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2012 ANNUAL REPORT — 1 2012 Annual Report 2012 Every day, millions of people around the globe choose to make Yahoo! a part of their daily digital routines. Yahoo! is relentlessly focused on making We are committed to bringing users the the world’s daily habits inspiring and best products and the most immersive entertaining. We’re well positioned to serve digital experiences, personalized to their users’ everyday passions and needs — ​ interests, across screens and platforms. whether they’re searching for information, This focus on product excellence is key emailing, sharing photos of their families to engaging even more users, delivering or friends, or simply checking the weather, value for our partners and advertisers, and sports scores or stock quotes. creating powerful momentum for a new cycle of innovation and growth at Yahoo!. We believe that our commitment to the people who work at Yahoo! will have long- lasting benefits for our users, advertisers, partners, and shareholders. To our shareholders It’s been an exciting year at Yahoo! — one of number of opportunities where advertising great change and great inspiration. We have can enhance the quality of our products and significantly increased our pace of execution the user experience. and focused on product excellence, user While Yahoo! is committed to user, product, and experience, and growth. Our financials have seen revenue growth, we’ve also demonstrated continued stability; in fact, 2012 was our first discipline and a focus on profitability. Furthering year of ex-TAC revenue growth in four years. our commitment to shareholders, we returned Over the past 18 years, Yahoo! has become approximately $2.2 billion through share a daily habit for hundreds of millions of users repurchases last year. worldwide and has grown into one of the Inside the company, we will continue to invest Internet’s most loved and iconic brands. Today, in talent. Companies are all about people, and the we remain dedicated to creating products that companies with the best talent win. This is why inspire and delight our users every day, and we we have embarked on a number of initiatives to are working to reach even more users across make Yahoo! the absolute best place to work — ​ a broad array of platforms, including mobile. To greater transparency, clearer accountability, and that end, we are developing and reimagining benefits that increase employee efficiency the experiences that are at the center of people’s and well-being. This commitment to our team everyday digital habits. These are the same will enable us to produce the most compelling products that have been at Yahoo!’s core and exciting user experiences anywhere, and throughout our history — including Mail, Search, it will have long-lasting benefits for our users, News, Sports, Finance, Groups, and Answers. advertisers, partners, and shareholders. Our Last year, we made early progress in enhancing company’s performance is a testimony to the these products with a new design for Yahoo! hard work and capabilities of our employees, Mail across four key platforms — desktop, iOS, and we are incredibly excited about the future Android, and Windows 8 — as well as the launch we will create. of our Flickr mobile application, lauded as best in class. However, this is just the beginning. In that future, the Internet will continue to In 2013, we will demonstrate a cadence of change the way people learn, share, and innovation in our principal product offerings. communicate, and Yahoo! will strive to be a central part of this evolution. We need to We are also increasing the value we bring to continue Yahoo!’s tradition of bold innovation, our advertisers and partners. When ads are and ultimately inspire and delight users and personal, consumers respond. Yahoo! is one of advertisers globally. We see enormous the largest global platforms that combine opportunity in front of us. personalized content at scale with highly relevant advertising to reach the right audience at the Thank you for your belief in our vision. Your right time. We believe that ads are a core part support allows us to build exquisite products of our offering, and we see an incredible and experiences, which will make our users’ daily habits inspiring and delightful for years to come. Photo top left by simonlchung Marissa Mayer David Filo from the Flickr Collection CEO, President and Director Founder and Chief Yahoo Serving millions, catering to one It all starts with our users — about 700 million of them, in 60 countries around the world. We’ve doubled down on our commitment that get smarter about our users’ interests and to Yahoo! users as we seek to delight deliver more relevant content with every use. them with products and content that are And as mobile continues to become a more immersive, surprising, and beautiful. That integral part of our users’ day-to-day activities, means understanding the things they care