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Yahoo Beats Financial Expectations Even as Profit Dips

UP: Marissa Mayer

The company needs a "chain reaction of growth," CEO Marissa Mayer says during a conference call with analysts.

Yahoo reported a fourth-quarter profit of $272 million, down from $296 million in the same frame a year ago, but the results were better than anticipated and the stock rose as much as 5 percent in after-hours trading Monday.

On a per-share basis, Yahoo earned 23 cents, about 4 cents more than analysts were expecting. Revenue rose nearly 2 percent to $1.35 billion, while net revenue -- which strips out fees that Yahoo shares with partner websites -- increased 4 percent to $1.22 billion.

STORY: Yahoo CEO Marissa Mayer Discusses Mobile, Product Opportunities

Yahoo said search revenue grew 4 percent to $482 million but revenue generated by display-advertising, which many analysts view as Yahoo's core business, dropped 3 percent to $591 million.

"Yahoo exhibited revenue growth for the first time in four years," noted CEO Marissa Mayer. "During the quarter we made progress by growing our executive team, signing key partnerships including those with NBC Sports and CBS Television and launching terrific mobile experiences for Yahoo Mail and Flickr."

During a conference call with analysts, Mayer said Yahoo needs a "chain reaction of growth," which conceivably might come with the introduction of new products.

"The best is yet to come," said Mayer, who was made CEO in July.