One thing she has already realized is that Yahoo is organizationally very complex. That needs to change, she said.

"We need to bring more clarity to our strategy, feed innovation, be maniacally focused on our users and their experience, and always remember that great products will bring users and advertisers to Yahoo," she said.

CFO Blake Jorgensen said that Yahoo had implemented a variety of previously announced cost-cutting measures in the fourth quarter, including about 1,600 layoffs and consolidation of facilities. He doesn't expect Yahoo to roll out a massive cost-cutting plan in 2009, but said the company will continue looking for opportunities to sharpen its operational efficiency. Yahoo ended the fourth quarter with 13,600 employees, down from 15,200 at the end of the third quarter.

For the full 2008 year, revenue was $7.21 billion, up 3 percent compared to 2007. Subtracting commissions to ad partners, revenue was $5.40 billion, up 6 percent.

Net income for 2008 was $424 million, or $0.29 per share, compared to $660 million, or $0.47 per share, for 2007. Pro forma net income was $642 million, or $0.46 per share, compared to $652 million, or $0.46 per share, for 2007.