Yahoo released its third quarter earnings report after closing bell tonight, posting earnings of 15 cents per share and revenue of $1.23 billion. Analysts had been expecting earnings of 17 cents per share on revenue of $1.26 billion. In last year’s third quarter, the digital ad and search company reported earnings of 52 cents per share on $1.15 billion in revenue.

Yahoo! Inc. Comes Up Just Short Of Earnings Estimates

Yahoo’s TACs rise

GAAP earnings were 8 cents per share, compared to last year’s $6.70 per share. Traffic acquisition costs were $223 million, compared to last year’s $54 million. Adjusted EBITDA fell to $244 million from last year’s $306 million.

Revenue from Yahoo’s Mavens segment climbed from $295 million last year to $422 million, while non-Mavens revenue fell from $727 million to $693 million. Mobile revenue increased from $207 million in last year’s third quarter to $272 million this year, while PC revenue also climbed, moving from $815 million last year to $844 million this year.

Yahoo’s gross search revenue increased 2% year over year to $870 million, while GAAP search revenue rose 13% to $509 million. The number of paid clicks rose by about 5% year over year, while price per click fell by about 2% compared to last year.

GAAP display revenue increased 14% from last year to $509 million for the third quarter. The company said the number of ads sold rose by about 8% year over year, and price per ad also increased by about 8% year over year.

“As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability, Yahoo CEO Marissa Mayer said in a statement.”In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings.”

Yahoo updates business highlights

Yahoo has begun several initiatives in recent months. Earlier this month, the company unveiled the new Yahoo Mail app and struck a deal with Google for Yahoo to choose among search results and ad suppliers. During the third quarter, Yahoo unveiled a new custom audience feature for its Gemini ad platform and introduced Yahoo News Live, a daily news stream which features Katie Couric.

As of this writing, shares of Yahoo were up 0.7% at $33.06 per share.