Yahoo was created in 1994 by two Stanford University PhD students, David Filo and Jerry Yang, as a simple search engine and directory called "Jerry and David's Guide to the World Wide Web". It offered specialized search categories and tools that made it very popular, attracting users globally. Yahoo grew significantly through advertising, with ads promoting the concept of e-commerce and online searching. It earned over 30% revenue growth in one quarter through various advertising strategies and partnerships. Yahoo's success was driven by its unique search features and large database of user information that supported relevant advertising.