Yahoo announces Q3 results and new search deal with Google

Yahoo has announced its latest fiscal results, which disappointingly failed to meet the expectations of analysts, but the company also revealed a new deal with Google that will hopefully help to secure some more revenue.

The deal means that Google will provide search ads to Yahoo, on both mobile and desktop computers, with Yahoo getting a slice of the profits – although exactly how big that percentage will be isn’t clear.

This deal will run alongside the search services provided by Microsoft, which Yahoo said is still a “strong partner” despite the new agreement.

As for Yahoo’s Q3 results, GAAP revenue hit $1.23 billion (£800 million), which was up 7 per cent on the previous year. Mobile revenue stood at $271 million (£175 million), with PC revenue hitting $844 million (£545 million), for a total traffic-driven revenue of $1.115 billion (£720 million).

The company made an operating loss of $86 million (£55 million) in the quarter.

Marissa Mayer, CEO of Yahoo, described the results as “largely within” forecasted expectations. She noted: “As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability.”

“In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings. This is an important moment for the Company, and we continue to strive to complete the spin as quickly as we can.”