Yahoo! Inc. (NASDAQ:YHOO) reported first-quarter financial results that were slightly above the expectations of Wall Street analysts. The stock price of the technology company climbed 1.60% to $36.91 per share after-hours on Tuesday.
During the first quarter, Yahoo generated adjusted earnings of $0.08 per share compared with the $0.07 expected by analysts. Its revenue declined to $1.09 billion compared with the $1.08 billion estimated by analysts.
In a statement, Yahoo CEO Marissa Mayer said, “I’m pleased that we delivered Q1 results in line with our expectations. Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth.”
Mayer added that the company’s leadership made “substantial progress” towards its potential strategic alternatives— a top priority for shareholders.
JMP Securities analyst Ronald Josey, commented, “Given all the challenges, Yahoo has faced with the reduction of its workforce and the Alibaba spinoff plan, to come in and deliver these numbers is a very positive thing.”
Yahoo Mavens and Mobile revenue
The technology company reported that its Mavens revenue increased from $365 million to $390 million while its Non-Maven revenue dropped from $742 million to $644 million.
Yahoo’s Mavens revenue accounted 38% of its traffic-driven revenue during the quarter, up from 33% in the same quarter a year ago.
Its Mobile revenue climbed from $234 million to $260 million while its desktop revenue dropped from $873 million to $774 million. The company’s Mobile revenue represented 25% of its traffic-driven revenue, up from 21% in the same period a year earlier.
Yahoo’s gross search revenue declined 15% to $820 million during the quarter. The company’s Traffic Acquisition Costs (TAC)—paid to search partners— increased 44% to $144 million during the period.
The company ended the quarter with $7.1 billion in cash, cash equivalents, and marketable securities.
Yahoo CFO Ken Goldman, said, “We delivered financial results at the high end or above our guidance ranges. We also achieved free cash flow of $297 million through improved working capital efficiencies, excellent cost controls, reduced capital expenditures and a large tax refund.”