Yahoo reported quarterly earnings and revenue that beat analysts' expectations on Tuesday, sending shares as much as 4 percent higher.
The Internet firm reported earnings of 52 cents per share on $1.09 billion in revenue, easily beating expectations of 30 cents per share on $1.05 billion in revenue.
"We achieved this revenue growth through strong growth in our new areas of investment—mobile, social, native and video—despite industry headwinds in some of our large, legacy businesses," CEO Marissa Mayer said. "In Q3, we saw mobile revenues in excess of $200 million on a GAAP basis."
Mayer said the company's search business is growing at 6 percent year-over-year pace. She expects gross revenue in mobile will exceed $1.2 billion in revenue this year.
Yahoo forecast fourth quarter ex-TAC revenue of between $1.14 billion and $1.18 billion, virtually in line with Wall Street estimates. Analysts polled by StreetAccount expect the firm to hand in fourth-quarter earnings 31 cents per share on $1.17 billion in revenue.