2009 Q1 Google Earnings Slides
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2009 Q1 Google Earnings Slides

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Google Management Slides to support their Q1 2009 earnings call

Google Management Slides to support their Q1 2009 earnings call

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    2009 Q1 Google Earnings Slides 2009 Q1 Google Earnings Slides Presentation Transcript

    • 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 5,701 Q1’09 Y/Y Growth = 6% 5,541 5,509 $5,500 5,367 Q1’09 Q/Q Growth = -3% 5,186 $5,000 4,827 1,693 1,680 1,638 $4,500 4,231 1,655 1,686 3,872 $4,000 1,636 3,664 $ in millions $3,500 1,455 3,205 1,352 $3,000 1,345 2,690 2,456 2 456 1,198 2,254 $2,500 1,037 $2,000 997 3,811 3,672 3,693 3,530 928 3,400 3,122 $1,500 2,735 2 735 2,486 2 486 2,282 $1,000 1,977 1,626 1,432 1,297 $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 Network Licensing and Other 3
    • U.S. vs. U S vs International Revenue $6,000 5,701 5,509 5,541 5,367 , $5,500 $5 500 5,186 4,827 $5,000 50% 52% 51% $4,500 4,231 52% $4,000 $4 000 3,872 3 872 51% 3,664 48% $ in millions $3,500 3,205 48% 48% $3,000 2,690 47% 2,456 n $2,500 2,254 44% 50% 48% 44% $2,000 49% 52% 42% 49% 48% 52% 52% 42% 53% $1,500 56% $1,000 58% 56% 58% $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 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 International 4
    • Traffic Acquisition Costs $1,500 40% $, $1,400 $1,300 35% $1,200 32.5% 32.3% 31.0% 30.7% 31.0% $1,100 30.3% 29.9% 29.2% 29.1% $1,000 30% 28.4% 27 9% 27.9% 26.9% 26.9% $900 $ in millions $800 25% 1,495 1,483 1,440 1,486 1,474 1,436 $700 1,221 $600 n 1,125 1 148 1,148 $500 20% 976 825 $400 785 723 $300 15% $200 $100 $0 10% 06 06 06 06 07 07 07 07 08 08 08 08 09 1' 2' 3' 4' 1' 2' 3' 4' 1' 2' 3' 4' 1' Q Q Q Q Q Q Q Q Q Q Q Q Q TAC TAC as % of Advertising Revenues 5
    • Costs and Expenses GAAP $Millions Q1'08 Q4'08 Q1'09 Cost of Revenues $2,111 $2 111 $2,190 $2 190 $2,101 $2 101 Percent of revenues 41% 38% 38% Research & Development $673 $733 $642 Percent of revenues 13% 13% 12% Sales & Marketing $447 $506 $434 Percent of revenues 9% 9% 8% General & Administrative G l Ad i i t ti $409 $ $412 $ $448 $ Percent of revenues 7% 7% 8% Total Costs & Expenses $3,640 $3,841 $3,625 Percent of revenues 70% 67% 66% Non-GAAP $Millions Q1'08 Q4'08 Q1'09 Cost of Revenues $2,102 $2,178 $2,089 Percent of revenues 41% 38% 38% Research & Development $479 $551 $473 Percent of revenues 9% 10% 9% Sales & Marketing $404 $450 $375 Percent of revenues 8% 8% 7% General & Administrative $374 $376 $411 Percent of revenues 7% 6% 7% Total Costs & Expenses $3,359 $3,555 $3,348 Percent of revenues 65% 62% 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 Q1'08 Q4'08 Q1'09 Income from Operations $1,546 $ 1,860 $ 1,884 Operating Margin 30% 33% 34% Net Income $1,307 $ 382 $ 1,423 EPS (diluted) $4.12 $ 1.21 $ 4.49 Non-GAAP $Millions $Milli Q1'08 Q4'08 Q1'09 Income from Operations $1,827 $ 2,146 $ 2,161 Operating Margin 35% 38% 39% Net Income $1,537 $ 1,616 $ 1,636 EPS (diluted) $4.84 $ 5.10 $ 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 Q1'08 Q4'08 Q1'09 Net cash provided by operating activities $1,780 $2,122 $2,250 Less purchases of property and equipment qp ($ ($842) ) ($ ($368) ) ($ ($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 As a % of As a % of As a % of Revenues (1) Revenues (1) Revenues (1) $Millions Q1'08 Q4'08 Q1'09 Cost of Revenues (GAAP) $ 2,111 2 111 41% $ 2,190 2 190 38% $ 2,101 2 101 38% Less: Stock-based compensation (9) (12) (12) Cost of Revenues (non-GAAP) $ 2,102 41% $ 2,178 38% $ 2,089 38% Research and development (GAAP) $ 673 13% $ 733 13% $ 642 12% Less: Stock-based compensation (194) (182) (169) Research and development (non GAAP) (non-GAAP) $ 479 9% $ 551 10% $ 473 9% Sales and marketing (GAAP) $ 447 9% $ 506 9% $ 434 8% Less: Stock-based compensation (43) (56) (59) Sales and marketing (non-GAAP) $ 404 8% $ 450 8% $ 375 7% General and administrative (GAAP) $ 409 7% $ 412 7% $ 448 8% Less: Stock-based compensation (35) (36) (37) General and administrative (non-GAAP) $ 374 7% $ 376 6% $ 411 7% Total costs and expenses (GAAP) $ 3,640 70% $ 3,841 67% $ 3,625 66% (281) (286) (277) Less: Stock-based compensation Total T t l costs and expenses (non-GAAP) t d ( GAAP) $ 3,359 3 359 65% $ 3,555 3 555 62% $ 3,348 3 348 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. 9
    • Table 2 - Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures Operating Operating Operating Margin Margin Margin (1) (1) (1) Figures in millions except per share amounts Q1'08 Q4'08 Q1'09 Income from operations (GAAP) $ 1,546 30% $ 1,860 33% $ 1,884 34% Add: Stock-based compensation Stock based 281 286 277 Income from operations (non-GAAP) $ 1,827 35% $ 2,146 38% $ 2,161 39% Net income (GAAP) $ 1,307 $ 382 $ 1,423 Add: Stock-based compensation (net of tax) 230 221 213 Add: Impairment charges related to certain equity investments (net of tax) - 1,013 - Net income (non-GAAP) N ti ( GAAP) $ 1,537 1 537 $ 1,616 1 616 $ 1,636 1 636 Net income per share - diluted (GAAP) $4.12 $ 1.21 $ 4.49 Net income per share - diluted (non-GAAP) $4.84 $ 5.10 $ 5.16 Shares used in per share calculation - diluted 317 317 317 (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. 10
    • Q1 2009 Quarterly Earnings Summary