NEW YORK Yahoo! shares rose 73 cents to close at $34.96 this afternoon on the Nasdaq following yesterday's report that third-quarter net income nearly quadrupled, thanks in part to the Web portal's sale of some Google stock.
The Sunnyvale, Calif.-based company posted Q3 net income of $253 million, or 17 cents per diluted share, up from $65 million, or 5 cents per diluted share, in the year-ago quarter. Of that, some $129 million, or 9 cents per share, came from Yahoo!'s sale of a portion of its stake in Google following the Mountain View, Calif., search behemoth's August initial public offering and the related tax benefits. Excluding the gain, third-quarter net income would have almost doubled to $124 million, or 9 cents per diluted share.
Revenue increased 154 percent to $907 million from $357 million in the year-earlier period, while revenue excluding traffic acquisition costs rose 84 percent to $655 million from $357 million.
About 84 percent of the Internet property's overall revenue in Q3 came from advertising and marketing. Revenue from marketing services was $765 million, up 212 percent from $245 million during the same time last year. Yahoo! attributed the year-over-year growth to boosts in its organic marketing services revenue, as well as incremental revenue from acquisitions, including Overture, the commercial search company it purchased last October.
Third-quarter revenue from the company's fees-related services, including its dial-up and DSL products and Yahoo! Personals, rose 31 percent to $104 million as subscribers to those offerings grew from 4.2 million a year ago to 7.6 million today. Meanwhile, Q3 year-over-year revenue for its listings services was up 15 percent to $37 million.
The 52-week high for Yahoo!'s stock [YHOO] is $36.51; its low is $18.98.