Display ad spending, excluding payments made to partners, increased 10% in the quarter to $471 million. As expected, search revenue continued to decline in the wake of Yahoo’s search alliance with Microsoft, falling 19% from a year ago to $357 million. The first quarter results reflect $56 million in search operating reimbursements and $11 million in transition costs in connection with the search agreement.
“We are solidly executing toward our plan for returning Yahoo to sustainable revenue and profit growth,” said Yahoo Carol Bartz, in a statement. “During the quarter, we beat the midpoint of revenue guidance while continuing to deliver on the bottom line." Read more here.