Following, Yahoo reported its first quarter earnings report for 2014 after the bell on Tuesday.
The search company reported a net income of $30 million -- an 84 percent drop from the same quarter last year -- at 29 cents per share (statement).
Non-GAAP earnings were 38 cents per share on a revenue of $1.087 billion, excluding traffic acquisition costs (ex-TAC), a rise of one percent or so annually.
Wall Street was looking for earnings of 37 cents per share on a revenue of $1.08 billion.
Yahoo shares started to climb by as much as nine percent in after-hours trading.
Highlighting the revenue comeback, which is undoubtedly fueling the trading uptick this afternoon, CEO Marissa Mayer reflected on the quarter in prepared remarks:
I am really pleased by our first quarter performance, marking our best Q1 revenue ex-TAC since 2010. 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. And, with mobile pivotal to our future growth, we're delighted to now see more than 430 million monthly mobile users accessing Yahoo's new products.
For the current quarter, Wall Street is maintaining its Q1 forecast with expectations of 37 cents per share on a revenue of $1.08 billion.
Yahoo is expected to provide second quarter guidance during the live webcast of its quarterly conference call with shareholders at 2PM PT/5PM ET.
Highlights from Yahoo's first quarter:
- Inked a deal with Yelp to integrate user reviews, business information, and star ratings.
- Hired Alex Stamos as Yahoo's new Chief Information Security Officer
- GAAP display revenue remained flat annually at $453 million; Display revenue ex-TAC was $409 million, up two percent annually
- GAAP search revenue climbed five percent annually to $445 million; Search revenue ex-TAC was $444 million, up nine percent annually
- Paid Clicks increased approximately six percent year-over-year
UPDATE: Yahoo provided Q2 guidance projecting $1.06 billion to $1.1 billion in revenue, excluding traffic acquisition costs.