"It's clear Flickr is becoming a platform of choice for photos," Mayer said.
Desktop use of Yahoo is also on the rise, Mayer said. Since the launch of Yahoo's redesigned homepage, user interactions on the homepage are up 25 percent.
More users means more advertisers and that translates into more revenue, Mayer said. So far, Yahoo has about 10 percent of the display advertising market, she said.
To keep growth on track, Yahoo has been focused on recruiting top talent, Mayer said.
"Companies with the best talent win and that's why Yahoo has been focused for the last several months to become the best place to work," she said.
Shareholders also approved several proposed items, including the approval of 10 nominees for the board of directors, executive compensation and the appointment for PricewaterhouseCoopers as the company's registered public accounting firm.
Two shareholder proposals were also voted on, including a call for Yahoo to begin publishing an annual Corporate Social Responsibility report that focuses on human rights and a proposal that would require the company to file a report disclosing political contributions. Both proposals failed to get shareholders' approval.
(Related: Facebook Investors Press Zuckerberg on Stock Price at Annual Meeting)
—By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.