Yahoo 2001 Annual Report Download - page 14

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Our key financial goals are to maximize long-term free cash flow and reduce volatility. To achieve these goals,
we intend to: 1) increase our revenue per user; and 2) balance short-term profitability and long-term growth.
As we work to better monetize our vast and loyal user base, we will be adding incremental revenue streams,
leaving us better diversified in our business mix and financial exposure. Despite difficult economic conditions
throughout 2001, we made significant progress across all of these objectives:
>During the fourth quarter, total revenue per average consolidated unique user increased to $0.35 per
month, up 9% from $0.32 per month during the third quarter. While user growth is likely to outpace rev-
enue growth for much of the first half of 2002, as the industry transition issues are completed we will
seek to increase annual revenues per user later in 2002 and in 2003 and beyond.
>Our financial objective to better monetize our user base has allowed us to grow our non-marketing revenue
streams — fees, listings, and transactions — which represented 25% of total revenue for the full year
ended 2001, nearly doubling from the 13% of revenue it represented for the full year 2000.
>We have instituted tight cost controls — including two company-wide restructurings and a 20% reduction
in our workforce — while continuing to make sound operating investments in our future, in areas like per-
sonals and our access partnership with SBC. When these operating resources are combined with our
strong balance sheet, we have been able to fund acquisitions such as LAUNCH, which closed in August
2001, and HotJobs, which closed in February 2002.
One strategy.
Focused objectives.
Disciplined approach.
It was a year of transformation for Yahoo! and our industry. The unraveling of
capital markets forced many companies to resort to financial practices with
questionable long-term benefit. Yahoo! remained committed to operating in a
financially disciplined manner with our focus on the longer-term horizon.
Financial Strategy:
Reposition the business model
to enhance monetization.
20% Fees and listings
5% Transactions
75% Marketing services
Multiple revenue streams