This deck covers Google's finances, up to and including its Q1 2015 numbers. It is part of the Jackdaw Research Quarterly Decks service, which you can sign up for here: https://jackdawresearch.com/quarterly-company-decks/ Similar decks are available for Amazon, Apple, Facebook, Microsoft, Samsung, Twitter, and many others each quarter as part of the subscription. Accompanying analysis can often be found at http://www.beyonddevic.es Please direct any questions to Jan Dawson at jan@jackdawresearch.com

1. Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
Google Q1 2015
earnings slides

2. Introduction
• This deck is part of the Jackdaw Research Quarterly Company Decks
subscription service, and is one of about a dozen similar decks produced
each quarter on major consumer tech companies
• The intention is to highlight trends and patterns which are not always obvious
when merely looking at a spreadsheet
• Accompanying analysis can often be found on our blog at
www.beyonddevic.es
• This is the base tier of a three-tier offering, with higher-priced services
offering access to the underlying data and custom presentations and analysis
• For more information, please visit:
https://jackdawresearch.com/quarterly-company-decks/

3. Disclaimer
The charts in this deck are based on the company’s
reported financial and operating metrics, together with
other metrics derived from them by Jackdaw Research.
While every effort has been made to ensure the
accuracy of the data presented, and the absence of
errors, we make no guarantee of accuracy and accept
no liability for decisions made based on the information
contained in this document. Readers should always
consult the source documents if making financial or
other decisions regarding the company concerned.

4. Revenues, $m
Source: Google reporting, Jackdaw Research analysis
0
5,000
10,000
15,000
20,000
Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015

5. Revenue mix
Source: Google reporting, Jackdaw Research analysis
0%
20%
40%
60%
80%
100%
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Google Sites ads Google Network ads Other

6. Revenue split by ad segment
Source: Google reporting, Jackdaw Research analysis
0%
20%
40%
60%
80%
Q1 2007 Q4 2007 Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013 Q3 2014
Google websites Google Network Members' websites

7. Revenue split by region
Source: Google reporting, Jackdaw Research analysis
0%
10%
20%
30%
40%
50%
Q1 2009 Q4 2009 Q3 2010 Q2 2011 Q1 2012 Q4 2012 Q3 2013 Q2 2014 Q1 2015
United States United Kingdom Rest of the world

8. Year on year growth for ad
businesses
Source: Google reporting, Jackdaw Research analysis
-25%
0%
25%
50%
75%
100%
Q1 2007 Q4 2007 Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013 Q3 2014
Google Websites Network Total ad revenues

9. Year on year growth rates by
region
Source: Google reporting, Jackdaw Research analysis
0%
10%
20%
30%
40%
50%
Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015
United States United Kingdom Rest of the world Total

10. Other revenues, $m
Source: Google reporting, Jackdaw Research analysis
0
500
1,000
1,500
2,000
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

11. Year on year growth – Other
revenues
Source: Google reporting, Jackdaw Research analysis
-100%
0%
100%
200%
300%
400%
500%
Q1 2007 Q4 2007 Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013 Q3 2014

12. Margins
Source: Google reporting, Jackdaw Research analysis
0%
10%
20%
30%
40%
50%
60%
70%
Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014
Gross margin Operating margin Net margin

13. Cost components as % of
revenues
Source: Google reporting, Jackdaw Research analysis
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015
R&D as % of revenues S&M as % of revenues G&A as % of revenues

14. Capital spending
Source: Google reporting, Jackdaw Research analysis
0%
5%
10%
15%
20%
0
1,000
2,000
3,000
Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014
Capex ($m) Capital intensity (capex/revenue)

15. Traffic acquisition costs, $m
Source: Google reporting, Jackdaw Research analysis
0
1,000
2,000
3,000
4,000
Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015

16. Traffic acquisition costs as % of
advertising revenue
Source: Google reporting, Jackdaw Research analysis
20%
22%
24%
26%
28%
Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015

17. Network TAC as % of Network
revenue
Source: Google reporting, Jackdaw Research analysis
67%
69%
72%
74%
76%
Q1 2009 Q4 2009 Q3 2010 Q2 2011 Q1 2012 Q4 2012 Q3 2013 Q2 2014 Q1 2015

18. Sites TAC as % of Sites revenue
(to Q3 2014)
Source: Google reporting, Jackdaw Research analysis
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Q1 2009 Q4 2009 Q3 2010 Q2 2011 Q1 2012 Q4 2012 Q3 2013 Q2 2014 Q1 2015

19. Ad metrics indexed to Q4 2008
Source: Google reporting, Jackdaw Research analysis
0
1
2
3
4
Q4 2008 Q3 2009 Q2 2010 Q1 2011 Q4 2011 Q3 2012 Q2 2013 Q1 2014 Q4 2014
Paid clicks indexed to Q4 2008 Cost-per-click indexed to Q4 2008

20. Ad metrics indexed to Q2 2011
Source: Google reporting, Jackdaw Research analysis
50
100
150
200
250
Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014
Paid clicks indexed to Q2 2011 Cost-per-click indexed to Q2 2011

21. Ad metrics indexed to Q4 2012
Source: Google reporting, Jackdaw Research analysis
50
75
100
125
150
175
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Network paid clicks
Sites paid clicks
Network cost-per-click
Sites cost-per-click

22. Year on year change in ad
metrics
Source: Google reporting, Jackdaw Research analysis
-20%
-10%
0%
10%
20%
30%
40%
50%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Network paid clicks Sites paid clicks
Network cost-per-click Sites cost-per-click

23. Employees (excluding
Motorola)
Source: Google reporting, Jackdaw Research analysis
0
10,000
20,000
30,000
40,000
50,000
60,000
Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015

24. Revenue per employee, $000s
Source: Google reporting, Jackdaw Research analysis
250
275
300
325
350
375
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

25. Annual revenue per employee,
$m
Source: Google reporting, Jackdaw Research analysis
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014

26. Year on year headcount growth
Source: Google reporting, Jackdaw Research analysis
-30%
0%
30%
60%
90%
Q1 2007 Q4 2007 Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013 Q3 2014

27. Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
For any questions,
please contact: