Yahoo's beat Wall Street earnings estimates even as its revenue in the third quarter, a period in which the internet company revealed it was the victime of a massive hack that could threaten its plans to sell itself to Verizon.
Yahoo said it earned 20 cents per share on an adjusted basis, above the 14 cents expected by analysts.
Verizon announced plans to purchase Yahoo for $4.83 billion in July. But two months after the announcement, Yahoo revealed that it had been hacked in 2014 in a massive breach that affected at least 500 million of its users.
Verizon's top lawyer said last week that there was a reasonable basis to belive the breach had a "material" impact on Yahoo's business, which would give Verizon the right to walk away from the deal.