SAN FRANCISCO – The quest by Yahoo chief Marissa Mayer to reverse the struggling Internet pioneer’s fortunes stumbled Tuesday as the company reported that profit rose modestly but revenue slipped.
Yahoo shares tumbled 4.33 percent to $22.76 in after-hours trade after the company reported net income of $390.9 million, up 38.7 percent. However revenue fell 6.6 percent to $1.14 billion in the quarter that ended March 31. Earnings per share came in at 35 cents, compared to 23 cents a year earlier.
Display ad revenue dropped 11 percent from the same period last year while overall search revenue was down 10 percent after factoring in money paid to partners that route traffic to Yahoo properties, according to earnings figures. In contrast, the overall U.S. digital ad market grew 14.8 percent to $9.64 billion in the first three months of this year, industry tracker eMarketer said.