Yahoo's third-quarter results showed little evidence of ending the financial funk that got former CEO Carol Bartz fired last month.
The lackluster performance announced Tuesday may increase the pressure on Yahoo to sell itself in parts or as a whole.
Yahoo earned $293 million, or 23 cents per share, in the July to September period. That compared with net income of $396 million, or 29 cents per share, at the same time last year. It wasn't an apples-to-apples comparison because of one-time gains in both quarters.
Revenue fell 24 percent from the same time last year to $1.22 billion.
After subtracting ad commissions, Yahoo's revenue stood at $1.07 billion. That was a 5 percent drop from the same time last year.