quarterly financial results once again suffered from decreasing online advertising prices. For the fourth consecutive quarter, Yahoo revenue fell -- dropping six percent to $1.266 billion. Net income rose to $348.2 million, up from the $272.3 million in the same quarter a year ago.
The company noted that paid clicks increased 17 percent year-over year. However, the price-per-click decreased three percent in the same time period. Net earnings per diluted share was $0.33 in the fourth quarter of 2013, which includes a net gain of $0.05 per diluted share related to the sale of patents, compared to $0.23 in the fourth quarter of 2012.
"I'm encouraged by Yahoo's performance in Q4 and 2013 overall. We saw continued stability in the business, and our investments allowed us to bring beautiful products to our users and establish a strong foundation for revenue growth," said Yahoo CEO Marissa Mayer. "In Q4, we launched the new Yahoo Mail, Yahoo Finance, and our new Flickr photo books, while quickening our pace of experimentation. We are extremely heartened by the year-over-year traffic increase we experienced in 2013, an early sign of return on our investments and the acquisitions we've made."
During the fourth quarter of 2013, Yahoo repurchased six million shares for $231 million, and used a net $60 million for acquisitions. Across all of 2013, Yahoo repurchased 129 million shares for $3.3 billion, and used a net $1.2 billion for acquisitions.