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Yahoo delivered quarterly earnings and revenue that beat analysts' expectations on Tuesday.
Yahoo shares rose about as much as 9 percent in after-hours trading Tuesday. As of Monday's close, the company's shares had sunk roughly 15 percent year-to-date.
The company posted first-quarter earnings excluding items of 38 per share, unchanged from a year ago.
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.
Since Mayer joined Yahoo as CEO in 2012, the company's stock has doubled, but some analysts say the growth has been primarily driven by the company's 24 percent stake in China-based e-commerce firm Alibaba.
Earlier this month, The Wall Street Journal, citing people familiar with the matter, reported that Yahoo has its sights set on high-end video, which could include half-hour comedies with budgets as high as "a few million dollars." Yahoo is expected to unveil the new content as early as April 28, according to the report.
In a separate report last month, the Journal said the tech company is in preliminary talks to acquire online video service News Disruption Network for $300 million, a deal that would boost the firm's online video programming and video advertising revenue.
(Disclosure: CNBC has a content-sharing partnership with Yahoo's finance site.)
CORRECTION: Yahoo reported $1.09 billion in revenue for the first quarter. That figure was misstated in an earlier version of this article.