- Google reported financial results for the third quarter of 2015, with revenues of $18.7 billion, up 13% year-over-year and 5% quarter-over-quarter. The majority of revenues came from advertising (47% from US, 43% from rest of world, 10% from UK). - On a non-GAAP basis, operating income was $6.1 billion (33% of revenues) and net income was $5.1 billion ($7.35 per share). Traffic acquisition costs (TAC) were $3.6 billion (21% of advertising revenues). - By geography, constant currency revenue growth was 18% year-over-year for UK and 23% for rest

1. Q3 2015
Quarterly Earnings Summary

2. 2
Revenues by Revenue Source(1)
Other Google Sites Network
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
1,100
1,501 1,423 1,457 1,703 1,794 1,750 1,704 1,894
9,376
10,538 10,469 10,935
11,252
12,429 11,932 12,402
13,087
3,278
13,754
3,668
15,707
3,528
15,420
3,563
15,955
3,568
16,523
3,880
18,103
3,576
17,258
3,621
17,727
3,694
18,675
Quarterly Revenues
Y/Y Change = 13%
Q/Q Change = 5%
($ in millions)
Revenues by Geography(2)
US Rest of the world UK
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
46% 46% 45% 44% 44%
46% 45% 45%
47%
44% 44% 45% 46% 46% 45% 45% 45% 43%
10% 10% 10% 10% 10% 9% 10% 10% 10%
15,955 17,72713,754 15,707 15,420 16,523 18,103 17,258
(1)
Prior period amounts have been adjusted to reflect the reclassification primarily related to DoubleClick ad serving software revenues from other revenues to advertising revenues from Google
Network Members' websites to conform with our current period presentation.
(2)
In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities. We revised the classification of such revenues between Rest of the world and
U.S. for periods beginning in 2008 through the first quarter of 2015.
($ in millions)
18,675

3. 3
Traffic Acquisition Costs
TAC ($ in millions) TAC as % of Advertising Revenues
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
(inmillions)
30%
25%
20%
15%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
2,972
3,311
3,232 3,293 3,348
3,624
3,345 3,377
3,566
23.5% 23.3% 23.1%
22.7% 22.6%
22.2%
21.6%
21.1% 21.3%
(1)
Prior period amounts have been adjusted to reflect the impact of reclassification primarily related to DoubleClick ad serving software revenues from other revenues to advertising
revenues from Google Network Members' websites to conform with our current period presentation.
(1)

4. 4
GAAP Costs and Expenses
Cost of Revenues Research and Development
Sales and Marketing General and Administrative
$ in millions
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
5,409
6,253
5,961 6,114
6,695
6,921
6,356
6,583
7,0371,821
1,933 2,126
2,238
2,655
2,813
2,753
2,789
3,230
1,628
1,908 1,729
1,941
2,084
2,377
2,065
2,080
2,223
1,135
9,993 1,184
11,278
1,489
11,305
1,404
11,697 1,365
12,799
1,593
13,704
1,637
12,811
1,450
12,902 1,477
13,967
Cost of Revenues Research and Development
Sales and Marketing General and Administrative
As a % of Revenues
100%
80%
60%
40%
20%
0%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
39% 40% 39% 38%
40%
38% 37% 37% 38%
13% 12% 14% 14%
16%
16% 16% 16%
17%
12% 12% 11% 12%
13%
13%
12% 12%
12%
9%
73%
8%
72%
9%
73%
9%
73%
8%
77%
9%
76%
9%
74%
8%
73%
8%
75%

