Yahoo announced its first quarter 2014 earnings on Tuesday, posting the best Q1 revenue performance since the first quarter of 2010.
The company’s ex-TAC revenue came in at $1.08 billion for the quarter, up just 1 percent from the same quarter of last year. Taking traffic acquisition costs into consideration, however, Yahoo’s revenue was down one percent. Yahoo’s earnings per share (EPS) beat Wall Street expectations by a penny at 38 cents.
Display revenue ex-TAC was $409 million for the quarter, up 2 percent from the $402 million Yahoo reported in the year-ago quarter, though it was flat at $453 million taking into consideration traffic acquisition costs. Yahoo said its price per ad also decreased about 5 percent from the year-ago period. Meanwhile, search revenue was healthy and increased 5 percent to $445 million during the quarter, or 9 percent to $444 million taking out traffic acquisition costs. Paid clicks rose 6 percent while the price per click increased 8 percent over Q3 2013.
“I am really pleased by our first quarter performance, marking our best Q1 revenue ex-TAC since 2010,” Yahoo CEO Marissa Mayer said. “Buoyed by our 9th consecutive quarter of year-over-year growth in Search revenue ex-TAC and our first quarter of Q1 year-over-year growth in display revenue ex-TAC since 2011, Q1 was an early and important sign of growth in our core business.”
Mayer also noted that Yahoo will continue to put a focus on mobile and that its mobile properties now serve 430 million monthly active users.
Shares of Yahoo closed the day up 2.29 percent and are up about 8 percent in after hours trading.