we’re working to ensure a seamless, integrated about and their evolving needs. experience, regardless of the device or platform We enable users to access the information, they use. entertainment, and connections they want most — ​anytime and anywhere — ​with content that is personalized to their choices. That might mean up-to-the-minute scores and stats We enable users to access the in Yahoo! Fantasy Sports, articles about the information, entertainment, and latest on immigration reform on their Yahoo! news stream, or local weather forecasts that connections they want most — integrate Flickr images of their favorite places anytime and anywhere. around the world. We’re creating products “The new Yahoo.com introduces a fresh, personalized experience. We focused on what’s critical to our users, validating new design features with them every step of the way.” – Jackie Goldberg Director of Design The new Yahoo.com puts our users’ interests and preferences first and foremost. 4 — 5 2012 Annual Report 2012 The news carousel at the top of Yahoo.com receives 1 billion clicks every month. ONE Billion Clicks 6 — 7 2012 Annual Report 2012 Coverage of the London Games on Yahoo! Sports resulted in more than 3 billion pageviews and 150 more than 150 million Million Users unique users globally. Photo by Nasos Zovoilis from the Flickr Collection Delivering product excellence Product excellence is vital to our future. We’re building an organization with a continuous cycle of innovation and reinvention. In today’s digital marketplace, user demands change rapidly. Leveraging our strong user Yahoo! plans to provide more media connections, access to vast content, and deep content and greater personalization technology expertise, we’re accelerating across multiple platforms. the pace of product innovation and delivering world-class user experiences. We recently introduced a new, modern, and faster Yahoo.com. Optimized for Web, community, and with their social network of mobile, and tablets, the new Yahoo.com choice. With a library of more than 8 billion offers a personalized newsfeed with a virtually photos, 346 million of which are geotagged, endless stream of news articles and deeper and more than 1.6 million interest-based social integration. photo groups, users can explore photography through one of the most active photo In line with our mobile focus, we launched a communities in the world. new version of our Mail product across four platforms: desktop, iOS, Android, and Windows 8. Yahoo! is one of the largest content publishers The new Yahoo! Mail is faster and easier to use. on the Web. Each day, nearly 95,000 stories This is good news for the 105 million users who are available on our properties. We’re working send, on average, 91 million emails and 23 million to increase that significantly, by growing our attachments every day. premium and original content, curated content, and user-generated content. We also launched a new Flickr iOS app that has been hailed as one of the best mobile photo We’ve made great progress and will continue apps. The new app allows users to capture, share, to pursue innovation across platforms that align and discover photos by email, with the Flickr with consumers’ evolving needs and desires. “We took our cues from users and made the new Mail design simple and clean, with improved speed and efficiency.” – Guilherme Chapiewski Sr. Engineering Manager, Mail and Search, Yahoo! Mobile The Yahoo! Mail tablet experience has been re-imagined. With full screen magazine- style reading and new sort and delete tools, it’s faster, more fun, and easier to manage. A culture of innovation Our employees and culture are fundamental to delivering product excellence. We believe that companies with the best every day: in our products, our user engagement, talent win. That’s why we’re making Yahoo! the and our collective belief that Yahoo!’s best days absolute best place to work. We’re setting lie ahead of us. aggressive quarterly and annual goals, ensuring Yahoos are now working together with a sense Yahoos have the right productivity tools, of purpose: to deliver inspiring and entertaining building a culture of increased transparency, products that fuel the world’s daily habits. and creating a work environment that fosters innovation and excellence. Across the company and around the globe, we’re reigniting the inventive, collaborative, and We have challenged ourselves entrepreneurial spirit that continues to make Yahoo! a digital pioneer. We have challenged to renew our laser focus on users, ourselves to renew our laser focus on users, products, and teamwork. products, and teamwork. You can see the results “We’re accelerating mobile product The new Flickr app development. Our total number lets users explore 8 billion photos from around of unique mobile users more than the world. doubled in an 18-month period. We believe the potential is immense.” – Guy Hepworth Sr.
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