Yahoo! pours $1 billion on product development; eyes tech to lure users

"Our engineering and production teams are primarily located in our Sunnyvale, California, headquarters, Bangalore, India and Beijing, China," the firm said in a the filing.

Yahoo!, which is increasingly seeing a major chunk of its usersbase going mobile, aims to make compelling ads and integrate them with news and information.

Reiterating its strategy of "building products focusing on mobile first", the firm further said: "Today we have over 400 million monthly mobile users, an increase of more than 150 million users since we launched our new Mobile and Emerging Products team in October 2012".

Today, mobile traffic represents more than half of its 800 million monthly users (the numbers do not include Internet Message Access Protocol or Tumblr users), it added.

Yahoo! said increasing mobile traffic has been the result of an "engaging and inspiring suite of new and revamped product experiences designed to make users' daily habits mobile."