Yahoo's revenue ex-TAC grew 2% year-over-year to $1.089 billion in Q3'12. Display revenue ex-TAC was roughly flat compared to Q3'11 while search revenue ex-TAC increased 11% driven by growth in paid clicks. The company continues to focus on growing revenue through initiatives in search and display advertising.
Joint ad trade letter to ag becerra re ccpa 1.31.2019Greg Sterling
We strongly support the objectives of the California Consumer Privacy Act (CCPA), but we have notable concerns around the likely negative impact on California consumers and businesses from some of the specific language in the law. We provide this initial comment to provide you with information about the significant importance of a data-driven and ad-supported online ecosystem, industry efforts to protect privacy, and in section III of the letter draw your attention to several areas that can be addressed and improved through the rulemaking process. We will provide more detailed comments over the coming weeks.
a group of locksmiths has filed a new class action lawsuit against Google, Microsoft and Yahoo. They claim the search engines (Google in particular) are deliberately “flooding” organic results with “scam locksmith listings” known to be false.
In an extensive and lengthy argument, Amazon argues that interactions with the Alexa virtual assistant are free speech. That includes both the human speech commands and the AI/robot responses. Interestingly, Amazon cites Search King v. Google for the proposition that Alexa responses are like search results and entitled to the same editorial protections accorded Google under that ruling and related case law
European Court of Justice Press Release GS Media vs. SanomaGreg Sterling
[W]hen hyperlinks are posted for profit, it may be expected that the person who posted such a link should carry out the checks necessary to ensure that the work concerned is not illegally published. Therefore, it must be presumed that that posting has been done with the full knowledge of the protected nature of the work and of the possible lack of the copyright holder’s consent to publication on the internet. In such circumstances, and in so far as that presumption is not rebutted, the act of posting a clickable link to a work illegally published on the internet constitutes a ‘communication to the public’.
Threats to mobile devices are more prevalent and increasing in scope and complexity. Users of mobile devices desire to take full advantage of the features
available on those devices, but many of the features provide convenience and capability but sacrifice security. This best practices guide outlines steps the users can take to better protect personal devices and information.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
GraphSummit Singapore | The Art of the Possible with Graph - Q2 2024Neo4j
Neha Bajwa, Vice President of Product Marketing, Neo4j
Join us as we explore breakthrough innovations enabled by interconnected data and AI. Discover firsthand how organizations use relationships in data to uncover contextual insights and solve our most pressing challenges – from optimizing supply chains, detecting fraud, and improving customer experiences to accelerating drug discoveries.
Unlocking Productivity: Leveraging the Potential of Copilot in Microsoft 365, a presentation by Christoforos Vlachos, Senior Solutions Manager – Modern Workplace, Uni Systems
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdfPeter Spielvogel
Building better applications for business users with SAP Fiori.
• What is SAP Fiori and why it matters to you
• How a better user experience drives measurable business benefits
• How to get started with SAP Fiori today
• How SAP Fiori elements accelerates application development
• How SAP Build Code includes SAP Fiori tools and other generative artificial intelligence capabilities
• How SAP Fiori paves the way for using AI in SAP apps
Dr. Sean Tan, Head of Data Science, Changi Airport Group
Discover how Changi Airport Group (CAG) leverages graph technologies and generative AI to revolutionize their search capabilities. This session delves into the unique search needs of CAG’s diverse passengers and customers, showcasing how graph data structures enhance the accuracy and relevance of AI-generated search results, mitigating the risk of “hallucinations” and improving the overall customer journey.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
Removing Uninteresting Bytes in Software FuzzingAftab Hussain
Imagine a world where software fuzzing, the process of mutating bytes in test seeds to uncover hidden and erroneous program behaviors, becomes faster and more effective. A lot depends on the initial seeds, which can significantly dictate the trajectory of a fuzzing campaign, particularly in terms of how long it takes to uncover interesting behaviour in your code. We introduce DIAR, a technique designed to speedup fuzzing campaigns by pinpointing and eliminating those uninteresting bytes in the seeds. Picture this: instead of wasting valuable resources on meaningless mutations in large, bloated seeds, DIAR removes the unnecessary bytes, streamlining the entire process.
