Yahoo's business may have finally reached bottom.
In the first quarter of this year, Yahoo came the closest to posting overall revenue growth since the fourth quarter of 2012.
"We believe we've moved from our core business being in decline," said Yahoo CEO Marissa Mayer during the company's earnings webcast on Tuesday. She described business as "stable" and mentioned a new plan to revitalize ad revenue.
Overall revenue dipped 1% to $1.14 billion. After accounting for how much Yahoo spends to drive people to its properties and pays out to sites using its products to run ads -- called revenue excluding traffic acquisition costs -- Yahoo's total revenue inched up 1% to $1.09 billion, beating analysts' estimates. The company reported net income of $312 million for the quarter, down 20% from a year earlier.
Yahoo's core display-advertising business avoided a sixth straight quarter of decline. The segment was flat year-over-year with revenue of $453 million in the first quarter of 2014. Similar in trend to the previous quarter, Yahoo sold 7% more banners than the previous year but on average pulled in 5% less revenue per ad.