Yahoo! Inc. Shares Soar As Core Revenues Return to Growth

In the first quarter, Yahoo! broke a 3-year trend to deliver sales growth in a core business operation. Shares skyrocketed on the news.

Anders Bylund
Anders Bylund
Apr 15, 2014 at 5:55PM
Technology and Telecom

Image source: Yahoo!

Online content portal Yahoo! (NASDAQ:YHOO) just reported first-quarter results alongside a slide deck with financial highlights. Yahoo shares surged more than 10% higher on the news.

Non-GAAP revenues increased 1% year over year to $1.1 billion, in line with analyst projections. Adjusted earnings stayed flat at $0.38 per share, a penny ahead of the Street consensus.

Display ad sales after traffic acquisition costs, or TAC, increased 1.7% from the year-ago period. Search revenue, ex-TAC, climbed 8.7% higher, helped by dramatically reduced traffic acquisition expenses. Other operations added up to an 11% TAC-adjusted revenue drop.

"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," said Yahoo! CEO Marissa Mayer in a prepared statement.

Mayer also noted that mobile content and traffic is central to Yahoo!'s future, and expressed delight at reaching 430 million monthly mobile users during the quarter.