More bad news for CEO Marissa Mayer: Yahoo shares — already down 11.6% so far in 2015 amid concerns about its ability to boost ad sales — are off 2.1% in post market trading after it reported disappointing Q1 financials. Revenues not including transaction costs came in $1.04 billion, down 4.1% vs the period last year, below expectations for $1.06 billion. Adjusted earnings at 15 cents a share — down from 38 cents last year — also fell short of forecasts for 18 cents.

“Yahoo is amidst a multi-year transformation to return an iconic company to greatness,” Mayer says. The CEO says that the Q1 numbers came in where she expected and foresees a period of growing revenues “while managing our margins and costs.”

Revenues from display ads, not including transaction costs, fell 7% to $381 million. Although the number of ads sold increased 29%, the price buyers paid for each ad fell 17%.

Search revenues at $432 million, also were down — in this case 3% vs last year’s Q1.

Yahoo shares are are up 22.3% over the last 12 months; it pleased investors last year by using about $10 billion from the sale of its stake in Chinese e-retailer Alibaba to repurchase shares. It plans to spin off an entity with another $40 billion from the sale.