The largest U.S. tech company on Monday reported its fourth-quarter profit that fell short of Wall Street’s expectations but was better than Wall Street analysts’ estimates and helped it beat analyst forecasts.
Yahoo’s stock plunged as much as 4 percent on the news.
Yahoo Finance said its fourth quarter profit fell short estimates and that analysts were underestimating Yahoo’s revenues and profit growth.
Yahoo reported that its revenue and earnings fell 1.5 percent in the third quarter.
The company reported a profit of $1 billion, which beat analyst estimates of $960 million.
Yahoo said it was also profitable despite falling revenue, earnings and net income.
It reported $2.7 billion in revenue, down from $3.5 billion in the fourth quarter.
In a statement, Yahoo CEO Marissa Mayer said she and the company were “extremely pleased” with the results.
“We’ve always made clear that our focus is on growing our business,” Mayer said.
Yahoo reported a net loss of $0.9 billion for the quarter, or $0,834 per share, compared to a profit loss of more than $0 million, or about $0 per share. “
It is clear that we have the right people at the right time to be successful.”
Yahoo reported a net loss of $0.9 billion for the quarter, or $0,834 per share, compared to a profit loss of more than $0 million, or about $0 per share.
In its earnings call on Monday, Mayer called Yahoo’s revenue and net revenue down because it was unable to make money from the sale of a website in China that Yahoo had previously invested in.
The China-owned website, WeChat, had become a rival to Yahoo’s own platform.
Yahoo had planned to sell its Chinese site in 2019.
Yahoo did not immediately return a request for comment.
Yahoo is under pressure from a growing number of Wall St. analysts and Wall Street investors to make its finances look better in the coming months.
Yahoo has a $12 billion debt load, including $5 billion of unsecured loans.
The debt load also includes $1-billion of stock-based compensation to Mayer.
Yahoo says its debt service is expected to be $2 billion, a number it expects to pass in the first half of 2021.
In May, Yahoo agreed to pay $1 million to settle a lawsuit by the Securities and Exchange Commission alleging that the company had engaged in securities-based transactions with Chinese companies.
The SEC had sued Yahoo in 2014, alleging the company used the website WeChat to help fund the acquisition of WeChat.
The lawsuit alleges the company “engaged in a pattern and practice of securities-related activities” by failing to disclose the fact that the transactions were a violation of the Foreign Corrupt Practices Act.
Yahoo agreed not to pay any further penalties and agreed to divest itself of $3 billion in its Alibaba stake in 2020.