Yahoo Revenue Down in Fourth Quarter

2012-38 REP Marissa Mayer H

The new Yahoo CEO wins praise for her first investor call Oct. 22, explaining a plan to revitalize the company via mobile and search and revealing better-than-expected third-quarter earnings.

The web giant also reports higher profits, but the stock price is down in after-hours trading.

On Tuesday, Yahoo reported weaker revenue and better profits in the most recent financial quarter.

The web giant took in $1.27 billion in the fourth quarter of 2013 compared to $1.35 billion from the previous year. That's a 6 percent dip, and softness in display advertisements contributed.

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On the other hand, net income was up from $273.65 million to $351.67 million, and Wall Street analysts had prepared themselves for the announcement of a modest financial quarter.

Weighing all of this were after-hours traders, who sent the price of Yahoo stock down about 4 percent.

"I'm encouraged by Yahoo's performance in Q4 and 2013 overall," said Yahoo CEO Marissa Mayer. "We saw continued stability in the business, and our investments allowed us to bring beautiful products to our users and establish a strong foundation for revenue growth."