Online search giant Yahoo has published its second quarter results which disappointed the market, sending its shares diving more than 7%.
Profits at the company grew by more than 50% in the quarter, but net revenues missed expectations.
Revenue in the three months ending June 30 totalled $1.6 billion (£1.05 billion), compared with $1.57 billion in the same quarter a year earlier.
Meanwhile, net income in the three-month period increased to $213.3 million, or 15 cents a share, from $141.4 million, or 10 cents a share in the same period a year ago – exceeding analysts’ forecast of 14 cents a share.
Commenting on the results, Tim Morse, Yahoo’s chief financial officer, said: “We still have plenty of work to do.” However, he highlighted the three month period ad been strong until June when many large advertisers reined in their spending, pushing orders back until July.
“That has made us incrementally more cautious,” said Mr Morse.
The figures come just a week after rival search engine giant, Google, reported second quarter net profit of $1.84 billion (£1.2 billion) – a rise of 24% on the $1.48 billion reported in the same period a year earlier.
Meanwhile, revenue for the three months ending June came in at $6.82 billion – also a sharp rise on the $5.52 billion reported a year ago.
However, Google’s results also missed analysts expectations.