Yahoo has been hit by a 20 percent slump in profits, reporting $312m (£187m) for its first quarter in 2014, compared to the same period last year.
However, the profits still beat many analysts' expectations and the $1.1bn revenue for the period is the best first quarter numbers the company has reported since 2010.
Yahoo chief executive Marissa Mayer said: "I am really pleased by our first quarter performance. The first quarter was an early and important sign of growth in our core business."
Mayer singled out mobile as key to Yahoo's future growth. "We're delighted to now see more than 430 million monthly mobile users accessing Yahoo's new products," she added.
The web firm also reported a two percent increase in display advertising revenue and a seven percent rise in the number of adverts sold.
This quarter has been a busy one for Yahoo, with the firm launching a number of new products in the news and content space, as well as introducing Yahoo Advertising and a partnership with Yelp to showcase user reviews and business information.
In March Yahoo bought social startup Vizify to allow users to create social media type bios, and the firm has just pledged to roll out a raft of new security and encryption services to protect its users from snooping intelligence agencies.
The new security services are the brainchild of Yahoo's newly appointed chief information security officer, Alex Stamos. Stamos took up his role in March and is the first CISO to work at Yahoo in more than a year, following the departure of Justin Somaini.
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