Updated from 4:44 p.m. to include comments from the earnings call.
Sunnyvale, Calif.-based Yahoo! earned 38 cents a share on $1.087 billion in revenue, excluding traffic acquisition costs (TAC) for the first quarter.
For the quarter, the company noted that display revenue ex-TAC was $409 million, a 2% increase year over year, as the number of ads increased 7% year-over-year, but the price per ad continued to trend lower, falling 5% over the same time frame.
Shares of Yahoo! were soaring in after-hours trading, gaining 6.1% to $36.30. Yahoo! shares closed higher in the regular trading session, gaining 2.3% to finish at $34.21.
Search revenue jumped 9% year-over-year, rising to $444 million excluding TAC, as paid clicks increased approximately 6% compared to the first quarter of 2013, and price-per-click increased approximately 8% during the same time frame.
"I am really pleased by our first quarter performance, marking our best Q1 revenue ex-TAC since 2010. Buoyed by our 9th consecutive quarter of year-over-year growth in Search revenue ex-TAC and our first quarter of Q1 year-over-year growth in display revenue ex-TAC since 2011, Q1 was an early and important sign of growth in our core business," said Yahoo CEO Marissa Mayer. "And, with mobile pivotal to our future growth, we're delighted to now see more than 430 million monthly mobile users accessing Yahoo's new products."