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Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
Google Earnings Slides 2009 Q2
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Google Earnings Slides 2009 Q2

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  • 1. Q2 2009 Quarterly Earnings Summary
  • 2. Second Quarter 2009 Highlights • Revenue growth of 3% Y/Y – Google properties revenue growth of 3% Y/Y and -1% Q/Q – Network revenues increased 2% Y/Y and 3% Q/Q – International revenues were $2 9 billion $2.9 • Operational Highlights – Traffic and revenues solid in Q2 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
  • 3. Quarterly Revenues Q2’09 Y/Y Growth = 3% Q2’09 Q/Q Growth = 0% $6,000 5,541 5 541 5,701 5,367 5,509 5,523 $5,500 5,186 $5,000 1,693 $4,500 1,680 1,638 1,684 , 1,655 1 655 1,686 $ in millions $4,000 $3,500 $3,000 $3 000 $2,500 $2,000 3,672 3,811 3,693 3,653 3,400 3,530 $1,500 $1,000 $500 $0 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 3 Google.com Network Licensing and Other
  • 4. U.S. vs. U S vs International Revenues ($ in millions) 5,186 5,367 5,541 5,701 5,509 5,523 100% 90% 80% 70% 51% 52% 51% 50% 52% 53% 60% 50% 40% 49% 48% 49% 50% 48% 47% 30% 20% 10% 0% Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 US International 4
  • 5. Traffic Acquisition Costs $1,500 40% $1,400 $1,300 35% $1,200 $1,100 29.2% 29 2% $1,000 28.4% 27.9% 30% 27.2% $ in millions $900 26.9% 26.9% $800 1,486 1,474 1,495 1,483 1,436 1,453 , 25% n $700 $600 $500 20% $400 $300 15% $200 $100 $0 10% Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 TAC TAC as % of Advertising Revenues 5
  • 6. Costs and Expenses GAAP $Millions Q2'08 Q1'09 Q2'09 Cost of Revenues C f $2,148 $2,101 $2,108 Percent of revenues 40% 38% 38% Research & Development $682 $642 $708 Percent of revenues 13% 12% 13% Sales & Marketing $485 $434 $469 Percent of revenues 9% 8% 8% General & Administrative $474 $448 $364 Percent of revenues 9% 8% 7% Total Costs & Expenses $3,789 $3,625 $3,649 Percent of revenues 71% 66% 66% Non GAAP Non-GAAP $Millions Q2'08 Q1'09 Q2'09 Cost of Revenues $2,139 $2,089 $2,094 Percent of revenues 40% 38% 38% Research & Development $495 $473 $526 Percent of revenues 10% 9% 10% Sales & Marketing $442 $375 $412 Percent of revenues 8% 7% 7% General & Administrative $440 $411 $324 Percent of revenues 8% 7% 6% Total Costs & Expenses $3,516 $3,348 $3,356 Percent of revenues 66% 61% 61% Note: Please refer to supporting Table 1 for reconciliations of non-GAAP costs and expenses to GAAP costs and expenses 6
  • 7. Profitability GAAP $Millions (except per share amounts) $Milli ( t h t ) Q2'08 Q1'09 Q2'09 Income from Operations $1,578 $ 1,884 $ 1,874 Operating Margin 29% 34% 34% Net Income N tI $1,247 $ 1,423 $ 1,485 EPS (diluted) $3.92 $ 4.49 $ 4.66 Non-GAAP $Millions (except per share amounts) Q2'08 Q1'09 Q2'09 Income from Operations $1,851 $ 2,161 $ 2,167 Operating Margin 34% 39% 39% Net Income $1,472 $ 1,636 $ 1,708 EPS (diluted) $4.63 $ 5.16 $ 5.36 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
  • 8. Free Cash Flow $Millions Q2'08 Q1'09 Q2'09 Net cash provided by operating activities $1,766 $2,250 $1,609 Less purchases of property and equipment q p ($ ($697) ) ($ ($263) ) ($ ($139) ) Free cash flow (Non-GAAP) $1,069 $1,987 $1,470 8
  • 9. Table 1 - Reconciliations of non-GAAP costs and expenses to GAAP costs and expenses As a % of As a % of As a % of $Millions Q2'08 Revenues (1) Q1'09 Revenues (1) Q2'09 Revenues (1) Cost of Revenues (GAAP) $ 2,148 2 148 40% $ 2,101 2 101 38% $ 2,108 2 108 38% Less: Stock-based compensation (9) (12) (14) Cost of Revenues (non-GAAP) $ 2,139 40% $ 2,089 38% $ 2,094 38% Research and development (GAAP) $ 682 13% $ 642 12% $ 708 13% Less: Stock-based compensation (187) (169) (182) Research and development (non GAAP) (non-GAAP) $ 495 10% $ 473 9% $ 526 10% Sales and marketing (GAAP) $ 485 9% $ 434 8% $ 469 8% Less: Stock-based compensation (43) (59) (57) Sales and marketing (non-GAAP) $ 442 8% $ 375 7% $ 412 7% General and administrative (GAAP) $ 474 9% $ 448 8% $ 364 7% Less: Stock-based compensation (34) (37) (40) General and administrative (non-GAAP) $ 440 8% $ 411 7% $ 324 6% Total costs and expenses (GAAP) $ 3,789 71% $ 3,625 66% $ 3,649 66% Less: Stock-based compensation (273) (277) (293) Total T t l costs and expenses (non-GAAP) t d ( GAAP) $ 3,516 3 516 66% $ 3,348 3 348 61% $ 3,356 3 356 61% (1) Percentages based on revenues of $5,367 million in Q2 '08, $5,509 million in Q1 '09 and $5,523 million in Q2 '09. 9
  • 10. Table 2 - Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures Operating Operating Operating Margin Margin Margin $ millions except per share amounts Q2'08 (1) Q1'09 (1) Q2'09 (1) Income from operations (GAAP) $ 1,578 29% $ 1,884 34% $ 1,874 34% Add: Stock-based compensation Add S k b d i 273 277 293 Income from operations (non-GAAP) $ 1,851 34% $ 2,161 39% $ 2,167 39% Net income (GAAP) $ 1,247 $ 1,423 $ 1,485 Add: Stock-based compensation (net of tax) 225 213 223 Net income (non GAAP) (non-GAAP) $ 1,472 $ 1,636 $ 1,708 Net income per share - diluted (GAAP) $ 3.92 $ 4.49 $ 4.66 Net income per share - diluted (non-GAAP) $ 4.63 $ 5.16 $ 5.36 Shares used in per share calculation - diluted 318 317 319 (1) Percentages based on revenues of $5 367 million in Q2 '08 $5 509 million in Q1 '09 and $5 523 million in Q2 '09 $5,367 08, $5,509 09 $5,523 09. 10
  • 11. Q2 2009 Quarterly Earnings Summary

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