SAN FRANCISCO — Yahoo reported third-quarter profit that topped analysts estimates as an influx of advertising dollars helped boost the turnaround efforts by Chief Executive Officer Marissa Mayer.
Profit, excluding some items, was 34 cents a share, Sunnyvale, Calif.-based Yahoo said Tuesday in a statement. Analysts had projected earnings of 33 cents, according to data compiled by Bloomberg. Revenue, excluding sales passed to partner sites, was $1.08 billion, in line with estimates.
Mayer, who took the helm of the largest U.S. Web portal in July 2012, is investing in product improvements to woo more users and marketers amid competition from Google and Facebook. Last month, Mayer said the company surpassed 800 million active monthly users, an increase of about 20 percent since she arrived at Yahoo from Google.
Its finally showing some signs of a rebound, said Martin Pyykkonen, an analyst at Wedge Partners in Greenwood Village, Colo. Its sounding better.
Yahoo rose as much as 6.4 percent to $35.50 in extended trading after the report. The stock fell 1.8 percent at the close in New York and has surged 68 percent this year after dropping in five of the previous seven years.
Yahoo forecast sales, excluding revenue passed on to partners sites, of $1.18 billion to $1.22 billion for the fourth quarter and $4.4 billion to $4.45 billion for the year.
To infuse engineering talent and innovative products into the company, Mayer has been on a buying spree, acquiring at least 19 companies.
Mayer also is adding new products and updating existing ones.
The developments havent resulted in advertising market share gains. Yahoos share of the U.S. online ad market will probably drop to 7.7 percent this year from 8.6 percent in 2012, according to EMarketer Inc.