Moreover, its mobile product lineup is too fragmented, with more than 76 different iOS and Android applications. "Our top priority is a focused, coherent mobile strategy," Mayer said. This will involve a significant beefing up of the company's mobile staff.

Regarding search, Mayer said that the revenue Yahoo is getting from its partnership with Microsoft remains below expectations, but Yahoo is still benefitting from existing revenue guarantees.

"While our search share is challenged, we're working closely with Microsoft to define the future of search," she said.

Yahoo will strive to grow its search market share, which is a top priority, by taking advantage of the opportunities the deal affords it to innovate independently on its search result pages, she said.

"There's a clear upside potential here, and it's time to execute against it," she said.