In this work, we equipped AFL, a popular fuzzer, with DIAR and examined two critical Linux libraries -- Libxml's xmllint, a tool for parsing xml documents, and Binutil's readelf, an essential debugging and security analysis command-line tool used to display detailed information about ELF (Executable and Linkable Format). Our preliminary results show that AFL+DIAR does not only discover new paths more quickly but also achieves higher coverage overall. This work thus showcases how starting with lean and optimized seeds can lead to faster, more comprehensive fuzzing campaigns -- and DIAR helps you find such seeds.
- These are slides of the talk given at IEEE International Conference on Software Testing Verification and Validation Workshop, ICSTW 2022.
Essentials of Automations: The Art of Triggers and Actions in FMESafe Software
In this second installment of our Essentials of Automations webinar series, we’ll explore the landscape of triggers and actions, guiding you through the nuances of authoring and adapting workspaces for seamless automations. Gain an understanding of the full spectrum of triggers and actions available in FME, empowering you to enhance your workspaces for efficient automation.
We’ll kick things off by showcasing the most commonly used event-based triggers, introducing you to various automation workflows like manual triggers, schedules, directory watchers, and more. Plus, see how these elements play out in real scenarios.
Whether you’re tweaking your current setup or building from the ground up, this session will arm you with the tools and insights needed to transform your FME usage into a powerhouse of productivity. Join us to discover effective strategies that simplify complex processes, enhancing your productivity and transforming your data management practices with FME. Let’s turn complexity into clarity and make your workspaces work wonders!
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
In his public lecture, Christian Timmerer provides insights into the fascinating history of video streaming, starting from its humble beginnings before YouTube to the groundbreaking technologies that now dominate platforms like Netflix and ORF ON. Timmerer also presents provocative contributions of his own that have significantly influenced the industry. He concludes by looking at future challenges and invites the audience to join in a discussion.
A tale of scale & speed: How the US Navy is enabling software delivery from l...sonjaschweigert1
Rapid and secure feature delivery is a goal across every application team and every branch of the DoD. The Navy’s DevSecOps platform, Party Barge, has achieved:
- Reduction in onboarding time from 5 weeks to 1 day
- Improved developer experience and productivity through actionable findings and reduction of false positives
- Maintenance of superior security standards and inherent policy enforcement with Authorization to Operate (ATO)
Development teams can ship efficiently and ensure applications are cyber ready for Navy Authorizing Officials (AOs). In this webinar, Sigma Defense and Anchore will give attendees a look behind the scenes and demo secure pipeline automation and security artifacts that speed up application ATO and time to production.
We will cover:
- How to remove silos in DevSecOps
- How to build efficient development pipeline roles and component templates
- How to deliver security artifacts that matter for ATO’s (SBOMs, vulnerability reports, and policy evidence)
- How to streamline operations with automated policy checks on container images
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
UiPath Test Automation using UiPath Test Suite series, part 5DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 5. In this session, we will cover CI/CD with devops.
Topics covered:
CI/CD with in UiPath
End-to-end overview of CI/CD pipeline with Azure devops
Speaker:
Lyndsey Byblow, Test Suite Sales Engineer @ UiPath, Inc.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
2. This presentation contains forward-looking statements concerning Yahoo!’s strategic, financial and operational plans. Risks and uncertainties may cause actual results to differ
materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among
others, the impact of changes to our management and organizational structure and strategic business plan; Yahoo!'s ability to compete with new or existing competitors; reduction
in spending by, or loss of, advertising customers; risks associated with the Search and Advertising Services and Sales Agreement (the “Search Agreement”) between Yahoo! and
Microsoft Corporation (“Microsoft”); risks related to Yahoo!’s regulatory environment; interruptions or delays in the provision of Yahoo!’s services; security breaches; acceptance by
users of new products and services; risks related to joint ventures and the integration of acquisitions; risks related to Yahoo!'s international operations; adverse results in litigation,
including intellectual property infringement claims and derivative and class actions; Yahoo!'s ability to protect its intellectual property and the value of its brands; dependence on
third parties for technology, services, content, and distribution; and general economic conditions. All information in this presentation is as of October 22, 2012. Yahoo! does not
intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances. More information about potential risk factors that could affect Yahoo!’s
business and financial results is included in Yahoo!’s filings with the Securities and Exchange Commission (“SEC”) including its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2012, which is available on the SEC’s web site at www.sec.gov.
