Yahoo 2006 Annual Report Download - page 44

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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;
• expectations about our announced reorganization;
• 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 1 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. Our mission
is to connect people to their passions, their communities and the world’s knowledge. We seek to provide Internet
services that are essential and relevant to our global audience of users and advertisers. To our global audience of
users, we provide our owned and operated online properties and services (the “Yahoo! Properties”). To our
advertisers, we provide a range of tools and marketing solutions designed to enable them to reach our community of
users through the Yahoo! Properties and our distribution network of third-party entities (referred to as “affiliates”)
who have integrated our search and/or display advertising offerings into their websites.
We offer a broad range of innovative and high quality Internet 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 advertisers to reach our global audience of users. Our focus is on
engaging more deeply with users and increasing the user base on the 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
the 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.
Many of our services are free to users. We generate revenues by providing marketing services to advertisers 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 currently fall into five categories — Search; Marketplace;
Information and Entertainment; Communications, Communities and Front Doors; and Connected Life. See Part I
Business — “Offerings to Users” for additional information. The majority of our offerings are available globally in
more than 20 languages. We manage and measure our business geographically. Our principal geographies are the
United States and International.
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