Yahoo has increased its profits by 244% despite falling sales as its massive cost-cutting exercises reduce expenditure by 18%.
The search engine's sales dropped 12% to $1,575 (£958m) in the financial quarter ended 30 September, compared with $1,786 in the same period last year.
But profit increased 244% from $54 to $186m during the same period.
Operating costs were $775m, which was 18% lower than the same period last year. Yahoo has cut its staff by about 2,000 in the past 12 months.
Yahoo CEO Carol Bartz said it was "a solid third quarter that signals our major businesses have stabilised".
"With new products like Yahoo homepage, our brand revitalisation campaign and expansion in the Middle East through Maktoob.com, our execution is improving and we are focused on what we do best -being the centre of people's online lives," she said.