United Online Inc. shares jumped more than 16 percent early Thursday after the Internet company reported lower third quarter earnings and revenue that still beat Wall Street expectations. It also announced a partnership agreement.

The Woodland Hills company, which operates Internet access, FTD floral and the Classmates social network services, late Wednesday reported net income of $11.4 million (25 cents per share), compared with $14.9 million (33 cents) a year earlier.

Revenue fell 11 percent to less than $194 million.

Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 19 cents on revenue of $189 million.

The company expects fourth quarter revenue to range from $223 million to $229 million, in line with the Wall Street consensus of $224 million.

Chief Executive Mark Goldston said he was encouraged by the company’s results coming out of the recession, and by progress in converting its flagging Classmates service into a more nostalgia-oriented Web site. In addition, the company announced separately that FTD had signed an exclusive agreement with Batesville Casket Co. to provide customized, co-branded floral websites to funeral homes in the United States and Canada.

“And while 2010 has proven to be a challenging year for the company in many respects, during the quarter we repurchased 2.2 million shares of United Online common stock — our first stock repurchases in more than five years — underscoring our confidence in the company’s future,” Goldston said in a statement.

Shares were up $1.06 or 16.6 percent to $7.16 in midday trading on the Nasdaq.