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2009Q1_google_earnings_slides

VIEWS: 345 PAGES: 11

									Q1 2009 Quarterly Earnings Summary

First Quarter 2009 Highlights

• Revenue growth of 6% Y/Y and -3% Q/Q
– – –
Google properties revenue growth of 9% Y/Y and -3% Q/Q Network revenues decreased 3% Y/Y and Q/Q International revenue was $2 9 billion $2.9

• Operational Highlights
– – –
Traffic and revenue solid in Q1 despite difficult economic environment Key investments continue in our core search and ads businesses Continuing to invest in strategic growth areas:

• Display, Apps, and Mobile

• Maintaining a clear focus on operational
efficiency and continued cost management
2

Quarterly Revenue
$6,000 $5,500 $5,000 $4,500 $4,000

Q1’09 Y/Y Growth = 6% Q1’09 Q/Q Growth = -3%
4,827

5,701 5,541 5,186 5,367 5,509

1,693 1,680 1,638

4,231 3,872 3,664 3,205
1,352 1,455 1,636

1,686

1,655

$ in millions

$3,500 $3,000

2,690 2,456 2 456 2,254
1,037 997 928 1,198

1,345

$2,500 $2,000 $1,500

3,400 3,122 2,486 2 486 2,282 2,735 2 735

3,530

3,672

3,811

3,693

$1,000
1,297 1,432

1,977 1,626

$500 $0 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Google.com
3

Network

Licensing and Other

U.S. vs. U S vs International Revenue
$6,000 $5,500 $5 500 $5,000 $4,500 $4,000 $4 000

5,701 5,367 , 5,186 4,827 4,231 52% 3,664 3,205 48% 2,690 2,456 2,254 44% 42% 42% 56% 58% 58% 56% 53% 52% 52% 52% 49% 48% 44% 49% 50% 47% 3,872 3 872 48% 48% 51% 51% 50% 5,541

5,509

52%

$ in millions n

$3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

48%

Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09

US
4

International

Traffic Acquisition Costs
$1,500 $ , $1,400 $1,300 $1,200 $1,100 $1,000
$ in millions n
32.5% 32.3% 31.0% 30.7% 31.0% 29.9% 30.3% 29.1% 29.2% 28.4% 27 9% 27.9% 26.9% 26.9%

40%

35%

30%

$900 $800 $700 $600 $500 $400 $300 $200 $100 $0
08 06 06 06 06 07 07 07 07 08 08 Q 1' Q 2' Q 3' Q 4' Q 1' Q 2' Q 3' Q 4' Q 2' Q 3' Q 4' Q 1'
723 785 825 976 1,148 1,125 1 148 1,221

1,495 1,483 1,440 1,486 1,474 1,436

25%

20%

15%

10%
08 Q 1' 09

TAC
5

TAC as % of Advertising Revenues

Costs and Expenses
GAAP $Millions
Cost of Revenues
Percent of revenues

Q1'08
$2,111 $2 111
41%

Q4'08
$2,190 $2 190
38%

Q1'09
$2,101 $2 101
38%

Research & Development
Percent of revenues

$673
13%

$733
13%

$642
12%

Sales & Marketing
Percent of revenues

$447
9%

$506
9%

$434
8%

General & Administrative G l Ad i i t ti
Percent of revenues

$409 $
7%

$412 $
7%

$448 $
8%

Total Costs & Expenses
Percent of revenues

$3,640
70%

$3,841
67%

$3,625
66%

Non-GAAP $Millions
Cost of Revenues
Percent of revenues

Q1'08
$2,102
41%

Q4'08
$2,178
38%

Q1'09
$2,089
38%

Research & Development
Percent of revenues

$479
9%

$551
10%

$473
9%

Sales & Marketing
Percent of revenues

$404
8%

$450
8%

$375
7%

General & Administrative
Percent of revenues

$374
7%

$376
6%

$411
7%

Total Costs & Expenses
Percent of revenues

$3,359
65%

$3,555
62%

$3,348
61%

Note: Please refer to supporting Table 1 for reconciliations of non-GAAP costs and expenses to GAAP costs and expenses
6

