Slide 1: Q1 2013 Quarterly Earnings Summary
Q1 2013 Quarterly Earnings Summary Google Confidential and Proprietary
Slide 2: Q1 2013 Highlights
Q1 2013 Highlights Financial Highlights: Operational Highlights: Consolidated revenues growth of 31% Y/Y and decline of Strong financial metrics: revenue growth and cash 3% Q/Q. flow. Consolidated revenues were $14.0 billion. Continuing to invest in three major areas of focus: ● Google revenues (adv
Slide 3: Consolidated Quarterly Revenues
Consolidated Quarterly Revenues Consolidated revenues by revenue U.S. vs. International source Q1'13 Y/Y Growth = 31% Q1'13 Q/Q Growth = -3% Month 2011 Google Confidential and Proprietary 3
Slide 4: Traffic Acquisition Costs
Traffic Acquisition Costs Month 2011 Google Confidential and Proprietary 4
Slide 5: Consolidated Costs and Expenses
Consolidated Costs and Expenses GAAP Q1 2012 Q4 2012 Q1 2013 $ in millions As % of revenues $ in millions As % of revenues $ in millions As % of revenues Cost of Revenues $3,789 36% $6,213 43% $5,944 43% Research & Development $1,441 13% $1,935 13% $1,837 13% Sales & Marketing $1,269 12% $1,751 12%
Slide 6: Profitability
Profitability Consolidated GAAP ($ in millions) Q1 2012 Q4 2012 Q1 2013 Income from Operations $3,389 $3,394 $3,477 Operating margin 32% 24% 25% Net Income from continuing operations $2,907 $3,324 Net Income (loss) from discontinued operations $(21) $22 Net Income $2,890 $2,886 $3,346 EPS (Diluted)
Slide 7: Profitability
Profitability Google GAAP ($ in millions) Q4 2012 Q1 2013 Income from Operations $3,747 $3,748 Operating margin 29% 29% Non-GAAP ($ in millions) Q4 2012 Q1 2013 Income from Operations $4,424 $4,403 Operating margin 34% 34% Motorola Mobile GAAP ($ in millions) Q4 2012 Q1 2013 Loss from Operations $(3
Slide 8: Consolidated Free Cash Flow
Consolidated Free Cash Flow Non-GAAP ($ in millions) Q1 2012 Q4 2012 (1) Q1 2013 (1) Net cash provided by operating activities $3,694 $4,669 $3,633 Less: Purchases of property and equipment $(607) $(1,020) $(1,203) Free cash flow $3,087 $3,649 $2,430 (1) Including Motorola Home Month 2011 Google Con
Slide 9: Overview of Q1 2013 OI&E and FX
Overview of Q1 2013 OI&E and FX ● In Interest and Other Income, Net, we recognized net income of $134M for Q1. ● In Q1, we recognized $183M of interest income earned on our investments, $60M in net realized gains, $21M of interest expense on our long-term debt. ● We recognized $70M of foreign exchan
Slide 10: Google Business - Revenues by Geography
Google Business - Revenues by Geography GAAP ($ in millions) Q1 2012 Q4 2012 Q1 2013 United States $4,874 $5,992 $5,836 United Kingdom $1,150 $1,305 $1,387 Rest of the world $4,621 $5,608 $5,728 Total Revenues $10,645 $12,905 $12,951 Month 2011 Google Confidential and Proprietary 10
Slide 11: Google Business - International Revenues excluding Hedging and FX Impact (Y/Y)
Google Business - International Revenues excluding Hedging and FX Impact (Y/Y) ($ in millions) Q1 2012 Q1 2013 ($ in millions) Q4 2011 Q4 2012 UK revenues (GAAP) $1,150 $1,387 UK revenues (GAAP) $1,064 $1,305 exclude: exclude: a) f/x impact on Q1'13 revenues n/a 5 a) f/x impact on Q4'12 revenues n/a
Slide 12: Google Business - International Revenues excluding Hedging and FX Impact (Q/Q)
Google Business - International Revenues excluding Hedging and FX Impact (Q/Q) ($ in millions) Q4 2012 Q1 2013 ($ in millions) Q3 2012 Q4 2012 UK revenues (GAAP) $1,305 $1,387 UK revenues (GAAP) $1,216 $1,305 exclude: exclude: a) f/x impact on Q1'13 revenues n/a 27 a) f/x impact on Q4'12 revenues n/
Slide 13: Table 1 - Reconciliations of consolidated GAAP to non-GAAP costs and expenses
Table 1 - Reconciliations of consolidated GAAP to non-GAAP costs and expenses Q1 2012 Q4 2012 Q1 2013 $ in millions As a % of revenues (1) $ in millions As a % of revenues (1) $ in millions As a % of revenues (1) Cost of Revenues (GAAP) $3,789 36% $6,213 43% $5,944 43% Less: Non-GAAP adjustments (2)
Slide 14: Table 2 - Reconciliations of non-GAAP results: Consolidated
Table 2 - Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures Consolidated ($ in millions) Q1 2012 Q4 2012 Q1 2013 Income from Operations (GAAP) $3,389 $3,394 $3,477 Operating margin (1) 32% 24% 25% Add: Stock-based compensation expense (SBC) $556 $700
Slide 15: Google and Motorola Mobile Reconciliations
Table 2 - Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (cont'd) Google ($ in millions) Q4 2012 Q1 2013 Income from Operations (GAAP) $3,747 $3,748 Operating margin (1) 29% 29% Add: Stock-based compensation expense $677 $655 Income from Operations