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35
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
In addition to current and historical information, this Report contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our future
operations, prospects, potential products, services, developments and business strategies. These statements can,
in some cases, be identified by the use of terms such as “may,” “will,” “should,” “could,” “would,” “intend,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” or “continue” or the
negative of such terms or other comparable terminology. This Report includes, among others, forward-looking
statements regarding our:
• expectations about revenues for marketing services and fees;
• expectations about growth in users;
• expectations about cost of revenues and operating expenses;
• expectations about effective tax rate;
• anticipated capital expenditures;
• evaluation of possible acquisitions of, or investments in, businesses, products and technologies; and
• expectations about positive cash flow generation and existing cash and investments being sufficient
to meet normal operating requirements.
These statements involve certain known and unknown risks and uncertainties that could cause our actual
results to differ materially from those expressed or implied in our forward-looking statements. Such risks and
uncertainties include, among others, those listed in Part I Item 1A “Risk Factors” of this Annual Report on
Form 10-K. We do not intend, and undertake no obligation, to update any of our forward-looking statements
after the date of this Report to reflect actual results or future events or circumstances.
Overview
We are a leading global Internet brand and one of the most trafficked Internet destinations worldwide.
We seek to provide Internet services that are essential and relevant to users and businesses. To users, we
provide our owned and operated online properties and services (the “Yahoo! Properties”). To businesses,
we provide a range of tools and marketing solutions designed to enable businesses to reach our community
of users.
We offer a broad range and deep array of innovative products and services that are designed to provide
our users with the power to connect, communicate, create, access, and share information online. We seek
to provide efficient and effective marketing services for businesses to reach our community of users. Our
focus is on engaging more deeply with users and increasing the user base on Yahoo! Properties, thereby
enhancing value for our advertisers. We believe that we can increase our existing and potential user base and
our users’ engagement on Yahoo! Properties not only by offering compelling Internet services, but also by
effectively integrating search, community, personalization and content to create a more powerful user
experience.
We also focus on extending our marketing platform and access to Internet users beyond Yahoo! Properties
through our distribution network of third party entities (referred to as “affiliates”) who have integrated our
search offerings into their websites.
Many of our services are free to users. We generate revenues by providing marketing services to
businesses across a majority of our properties and by charging our users for premium services. We classify
these revenues as either marketing services or fees. Our offerings to users and businesses currently fall
into four categories — Search; Marketplace; Information and Entertainment; and Communications and
Connected Life. The majority of our offerings are available globally in more than 15 languages. We
manage and measure our business geographically. Our principal geographies are the United States and
International.