Download - Google Q1 2015 earnings deck
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
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DisclaimerThe 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.
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
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
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
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
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
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
Other revenues, $m
Source: Google reporting, Jackdaw Research analysis
0
500
1,000
1,500
2,000
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Year on year growth – Other revenues
Source: Google reporting, Jackdaw Research analysis
-100%
0%
100%
200%
300%
400%
500%
Q1 2007 Q4 2007 Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013 Q3 2014
Margins
Source: Google reporting, Jackdaw Research analysis
0%
10%
20%
30%
40%
50%
60%
70%
Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014
Gross margin Operating margin Net margin
Cost components as % of revenues
Source: Google reporting, Jackdaw Research analysis
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
R&D as % of revenues S&M as % of revenues G&A as % of revenues
Capital spending
Source: Google reporting, Jackdaw Research analysis
0%
5%
10%
15%
20%
0
1,000
2,000
3,000
Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014
Capex ($m) Capital intensity (capex/revenue)
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
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
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
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
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
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
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 clicksSites paid clicksNetwork cost-per-clickSites cost-per-click
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 clicksNetwork cost-per-click Sites cost-per-click
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
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
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
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
Jan Dawson Chief Analyst
(408) 744-6244 [email protected]
@jandawson
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