q4 2009 earnings slides
DESCRIPTION
GOOGLE ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2009 RESULTSMOUNTAIN VIEW, Calif. – January 21, 2010 - Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter and the fiscal year ended December 31, 2009."Google had a strong fourth quarter, with 17% year over year revenue growth," said Eric Schmidt, CEO of Google. "Given that the global economy is still in the early days of recovery, this was an extraordinary end to the year. Our performance in 2009 underscored the strength of our management team, the resilience of our business model and the pace of innovation within our product and engineering teams, which continued unabated throughout the downturn. As we enter 2010, we remain hugely optimistic about the internet and are continuing to invest heavily in technological innovation for the benefit not only of our users and customers, but also the wider web."TRANSCRIPT
Q4 2009 Quarterly Earnings
Summary
Fourth Quarter 2009 HighlightsRevenue growth of 17% Y/Y and 12% Q/Q
Google properties revenue growth of 16% Y/Y and 12% Q/QNetwork revenues increased 21% Y/Y and 13% Q/QInternational revenues were $3.5 billion
Operational HighlightsStrong financial metrics: revenue growth, profitability, and cash flow
Investing in technological innovation: 70/20/10Innovation in our more established business
Search, Display, Enterprise
Innovation in our new businesses
Mobile/Android
Innovation in long-view investments
Commerce and social
Quarterly Revenues
($ in millions)
Q4’09 Y/Y Growth = 17%Q4’09 Q/Q Growth = 12%
5,186
5,367
5,541
5,701 5,50
95,523
5,945
6,674
U.S. vs. International Revenues
48%
52%
49%
51%
5,186
49%
51%
5,367 5,541 5,701
50%
50%
52%
48%
5,509 5,523
53%
47%
($ in millions) 6,674
53%
47%
5,945
53%
47%
Traffic Acquisition Costs
($ in millions)
Costs and Expenses
Note: Please refer to supporting Table 1 for reconciliations of non-GAAP costs and expenses to GAAP costs and expenses
Profitability
Note: Please refer to supporting Table 2 for reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
Free Cash Flow
Overview of Q4 2009 OI&E and FX
In Interest Income and Other, Net, we recognized net income of $88M for Q4
In Q4, the interest income earned on our investments was $67M and we recognized $27M in realized gains.
As a result of foreign exchange rates moving closer to the strike prices of our options in Q4 relative to Q3, we expensed only $8M related to our FX cash flow hedging program vs. $67M in Q3.
Before hedging, the weaker USD relative to other currencies during the quarter had a positive impact of $112M on revenue compared to Q3 and a positive impact of $196M compared to Q4’08.
In addition to the positive impact on revenue quarter-over-quarter and year-over-year due to more favorable FX rates, our cash flow FX hedging programs allowed us to recognize a benefit of approximately $8M to international revenue this quarter.
Table 1 - Reconciliations of non-GAAP costs and expenses to GAAP costs and expenses
Table 2 - Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
Q4 2009 Quarterly Earnings
Summary