Throughout this presentation, we have rounded numbers as appropriate. In this presentation, “year-over-year” (or YOY) refers to the change from the corresponding period in the
prior fiscal year to the specified period in the specified year; and “quarter-over-quarter” (or QOQ) refers to the change from the immediately preceding fiscal quarter to the specified
quarter.
Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.
2
3. Definitions and Non-GAAP Financial Measures
This presentation includes the following non-GAAP financial measures:
- Revenue ex-TAC is defined as GAAP Revenue less Traffic acquisition costs (TAC). TAC consists of payments to Affiliates and payments made to companies that direct consumer and business traffic to
Yahoo! Properties.
- Display revenue ex-TAC is defined as GAAP Display revenue less Display TAC. Search revenue ex-TAC is defined as GAAP Search revenue less Search TAC. Other revenue ex-TAC is defined as
GAAP Other revenue less Other TAC.
- Total operating expenses less TAC is defined as GAAP Total operating expenses excluding TAC.
- Free cash flow is defined as Cash flow from operating activities (adjusted to include Excess tax benefits from stock-based awards), less Acquisition of property and equipment, net and Dividends received
from equity investees.
- Non-GAAP Operating income is defined as Operating income excluding certain gains, losses, and expenses that we do not believe are indicative of our ongoing operating results.
- Non-GAAP Net income is defined as Net income attributable to Yahoo! Inc. excluding certain gains, losses, expenses, and their related tax effects that we do not believe are indicative of our ongoing
results.
Please refer to the Appendix for reconciliations of these non-GAAP financial measures to the GAAP financial measures the Company considers most comparable.
In addition, certain margin information is presented on a non-GAAP basis:
- Operating margin ex-TAC is calculated as Operating income divided by Revenue ex-TAC; and
- Non-GAAP Operating margin ex-TAC is calculated as Non-GAAP operating income divided by Revenue ex-TAC.
- Net margin ex-TAC is calculated as Net income attributable to Yahoo! Inc. divided by Revenue ex-TAC.
Please refer to the Appendix for presentations of the most comparable margins calculated on a GAAP basis.
Return on invested capital (ROIC) is calculated as: (Operating income x (1- Effective tax rate))/(average Stockholder’s equity + average Net debt – average Investments in equity interests), where the
average of such items is calculated as the average of the amounts at the beginning and ending of the 12-month period. Effective tax rate for the period is calculated as (Provision for income taxes)/(Income
before income taxes and earnings in equity interests). Net debt is calculated as (Total debt) – ((Cash & cash equivalents) + (Short term and Long term marketable debt securities)).
Please refer to the Company’s earnings release for definitions of other terms appearing in this presentation, and for more information regarding the Company’s non-GAAP financial measures.
3
4. Key Takeaways From Q3’12
Revenue ex-TAC of $1,089 million grew 2% in the quarter on a YOY
basis.
Display revenue ex-TAC of $452 million was roughly flat YOY.
Non-GAAP Operating income, which excludes restructuring charges,
increased 1% YOY to $177 million.
We repurchased $190 million of stock in Q3, bringing total repurchase
amount to over $4 billion since 2009.
4
5. Financials and Key Metrics at a Glance
$ in millions, except per share amounts Q3’11 Q3’12 YOY
GAAP Revenue $1,217 $1,202 -1%
Revenue ex-TAC $1,072 $1,089 2%
Operating income $177 $152 -14%
Operating margin ex-TAC 17% 14% -300bps
Non-GAAP Operating income $175 $177 1%
Non-GAAP Operating margin ex-TAC 16% 16% (0bps)
Net income attributable to Yahoo! Inc. $293 $3,160 N/M
Net margin ex-TAC 27% N/M N/M
EPS attributable to Yahoo! Inc. – diluted $0.23 $2.64 N/M
Non-GAAP EPS – diluted $0.21 $0.35 66%
Shares used in per share calculation – diluted 1,260 1,195 -5%
ROIC – last 12 months 11.9% 8.8% (314bps)
Ending employees 13,700 12,000 -12%
N/M – Not meaningful
5
7. Revenue ex-TAC by Geography & Source
$ in millions
Geography Source
APAC
$207 Other
$223 Display
EMEA $452
3Q’12 = $1,089 $79 Americas
$802
Search
$414
APAC Other
$222 $248
3Q’11 = $1,072 Display
EMEA Americas $449
$96 $754
Search
$374
7
8. Revenue ex-TAC by Source
$ in millions Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
Display revenue ex-TAC $471 $467 $449 $546 $454 $473 $452
YOY Growth 10% (1) 5% 0% (4%) (4%) 1% 0%
Search revenue ex-TAC $357 $371 $374 $376 $384 $385 $414
YOY Growth (19%) (2) (15%) (2) (13%) (2) (3%) (2) 8% 4% 11%
Other revenue ex-TAC $237 $239 $248 $248 $240 $222 $223
YOY Growth (10%) (3%) 0% (1%) 1% (7%) (10%)
Total revenue ex-TAC $1,064 $1,076 $1,072 $1,169 $1,077 $1,081 $1,089
YOY Growth (6%) (1)(2) (5%) (2) (5%) (2) (3%) (2) 1% 0% 2%
(1) YOY Growth in Display revenue ex-TAC and Total revenue ex-TAC were negatively impacted by a one-time benefit in Q1’10 from transitioning some large customers from cash-basis accounting to accrual
accounting.
