Yahoo on Tuesday posted net income for the fourth quarter that rose from a year ago but was below analyst expectations.
Net income excluding one-time items was $247 million, or 16 cents per share, compared with $187 million, or 13 cents a share, a year ago.
Analysts polled by Thomson Financial had expected Yahoo to post fourth-quarter earnings per share of 17 cents.
The news sent Yahoo shares tumbling more than 11 percent in after-hours trading. After closing at $40.11 in regular trading, the shares slid to about $35.49 just minutes after the earnings report was released.
Revenue was $1.5 billion, up 39 percent from $1.78 billion a year ago. Revenue excluding traffic acquisition costs, or fees shared with partners, was $1.068 billion, in line with analyst estimates and up 36 percent from $785 million a year ago.