Yahoo CEO Carol Bartz said she will increase the company's profitability, which she described as "pathetic" and said the company had "become boring".
In a meeting with financial analysts, Bartz, who has been CEO since January, said Yahoo's current profit margin of 6% was pathetic and promised to triple operating profit margins in the next three years.
Last week, Yahoo reported that it has increased its profits by 244%. Despite falling sales, its massive cost-cutting exercises reduced 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.
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 peoples' online lives," she said.
Meanwhile, Yahoo and Microsoft have extended the deadline to finalise their search and advertising deal, announced in July.
Yahoo has told the Securities and Exchange Commission that the two companies need more time to finalise the details of the deal.