Yahoo shares up after earnings

On Tuesday, shares of Yahoo! Inc. (NASDAQ:YHOO) rose after the company report positive third quarter earnings per share of $0.20 on revenues of $1.31 billion compared to analysts’ expectations of $0.14 on in-line revenues.

“I am pleased with our Q3 results. This quarter, we launched several new products and showed solid financial performance across the board; both are a testimony to the tremendous teamwork, focus, and resilience of our employees,” said Marissa Mayer, CEO of Yahoo. “In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon. We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives. To that end, we take deep responsibility in protecting our users and the security of their information. We’re working hard to retain their trust and are heartened by their continued loyalty as seen in our user engagement trends.”

Outlook of Fourth Quarter of 2016

GAAP revenue to be in the range of $1,360 million to $1,400 million;

Cost of revenue – TAC to be $480 million;

Revenue ex-TAC to be in the range of $880 million to $920 million;

Adjusted EBITDA to be in the range of $260 million to $300 million; and

Non-GAAP income from operations to be in the range of $140 million to $180 million.

Outlook for the Full Year of 2016

GAAP revenue to be in the range of $5,060 million to $5,100 million;

Cost of revenue – TAC to be $1,620 million;

Revenue ex-TAC to be in the range of $3,440 million to $3,480 million;

Adjusted EBITDA to be in the range of $810 million to $850 million; and

Non-GAAP income from operations to be in the range of $300 million to $340 million.

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