Yahoo’s Three-Year Plan: Grow Revenues 73 Percent

It would be easy to look at the plan Yahoo put out and suggest they are smoking crack. Seriously, if they could grow revenues to the degree that they are projecting in this economy, they are superstars in my book.

Of course if they did I’d be inclined to suggest that Jerry Yang is actually Eric Schmidt walking around in a Jerry Yang bodysuit. I just don’t see this company achieving those numbers AND adopting a super lean cost structure that would have to be part of the equation. A question that a lot of people have front and center is If they could put up those kind of numbers, then why haven’t they?

This plan is less about what Yahoo can really do and more about justifying a higher acquisition valuation.

Yahoo is projecting revenues after traffic acquisition costs (TAC)—i.e., what it shares with other Websites that run Yahoo ads—to grow from $5.1 billion in 2007 to $8.8 billion in 2010.

[From Yahoo’s Three-Year Plan: Grow Revenues 73 Percent By Focusing on Display Ads, Mobile, and Better Search]