The company said marketing services revenue rose 7% to $1.58 billion, revenue from owned and operated sites grew 14% to $1.02 billion, and revenue from affiliate sites increased 4% to $571m. Fees revenue declined marginally to $211.12m.
Geographically, US revenue grew 13% to $1.26 billion, while international revenue grew 8% to $534m.
The company recently rejected a bid from Microsoft to acquire it for $33 a share, and a subsequent offer to acquire its search business.
Sue Decker, president at Yahoo, said: We advanced our position with users by opening up Yahoo through new innovative offerings like SearchMonkey and BOSS in search and have seen great improvements with Buzz in the freshness of content on our home page. Our agreement with Google will strengthen our competitive position as a leading provider of search and display advertising. Our growing list of partners including Publicis, WPP, Havas, walmart.com, CNET and Turner are great examples of our ability to be the partner of choice across search and display advertising.
In the third quarter it expects revenue between $1.78 billion and $1.98 billion, and for the year revenue between $7.35 billion and $7.8 billion.
