Yahoo's new CEO Mayer takes on the mobile challenge By Alexei Oreskovic and Gerry Shih SAN FRANCISCO (Reuters) - Yahoo Inc's new CEO Marissa Mayer sketched out her plan for revamping the mobile and search advertising business, outlining publicly for the first time her vision for getting the ailing Web company back on its feet. Mayer, once a rising star at Google Inc who took charge at Yahoo in July, told analysts on a conference call she wanted to focus Yahoo's efforts around the "daily habits" of users such as email, the home page, Internet search and mobile devices. But her top priority is to fashion a coherent strategy to manage the industry's transition to mobile devices, a fundamental shift that some of the most innovative Silicon Valley companies - from Facebook Inc to Google Inc - are struggling with. "The mobile wave is a huge wave for us to ride," Mayer said on the conference call. The 37-year-old CEO talked about working more closely with software provider and Web search partner Microsoft Corp, while employing technology to shore up its display ads business through such features as automated buying. She added that the company is likely to begin withdrawing from international businesses that fail to grow. This month, executives said the company will pull out of South Korea, a market full of local rivals. Yahoo shares were up around 4 percent at $16.46 in after hours trading on Monday. Mayer is expected to focus on revamping Yahoo's technology and products, shifting course from the media-centric approach embraced by her immediate predecessor, Ross Levinsohn. The company's quarterly earnings beat expectations, but Wall Street had been keen to hear Mayer outline her plan for reviving the struggling Web company's revenue growth. "We know they've done a bunch of house cleaning," said Pivotal Research analyst Brian Wieser. Everyone's focused on what's in the call; what's the orientation of the management team for the long term. The company has reset and any color they give on the call is paramount. Excluding a $2.8 billion gain related to the sale of Alibaba Group shares, Yahoo said it earned $177 million in income from operations and adjusted net earnings of 35 cents per share in the third quarter. (Additional reporting by Gerry Shih.