Yahoo’s first quarter financial results didn’t quite live up to Wall Street’s expectations. The company’s revenue for the period from January to March (excluding traffic acquisition costs) was $1.043 billion, which missed the consensus estimate of analysts surveyed by Thomson Reuters of $1.056 billion. That’s down from $1.087 billion during the year-ago quarter.
The company’s profits also disappointed, with Yahoo reporting earnings of 15 cents a share, three cents less than the consensus estimate of 18 cents a share and a reduction of 23 cents a share year-over-year. The company’s net earnings of $21 million were down significantly from the first quarter of 2014, when Yahoo reported $312 million in profit.
In a news release accompanying the results, Yahoo CEO Marissa Mayer highlighted the company’s mobile revenue for the quarter (including traffic acquisition costs): It grew by 61 percent year-over-year to $234 million. In addition, Mayer pointed out that the company’s GAAP revenue, including traffic acquisition costs, grew 8 percent over the first quarter of 2014 to $1.226 billion.
The financial news caps off what has shaped up to be a major quarter for Yahoo, which saw increased search share after becoming the default search provider for Firefox users in the U.S. In addition, the company recently revised its search alliance agreement with Microsoft to include a number of provisions beneficial to Yahoo such as the ability to back out of the agreement starting later this year.
As of this writing, Yahoo’s share price has dropped more than 1.5 percent in after-hours trading. The company’s detailed financial data is embedded below.