Yahoo Tops Earning Expectations, While Revenue Remain Weak (and Outlook Even Worse)

Yahoo turned in a much-needed solid quarter in its third-quarter earnings report, with slightly better-than-expected net income, although still weak revenue.

Wall Street has been watching Yahoo’s performance closely this quarter, due to the swirl around the company over takeover scenarios, departed execs and general management mishegas.

Wall Street consensus was that Yahoo’s net income would rise to 15 cents a share from 13 cents a year ago and and revenue would be be a flattish $1.13 billion.

Instead, Yahoo’s net revenue was $1.12 billion–which is with traffic acquisition costs taken out–on earnings of 29 cents a share. But net earnings per diluted share for the third quarter of 2010 included a benefit of 13 cents per diluted share related to the gain on sale of HotJobs.

The revenue weakness is worrisome, as it indicates a lack of search advertising growth at Yahoo, even as competitors such as Facebook expand rapidly as social networking explodes.

In addition, Google also turned in stellar quarterly results earlier this week, along with Apple.

Even more important is a weaker outlook for the fourth quarter.

In addition, the key metric of page views was down, four percent in the quarter, while employee growth was up seven percent.

Here is a link to BoomTown’s liveblogging of the analyst conference call, as well as the Silicon Valley Internet giant’s financial slides.

What Will Be the Big Tweet from Twitter Event Today? A New Search Offering Would Be Nice….

Yesterday–presumably so as not to be left out of the dueling press gatherings that Apple (AAPL), Google (GOOG) and Facebook have all had in recent weeks to show off fancy new stuff–Twitter lobbed out an an invite for an event this afternoon:

We’d like to invite you to come to Twitter HQ for an event tomorrow afternoon (Sept 14)…Please be there by 3:45pm. RSVP below.

See you there.

So, what, oh, what are those little elves at the microblogging service going to show off?

It could be a lot of things, from a new advertising shiny object to the results of recent promoted tweet efforts to updated mobile products.

Or perhaps it is introducing some more video capability into its tweets.

And maybe Twitter bought some pretty little start-up or is annoying a whole new fascist country.

So, because BoomTown always reads to the last page of mysteries to get to the ending first, here is my best spoiler guess of what Twitter could announce: An updated search offering.

Well, at least, I hope the company will finally fill in what has become what I consider to be one of the very biggest holes in its service.

Right now, Twitter’s real-time search engine uses technology from Summize, which it bought in 2008.

And, simply put, it remains pretty lousy–with an index that only holds tweets from a few days and has no massive archive.

In fact, results have been better from others, such as Google and the Microsoft (MSFT) Bing search service, both of which did deals to license Twitter’s flood of tweets about a year ago.

And Google recently upped the ante with its dedicated real-time search offering, made up, in large part, of Twitter’s index archive and including a coolio timeline.

It is long past time for Twitter to keep up here, in terms of simple innovation, given these tweets are its own content.

What would be interesting to see is if Twitter needed the help of a search giant such as Google or Microsoft to help power such a service–sources said its execs had been putting feelers out many months ago on the subject of such aid.

Then again, it could all be home built, too.

In any case, let’s hope Twitter gives its tweets the respect they deserve.

Or else introduces its own mobile device called the Tweetphone that vibrates every time you are mentioned on Twitter.