Yahoo’s falling profit didn’t drop quite as much as feared in the latest period, as the online media giant reported Tuesday its adjusted earnings and revenue were slightly better than Wall Street anticipated.
The news wasn’t all good. Factoring in special costs like stock-based compensation and restructuring charges, the one-time Internet giant swung to a loss.
Shares were up 2.2 percent at $37.13 in after-hours trading right after the news. The stock has dropped about 17 percent in the last year.
Yahoo faces uncertainty on multiple fronts. Since CEO Marissa Mayer took the company’s helm in 2012, the one-time Internet giant has under scrutiny to reinvent itself for the mobile age. But Mayer’s strategies, like pricey start-up takeovers, amped up news and video content and a portfolio of new apps, haven’t translated to meaningful growth, and the company is in the midst of a bidding process that could end up selling itself.
Most recently, Yahoo came under attack from activist investor Starboard Value, which last month launched a campaign to oust the board.
Tuesday, Mayer said she the year was off to a “solid start,” but the company provided scant detail about the sale process.
“We made substantial progress towards potential strategic alternatives for Yahoo,” she said. “Our board, our management team, and I are completely aligned on this top priority for shareholders.”
In the three-month period ended in March, Yahoo reported a loss of $99.2 million, or 10 cents a share, swinging from a profit of $21.2 million, or 2 cents a share, a year earlier.
The latest period included one-time items. Excluding them, Yahoo would have reported a profit of 8 cents, beating the average analyst estimate for per-share profit of 7 cents.
Revenue slipped 11 percent to $1.087 billion, slightly better than the $1.076 billion analysts expected.
