Yahoo just released its earnings report for the first quarter of 2013, with better-than-expected (non-GAAP) earnings of $420 million, or 38 cents per share. Revenue (excluding traffic acquisition costs) was flat compared to last year, at $1.07 billion.
Analysts has predicted that the company would report revenue of $1.1 billion and 24 cents EPS. Wall Street normally evaluates Yahoo on an ex-TAC basis — including traffic acquisition costs, revenue was $1.14 billion, down 7 percent from last year.
Ex-TAC, search revenue has actually overtaken display ad revenue. Display revenue was $402 million (down 11 percent from last year), while search revenue was $409 million (up 6 percent).
This is Marissa Mayer’s third quarter as CEO of the company — her leadership is seen as crucial for turning the company around. During the last earnings call, Mayer said her big goals for Yahoo included a better user interface, improved international reach, and broader demographics.
“I’m pleased with Yahoo!’s performance in the first quarter,” Mayer said in the earnings release. “We saw continued stability in our business, strengthened our team, and started the year with fast execution against our products and partnerships. We are moving quickly to roll out beautifully designed, more intuitive experiences for our users. I’m confident that the improvements we’re making to our products will set up the Company for long-term growth.”
Yahoo had a pretty active quarter. It unveiled a more personal, interactive version of its homepage in February. On the advertising front, it announced a non-exclusive display partnership with Google. And it acquired Snip.it, Alike, Jybe, and made its biggest splash by announcing the acquisition of mobile news startup Summly for a reported $30 million.