Yahoo has topped earnings and revenue expectations for its third quarter, which ended 30 September, posting a net revenue of $356.8m and net income of $65.3m.
Analysts had predicted revenue of $337m.
Net revenue grew 43%, while net income more than doubled from $28.9m, compared with the same period last year.
Yahoo's audience, meanwhile, grew to about 245 million unique users during the quarter, up from 201 million in 2002's third quarter and from 236 million in this year's preceding quarter.
Among those 245 million unique users, there were about 123 million active registered users, up from 93 million in 2002's third quarter and 116 million in this year's preceding quarter. An active registered user is one who has registered with Yahoo for services such as e-mail service or participation in a group.
This is the first time active registered users have made up more than half of the total user base.
Active registered users use twice as many services and stay four times longer on the Yahoo network than do unregistered users, making them good prospects for becoming paying subscribers of a fee-based Yahoo service, such as DSL Internet access, small-business services, premium mail service and personal ads.
Yahoo's tie-up with telecommunications provider SBC to offer a bundle of DSL service and Yahoo content is going very well, and a similar partnership with BT UK has got off to a good start.
Growth in online advertising is now outpacing the growth in the overall ad industry, and Yahoo's advertising business is large and growing. "With online advertising on the move, Yahoo is one of the best-positioned global companies to take advantage of the upswing," said Yahoo chairman and chief executive officer Terry Semel.
Yahoo expected its net revenue expectations for the year to be between $1.42bn and $1.46bn, although this range refers to revenue excluding traffic acquisition costs.
Juan Carlos Perez writes for IDG News Service