Yesterday, Yahoo reported a less-than-stellar third quarter with (only) $1.12 billion, which is below the projected $1.15 billion and 38% less than last quarter. Despite the profit drop, stocks were up 3% yesterday. Yahoo, which attributes the drop to slower sales with large advertisers, is emphasizing the continued development of project Panama, its search advertising program.
Yahoo CEO Terry Semel, in a teleconference with analysts, also mentioned Yahoo’s purchase of rich media technology company AdInterax and its 20% investment in online ad marketplace Right Media. “These initiatives will help ensure that Yahoo! continues to be the first and most attractive choice for graphical advertisers and will position us to widen the gap with our competitors.”
Semel also reaffirmed Yahoo’s commitment to social media, video and mobile access, mentioning Yahoo’s purchase of Jumpcut, a video sharing service that lets users edit video online, and the continuing rollout of the Yahoo Go mobile service.
Yahoo’s reported revenue did not include fees paid to content partners. The company has lowered fourth quarter estimates and predicts that they will be between $1.45 billion and $1.265 billion.