(2) YOY Growth in Search revenue ex-TAC and Total revenue ex-TAC were negatively impacted by headwinds in Q4’11 of $6M and $18M, in Q3’11 of $37M and $58M, in Q2’11 of $37M and $61M, and in Q1’11 of
$36M and $63M, respectively.
8
9. Geographic Segment Data
$ in millions Q3’11 Q3’12 YOY
Americas
Revenue ex-TAC $754 $802 6%
Direct costs(1) (175) (189) 8%
Contribution $579 $613 6%
Americas contribution margin(2) 77% 76% (40bps)
EMEA
Revenue ex-TAC $96 $79 (18%)
Direct costs(1) (43) (39) (8%)
Contribution $53 $40 (25%)
EMEA contribution margin(2) 56% 50% (515bps)
Asia Pacific
Revenue ex-TAC $222 $207 (6%)
Direct costs(1) (61) (56) (8%)
Contribution $161 $151 (6%)
Asia Pacific contribution margin(2) 72% 73% 35bps
(1) Direct costs for each segment include cost of revenue (excluding TAC) and other operating expenses that are directly attributable to the segment. Beginning in 2012, marketing and
customer advocacy costs are managed locally and included as direct costs for each segment. Prior period amounts have been revised to conform to the current presentation.
(2) Contribution margin is calculated as Contribution divided by Revenue ex-TAC for each segment.
9
10. Total Operating Expenses less TAC
Depreciation, Amortization, and Stock-based compensation
$1,026 (1)
$937 (2)
$926 $908
$885 $894
$875
$ in millions
Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
(1) Total Operating expenses less TAC in Q2’12 was negatively impacted by a total of $136 million of restructuring charges and deal-related expenses.
(2) Total Operating expenses less TAC in Q3’12 was negatively impacted by a total of $25 million of restructuring charges.
10
11. GAAP Operating Income
$242
$190 $191
$177
$ in millions
$169
$152(2)
$55(1)
Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
Op. margin
ex-TAC : 18% 18% 17% 21% 16% 5% 14%
(1) Operating income in Q2’12 was negatively impacted by a total of $136 million of restructuring charges and deal-related expenses. Please see slide 20.
(2) Operating income in Q3’12 was negatively impacted by a total of $25 million of restructuring charges. Please see slide 20.
11
12. Key Balance Sheet Metrics
$ in millions Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
Cash & marketable debt securities(1) $3,528 $3,255 $2,870 $2,530 $2,652 $2,401 $9,427
Accounts receivable, net $933 $957 $873 $1,037 $942 $1,041 $954
Current deferred revenue $247 $240 $206 $195 $179 $177 $309
Market value of 35% ownership in
$7,740
Yahoo Japan (at 9/30/12) (2)
Value of approximately 24%
ownership in Alibaba based on $8,100
recent transaction (3)
(1) Cash & marketable debt securities is comprised of Cash and cash equivalents, Short-term marketable debt securities, and Long-term marketable debt securities.
(2) Pre-tax market value is based on public market share price for Yahoo Japan on September 30, 2012.
(3) Pre-tax value is based on $15.50 price per share at which Alibaba sold common equity to third-party purchasers in its most recent round of funding; does not include $800 million
in Alibaba preference shares held by Yahoo!.
