Yahoo, the most visited internet site and the web's biggest media firm, reported quarterly earnings that topped estimates on higher advertising demand.
Companies want access to Yahoo users and are willing to pay
Net income rose to $254m (£145m) in the three months to the end of September, up from $253m a year earlier. Sales totalled $1.33bn compared with $907m.
Many companies are boosting spending on online advertising as they try to lure increasingly internet savvy consumers.
Yahoo attracts almost 100 million users a month with services like email.
Earnings "looks solid", said Troy Mastin, an analyst at William Blair & Co.
Mr Mastin continued that the figures boded well for the online advertising industry and in particular for Google, which is scheduled to report earnings on Thursday.