Shares of Yahoo, 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.