5. 5
Non-GAAP Costs and Expenses
Cost of Revenues Research and Development
Sales and Marketing General and Administrative
$ in millions
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
5,276
6,126
5,866 6,014 6,148
6,750
6,196
6,420
6,8061,385
1,467 1,670
1,791
1,989
2,182
2,138
2,206
2,489
1,473
1,754 1,582
1,783
1,887
2,164
1,860
1,884
1,973
1,003
9,137
1,058
10,405
1,348
10,466
1,229
10,817
1,142
11,166
1,407
12,503
1,414
11,608
1,260
11,770
1,267
12,535
Cost of Revenues Research and Development
Sales and Marketing General and Administrative
As a % of Revenues
80%
60%
40%
20%
0%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
38% 39% 38% 38% 37% 37% 36% 36% 36%
10% 9% 11% 11% 12% 12% 12% 12% 13%
11% 11% 10% 11% 11% 12%
11% 11% 11%
7%
66%
7%
66%
9%
68%
8%
68%
8%
68%
8%
69%
8%
67%
7%
66%
7%
67%
For reconciliation of GAAP to non-GAAP costs and expenses, please refer to Table 1 at the end of the slide deck.

6. 6
Operating Income ($ in millions) Operating Margin (%)
GAAP
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
(inmillions)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
3,761
4,429
4,115
4,258
3,724
4,399 4,447
4,825
4,708
27%
28%
27% 27%
23%
24%
26%
27%
25%
Operating income ($ in millions) Operating Margin (%)
Non-GAAP
$6,000
$5,500
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
(inmillions)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
4,617
5,302
4,954
5,138
5,357
5,600 5,650
5,957
6,140
34% 34%
32% 32% 32%
31%
33%
34%
33%
Operating Income and Operating Margin
For reconciliation of GAAP to non-GAAP operating income, please refer to Table 2 at the end of the slide deck.

7. 7
GAAP Net income ($ in millions) GAAP Diluted earnings per share ($)
GAAP
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
(inmillions)
$8
$7
$6
$5
$4
$3
$2
$1
$0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
2,921
3,324 3,371 3,351
2,739
4,675
3,515
3,931 3,979
4.31
4.87 4.92 4.88
3.98
6.79
5.10
4.93
5.73
6.43
Non-GAAP Net income ($ in millions) Non-GAAP Diluted earnings per share ($)
Non-GAAP
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
(inmillions)
$8
$7
$6
$5
$4
$3
$2
$1
$0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
3,770
4,519
4,218
4,104
4,299
4,654
4,461
4,829
5,102
5.56
6.63
6.16
5.98
6.25
6.76
6.47
6.99
7.35
Net Income and Earnings per Share(1)
(2)
(1)
In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods
beginning in 2008 through the first quarter of 2015.
(2)
In the second quarter of 2015, an adjustment payment was made to Class C capital stockholders that resulted in EPS for Class A and B common stock of $4.93 (diluted EPS) and Class C capital
stock of $6.43 (diluted EPS), based on Net income available to all stockholders of $3,409 million and the adjustment payment available to only Class C capital stockholders of $522 million.
For reconciliation of GAAP to non-GAAP net income, please refer to Table 2 at the end of the slide deck.

8. 8
Constant Currency Q3'15 Revenues Using Q3'14 Rates (Y/Y)
UK Revenues
2,000
1,500
1,000
500
0
$(Millions)
Constant Currency
Revenues
Foreign exchange impact Hedging benefit GAAP revenues
1,917
(145)
20 1,792
Rest of the world (ROW) Revenues
10,000
8,000
6,000
4,000
2,000
0
$(Millions)
Constant Currency
Revenues
Foreign exchange impact Hedging benefit GAAP revenues
9,301
(1,432)
266 8,135
Constant Currency Revenue
Growth rate(1)
= 18%
Constant Currency Revenue
Growth rate(2)
= 23%
(1)
Constant currency growth rate is calculated as Q3'15 constant currency revenues of $1,917M compared with Q3'14 revenues of $1,627M (UK GAAP revenue of $1,627M
less hedging benefit of $0M).
(2)
Constant currency growth rate is calculated as Q3'15 constant currency revenues of $9,301M compared with Q3'14 revenues of $7,562M (ROW GAAP revenue of
$7,572M less hedging benefit of $10M).

