The Internet advertising boom pushed Yahoo!’s revenue up 33 percent in the first quarter despite a drop in profit at the Web powerhouse.
The results, announced after the close of trading, bode well for Google and other Internet companies that will issue earnings later this week.
Yahoo! shares, which closed at $31.30 during standard trading hours, rose as high as $33.50 before trailing off in after-hours action.
The company continues to benefit as deep-pocketed advertisers – including car companies, consumer product makers and financial services – shift more of their budgets online and away from television, radio and print.
Profit was $160 million, or 11 cents a share, compared with $205 million, or 14 cents, a year ago. The drop was mainly due to a change in the way the company accounts for employee stock options.
Revenue, excluding some costs, jumped 33 percent to $1.09 billion, up from $821 million a year earlier.
After a disappointing earnings report in the fourth quarter, Yahoo!’s results were in line with Wall Street estimates.
Analysts were also pleased that the company stood by its forecast for the full year. “People are happy,” said Guzman & Co. analyst Philip Remek. “It met its numbers and did not lower guidance.”
The increase in online spending has also led to greater competition. Yahoo! has been losing market share over the last several months to archrival Google.