2008 Financial Tables

Full year financial tables with quarterly data.

Income Statement

(Figures in thousands, except per share amounts and EPS)

Full Year 2008

Revenues

2006 2007 2008 Q1 Q2 Q3 ** Q4
Revenues 10,604,917 16,593,986 21,795,550 5,186,043 5,367,212 5,541,391 5,700,904
Y/Y Growth Rate 73% 56% 31% 42% 39% 31% 18%
Q/Q Growth Rate NA NA NA 7% 3% 3% 3%
Google web sites 6,332,797 10,624,705 14,413,826 3,400,405 3,530,145 3,672,111 3,811,166
Y/Y Growth Rate 88% 68% 36% 49% 42% 34% 22%
Q/Q Growth Rate NA NA NA 9% 4% 4% 4%
Google Network web sites 4,159,831 5,787,938 6,714,688 1,686,141 1,655,280 1,679,861 1,693,405
Y/Y Growth Rate 55% 39% 16% 25% 22% 15% 4%
Q/Q Growth Rate NA NA NA 3% -2% 1% 1%
Total Advertising Revenues 10,492,628 16,412,643 21,128,514 5,086,546 5,185,425 5,351,972 5,504,571
Y/Y Growth Rate 73% 56% 29% 40% 35% 28% 16%
Q/Q Growth Rate NA NA NA 7% 2% 3% 3%
Licensing & other revenues 112,289 181,343 667,036 99,497 181,787 189,419 196,333
Y/Y Growth Rate 53% 61% 268% 172% 440% 352% 183%
Q/Q Growth Rate NA NA NA 44% 83% 4% 4%
As % of Revenues
Google web sites 60% 64% 66% 66% 66% 67% 67%
Google Network web sites 39% 35% 31% 33% 31% 30% 30%
Licensing & other revenue 1% 1% 3% 1% 3% 3% 3%
Full Year 2008

Cost

2006 2007 2008 Q1 Q2 Q3 ** Q4
Cost of Revenues* 4,225,027 6,649,085 8,621,506 2,110,536 2,147,575 2,173,390 2,190,005
As % of Revenues 40% 40% 40% 41% 40% 40% 38%
Traffic Acquisition Cost 3,308,777 4,933,878 5,938,951 1,486,384 1,473,980 1,495,206 1,483,382
As % of Revenues 31% 30% 28% 29% 27% 27% 26%
Other Cost of Revenues* 916,250 1,715,207 2,682,555 624,152 673,595 678,184 706,623
As % of Revenues 9% 10% 12% 12% 13% 12% 12%
Research & Development* 1,228,589 2,119,985 2,793,192 673,069 682,210 704,571 733,342
As % of Revenues 12% 13% 13% 13% 13% 13% 13%
Sales & Marketing* 849,518 1,461,266 1,946,244 446,898 484,552 508,801 505,993
As % of Revenues 8% 9% 9% 9% 9% 9% 9%
General & Administrative* 751,787 1,279,250 1,802,639 409,305 474,910 507,064 411,360
As % of Revenues 7% 8% 8% 8% 9% 9% 7%
Settlement of dispute with Yahoo! NA NA NA NA NA NA NA
As % of Revenues NA NA NA NA NA NA NA
Contribution to Google Foundation NA NA NA NA NA NA NA
As % of Revenues NA NA NA NA NA NA NA
Total Costs & Expenses* 7,054,921 11,509,586 15,163,581 3,639,808 3,789,247 3,893,826 3,840,700
Y/Y Growth Rate 71% 63% 32% 49% 37% 34% 13%
Q/Q Growth Rate NA NA NA 7% 4% 3% -1%
Full Year 2008

Profitability

2006 2007 2008 Q1 Q2 Q3 ** Q4
Income from operations 3,549,996 5,084,400 6,631,969 1,546,235 1,577,965 1,647,565 1,860,204
As % of Revenues 34% 31% 30% 30% 29% 30% 33%
Impairment on equity investments NA NA ($1,094,757) NA NA NA ($1,094,757)
As % of Revenues NA NA -5% NA NA NA -19%
Net Income 3,077,446 4,203,720 4,226,858 1,307,086 1,247,391 1,289,938 382,442
As % of Revenues 29% 25% 19% 25% 23% 23% 7%
EPS (As reported)
Basic $ 10.21 $ 13.53 $ 13.46 $ 4.17 $ 3.97 $ 4.10 $ 1.22
Diluted $ 9.94 $ 13.29 $ 13.31 $ 4.12 $ 3.92 $ 4.06 $ 1.21
Number of Shares ('000)
Basic 301,403 310,806 313,959 313,129 313,817 314,241 314,651
Diluted 309,548 316,210 317,514 317,392 318,023 317,776 316,864

Balance Sheet & Cash Flow Statement

(Figures in thousands, except per share amounts and EPS)

Full Year 2008
2006 2007 2008 Q1 Q2 Q3 ** Q4
Cash & Marketable Securities 11,243,914 14,218,613 15,845,771 12,134,508 12,733,669 14,412,609 15,845,771
Accounts Receivable 1,322,340 2,162,521 2,642,192 2,560,909 2,641,901 2,541,492 2,642,192
DSO (in days, using ending AR) 46 48 44 45 45 42 43
Property and equipment, net 2,395,239 4,039,261 5,233,843 4,741,724 5,137,710 5,213,167 5,233,843
Total Assets 18,473,351 25,335,806 31,767,575 27,604,982 29,179,786 30,806,974 31,767,575
Cash Flow from Operations 3,580,508 5,775,410 7,852,857 1,779,446 1,766,154 2,184,955 2,122,299
Capital Expenditures 1,902,798 2,402,840 2,358,461 841,597 697,517 451,503 367,844

Supplemental Information

(Figures in thousands, except per share amounts and EPS)

Full Year 2008
2006 2007 2008 Q1 Q2 Q3 ** Q4
Stock-based compensation 458,100 868,646 1,119,766 280,779 272,776 280,039 286,172
Int'l revenues as % of Total Revenues 43% 48% 51% 51% 52% 51% 50%
Ending Permanent Headcount 10,674 16,805 20,222 19,156 19,604 20,123 20,222
Sequential Headcount Growth Rate 88% 57% 20% 14% 2% 3% 0%

* Includes stock-based compensation charges
** Updated November 12 2008