Yahoo's increased focus on its mobile, video, native and social media offerings, also known as Mavens, led to a corresponding jump in revenue for the business segment of 43 percent to $422 million. However, the company missed analyst forecasts for overall revenue and earnings per share.
Yahoo posted revenue of $1.23 billion in the third quarter of 2015, up from $1.15 billion a year previously, but below analyst estimates of $1.26 billion. The company saw net earnings of $76 million, with non-GAAP EPS of 15 cents.
Thomson Reuters had forecast earnings of 17 cents per share based on an average of analyst estimates, The Wall Street Journal said.
Other "traffic-driven" company revenue fell from $727 million to $693 million.
All eyes may be on Yahoo's spinoff of its holdings in Alibaba -- it's currently wrangling with the IRS over tax requirements of the move -- but the company is determined to keep its focus on streamlining its core business divisions, including Mavens.
"Our Q3 results were largely within our forecasted expectations -- our GAAP revenue grew 7 percent year-over-year and our Mavens revenue grew 43 percent. 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," said Marissa Mayer, CEO of Yahoo, in the earnings release.
Yahoo is continuing to build its video and advertising offerings. The company launched a daily live news stream hosted by Katie Couric at the beginning of the third quarter. In September, it announced that it had completed unification of its programmatic advertising inventory under the BrightRoll brand.
For the fourth quarter, Yahoo is forecasting revenue between $1.16 billion and $1.2 billion.
For more:
- see the earnings release
- see this WSJ article
- see this CNBC article
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