The internet company says it expects to post its first revenue increase in six quarters for the first three months of 2010 after seeing demand for premium display advertising improve “significantly” in the final quarter of 2009.
Carol Bartz, chief executive of Yahoo!, says: “Our business has positive momentum and we feel good as we head into 2010.”
Despite the optimism, revenues still declined 4% year on year in the fourth quarter and dipped 10% to $6.5bn for the full year.
Yahoo! finalised the terms of its search and advertising services and sales agreement with Microsoft in December. The two search giants have partnered with the intent to compete more with Google, which dominates the search engine marketplace.
The companies hope to close the deal in early 2010.
Yahoo! launched the £60m “It’s You” campaign in September that aims to position itself as a one-stop shop for their online needs