Yahoo's first quarter earnings cleared Wall Street's low expectations, but the company is still looking for revenue growth.
Yahoo reported first quarter earnings of $222 million, or 17 cents a share. (statement). Revenue excluding traffic acquisition costs was $1.06 billion, down 6 percent from a year ago. Wall Street was expecting earnings of 16 cents a share on revenue of $1.05 billion.
For the second quarter, Yahoo projected revenue excluding TAC of $1.07 billion to $1.12 billion. Wall Street was looking for revenue of $1.097 billion. For 2011 overall, Yahoo expected to report earnings of 76 cents a share on revenue of $4.51 billion.
Revenue excluding traffic acquisition costs were down 6% since the first quarter of 2010, which was attributed to search agreement with Microsoft. Yahoo CEO Carol Bartz seemed optimistic about "returning Yahoo! to sustainable revenue and profit growth," adding,
During the quarter, we beat the midpoint of revenue guidance while continuing to deliver on the bottom line. We continued to extend our lead as the world's premier digital media company with users to Yahoo! branded properties increasing 15% year over year and minutes spend increasing 17%.
Nevertheless, confidence in Bartz has been waning for some time now, as evident by a recent approval poll which found Bartz near the bottom of the list with support from only 50% of her employees.
Highlights from Yahoo's product talk: