Revenues were way below analysts’ forecast flat at USD 1.08 bn.
Yahoo has been battling hard against Google, which beats it in areas of display and search advertising, and also against networking sites like Facebook and Twitter, where people choose to spend more of their online time.
The results come in the wake of Yahoo’s recent structuring, hiring Marissa Mayer as the chief executive.
She replaced Scott Thompson who resigned in May after less 6 months of working with Yahoo. The next chief executive Carol Bartz was ousted after failing to revitalize Yahoo.
Ms Mayer is widely credited with developing the highly successful Google services such as Gmail, Google Maps and Google News.