Decline in net revenue due to revenue-share payments
Yahoo’s fourth-quarter earnings more than doubled despite a decline in net revenue, said the company.
The internet company posted a profit of $312m from $153m a year earlier, but total revenue decreased 12% to $1.53bn. Revenue excluding traffic-acquisition costs declined 4.2% to $1.21bn.
Operating margin rose to 14.4% from 6.9%.
After the financial results were released, Yahoo shares fell 2.6% to $15.61 in late trading.
The company said the decline in the net revenue was due to revenue-share payments to search partner Microsoft.
Yahoo also said it expected net revenue of $1.02bn to $1.08bn, with income from operations of $130m to $160m in the current first quarter.
Yahoo’s chief financial officer Tim Morse said the company was on the right path.
He said, "We are transitioning into a different company, and that is going to take some time."
Investors are interested in a company’s net revenue as it shows how much money the company has to run its business and post profits.