Yahoo Q3 Net Falls 55%, But Beats Street Views

Yahoo! Inc. YHOO net income from operations fell 55 percent for the recent period on nearly flat revenue, but the company beat third-quarter expectations.

Yahoo traded recently in the extended session at $41.22, up 2.5 percent.

Chief Executive Marissa Mayer said the company saw "strong growth" in mobile, social and video "despite industry headwinds in some of our large, legacy businesses."

Display revenue fell 5 percent to $447 million; Ads sold grew 24 percent while price-per-ad fell in symmetry, 24 percent.

Search revenue grew 4 percent to $452 million while paid clicks were flat and price-per-click grew 17 percent.

At September 30, cash and marketable securities totaled $12 billion in cash and marketable securities.

During the third quarter and fourth quarter to date, the company bought back $1.6 billion in stock, including $1.4 billion as part of a plan to return at least half the after-tax proceeds from the sale of 140 million shares of Alibaba Group Holding Ltd.

The company said it obtained pre-tax proceeds of $9.4 billion from the sale of Alibaba shares.

For the third quarter, net earnings fell to $42 million, or $6.70 per share, from $93 million, or $0.28 share last year. Adjusted earnings were $0.52 per share, compared with $0.34 a year earlier.

Revenue grew 1 percent to $1.148 billion, from $1.139 billion a year earlier.

Analysts expected $0.30 per share on revenue of $1.04 billion.