Yahoo, Inc. posted its first quarter results Tuesday and while they actually beat market expectations, they still indicated a business in serious decline.

According to the numbers, Yahoo delivered revenue of $1.087 billion and earnings per share of $0.08 for the quarter, down from $1.226 billion or $0.15 cents per share for the same quarter of 2015, but ahead of analysts predictions of $1.08 billion or $0.07 per share.

Acquisition costs increased to $228 million from $183 million in Q1 2015, while the loss from operations blew out to $167 million from $87 million a year earlier.

Net earnings came in at a loss of $99 million, versus a profit of $22 million in the same quarter of 2015.

“I’m pleased that we delivered Q1 results in line with our expectations. Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth,” Yahoo Chief Executive Officer Marissa Mayer said in a statement. “In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders.”

Sale

Yahoo’s financial results for the quarter were overshadowed by its attempts to undertake a sale of its core business.

The company offered an update of what it called its “strategic review,” telling shareholders:

The Board of Directors at Yahoo formed a strategic review committee of independent directors to consider strategic alternatives for the company alongside its continued consideration of a reverse spin. Since the launch of the process in February, management has worked diligently with the committee and its independent legal and financial advisors to engage with interested strategic and financial parties.

The cutoff date for potential suitors was Monday, that is one day before the financials were released, so Yahoo now knows who is interested in acquiring the business (minus its stake in Alibaba Group Holding Ltd.), even if it’s not yet telling anyone else who it is.

Verizon Communications, Inc. would be the frontrunner at this stage although it looks like a range of private equity firms may be interested, with Re/Code reporting that TPG Telecom Ltd., and a joint bid between Bain Capital and Vista Equity Partners has been presented to Yahoo’s board.

Other potential bidders that have been previously named include AT&T, Comcast, IAC/InterActive Corp., Time Inc, Daily Mail, and YP Holdings, although it is believed that although they had shown some interest neither Microsoft Corp. nor Google, Inc. submitted a bid.

Yahoo shares traded slightly up in after-hours trading based on the better than expected financials, closing up 1.05 percent at $36.71.

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