Revenue slipped to $1.07 billion from $ 1.12 billion a year ago, which the company attributed to revenue sharing related to a search agreement with Microsoft .
The company beat expectations for earnings but missed on revenue: Analysts had expected Yahoo! to report earnings of 18 cents a share on revenue of $1.11 billion, according to Thomson Reuters.
This latest quarter's results include charges for the divestiture of HotJobs, broadband deferred revenue amortization and certain fee rate reductions. Net income rose to $237 million, or 18 cents a share, from $213 million, or 15 cents a share a year earlier.
The company said it expects third-quarter revenue of $1.05 to $1.1 billion; analysts had expected revenue of $1.12 billion.