Yahoo Inc's quarterly net revenue slid 4 percent and it forecast a further slide this quarter as it struggles to revive growth in the face of intense competition from Google and Facebook.
Yahoo shares were down 4.4 percent at $15.39 in extended trading on Tuesday.
Net revenue, which excludes revenue shared with website partners, totaled $1.2 billion in the three months ended December 31, compared with $1.26 billion in the year ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for $1.19 billion in net revenue.
And it projected that net revenue in the first quarter will range between $1.02 billion and $1.08 billion, compared with the $1.13 billion expected by analysts.
Its fourth-quarter earnings also lagged targets.
Yahoo said its net income in the fourth quarter was $312 million, or 24 cents a share, compared with $153 million, or 11 cents a share in the year ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for 22 cents a share.
(Reporting by Alexei Oreskovic; editing by Andre Grenon)