12
13. Key Cash Flow Highlights
$ in millions Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
Share repurchases $137 $472 $593 $416 $71 $456 $190
Net cash provided by operating
$206 $331 $356 $431 $297 $275 $1,046(1)
activities
Acquisition of property and
$168 $172 $124 $130 $110 $106 $140
equipment, net
Free cash flow $56 $96 $247 $327 $196 $93 $920(2)
(1) Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, Net cash provided by operating activities for Q3’12 was
$496 million.
(2) Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, Free cash flow for Q3’12 was $370 million.
13
14. Example – Impact of change in GAAP
revenue presentation and revenue share
related to the Yahoo! Bing Network(1)
Pre Transition Post Transition
GAAP Revenue Presentation – “Gross” basis GAAP Revenue Presentation – “Net” basis
Yahoo! Affiliate Yahoo! Affiliate
Total Total
Properties (70% TAC) Properties (70% TAC)
Search transactions
GAAP Revenue $100 $100 $200 in AdCenter(2)
$100 $100 $200
Less: TAC ($5) ($70) ($75) Less: TAC ($5) ($70) ($75)
Less: 12% MSFT
($11) ($4) ($15)
revenue share(3)
Revenue ex-TAC $95 $30 $125 GAAP Revenue $84 $26 $110
(1) The numbers presented in this slide are for illustration purposes only and do not reflect actual amounts or actual average TAC rates.
(2) Represents dollar value of search transactions in Microsoft’s AdCenter platform attributed to Yahoo! Properties and Affiliate sites.
(3) Under the Search Agreement, Yahoo! is entitled to an 88% post-TAC revenue share and Microsoft is entitled to a 12% post-TAC revenue share in transitioned markets.
14
18. Table 3 – Revenue and Direct Costs by Segment
$ in millions Q3’11 Q3’12
Revenue by segment:
Americas $791 $844
EMEA 148 96
Asia Pacific 277 262
Total revenue 1,217 1,202
TAC (145) (113)
Total revenue ex-TAC $1,072 $1,089
Direct costs by segment:
Americas $175 $189
EMEA 43 39
Asia Pacific 61 56
Global operating costs(1) 416 396
Restructuring charges, net (3) 25
Depreciation and amortization 152 170
Stock-based compensation expense 51 61
Income from operations $177 $152
(1) Global operating costs include product development, service engineering and operations, general and administrative, and other corporate expenses that are managed on a global
basis and that are not directly attributable to any particular segment. Prior to 2012, marketing and customer advocacy costs were managed on a global basis and included as
global operating costs. Prior period amounts have been revised to conform to the current presentation.
18
19. Table 4 – Total Operating Expenses
Reconciliations of Total Operating Expenses to Total Operating
Expenses less TAC
$ in millions Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
Total operating expenses
less TAC:
Total operating expenses $1,025 $1,038 $1,039 $1,082 $1,052 $1,163 $1,050
Less: Traffic acquisition costs (150) (153) (145) (155) (144) (137) (113)
Total operating expenses
$875 $885 $894 $926 $908 $1,026 $937
less TAC
19
20. Table 5 – Non-GAAP Operating Income Calculation
Reconciliation of GAAP Operating Income to Non-GAAP Operating
Income, with Details on Adjustments
Quarterly Data Year Ended
$ in thousands Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 12/31/10 12/31/11
GAAP Operating income $189,745 $190,895 $177,254 $242,447 $169,376 $54,813 $152,189 $772,524 $800,341
(a) Reimbursements from Microsoft
for transition costs incurred in prior – – – – – – – (43,300) –
periods(1)
(b) Restructuring charges, net 10,575 237 (2,721) 16,329 5,717 129,092 24,727 57,957 24,420
(c) Deal-related expenses(2) – – – – – 6,500 – – –
Non-GAAP Operating income $200,320 $191,132 $174,533 $258,776 $175,093 $190,405 $176,916 $787,181 $824,761
GAAP Operating margin 16% 16% 15% 18% 14% 5% 13% 12% 16%
Non-GAAP Operating margin(3) 16% 16% 14% 20% 14% 16% 15% 12% 17%
Non-GAAP Operating margin
19% 18% 16% 22% 16% 18% 16% 17% 19%
ex-TAC
(1) Non-GAAP Operating income excludes reimbursements for costs incurred in prior periods. The net reimbursement adjustment of $43 million in Q1'10 is equal to the transition costs of
$11 million and $32 million incurred in Q3’09 and Q4’09, respectively, in connection with the Search Agreement.
