The 1Q07 earnings are out and Yahoo did not give the Street what it expected. Yahoo’s net income dropped to $142.4 million, or $0.10 per share, from $159.8 million in 1Q06, or $0.11 per share. Analysts expected Yahoo to match last year. (Via MKTW.) It’s not all gloom and doom—revenue was up 7 percent to $1.67 million from $1.567 million in 1Q06. Revenue after traffic acquisition costs—ie payments to partners—rose to $1.18 million, up 9 percent over $1.088 million in the same quarter last year.  Some other numbers that stand out:

—Yahoo took in $203 million in fees during 1Q07, up 9 percent from $186 million in 1Q06. The number of fee relationships was up 24 percent to 16.5 million year over year but up only 1 percent sequentially to the 16.3 million reported last quarter.

—Based on internal numbers, Yahoo saw a 19 percent increase in uniques year over year—477 million compared with 402 million last year—and a 13 percent increase sequentially. Active registered users rose to 238 million, up 14 percent over 208 million last year and 9 percent over 219 million last quarter.
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