Year 2001 2002 2003

Revenues $86,426 $439,508 $1,465,934

Costs and expenses

Cost of revenues $14,228 $131,510 $625,854
research and development $16,500 $31,748 $91,228
sales and marketing $20,076 $43,849 $120,328
general and administrative $12,275 $24,300 $56,699
stock-based compensation $12,383 $21,635 $229,361
contribution to Google foundation $0 $0 $0
Nonrecurring portion of settlement of disputes with
Yahoo $0 $0 $0
Total costs and expenses $75,462 $253,042 $1,123,470
Income (loss) from operations $10,964 $186,466 $342,464
Interest income (expenese) and other, net ($896) ($1,551) $4,190
Income (loss) before income taxes $10,068 $184,915 $346,654
Provision for income taxes $3,083 $85,259 $241,006
Net income (loss) $6,985 $99,656 $105,648

Net incom (loss) per share

Basic $0.07 $0.86 $0.77
Diluted $0.04 $0.45 $0.41
calculations
Basic 94,523 115,242 137,697
Diluted 186,776 220,633 256,638
Net cash provided by operating activities n/a $155,265 $395,445
Net proceeds from public offerings $0 $0 $0
cash, cash eqivalents, and marketable
securities n/a $146,331 $334,718
Total assets n/a $286,892 $871,458
Total long-term liabilities n/a n/a $33,365
Total stockholders' equity n/a $173,953 $588,770
 2004 2005 2006 2007
$3,189,223 $6,138,560 $10,604,917 $16,593,986

$1,457,653 $2,577,088 $4,225,027 $6,649,085

$225,632 $599,510 $1,228,589 $2,119,985
$246,300 $468,152 $849,518 $1,461,266
$139,700 $185,823 $293,687 $410,604
$278,746 $200,709 $458,100 $868,646
$0 $90,000 $0 $0

$201,000 $0 $0 $0
$2,549,031 $4,121,282 $7,054,921 $11,509,586
$640,192 $2,017,278 $3,549,996 $5,084,400
$10,042 $124,399 $461,044 $589,580
$650,234 $2,141,677 $4,011,040 $5,673,980
$251,115 $676,280 $933,594 $1,470,260
$399,119 $1,465,397 $3,077,446 $4,203,720

$2.07 $5.31 $10.21 $13.51

$1.46 $5.02 $9.94 $13.29

193,176 275,844 301,403 310,806

272,781 291,874 309,548 316,210
$977,044 $2,459,422 $3,580,508 $5,775,410
$1,161,466 $4,287,229 $2,063,549 $0

$2,132,297 $8,034,247 $11,243,914 $14,218,613

$3,313,351 $10,271,813 $18,473,351 $25,335,806
$43,927 $107,472 $128,924 $610,525
$2,929,056 $9,418,957 $17,039,840 $22,689,679
Profitability ratios Formula 2001 2002 2003
Gross Profit Margin (Rev-COGS)/Rev 0.835 0.701 0.573
Operating Profit Margin (OpInc)/Rev 0.127 0.424 0.234
Net Profit Margin Proft aft Tax/Rev 0.081 0.227 0.072
Return on total assets (Proft aft Tax + int)/TA #VALUE! 0.353 0.116
Return on stockholder's equity PATax/Tot Equity #VALUE! 0.573 0.179
earning per share (basic) PATax/# shares 0.074 0.865 0.767
(diluted) 0.037 0.452 0.412

Liquidity Ratios
Current Ratio CA/CL n/a n/a n/a
Quick Ratio (CA-Inv)/CL n/a n/a n/a
Working Capital CA-CL n/a n/a n/a

Debt-to-assets Ratio
Long-term debt-to-capital ratio TDebt/TA
debt to equity ratio LTD/(LTD+Tot Equity) #VALUE! #VALUE! 0.054
long-term debt-to-equity ratio Tdebt/Tot Equity n/a n/a n/a
Times-interest-earned ratio OpInc/IntExp -12.237 -120.223 81.734

Activity ratios
Days of inventory Inv/(COGS/365) Not relevant for this case - Google has no inv
Inventory Turnover COGS/Inv Not relevant for this case - Google has no inv
Average Collection Period AR/(TotSales/365) n/a n/a n/a

