Yahoo reported a 46% rise in profit to $331m during the second quarter of 2013, supported by the launch of about a dozen products, despite a slowdown in sales.
During Q2, the company’s revenues reached $1.14bn, a 7% drop over the corresponding quarter in 2012.
Yahoo CEO Marissa Mayer said that the second quarter results were encouraging.
"Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week," Mayer said.
"From the new Yahoo! News, the new Yahoo! Sports app, the redesigned Yahoo! search, the new Flickr, the new Yahoo! Mail for tablet, the Yahoo! Weather app, our new Yahoo! app with Summly – this quarter drove tremendous improvements in our product line and our users responded with increased usage and engagement."
During the quarter, the Yahoo’s display revenue was $472m, a 12% decrease compared to the $535m it recorded during the same period last year. Search revenue was $418m, down 9% compared to $461m.
Under the leadership of Mayer, Yahoo also acquired nine firms during the quarter including Summly, Astrid, Milewise, Loki Studios, Go Poll Go, PlayerScale, Rondee, Ghostbird Software and Tumblr.
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Amid 12% slide in ad prices during the quarter, Yahoo trimmed its 2013 sales outlook and projected revenue of $4.45bn to $4.55bn for the year, a drop from earlier forecast $4.5bn to $4.6bn.
Yahoo has also axed several products that were not generating any profit, in a bid to streamline its product line-up.
During the quarter, Yahoo! re-vamped its desktop, mobile and tablet versions of Mail, Weather, Flickr, Search, Sports, News, and Yahoo! for iPhone and Android.
As part of its effort to boost revenue, the company also announced two new advertising formats designed to enhance the content experience-Yahoo! Stream Ads and Yahoo.com Billboard ad.
