On today's call, we'll also discuss some non-GAAP financial measures as we talk about the company's performance. These may include total operating expenses less traffic acquisition costs, or TAC; revenues excluding TAC, or revenue ex-TAC; ongoing operating performance; and operating margin ex-TAC. Reconciliations of those non-GAAP measures on the GAAP measures we consider most comparable can be found on our corporate website, info.yahoo.com, under Investor Relations.We have prepared remarks that will last about 15 minutes, then we'll have a brief Q&A session. And now I'd like to turn the call over to Tim. Timothy R. Morse Thanks, Joon. Good afternoon, and thank you all for joining us today. Obviously, this is a very exciting and dynamic day to have our earnings call given yesterday's announcement of the hiring of Marissa Mayer as CEO. Since this is Marissa's first day on the job, she will not be joining us on the call today. However, she is very mindful of the importance of the investor community, and I'm sure that you'll be hearing from her soon. Suffice to say that everyone at Yahoo! is incredibly energized today and looking forward to working with our new CEO. While I recognize you all have a lot of questions for her about Yahoo!'s future plans, I obviously won't be able to address those questions for you today on the earnings call. I will spend some time providing an overview of our results and progress in the quarter and also give you a brief update on the status of our planned sale of part of our stake in Alibaba Group, after which we'll have a brief Q&A session. I'm happy to answer what questions I can, but I ask for your patience on those questions we can't address today. So let's start with the second quarter financial results. In 2Q, Yahoo!'s revenue ex-TAC grew slightly year-over-year with both Search and Display up. 2Q operating income on an ongoing basis was well ahead of the guidance midpoint provided on last quarter's call.
Back in April, we initiated a restructuring plan intended to consolidate technology platforms, transition dozens of properties and free up investment dollars for growth opportunities. As a result, we guided you to think of our expenses and operating income in 3 distinct parts: ongoing operating income, transition-related expenses and restructuring charges. The sum of those parts, of course, is equal to our reported numbers in total. To help visualize this framework, please access our Investor Relations site and see Page 6 of our earnings presentation entitled, 2Q Operating Income Detail.With that overview format to guide us, our more detailed second quarter financial commentary is as follows: Revenue ex-TAC of $1,081,000,000 was fractionally under the guidance midpoint and grew about 0.5% year-over-year. On our April earnings call, we discussed the potential for a number of uncertainties in 2Q related to our reduction in force and business unit reorganization. As it turns out, there are many other dynamics that also played out over these past 3 months. And in that context, we're pleased to be so close to the midpoint. Read the rest of this transcript for free on seekingalpha.com