Alphabet Inc (google) Class C · NASDAQ:GOOG

Alphabet Inc (google) Class C — Google — Q2 2013 Earnings Presentation

15 slides from Alphabet Inc (google) Class C's earnings presentation, 2013

1. Slide 1: Q2 2013 Quarterly Earnings Summary

   Q2 2013 Quarterly Earnings Summary Google Confidential and Proprietary

2. Slide 2: Financial Highlights and Operational Highlights

   Financial Highlights: Operational Highlights: Consolidated revenues growth of 19% Y/Y and 1% Q/Q. Strong financial metrics: revenue growth and cash flow. Consolidated revenues were $14.11 billion. Continuing to invest in three major areas of focus: ● ● ● ○ ● ○ ○ Our infrastructure continues to be a

3. Slide 3: Month 2011 Google Confidential and Proprietary

   Month 2011 Google Confidential and Proprietary 3

4. Slide 4: Month 2011 Google Confidential and Proprietary

   Month 2011 Google Confidential and Proprietary 4

5. Slide 5: Total Costs & Expenses

   Q2 2012 Q1 2013 Q2 2013 Total Costs & Expenses $8,570 $10,492 $10,982 Q2 2012 Q1 2013 Q2 2013 Total Costs & Expenses $7,868 $9,745 $10,115 Month 2011 Google Confidential and Proprietary 5

6. Slide 6: Income from Operations, Net Income and EPS

   Q2 2012 Q1 2013 Q2 2013 Income from Operations $3,237 $3,477 $3,123 Net Income $2,785 $3,346 $3,228 EPS (Diluted) $8.42 $9.94 $9.54 Q2 2012 Q1 2013 Q2 2013 Income from Operations $3,939 $4,224 $3,990 Net Income $3,362 $3,899 $3,233 EPS (Diluted) $10.16 $11.58 $9.56 Month 2011 Google Confidential and

7. Slide 7: Income from Operations GAAP and non-GAAP

   Q2 2012 Q1 2013 Q2 2013 Income from Operations (GAAP) $3,436 $3,748 $3,465 Q2 2012 Q1 2013 Q2 2013 Income from Operations (non-GAAP) $3,988 $4,403 $4,208 Q2 2012 Q1 2013 Q2 2013 Loss from Operations (GAAP) $(199) $(271) $(342) Q2 2012 Q1 2013 Q2 2013 Loss from Operations (non-GAAP) $(49) $(179) $(21

8. Slide 8: Free cash flow

   Q2 2012 (1) Q1 2013 (1) Q2 2013 (2) Free cash flow $3,478 $2,430 $3,094 Month 2011 Google Confidential and Proprietary 8

9. Slide 9: Month 2011 Google Confidential and Proprietary

   ● ● ● ● ● Month 2011 Google Confidential and Proprietary 9

10. Slide 10: Total Revenues

    Q2 2012 Q1 2013 Q2 2013 Total Revenues $10,964 $12,951 $13,107 Month 2011 Google Confidential and Proprietary 10

11. Slide 11: Month 2011 Q2 2012 Q2 2013

    Q2 2012 Q2 2013 Q1 2012 Q1 2013 $1,175 $1,321 $1,150 $1,387 $1,168 $1,345 $1,146 $1,372 Q2 2012 Q2 2013 Q1 2012 Q1 2013 $4,784 $5,890 $4,621 $5,728 $4,710 $6,048 $4,588 $5,818 Month 2011 Google Confidential and Proprietary 11

12. Slide 12: Month 2011 Q1 2013 Q2 2013

    Q1 2013 Q2 2013 Q4 2012 Q1 2013 $1,387 $1,321 $1,305 $1,387 $1,367 $1,328 $1,304 $1,394 Q1 2013 Q2 2013 Q4 2012 Q1 2013 $5,728 $5,890 $5,608 $5,728 $5,713 $6,025 $5,572 $5,697 Month 2011 Google Confidential and Proprietary 12

13. Slide 13: GAAP to non-GAAP Costs and Expenses

    Q2 2012 Q1 2013 Q2 2013 Cost of Revenues (GAAP) $4,677 $5,944 $6,063 Cost of Revenues (non-GAAP) $4,585 $5,835 $5,917 Research & Development (GAAP) $1,538 $1,837 $1,987 Research & Development (non-GAAP) $1,238 $1,457 $1,541 Sales & Marketing (GAAP) $1,413 $1,586 $1,735 Sales & Marketing (non-GAAP) $

14. Slide 14: Income from Operations and Net Income Reconciliation

    Q2 2012 Q1 2013 Q2 2013 Income from Operations (GAAP) $3,237 $3,477 $3,123 Income from Operations (non-GAAP) $3,939 $4,224 $3,990 Net Income (GAAP) $2,785 $3,346 $3,228 Net Income (non-GAAP) $3,362 $3,899 $3,233 Month 2011 Google Confidential and Proprietary 14

15. Slide 15: Income from Operations Reconciliation

    Q2 2012 Q1 2013 Q2 2013 Income from Operations (GAAP) $3,436 $3,748 $3,465 Income from Operations (non-GAAP) $3,988 $4,403 $4,208 Q2 2012 Q1 2013 Q2 2013 Loss from Operations (GAAP) $(199) $(271) $(342) Loss from Operations (non-GAAP) $(49) $(179) $(218) Month 2011 Google Confidential and Proprietar

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