Yahoo reports solid revenues of $1.04B as its mobile, video, native, social group grows 60%

Today, Yahoo announced quarterly revenues of $1.04 billion and non-GAAP earnings of $0.16 per share, narrowly missing analyst expectations.

Analysts estimated earnings to come in at $0.18 per share on revenue (not accounting for the cost of traffic acquisition) of $1.03 billion.

While Yahoo seems to be growing, it also continues to rack up revenue costs. This quarter Yahoo’s display advertising increased to $405 million on an ex-TAC basis, up from $380 million last quarter. Display advertising revenue costs more than doubled from the same time last year. Search revenues also rose 15 percent year-over-year, to $521 million on a GAAP basis, but so did revenue costs. Accounting for costs, search only brought in $415 million, a decrease from last quarter.

Still, Yahoo is growing ad sales in both categories. Paid clicks increased 13 percent, and Yahoo sold 9 percent more display ads than it did in the second quarter of last year. The price of Yahoo’s ads is also increasing. Price per click increased 4 percent, and price per ad bumped up 10 percent year-over-year.

Related: Yahoo finally announces plan to spin off its remaining stake in Alibaba

Meanwhile, Yahoo’s mobile, video, native, and social business earned $399 million this quarter, up 10 percent from last quarter. Mobile specifically earned revenues of $252 million. Overall Yahoo’s MaVeNS have grown 60 percent year-over-year.

It’s been a quiet quarter for Yahoo. The company killed off a few APIs and programs including its Maps site and Pipes, a developer web application for aggregating and mashing up data from around the web. It also launched a daily fantasy sports league which has attracted 1.3 million people. Unlike last year, there have been no major acquisitions. That could be because Yahoo is hunkering down and cleaning house to appease investors.

Yahoo’s performance has been underwhelming lately. Last quarter the company came in below analyst expectations, with display advertising down 7 percent year over year on an ex-TAC basis. And though search advertising revenue looked like it was on the rise thanks to a five-year deal with Mozilla, it actually declined 3 percent when costs were accounted for. Though Yahoo’s growth in its MaVeNS category was strong, earning $363 million (up 57 percent year-over-year), it wasn’t enough to replace losses in display advertising revenue.

Related: Yahoo Sports now lets you win cash daily by playing fantasy sports online

Meanwhile, Yahoo remains buoyed by its lucrative Alibaba shares. An SEC registration filing submitted earlier this month revealed Yahoo will spin off its remaining Alibaba shares, along with its Yahoo Small Business shares, into an entity called Aabaco Holdings by the end of the year.

Despite efforts to deliver shareholders value, Yahoo’s stock has been on the decline since November of last year. Today, Yahoo closed out the trading day at $39.73 a share, slightly up from market open. However, in after-hours trading, Yahoo is down two percent.