Yahoo! said on Tuesday that net profit fell 28% in the first quarter from a year ago to $223.0 million while revenue declined 24% to $1.2 billion.
The quarterly results, while down year-over-year, were better than expected by Wall Street analysts and Yahoo! shares gained 2.9% to $16.5 in after-hours trading.
"We are solidly executing toward our plan for returning Yahoo! to sustainable revenue and profit growth," said Carol Bartz, chief executive, Yahoo!, in a statement.