Table of Contents 

ITEM 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations 

You should read the following discussion and analysis in conjunction with  Selected Consolidated Financial Data  and our consolidated 

financial statements and notes thereto included elsewhere in this report. In addition to historical information, the following discussion contains 

forward looking statements that involve known and unknown risks and uncertainties, such as statements of our plans, objectives, expectations 

and intentions. You should read the cautionary statements made in this report. Our actual results could differ materially from those discussed 

in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed 

below and in the section entitled  Factors Affecting Our Operating Results, Business Prospects and Market Price of Stock,  as well as those 

discussed elsewhere herein. You should not rely on these forward looking statements, which reflect only our opinion as of the date of this 

report. We do not assume any obligation to revise forward looking statements. 

Overview 

InfoSpace, Inc. is a provider of wireless and Internet software and application services. We have developed and deliver a wireless and 

Internet platform of software and application services that enable companies to offer network based services under their own brands. Our 

customers in turn, offer these products and application services to their customers as their solutions. We provide our services across multiple 

platforms simultaneously, including PCs and non PC devices.  

We develop and deliver our products and application services to a broad range of customers that span each of our business areas of 

wireline and broadband, merchant and wireless. In our wireline and broadband business, we deliver our services to Web portals such as 

America Online, destination sites such as Disney, and DSL providers such as Verizon Online. In our merchant business, we deliver our 

products to regional Bell operating companies such as Verizon, merchant banks such as Union Bank of California, and financial institutions 

such as American Express. In our wireless business, we deliver our products and application services to wireless carriers such as Verizon 

Wireless, AT&T Wireless and Cingular and other consumer service companies such as Charles Schwab.  

Our services are predominately built on our core technology platform and use the same operational infrastructure. We do not currently 

allocate development or operating costs to any of these services.  

Naveen Jain, our Chief Executive Officer and Chairman, founded InfoSpace in March 1996. During the period from our inception through 

December 31, 1996, we had insignificant revenues and were primarily engaged in the development of technology for the aggregation, 

integration and distribution of Internet content and the hiring of employees. In 1997, we expanded our operations, adding business development 

and sales personnel in order to capitalize on the opportunity to generate Internet advertising revenues. We began generating material revenues 

in 1997 with our wireline services. Revenues in 1998 were also primarily generated through our wireline consumer services and we also started 

distributing our services on wireless platforms. Throughout 1999, 2000 and 2001, we expanded and enhanced our products and application 

services through both internal development and acquisitions and focused on developing and deploying our Internet software and application 

services to merchants and on wireless platforms. We do not expect our broadband services to generate meaningful revenues until 2003. We 

have offices in the United States, Canada, Australia, the United Kingdom and The Netherlands. As of February 28, 2002, we had 741 

employees worldwide.  

Our Business Areas 

We develop and deliver our products and services to a broad range of customers that span each of our business areas of wireline and 

broadband, merchant and wireless. The following provides detail on each of our business areas:  

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