Yahoo posted a quarterly net profit on Tuesday more than double that of a year ago and said it expected its share of the Web search market to improve after months of decline.
Yahoo said first-quarter net profit rose to US$310 million from US$118 million in the corresponding quarter a year ago.
Revenue at the Sunnyvale, California-based Internet company increased 1 percent during the quarter to US$1.6 billion.
Adjusted earnings per share of US$0.15 excluding Yahoo’s sale of Zimbra and other items were better than the US$0.09 forecast by analysts.
“We had a good quarter, delivering income from operations higher than our outlook,” Yahoo chief executive Carol Bartz said in a statement.
“Thanks to our efforts, our search share has stabilized, and we grew display advertising by 20 percent year over year,” said Bartz, who delivered her best quarter since taking over as CEO of Yahoo a little over a year ago.
“We made important strides on several measures in the first quarter,” Yahoo chief financial officer Tim Morse said.
“Our operating income growth and expanded margins this quarter demonstrate the success of our efficiency efforts as well as the first tangible benefits of our search agreement with Microsoft,” he said.
Yahoo said its first-quarter results included reimbursement payments from its Web search partner Microsoft totaling US$78 million.
“We believe our search share has bottomed and will begin to trend upward in the second quarter,” Morse added in a conference call with analysts.
Yahoo saw a slight uptick last month in its share of the lucrative US Web search and advertising market, according to online tracking firm comScore, moving from 16.8 percent to 16.9 percent.
Google remained the overwhelming search leader although its market share dropped slightly last month to 65.1 percent, from 65.5 percent in February.
Bing, the search engine of Yahoo’s search partner Microsoft, increased its share of the US search market last month to 11.7 percent from 11.5 percent.
“There’s a renewed energy among [Yahoo employees] around search,” Bartz said.
Bartz said Yahoo was planning to complete the transition to Microsoft’s search engine “prior to the 2010 holiday season,” starting with the US.
“So far we’re on track,” Bartz said, adding that “we’re not going to switch unless both of us decide it can be a quality transition.”
Yahoo forecast revenue of between US$1.6 billion and US$1.68 billion in the second quarter of the year.