Yahoo reports Q3 earnings in line with expectations, as search revenue rises

In its first full quarter with former Google exec Marissa Mayer as CEO, Yahoo (s yhoo) reported Q3 earnings in line with analyst expectations Monday afternoon. The company’s revenue excluding traffic acquisition costs was $1.08 billion, up two percent over this time last year, with net income of $0.23 per share. Analysts had estimated revenues of $1.08 billion and $0.26 per share.

Yahoo’s profits rose to $3.16 billion from $298.3 million last year, in part because of the company’s sale of Alibaba shares, from which it pulled in $2.8 billion.

Revenue from display ads was $506 million, up 1 percent from last year, while search revenue minus traffic acquisition costs was $414 million, up 11 percent from last year.

“We’re taking important steps to position Yahoo for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders,” Mayer said in the earnings release. She is expected to lay out future plans for the company in the investor call following the report.