Yahoo Inc reported an uptick in revenue that marked its first quarterly sales growth in three years, as new Chief Executive Scott Thompson outlined his plan to revamp the struggling Web company.
Citing moves to shut down dozens of underperforming online properties, while making online commerce and mobile products a bigger part of Yahoo's business, Thompson described "the first steps" to regain market share from online rivals and revive the company's growth.
"I'm convinced that we don't need to reinvent who we are," Thompson said during a conference call with analysts on Tuesday. Thompson also said that Yahoo was once more exploring ways to "monetize" some of its stake in China's Alibaba Group. Shares of Yahoo increased 2.7 percent to $15.41 in after hours trading on Tuesday.
The comments marked the most extensive details Thompson has provided about his strategy since taking the top job at Yahoo in January. But the former PayPal president faces a high wall of skepticism from investors who have watched several failed attempts to restructure and revitalise the one-time Web pioneer in recent years. Carol Bartz, Thompson's immediate predecessor, was fired over the phone in September.
Yahoo said its net income grew 28 percent in the three months ended March 31 to $286 million, or 23 cents a share, outpacing Wall Street expectations of 17 cents a share.
Yahoo's core display advertising business declined 4 percent during the first quarter.
The company's net revenue, which excludes payments to partners, totalled $1.077 billion in the first quarter, compared to $1.064 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for net revenue of $1.06 billion. It forecast net revenue in the second quarter of between $1.03 billion and $1.14 billion.
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