Yahoo 2001 Annual Report Download - page 5

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*Pro forma EBITDA is defined as earnings before interest, taxes, depreciation, amortization, acquisition related costs, stock compensation expenses and
restructuring charges.
13 languages is one of the company’s strongest assets and we have applied our overall business goals to
assist in better managing our international operations.
We are continuing to develop our business outside of the U.S., and in Brazil we strengthened our position
in that country by acquiring local portal Cadé?. We also added to and reinforced our strong international man-
agement team by making key hires in our regional offices, including experienced new senior level executives
who will be working to grow our business in Europe and Asia. Profiting from the power of Yahoo!’s global net-
work, we have also signed major advertising and marketing services deals with FIFA and HSBC, demonstrating
our commitment to utilizing our global network to provide significant revenue, brand and marketing opportuni-
ties for clients at local levels worldwide.
Financial Overview
As a result of our efforts to build for the long term, we also achieved some short-term benefits by delivering
some strong financial results to end the year on a high note. We delivered full year revenues of $717 million and
pro forma EBITDA*of $44 million, which was significantly above our business outlook. Our results from one quar-
ter to the next in 2001 demonstrated ongoing stability, despite the challenging economic and capital markets,
and even while many changes were taking place beneath the surface in terms of our revenue mix and client
composition. The percentage of revenue from non-marketing services businesses, particularly transactions and
fees, represented 25 percent of total revenue for the full year, nearly doubling in percentage terms from the
13 percent it represented for the full year 2000. During 2001, our transition in customer base from pure play
Internet companies to companies in more traditional lines of business continued, and we now believe that the
majority of the transition in behind us. While many companies saw their balance sheets deteriorate during 2001,
Yahoo!’s remained strong and we ended the year with almost $1.5 billion in cash and marketable securities.
I’d like to thank our shareholders, customers, partners and employees for the tremendous support you have
shown throughout the year. 2001 was clearly a transition year for Yahoo!. However, we responsibly managed
through with our eye on the longer-term horizon and made strong progress in a variety of areas.
As a result, we’ve entered 2002 with a quiet confidence that we are firmly in control of our future. While
we will continue to face new challenges, we are extremely excited about the future and believe we are well
positioned to drive profitable growth in 2002 and the years ahead.
Terry Semel
Chairman of the Board and Chief Executive Officer
One goal.
Your success.
Passionately delivered.
A lot has been written about Internet advertising in the past year.
Unfortunately, a lot of it has been wrong. Because while it’s true that demand
for conventional buttons and banner ads burst with the dot.com bubble, we
believe the hunger for creative, efficient online marketing solutions will grow.
Yahoo! remains a leader and pioneer in this arena, helping to fulfill the promise
of the world’s most powerful marketing medium.