Updated: We ran into some audio problems at the start so want to backfill a bit with comments from CEO Jerry Yang now that I’ve had a chance to catch up. Yang opened the call with an explanation about the 100-day review, resulting changes and where Yahoo (NSDQ: YHOO) is headed. At the core, it’s about going back to basics—Yahoo as “the starting point for the most consumers on the Internet”—but with all the Web 2.0 frills. Yang: “We have ... three big, multi-year strategic objectives that will be the core of everything we do at Yahoo! for the next few years. First, become the starting point for the most consumers on the Internet; second, establish Yahoo! as the must buy for the most advertisers; third, deliver industry-leading platforms that attract the most developers.”

The home page, mail, search, MyYahoo are the top starting points with mobile gaining in importance. Other ares that make Yahoo a starting point have emerged: category leaders Yahoo Finance, Sports, and News. And others are being dropped. Yang: “As part of this prioritization framework, there are services that don’t apply to Yahoo!‘s key starting points. In these instances, we will either not fund or will not direct additional resources.” Examples: de-emphasizing subscription music for ad-supported, integrating Yahoo photos in flickr, integrating Yahoo 360, assessing options for Kelkoo. Yang: We “plan to shut down a number of other one-off services throughout the world over the coming months.” For the full gist, read the transcript from SeekingAlpha.

The Q307 earnings call was about giving analysts and investors assurance that Yahoo is making progress and moving in the right direction. We’ll have a better sense of how that went in after-hours trading and over the next few days. In the meantime, some highlights of the hour-long session with CEO Jerry Yang, president Sue Decker and CFO Blake Jorgensen:

Progress: The execs each made a point of talking about progress without playing it up too much or over promising. (Definitely trying to keep a lid on expectations while showing just enough leg to maintain interest.) Jorgensen: “We are encouraged by early signs of improvement. Yang tried to move past the 100 days coneit left over from the last call and stressed that this is “a multi-year effort ... We have a lot more work to do but we are generally excited about where the company is headed.”

Panama, etc.: Decker ticked off the company’s various achievements in the quarter, including the global roll out of Panama, which is now almost complete, and the introduction of new search products. Already, algorithm changes have brought about a 20 percent increase in revenue per search in the US, leading to a 30 percent increase in total US search revenue. On the display side, the company saw a 20 percent year-over-year improvement due to better targeting. Looking long term, Decker touted Yahoo’s potential to deliver much greater personalization of both content and ads due to the vast amount of data it had on its users. Because of the company’s scale, slight gains in relevancy can turn into major performance gains. One example she offered: targeting the content in the Today module on the front page so that an American Idol fan sees items about that while a baseball fan gets World Series highlights. (No clue about what happens if you like both American Idol and the American League.) Decker said there are “a number of initiatives underway that will help unleash this value in the coming years.”

Restructuring: Among other references, Decker noted the company’s integration of its sales force for display and search advertising. Sharpening, empowering, etc. (Yang and Decker). Jorgensen:” We’re likely to see a continuing evolution…”

Search: Yahoo is staying in the search advertising business no matter how many observers suggest outsourcing: Yang calls a prominent position in search and display “critical.”

M&A: Yahoo isn’t going to break out the financials for acquisitions Blue Lithium, Zimbra. Jorgensen said the revised outlook for the year includes Blue Lithium and Zimbra in Q4.