Yahoo's 3Q profit surges
Company revenue falls 11%Yahoo reported Tuesday that its quarterly profit more than tripled even as revenue fell, an indication the nation's No. 2 Internet search company might be doing better at controlling costs than selling online advertising.
The firm reported a third-quarter profit of $188 million on revenue that fell 11% to $1.6 billion.
Last week, Yahoo competitor Google reported a 27% climb in quarterly profit to $1.64 billion on revenue up 7% to $5.94 billion.
As with Google, investors cheered Yahoo's results, which beat Wall Street's expectations on the top and bottom lines. Yahoo shares fell fractionally during Tuesday's regular session to $17.17 but jumped as much as 6% after the closing bell, when its results were released.
"Our major businesses have stabilized," CEO Carol Bartz said in a statement. (CFO Tim Morse said Bartz was ill and unable to participate in a conference call with analysts to discuss earnings.)
"We saw strength in key areas of our business after two straight quarters of deceleration," Morse said.
Search in the U.S. fell 4% compared with the second quarter, but international search more than made up for it. Page views grew 4% year-over-year, despite tough comparisons with last year when the Olympics were a hot topic.
Morse said Yahoo has been hiring more workers but at a slower pace than planned. "There are a lot of people that want to work at Yahoo right now, that see the turn coming and want to be a part of it."
He also said a Microsoft-Yahoo collaboration on search has the support of the advertising industry and that the deal should close early next year, assuming regulators approve.
Yahoo has introduced a new, customizable home page for users who opt in and launched a brand-revitalization campaign expected to cost the company about $100 million in TV and other advertising.
"Our execution is improving, and we're focused on what we do best -- being the center of people's online lives," Bartz said in the statement.