Yahoo announced it’s earnings today. Yahoo CEO Carol Bartz has declared that their major businesses have stabilized.

“With revenue coming in above our guidance and flat sequentially, we had a solid third quarter that signals our major businesses have stabilized,” said Yahoo! chief executive officer Carol Bartz. “With new products like Yahoo! homepage, our brand revitalization campaign and expansion in the Middle East through Maktoob.com, our execution is improving and we’re focused on what we do best – being the center of people’s online lives.”

Yahoo is feeling much better of a company then a year ago for sure. Still many reports coming out of Sunnyvale is that things are not moving fast enough. However, there is a new sign of life. I have spoken with both the search and cloud teams over there and progress is being made. Yahoo is a slow moving machine so my angle is that it will take a while.

Overall Yahoo is still very flat. When I see breakthrough innovation and products then I will be dazzled. Right now Yahoo is not jumping off the page. My Angle: use some of that cash to get some innovative products out the door (or buy them).

Highlights after the jump.

Here are the highlights:

“In the third quarter we saw strength in key areas of our business,” said Yahoo! chief financial officer Tim Morse. “Our efforts to reposition Yahoo! are still in the early stages, but we’re confident that our investments in the business will enable us to capitalize on growth opportunities as the economy recovers.”

Revenues

* Marketing services revenues declined 12 percent and fees revenues declined 11 percent, compared to the third quarter of 2008.
* Marketing services revenues were flat and fees revenues increased 2 percent, compared to the second quarter of 2009.
* Marketing services revenues from Owned and Operated sites were $851 million for the third quarter of 2009, a 15 percent decrease compared to $1,002 million for the same period of 2008. The decrease was primarily driven by a 19 percent decline in search advertising revenue and an 8 percent decline in display advertising revenue.
* Marketing services revenues from Affiliate sites were $526 million for the third quarter of 2009, a 6 percent decrease compared to $561 million for the same period of 2008.

Cash Flow and Cash Balance

* Cash flow from operating activities for the third quarter of 2009 was $355 million, a 2 percent increase compared to $347 million for the same period of 2008.
* Free cash flow for the third quarter of 2009 was $258 million, a 20 percent increase compared to $215 million for the same period of 2008.
* Cash, cash equivalents, and investments in marketable debt securities were $4,503 million at September 30, 2009 compared to $3,522 million at December 31, 2008, an increase of $981 million.