Yahoo Posts Weak Third-Quarter Earnings
The online pioneer slightly missed expectations on both the top and bottom lines.
Yahoo reported lackluster third-quarter results on Tuesday, with $1.23 billion in revenue and 15 cents per share in earnings.
Yahoo was expected to earn 17 cents per share on $1.26 billion in revenue.
Yahoo is in the process of spinning off its 384 million shares of Alibaba Group into a separate entity, and investors have been waiting for clarification as to what the tax implications might be. The stock, down 16 percent this year, largely trades in tandem with Alibaba.
On Tuesday, shares of Yahoo fell 2 percent to $32.83, and they were down an additional 3 percent after the closing bell.
Yahoo under CEO Marissa Mayer is in turnaround mode, with Wall Street looking for signs that acquisitions such as Tumblr and Polyvore will make for profitable additions to the pioneering Internet company.
Yahoo has been losing top talent, most recently chief development officer Jacqueline Reses, while the search remains challenging in the face of competition from Google and others.
Yahoo's MaVeNs initiative, though, is promising. The name stands for Mobile, Video, Native and Social, and Yahoo said Tuesday that revenue there shot up 43 percent to $422 million in the third quarter.
The turnaround effort also includes cost-cutting, and Yahoo said Tuesday that it ended the quarter with 10,700 employees, down from 12,500 a year earlier.
"As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability," Mayer said Tuesday.
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