Shares of Yahoo surged in after-hours trading, climbing as much as 7.31% to $51.50 per share, while VMware shares climbed as much as 2.58% to $82.69 per share

Yahoo! Inc., VMware, Inc. Beat Earnings Estimates

Yahoo and VMware both released their latest earnings report after closing bell tonight. Yahoo reported adjusted earnings of 30 cents per share on $1.18 billion in revenue excluding traffic acquisition costs Analysts had been expecting the search giant to post earnings of 29 cents per share on $1.2 billion in revenue for the fourth quarter.

VMware posted adjusted earnings of $1.08 per share on revenue of $1.7 billion for the fourth quarter, a new record. Analysts had been expecting the company to post earnings of $1.07 per share on $1.7 billion in revenue for the fourth quarter.

Key metrics from Yahoo’s earnings report

Yahoo reported GAAP revenue of $1.253 billion for the fourth quarter and $4.618 billion for the full year. Revenue excluding traffic acquisition costs for the full year was $4.401 billion. Adjusted EBITDA was $256 million for the fourth quarter and $1.362 billion for the full year. Non-GAAP earnings for the full year were $1.57 per share. GAAP earnings for the fourth quarter were 17 cents and for the full year, $7.45 per share.

Yahoo reported GAAP search revenue of $467 million and search revenue excluding traffic acquisition costs of $462 million for the fourth quarter. GAAP display revenue was $532 million for the quarter. Excluding traffic acquisition costs, it was $464 million for the quarter.

In a related topic, Yahoo announced plans for a tax-free spinoff of its remaining holdings in Chinese online retailer Alibaba. The new publicly traded company will be called SpinCo.

Key metrics from VMware’s earnings report

VMware reported a 16% annual revenue growth rate, bringing it to $6.04 billion. For the fourth quarter, revenue increased 15%. License revenues rose 13% to $777 million. Net income fell 2% year over year to 75 cents per share, compared to 77 cents in the same quarter last year.

Net income for the full year was $2.04 per share, a 13% decline. Non-GAAP earnings for the year were $3.56 per share a 5% increase.