Los Angeles - Yahoo reported net income of $6.8bn for the third quarter, up from $297m in the third quarter of 2013, the California-based company said on Tuesday.
The profit includes a $6.3bn gain from Yahoo's sale of a stake in the Alibaba Group, as part of the Chinese company's initial public offering in September.
Revenue increased by 1% to $1.148bn for the quarter, up from $1.139bn a year earlier.
"We achieved this revenue growth through strong growth in our new areas of investment - mobile, social, native and video - despite industry headwinds in some of our large, legacy businesses," Yahoo chief executive Marissa Mayer said.
Yahoo reported that mobile revenue was more than $200m in the third quarter. The company said it expected mobile revenues for the full year to exceed $1.2bn.
Yahoo shares rose as much as 4% in extended trading.