The company net earnings were down 26% from the third quarter in 2010 and its revenue, excluding traffic acquisition costs was down 5% from 2010. Yahoo's GAAP adjusted revenue was down 24% from third quarter 2010.
All in all, the financial picture was not positive, though the company did report higher than expected earnings per share.
Looking at the results, display revenue for the quarter was flat when compared with third quarter 2010. GAAP display revenue, search revenue and GAAP search revenue was also down.
Yahoo attempted to spin its positive assets in its earnings report, pointing out its continued success in certain markets. The company also recently announced a premium video portal, Facebook integration with Yahoo News and a new syndication content deal with ABC.
On the executive side, Yahoo is undergoing a period of change. The Yahoo board dismissed CEO Carol Bartz in September. Yahoo's CTO Raymie Stata also just resigned. At Web 2.0 on Monday, Yahoo executive Ross Levinsohn talked up the business with Federated Media's John Battelle.