The company's revenue stood at USD 1.08 billion in the second quarter of 2012, as against USD 1.07 billion in the year ago period. In the second quarter of 2011 the struggling Internet company had reported net income of USD 238.5 million.
The announcement of earnings comes amid 37-year-old Marissa Mayer taking over as CEO of the company.
However, Mayer as well as Ross Levinsohn, the executive whom she replaced, reportedly skipped the company's earnings call on Tuesday.
On the results, Yahoo! Chief Financial Officer Tim Morse, who led the earnings call solo for the company, said, "In the second quarter, non-GAAP earnings per share exceeded consensus."
In the second quarter of 2012, non-GAAP net earnings per diluted share increased 47 per cent year-over-year to 27 cents and during the second quarter of 2012, Yahoo! repurchased 30 million shares for USD 456 million, the company said.
Yahoo!, which is facing stiff competition from rivals like Google and Facebook, has appointed five chief executives, including two interim CEOs, in less than a year.
Yahoo!'s gains in the quarter likely to have flowed from its stake sale in China's Alibaba Group Ltd.
It had bought 40 per cent stake in Alibaba Group in 2005 for about USD 1 billion, and announced the sale of 20 per cent of its holding to the Chinese firm for about USD 7 billion.
"We also moved aggressively with new strategic agreements with Alibaba and Facebook and announced several new partnerships including CNBC, Clear Channel and Spotify," Morse said.
Last month, Yahoo! joined hands with media company CNBC for a content partnership to produce financial stories and videos with an aim to widen its audience base.
This month, Yahoo! and social network Facebook had announced the settlement of all the pending patent claims and strategic alliance entailing new advertising and distribution partnership.
