Internet firm Yahoo has forged ahead with developing the mobile side of its business by acquiring app analytics firm Flurry for an undisclosed sum.
The move is aimed at boosting advertising revenue from smartphones, which could help offset the poor performance in display advertising revealed in a lacklustre second-quarter financial report.
Flurry helps app developers analyse data about their users and deliver more personalised ads, according to the BBC.
Chief executive Marissa Mayer highlighted a 90% collective gain for Yahoo’s social, mobile and video divisions in second-quarter financial results, but admitted display advertising “remains an area of investment and transition”.
Mayer said the decline in display revenue highlighted the need to work faster to “ameliorate” the negative trends after Yahoo reported Q2 profits falling by 18% to $270m and revenue by 3% to $1.08bn compared with a year ago.
Most of the decline was due to a sharp drop in digital display advertising, which plunged 8% in the second quarter. Mobile display and search revenues each grew more than 100% compared with the same period a year ago.
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In nearly two years since she was charged with turning around Yahoo’s fortunes, Mayer has overseen large investments in Yahoo’s mobile capabilities, including the acquisition of news summary app Summly from UK teenager Nick D’Aloiso for around £20m in 2013.
Although the terms of the latest deal have not been disclosed, some reports indicate that Yahoo paid between £117m and £175m, which would make Flurry one of Yahoo’s biggest acquisitions since it bought blogging platform Tumblr in 2013 in a $1.1bn (£644m) deal.
The two firms said that by joining forces they will be able to serve their customers better and boost mobile revenues.
“With Yahoo, we will have access to more resources to speed up the delivery of great products that can help app developers build better apps, reach the right users, and explore new revenue opportunities,” said Simon Khalaf, chief executive of Flurry.
“Over the last six years we have accomplished a lot on our own, but with Yahoo we are in an even better position to achieve our joint goals.”
According to its website, Flurry works with more than 170,000 developers, picking up data from 150 billion app sessions each month.