9. 9
Constant Currency Q3'15 Revenues Using Q2'15 Rates (Q/Q)
UK Revenues
2,000
1,500
1,000
500
0
$(Millions)
Constant Currency
Revenues
Foreign exchange
impact
Hedging benefit GAAP revenues
1,733
39 20 1,792
Rest of the world (ROW) Revenues
10,000
8,000
6,000
4,000
2,000
0
$(Millions)
Constant Currency
Revenues
Foreign exchange
impact
Hedging benefit GAAP revenues
7,930
(61)
266 8,135
Constant Currency Revenue
Growth rate(1)
= 7%
Constant Currency Revenue
Growth rate(2)
= 5%
(1)
Constant currency growth rate is calculated as Q3'15 constant currency revenues of $1,733M compared with Q2'15 revenues of $1,624M (UK GAAP revenue of $1,678M
less hedging benefit of $54M).
(2)
Constant currency growth rate is calculated as Q3'15 constant currency revenues of $7,930M compared with Q2'15 revenues of $7,584M (ROW GAAP revenue of
$8,001M less hedging benefit of $417M).

10. 10
Paid Clicks
Aggregated Network Google Sites
50%
40%
30%
20%
10%
0%
-10%
-20%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
26%
31%
26%
25%
17%
14%
13%
18%
23%
5%
10%
9% 9%
2%
(11)%
(12)%
(9)%
(5)%
40%
44%
37%
33%
24%
25% 25%
30%
35%
Aggregated Network Google Sites
25%
20%
15%
10%
5%
0%
-5%
-10%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
8%
13%
(1)%
2% 2%
11%
(1)%
7%
6%
3%
7%
4%
(5)%
(4)%
(7)%
4%
(2)%
0%
11%
16%
(3)%
6%
4%
18%
(3)%
10%
7%
Y/Y Paid Clicks Growth % Q/Q Paid Clicks Growth %

11. 11
Cost-per-Click
Aggregated Network Google Sites
10%
5%
0%
-5%
-10%
-15%
-20%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
(8)%
(11)%
(9)%
(6)%
(2)%
(3)%
(7)%
(11)% (11)%
(6)%
(11)%
(12)%
(13)%
(4)%
6%
2%
(3)%
(4)%
(13)%
(15)%
(11)%
(7)%
(4)%
(8)%
(13)%
(16)% (16)%
Aggregated Network Google Sites
15%
10%
5%
0%
-5%
-10%
-15%
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
(4)%
(2)%
0% 0% 0%
(3)%
(5)%
(4)%
(1)%
(7)%
0%
(8)%
3%
2%
10%
(11)%
(3)%
1%
(5)%
(4)%
3%
(2)%
(1)%
(8)%
(3)%
(5)%
(2)%
Y/Y Cost-Per-Click Growth % Q/Q Cost-Per-Click Growth %

12. 12
Capital Expenditures & Free Cash Flow
Free Cash Flow Capital Expenditures
($ in millions)
$8,000
$6,000
$4,000
$2,000
$0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
2,794
2,983
2,046
2,981
3,577
2,813
3,690
4,470
3,634
2,289
5,083
2,255
5,238
2,345
4,391
2,646
5,627
2,417
5,994
3,551
6,364
2,927
6,617
2,515
6,985
2,373
6,007
Free cash flow is defined as net cash provided by operating activities less capital expenditures.
All numbers include Motorola Mobile until its date of disposal (October 29, 2014).

13. 13
Overview of Q3 2015 OI&E
$ (in millions)
Interest income $ 259
Interest expense (26)
Realized loss on marketable securities, net (6)
Foreign currency exchange loss, net(1)
(100)
Realized gain on non-marketable investments, net 7
Other income, net 49
Interest & Other income, net $ 183
(1)
Our foreign currency exchange losses are primarily related to the cost of our FX hedging programs.

