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Yahoo! Inc. (NASDAQ: YHOO) reported second-quarter results Monday after markets closed. The internet portal posted adjusted diluted earnings per share (EPS) of $0.09 on revenue of $1.31 billion. In the same period a year ago, Yahoo reported EPS of $0.16 on revenue of $1.24 billion. Second-quarter results also compare to the consensus estimates for EPS of $0.10 on revenue of $1.08 billion. Revenues are calculated excluding traffic acquisition costs (ex-TAC).

On a GAAP basis, Yahoo posted a net loss of $490 million ($0.46 per share) primarily due to a noncash goodwill impairment charge of $395 million and a second noncash intangibles impairment charge of $87 million related to its Tumblr reporting unit.

Display revenues ex-TAC slipped 7% from $503 million in the year-ago quarter to $470 million. The company sold 9% more ads, but the price per ad fell by 15% compared with the second quarter of 2015.

Yahoo CEO Marissa Mayer said:

With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan.  Through disciplined expense management and focused execution, we delivered Q2 results that met guidance across the board and in some areas exceeded it. In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.

Search revenue increased from $528 million in the second quarter of 2015 to $711 million, helped by a change in Yahoo’s revenue presentation. Absent the change, search revenue fell by 13% to $459 million.

Shares traded down about 2% in Tuesday’s premarket session at $57.21 in a 52-week range of $26.15 to $39.85. Shares closed Monday’s trading session up about 0.6% at $37.95. Thomson Reuters had a consensus analyst price target of $37.95 before the results were announced.