Google 2009 Annual Report Download - page 37

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SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. Information on the operation of the
Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet
site that contains reports, proxy and information statements, and other information regarding our filings at
www.sec.gov.
We webcast our earnings calls and certain events we participate in or host with members of the investment
community on our investor relations web site. Additionally, we provide notifications of news or announcements
regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs
as part of our investor relations web site. The contents of these web sites are not intended to be incorporated by
reference into this report or in any other report or document we file and any reference to these web sites are
intended to be inactive textual references only.
ITEM 1A. RISK FACTORS
Risks Related to Our Business and Industry
We face intense competition.
Our business is rapidly evolving and intensely competitive, and is subject to changing technology, shifting
user needs and frequent introductions of new products and services. We have many competitors in different
industries, including traditional search engines, vertical search engines and e-commerce sites, social networking
sites, traditional media companies, and providers of online products and services. Our current and potential
competitors range from large and established companies to emerging start-ups. Established companies have
longer operating histories and more established relationships with customers and end users, and they can use their
experience and resources against us in a variety of competitive ways, including by making acquisitions, investing
aggressively in research and development, and competing aggressively for advertisers and web sites. Emerging
start-ups may be able to innovate and provide products and services faster than we can. If our competitors are
more successful than we are in developing compelling products or in attracting and retaining users, advertisers,
and content providers, our revenues and growth rates could decline.
If we do not continue to innovate and provide products and services that are useful to users, we may
not remain competitive, and our revenues and operating results could suffer.
Our success depends on providing products and services that make using the internet a more useful and
enjoyable experience for our users. Our competitors are constantly developing innovations in web search, online
advertising, and web based products and services. As a result, we must continue to invest significant resources in
research and development in order to enhance our web search technology and our existing products and services
and introduce new products and services that people can easily and effectively use. If we are unable to provide
quality products and services, then our users may become dissatisfied and move to a competitor’s products and
services. In addition, these new products and services may present new and difficult technology challenges, and
we may be subject to claims if users of these offerings experience service disruptions or failures or other quality
issues. Our operating results would also suffer if our innovations are not responsive to the needs of our users,
advertisers, and Google Network members, are not appropriately timed with market opportunities, or are not
effectively brought to market. As search technology continues to develop, our competitors may be able to offer
search results that are, or that are seen to be, substantially similar to or better than ours. This may force us to
compete in different ways and expend significant resources in order to remain competitive.
We generate our revenues almost entirely from advertising, and the reduction in spending by or loss
of advertisers could seriously harm our business.
We generated 97% of our revenues in both 2008 and 2009 from our advertisers. Our advertisers can
generally terminate their contracts with us at any time. Advertisers will not continue to do business with us if their
investment in advertising with us does not generate sales leads, and ultimately customers, or if we do not deliver
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