Revenue, excluding traffic acquisition cost, or ex-TAC, increased to $1.09 billion from $1.07 billion a year ago.
Analysts had expected the company to report earnings, excluding items, of 37 cents a share on $1.08 billion in revenue, according to a consensus estimate from Thomson Reuters.
On a GAAP basis, the company reported earnings of 29 cents per share on $1.13 billion in revenue, in comparison to 35 cents on $1.14 billion in revenue a year ago.
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Revenue generated from display revenue, ex-TAC, climbed 2 percent to $409 million from $402 million in the year-ago period.
"I am really pleased by our first-quarter performance, marking our best Q1 revenue ex-TAC since 2010," Yahoo CEO Marissa Mayer said, in a statement.
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