14. 14
Table 1: Reconciliations of consolidated GAAP to non-GAAP
costs and expenses
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Cost of Revenues (GAAP) $5,409 $6,253 $5,961 $6,114 $6,695 $6,921 $6,356 $6,583 $7,037
Less: Non-GAAP adjustments (1) (2)
(133) (127) (95) (100) (547) (171) (160) (163) (231)
Cost of Revenues (non-GAAP) $5,276 $6,126 $5,866 $6,014 $6,148 $6,750 $6,196 $6,420 $6,806
Research & Development (GAAP) $1,821 $1,933 $2,126 $2,238 $2,655 $2,813 $2,753 $2,789 $3,230
Less: Non-GAAP adjustments (1)
(436) (466) (456) (447) (666) (631) (615) (583) (741)
Research & Development (non-
GAAP)
$1,385 $1,467 $1,670 $1,791 $1,989 $2,182 $2,138 $2,206 $2,489
Sales & Marketing (GAAP) $1,628 $1,908 $1,729 $1,941 $2,084 $2,377 $2,065 $2,080 $2,223
Less: Non-GAAP adjustments (1)
(155) (154) (147) (158) (197) (213) (205) (196) (250)
Sales & Marketing (non-GAAP) $1,473 $1,754 1,582 1,783 1,887 2,164 $1,860 $1,884 $1,973
General & Administrative (GAAP) $1,135 $1,184 $1,489 $1,404 $1,365 $1,593 $1,637 $1,450 $1,477
Less: Non-GAAP adjustments (1)
(132) (126) (141) (175) (223) (186) (223) (190) (210)
General & Administrative (non-
GAAP)
$1,003 $1,058 $1,348 $1,229 $1,142 $1,407 $1,414 $1,260 $1,267
Total Costs & Expenses (GAAP) $9,993 $11,278 $11,305 $11,697 $12,799 $13,704 $12,811 $12,902 $13,967
Less: Non-GAAP adjustments (1)
(856) (873) (839) (880) (1,633) (1,201) (1,203) (1,132) (1,432)
Total Costs & Expenses (non-
GAAP)
$9,137 $10,405 $10,466 $10,817 $11,166 $12,503 $11,608 $11,770 $12,535
(1)
Comprised of stock based compensation expense.
(2)
Q3'14 Includes a $378M impairment charge related to a patent licensing royalty asset acquired in the purchase of Motorola.

15. 15
(1)
In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods
beginning in 2008 through the first quarter of 2015.
(2)
Tax effect of stock-based compensation expense is calculated using tax-deductible portion of stock-based compensation expense and applying entity-specific tax rates.
($ in millions) Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Income from operations (GAAP) $3,761 $4,429 $4,115 $4,258 $3,724 $4,399 $4,447 $4,825 $4,708
Add: Stock-based compensation expense from
continuing operations $856 $873 $839 $880 $1,255 $1,201 $1,203 $1,132 $1,432
Add: Impairment charge related to a patent
licensing royalty asset $— $— $— $— $378 $— $— $— $—
Income from operations (non-GAAP) $4,617 $5,302 $4,954 $5,138 $5,357 $5,600 $5,650 $5,957 $6,140
($ in millions) Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Net income (GAAP)(1)
$2,921 $3,324 $3,371 $3,351 $2,739 $4,675 $3,515 $3,931 $3,979
Add: Stock-based compensation expense from
continuing operations (net of tax) (2)
$656 $689 $649 $685 $997 $946 $946 $898 $1,123
Add: Impairment charge related to a patent
licensing royalty asset acquired in connection
with the purchase of Motorola $— $— $— $— $378 $— $— $— $—
Add: Net loss (income) from discontinued
operations $193 $506 $198 $68 $185 $(967) $— $— $—
Net income (non-GAAP)(1)
$3,770 $4,519 $4,218 $4,104 $4,299 $4,654 $4,461 $4,829 $5,102
Table 2: Reconciliations of non-GAAP consolidated results of
operations measures to the nearest comparable GAAP measures