Yahoo CEO Marissa Mayer (pictured) claimed the company’s revenue growth in the third quarter was the result of progress in the new investment areas of mobile, social, native and video.

Mobile revenue for the third quarter was more than $200 million on a GAAP basis, representing 17 per cent of total revenue for the period. This was the first time revenue generated from mobile advertising was broken out separately by the company.

Yahoo estimated that gross revenue from mobile will reach more than $1.2 billion by the end of the year. This equates to GAAP revenue of more than $700 million in 2014.

“Fundamentally, we are moving from a company that makes web pages and monetises them through banner ads to a company that makes mobile apps and monetises them through native ads. We’ve affected this transformation remarkably quickly with 44 per cent of our display ads now being native and our mobile revenue now being material,” Mayer noted.

The company has revamped its mobile offerings and acquired developer talent and app technology under the stewardship of Mayer.

“We have invested deeply in mobile and we are seeing those investments pay off. Not only are our mobile products attracting praise and engagement from users and industry awards, they are generating meaningful revenue for Yahoo,” she added.

In terms of engagement, the company had around 550 million mobile monthly active users by the end of the third quarter, up approximately 17 per cent year-on-year and more than doubling since the company renewed its mobile efforts in October 2012.

Mayer said that “despite industry headwinds in some of our large, legacy businesses,” the company had a “good, solid” third quarter.

The company reported GAAP revenue of $1.15 billion for the period, a 1 per cent year-on-year improvement. Net income totalled $6.8 billion, after the $6.3 billion generated from the sale of its shares in Alibaba Group was accounted for. Net earnings a year earlier were just $297 million.

“We achieved this revenue growth through strong momentum in our new areas of investment: mobile, social, native and video,” Mayer said.

During the third quarter, Yahoo built on its mobile strategy with the completion of the acquisition of mobile analytics company Flurry.

It also launched new mobile products — Yahoo Finance, Yahoo News Digest, Yahoo Mail for iPad, as well as support for Digital Magazines on Android and iOS — and tweaked existing products, including the addition of eight languages to the Aviate homescreen app for Android devices.