Yahoo Earnings Decline More Than Expected as Q3 Guided Down

In its second-quarter report today, Yahoo said that earnings were off more than expected while revenue saw a slight improvement from estimates.

Revenue at Yahoo was expected to decline slightly to $1.03 billion and adjusted earnings per share at 18 cents, a 51 percent decline from last year. Instead, Yahoo had $1.04 billion in revenue and earned 16 cents.

Yahoo shares were down in after-hours trading, largely due to downward guidance for the third quarter.

There was no word as to the state of the spinoff of its Chinese stake in Alibaba Group, which analysts will want to know about on its 2 pm PT call today.

“Our Mavens investment businesses across mobile, video, native and social grew to nearly $400 million in revenue this quarter, delivering 60 percent GAAP growth year over year,” said CEO Marissa Mayer in a statement. “Further, our display business saw the most substantial revenue growth since 2010.”

Mayer has been putting all her eggs in the so-called “MaVeNS” basket, hoping to offset declines in its more lucrative premium advertising products. Non-MaVeNS revenue dropped from $742 million to $725 million year over year.

Mobile revenue rose to $252 million from $234 million in the first quarter, but it was still not as high as the fourth quarter’s $254 million.

One interesting note: Yahoo’s headcount was down 11 percent to 11,000, evidence of what employees are internally calling “silent layoffs.” That said, the company has also lost a lot of key talent of late (more on that later).

Also to watch: Its Americas unit pretty much carried the business, as its Asia Pacific and Europe, Middle East and Africa regions saw more declines. Yahoo has about $7 billion in cash.

And buried in Yahoo’s slides was downward guidance for the third quarter, including revenue of $1 billion to $1.4 billion, down from $1.7 billion.

This article originally appeared on Recode.net.