The California Internet company said it earned $312 million on revenues of $1.1 billion, topping most analyst forecasts.
Profits were down 20 percent from a year ago with revenues nearly flat for Yahoo, which has been making major shifts under Mayer, a former Google executive.
“If you look at our core businesses which we define as search and display you see an important shift,” Mayer said in an earnings call.
“Our search revenue grew nine percent year over year, marking our ninth consecutive quarter of growth.”
Mayer said Yahoo’s mobile service was attracting more than 430 million monthly users.
“More than half of Yahoo’s total monthly audience joins us on a mobile device,” she said.
Yahoo shares vaulted higher by some 6.7 percent in after-hours trade following the release to $36.50.
Victor Anthony at Topeka Capital Markets said in a research note that Yahoo’s revenue was slightly better than expected and that he was “cautiously optimistic on the core” outlook.
Under Mayer, Yahoo has been revamping many of its offerings while emphasizing mobile services and using cash for a series of acquisitions.
Yahoo is also moving more into video, with plans for its original television programs in the works.
Mayer said the company is making headway in boosting mobile, both in terms of search and in apps, which have leading positions on mobile platforms such as Apple’s iOS and Google Android.