Yahoo Posts Flat First-Quarter Revenue on Falling Ad Sales

Marissa Mayer, CEO of Yahoo!, attends a session of the World Economic Forum 2013 Annual Meeting on January 25, 2013 at the Swiss resort of Davos. The World Economic Forum (WEF) is taking place from January 23 to 27. AFP PHOTO / JOHANNES EISELEJOHANNES EISELE/AFP/Getty Images
AFP / Getty ImagesYahoo CEO Marissa Mayer

By Alexei Oreskovic

SAN FRANCISCO -- Yahoo's net revenue in the first quarter was flat year-over-year, as the Internet company's display advertising business experienced declining revenue for the second quarter in a row.

Shares of Yahoo Inc. (YHOO), which have surged more than 50 percent since Chief Executive Marissa Mayer took the helm in July, fell 3.7 percent to $22.91 in after-hours trading on Tuesday.

Yahoo said it earned $390 million, or 35 cents a share in the first three months of the year, compared to $286 million, or 23 cents in first quarter of 2012.

Net revenue, which excludes fees shared with partner websites, was $1.07 billion in the first quarter, roughly flat from the year-ago period, according to Yahoo.

Revenue from display ads fell 11 percent year-on-year, excluding certain items, in the first quarter. Search advertising revenue rose 6 percent year-on-year on an adjusted basis.