Yahoo’s bottom line has improved with better-than-expected (non-GAAP) earnings of $420 million.

Revenue was flat compared to last year, at $1.07 billion which was slightly worse than analysts has predicted. Search revenue has actually overtaken display ad revenue. Display revenue was $402 million, down 11 percent, while search revenue was $409 million up 6 percent.

But the figures could have been a lot worse and this is Marissa Mayer’s third quarter as CEO of the company.

Mayer said she was pleased with Yahoo!’s performance in the first quarter. Yahoo saw continued stability in its business, strengthened its team, and started the year with fast execution against our products and partnerships.
She claimed that the company was moving quickly to roll out beautifully designed, more intuitive experiences for its users.

“I’m confident that the improvements we’re making to our products will set up the Company for long-term growth,” Mayer said.