Profitability
GAAP $Millions Income from Operations Operating Margin Net Income EPS (diluted) Non-GAAP $Millions $Milli Income from Operations Operating Margin Net Income EPS (diluted) Q1'08
$1,546 $ 30% $1,307 $ $4.12 $

Q4'08
1,860 33% 382 1.21 $ $ $

Q1'09
1,884 34% 1,423 4.49

Q1'08
$1,827 $ 35% $1,537 $ $4.84 $

Q4'08
2,146 38% 1,616 5.10 $ $ $

Q1'09
2,161 39% 1,636 5.16

Note: Please refer to supporting Table 2 for reconciliations of non-GAAP results of operations pp g p measures to the nearest comparable GAAP measures

7

Free Cash Flow

$Millions Net cash provided by operating activities Less purchases of property and equipment q p

Q1'08
$1,780

Q4'08
$2,122

Q1'09
$2,250

($ ($842) )

($ ($368) )

($ ($263) )

Free cash flow (Non-GAAP)

$938

$1,754

$1,987

8

Table 1 - Reconciliations of non-GAAP costs and expenses to GAAP costs and expenses
$Millions Cost of Revenues (GAAP) Less: Stock-based compensation Cost of Revenues (non-GAAP) Research and development (GAAP) Less: Stock-based compensation Research and development (non GAAP) (non-GAAP) Sales and marketing (GAAP) Less: Stock-based compensation Sales and marketing (non-GAAP) General and administrative (GAAP) Less: Stock-based compensation General and administrative (non-GAAP) Total costs and expenses (GAAP) Less: Stock-based compensation Total T t l costs and expenses (non-GAAP) t d ( GAAP) $ $ $ $ $ $ $ $ $ $ Q1'08 2,111 2 111 (9) 2,102 673 (194) 479 447 (43) 404 409 (35) 374 3,640 (281) 3,359 3 359 As a % of Revenues (1) 41% $ 41% $ 13% $ 9% $ 9% $ 8% $ 7% $ 7% $ 70% $ 65% $ Q4'08 2,190 2 190 (12) 2,178 733 (182) 551 506 (56) 450 412 (36) 376 3,841 (286) 3,555 3 555 As a % of Revenues (1) 38% $ 38% $ 13% $ 10% $ 9% $ 8% $ 7% $ 6% $ 67% $ 62% $ Q1'09 2,101 2 101 (12) 2,089 642 (169) 473 434 (59) 375 448 (37) 411 3,625 (277) 3,348 3 348 As a % of Revenues (1) 38% 38% 12% 9% 8% 7% 8% 7% 66% 61%

(1) Percentages based on GAAP revenues of $5,186 million in Q1'08, $5,701 million in Q4'08 and $5,509 million in Q1 '09.

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Table 2 - Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures

Figures in millions except per share amounts Income from operations (GAAP) Add: Stock-based compensation Stock based Income from operations (non-GAAP) Net income (GAAP) Add: Stock-based compensation (net of tax) Add: Impairment charges related to certain equity investments (net of tax) Net income (non-GAAP) N ti ( GAAP) Net income per share - diluted (GAAP) Net income per share - diluted (non-GAAP) Shares used in per share calculation - diluted $ $ $

Q1'08 1,546 281 1,827 1,307 230 1,537 1 537 $4.12 $4.84 317

Operating Margin (1) 30% $ 35% $ $

Q4'08 1,860 286 2,146 382 221 1,013 1,616 1 616 1.21 5.10 317

Operating Margin (1) 33% $ 38% $ $

Q1'09 1,884 277 2,161 1,423 213 1,636 1 636 4.49 5.16 317

Operating Margin (1) 34% 39%

$

$ $ $

$ $ $

(1) Percentages based on GAAP revenues of $5,186 million in Q1'08, $5,701 million in Q4 '08 and $5,509 million in Q1 '09.

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Q1 2009 Quarterly Earnings Summary


								
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