Yahoo Inc. reported a fourth quarter net loss Tuesday but its earnings after adjustments on one time charges beat Wall Street forecasts as it launched initiatives to reduce costs.

Yahoo reported a net loss of $303 million or 22 cents per share in the fourth quarter of 2008, compared with earnings of $205.7 million or 15 cents per share in the same period a year ago.

Yahoo earned $238 million or 17 cents per share, excluding charges, beating Wall Street forecasts of a net income of 13 cents per share, according to a Thomson Reuters survey.

Yahoo's revenue for the period was $1.81 billion or 1 percent down from $1.83 billion. Excluding its revenue portion shared with partners, Yahoo had revenue of $1.37 billion, down 2 percent from $1.4 billion in 2007 meeting forecasts.

We have work to do, but I am excited by Yahoo!'s opportunities, and encouraged by the tremendous innovation and momentum I've seen since joining the company as CEO, newly appointed chief executive Carol Bartz said in a statement today.

Yahoo said its net income for 2008 was $424 million or 29 cents per share compared to $660 million or 47 cents per share for 2007.

Yahoo has faced a tense 2008 with weak ad sales and a loss in its market share. Yahoo also rejected a merger with Microsoft Corp, and partnerships with Google Inc. and AOL.

Shares of Yahoo rose 3 percent in after-hours trading on Tuesday.