Yahoo last night posted an underwhelming 6.8 per cent increase in revenue for the three months to September and announced a new advertising agreement with Google.
Google will pay Yahoo a percentage of revenue from ads displayed on Yahoo sites and get fees for requests for images or web search results.
Yahoo’s net profit came in at $76.3m (£49.4m) compared with a profit of $6.77bn in the same period last year and below analysts expectations.
However, last year’s figure was boosted by Yahoo’s sell-off of shares in Chinese e-commerce giant Alibaba, which the company is aiming to fully sell this year.
“This is an important moment for the company, and we continue to strive to complete the spin as quickly as we can,” said chief executive Marissa Mayer, who wants to focus more on growth in the company’s core areas.
Meanwhile, shares in tech giant IBM dropped 5.5 per cent yesterday after it announced a steep drop in revenues late on Monday night.