Yahoo net earnings for the third quarter were $297 million, down 91 percent from a year ago, the company reported Tuesday.
Yahoo noted that 2012's Q3 net earnings included a net gain of $2.8 billion related to the sale of Alibaba Group shares, which is part of the reason why the earnings decreased significantly this year.
Third-quarter earnings beat Wall Street expectations, with 34 cents a share on revenue of $1.14 billion, down 5 percent from a year ago. Analysts were expecting 33 cents a share on revenue of $1.08 billion. Yahoo CEO Marissa Mayer is expected to discuss the company's earnings alongside CFO Ken Goldman during a live video stream at 2 p.m. PT.
In the report, Yahoo highlighted its approach on mobile and its new content partnerships with various providers and announced it's reduced the maximum number of shares of Alibaba it has to sell in connection to Alibaba's initial public offering, from 261.5 million to 208 million shares. Additionally, the company used $163 million for acquisitions in the third quarter this year and continued to see ad sales decrease.
Update, 1:44 p.m. PT: Added more information.