Shares of Yahoo edged higher in after-hours trade after closing up 0.8 percent at $15.99 on Nasdaq.
The Sunnyvale, California-based Internet company posted net income of $153 million in the fourth quarter, or 11 cents a share, matching analysts' average per-share forecast.
In the year-ago period, Yahoo had a net loss of $303 million, or 22 cents per share, after more than $500 million of write-downs and restructuring charges.
Yahoo said revenue in the three months ended December 31 totaled $1.73 billion, compared with $1.81 billion in the fourth quarter of 2008.
Excluding traffic acquisition costs, Yahoo said revenue was $1.26 billion, a hair above the average analyst expectation of $1.23 billion, according to Thomson Reuters I/B/E/S.
Looking ahead, Yahoo said revenue in the first quarter would range from $1.575 billion to $1.675 billion. The midpoint of the range would represent the first year-on-year revenue increase in six quarters.
(Reporting by Alexei Oreskovic; Editing by Richard Chang)