(2) Deal-related expenses relate to, among other matters, the agreement Yahoo! entered into with Alibaba regarding Yahoo!’s stake in Alibaba.
(3) Non-GAAP Operating margin is calculated as Non-GAAP Operating income divided by GAAP Revenue.
20
21. Table 6 – Free Cash Flow Calculation
Reconciliation of GAAP Cash Flow from Operating Activities to
Free Cash Flow
$ in millions Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
Free cash flow:
Net cash provided by operating
$206 $331 $356 $431 $297 $275 $1,046 (1)
activities
Excess tax benefits from stock-
18 12 14 26 8 9 14
based awards
Acquisition of property &
(168) (172) (124) (130) (110) (106) (140)
equipment, net
Dividends received from equity
– (75) – – – (84) –
investees
Free cash flow $56 $96 $247 $327 $196 $93 $920(2)
(1) Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, Net cash provided by operating activities for Q3’12 was
$496 million.
(2) Excluding a payment of $550 million from Alibaba related to a technology and intellectual property license agreement, Free cash flow for Q3’12 was $370 million.
21
22. Table 7 – Non-GAAP Net Income Per Share Calculation
Reconciliation of GAAP Net Income Attributable to Yahoo! Inc. and GAAP Net
Income Attributable to Yahoo! Inc. Common Stockholders Per Share – Diluted
to Non-GAAP Net Income and Non-GAAP Net Income Per Share – Diluted
$ in millions, except per share amounts Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
GAAP Net income attributable to Yahoo! Inc. $223 $237 $293 $296 $286 $227 $3,160
Adjustments 7 0 (27) 11 4 100 (2,740)
Non-GAAP Net income $230 $237 $266 $307 $290 $327 $421
GAAP Revenue $1,214 $1,229 $1,217 $1,324 $1,221 $1,218 $1,202
GAAP Net margin 18% 19% 24% 22% 23% 19% NM
Non-GAAP Net margin(1) 19% 19% 22% 23% 24% 27% 35%
GAAP Net income attributable to Yahoo! Inc.
common Stockholders per share – diluted $0.17 $0.18 $0.23 $0.24 $0.23 $0.18 $2.64
Non-GAAP Net income per share – diluted $0.17 $0.18 $0.21 $0.25 $0.24 $0.27 $0.35
Diluted shares outstanding 1,320 1,308 1,260 1,241 1,226 1,222 1,195
(1) Non-GAAP Net margin is calculated as Non-GAAP Net income divided by GAAP Revenue.
Note: All per share amounts are based on fully diluted share counts. Please refer to Appendix Table 8 for details on Adjustments.
22
23. Table 8 - Non-GAAP Net Income Calculation
Reconciliation of GAAP Net Income Attributable to Yahoo! Inc. to
Non-GAAP Net Income, with Details on Adjustments
$ in thousands Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12
GAAP Net income attributable to Yahoo! Inc. $222,992 $236,972 $293,291 $295,572 $286,343 $226,631 $3,160,238
(a) Restructuring charges, net 10,575 237 (2,721) 16,329 5,717 129,092 24,727
(b) Non-cash gain related to the dilution of the
Company's ownership interest in Alibaba Group, which – – (25,083) – – – –
is included in earnings in equity interests
(c) Deal-related expenses(1) – – – – – 6,500 –
(d) Gain related to sale of Alibaba shares – – – – – – (4,603,322)
(e) To adjust the provision for income taxes to exclude
(3,362) (75) 865 (5,192) (2,047) (35,674) 1,839,035
the tax impact of items (a), (c) and (d)
(f) Non-cash gain related to the dilution of the
Company’s ownership interest in Alibaba Group, which – – (25,083) – – – –
is included in earnings in equity interest
Non-GAAP Net income $230,205 $237,134 $266,352 $306,709 $290,013 $326,549 $420,678
(1) Deal-related expenses relate to, among other matters, the agreement Yahoo! entered into with Alibaba regarding Yahoo!’s stake in Alibaba.
23
24. Table 9 – Additional Reconciliations
Total operating expenses less TAC, adjusted for restructuring charges. On a GAAP basis, Total operating expenses in Q3’12 were $1,050 million. Adjusting for TAC of
$113 million and restructuring charges of $25 million, Total operating expenses less TAC, adjusted for restructuring charges, were $912 million in Q3’12.
24