Other Important Financial Measures

Dividend Yeild on Common Stock AnnDVshare/mkt$share No dividends
Price/earnings ratio mkt$share/EPS No Share Market Price Info
Divided Payout Ratio AnnDVshare/EPS No dividends
Internal Cash flow PATax + Dep No Depreciation Info
 2004 2005 2006 2007
0.543 0.580 0.602 0.599
0.201 0.329 0.335 0.306
0.125 0.239 0.290 0.253
0.117 0.131 0.142 0.143
0.136 0.156 0.181 0.185
2.066 5.312 10.210 13.525
1.463 5.021 9.942 13.294

n/a n/a 9.995 8.493

n/a n/a n/a n/a
n/a n/a $11,735,260 $15,253,536

0.078 0.104
0.015 0.011 0.008 0.026
n/a n/a 0.279 0.283
63.751 16.216 7.700 8.624

ase - Google has no inventory

ase - Google has no inventory
n/a n/a 45.512 47.567
 2006 2007
Assets
current assets
cash and cash equivalents $3,544,671 6,081,593
marketable securities 7,699,243 8,137,020
accounts receivable 1,322,340 2,162,521
deferred income taxes, net 29,713 68,538
income taxes receivable 0 145,253
prepaid revenue share expenses and
other assets 443,880 694,213
total current assets 13,039,847 17,289,138

prepaid revenue share, expenses and

other assets, non-current 114,455 168,530
deferred income taxes, net, non-current 0 33,219
Non-marketable eqity securities 1,031,850 1,059,694
property and equipment, net 2,395,239 4,039,261
intangible assets, net 346,841 446,596
goodwill 1,545,119 2,299,368
total assets 18,473,351 25,335,806

Liability and stockholders' equity

current liabilities
accounts payable 211,169 282,106
accrued compensation and benefits 351,671 588,390
accrued expenses and other current
liabilities 266,247 465,032
accrued revenue share 370,364 522,001
deferred revenue 105,136 178,073
total current liabilities 1,304,587 2,035,602

deferred revenue, long-term 20,006 30,249

deferred income taxes, net 40,421 0
income taxes paable, long-term 0 478,372
other long-term liabilities 68,497 101,904
Total Debt 1,433,511 2,646,127

Stockholders' equity
class A & B stocks 309 313
Additional paid-in capital 11,882,906 13,241,221
income 23,311 113,373
retained earnings 5,133,314 9,334,772
total stockholders' equity 17,039,840 22,689,679

equity 18,473,351 25,335,806

 Advertising
revenues 2003 2004 2005 2006 2007
Google web
sites $792,063 1,589,032 3,377,060 6,332,797 10,624,705
Google
network web
sites 628,600 1,554,256 2,687,942 4,159,831 5,787,938
total
advertising
revenues 1,420,663 3,143,288 6,065,002 10,492,628 16,412,643
licensing and
other
revenues 45,271 45,935 73,558 112,289 181,343
net revenues 1,465,934 3,189,223 6,138,560 10,604,917 16,593,986
Search Entity Jul-06 Apr-08
Google sites 43.70% 61.60%
Yahoo sites 28.80% 20.40%
Microsoft sites 12.80% 9.10%
AOL 5.90% 4.60%
Ask 5.40% 4.60%
Others 3.40% n/a
Total 100% 100%
 Revenues 2006 2007
United States 6,030,140 8,698,021
United Kingdom 1,603,842 2,530,916
Rest of the
world 2,970,935 5,365,049
total revenues 10,604,917 16,593,986

Long-lived
assets 2006 2007
United states $5,070,694 7,334,877
Rest of the
world 362,810 711,791
Total long-lived
assets 5,433,504 8,046,668
Yahoo financials in thousands 2003 2004 2005 2006
Revenues $1,625,097 $3,574,517 $5,257,668 $6,425,679
Income from operations 295,666 688,581 1,107,725 940,966
net income 237,879 839,553 1,896,230 751,391
cash and cash equivalents 415,892 823,723 1,429,693 1,569,871
marketable debt securities 2,150,323 2,918,539 2,570,155 1,967,414
working capital 1,013,913 2,909,768 2,245,481 2,276,148
total assets 5,931,654 9,178,201 10,831,834 11,513,608
long-term liability 822,890 851,782 1,061,367 870,948
total stockholders' equity 4,363,490 7,101,446 8,566,415 9,160,610

Mcrosoft financials in millions 2004 2005 2006 2007

Revenues $36,835,000 $39,788,000 $44,282,000 $51,122,000
Operating income 9,034,000 14,561,000 16,472,000 18,524,000
net income 8,168,000 12,254,000 12,599,000 14,065,000
cash, cash equivalents, and
short-term investments 60,592,000 37,751,000 34,161,000 23,411,000
total assets 94,368,000 70,815,000 69,597,000 63,171,000
long-term liability 4,574,000 5,823,000 7,051,000 8,320,000
total stockholders' equity 74,825,000 48,115,000 40,104,000 21,097,000
 2007
$6,969,274
695,413
660,000
1,513,930
849,542
937,274
12,229,741
384,208
9,532,831

2008
$60,420,000
22,492,000
17,681,000

23,662,000
72,793,000
6,621,000
36,286,000