.