Yahoo reaffirms Q1 and full-year 2008 outlook
Yahoo revealed a months-old operating plan that predicts an increasingly profitable future. The move was clearly aimed at convincing investors that Yahoo can prosper without being taken over by Microsoft.
The company reaffirmed its first-quarter outlook from its 2007 earnings statement, in which it anticipated revenues in the $1.7 billion to $1.8 billion range. That projection was generally lower than analyst estimates.
The plan that Yahoo just published roughly doubles operating cash flow over the next three years, from $1.9 billion to $3.7 billion, and generates $8.8 billion in revenue, excluding traffic acquisition costs in 2010.
The company assumes nearly $1.9 billion in added revenue from display/video advertising in the next three years. This is widely considered to mean that the company would be taking market share from its rivals. Yahoo also expects, in the next three years, $1.4 billion in added search revenue.
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