Google 2009 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2009 Google annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
In addition to historical information, this Annual Report on Form 10-K contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These
statements include, among other things, statements concerning our expectations regarding:
• our plans to launch our ebook platform in 2010;
• our plans to work with original equipment manufacturers to introduce computers running Google Chrome
OS in 2010;
• the growth of our business and revenue;
• seasonal fluctuations in internet usage and traditional retail seasonality are likely to cause fluctuations in
our quarterly results;
• our plans to continue to invest in our business, including increasing our hiring rate, and to make
acquisitions;
• the decline in our revenue growth rate;
• our expectation that growth in advertising revenues from our web sites will continue to exceed that from
our Google Network members’ web sites, which will have a positive impact on our operating margins;
• our expectation that we will continue to pay most of the Google AdSense fees we receive from advertisers
to our Google Network members;
• our expectation that we will continue to take steps to improve the relevance of the ads we deliver and to
reduce the number of accidental clicks;
• fluctuations in aggregate paid clicks and average cost-per-click;
• our belief that our foreign exchange risk management program will not fully offset the exposure to
fluctuation in foreign currencies;
• the fact that our cost of revenues will increase in dollars and may increase as a percentage of revenues;
• our belief that our research and development and sales and marketing expenses will increase in dollars
and may increase as a percentage of revenues;
• the fact that traffic acquisitions costs may fluctuate in the future;
• the timing for the consummation of our acquisitions of On2 and AdMob;
• our estimated guaranteed minimum revenue share payments;
• continued investments in international markets;
• our future stock-based compensation expenses;
• the increase of costs related to hedging activities under our foreign exchange risk management program;
• fluctuations in our effective tax rate;
• the sufficiency of our existing cash, cash equivalents, marketable securities, and cash generated from
operations;
• our payment terms to certain advertisers which may increase our working capital requirements;
• fluctuations in our capital expenditures; and
• our belief that the EPA’s investigation will not have a material adverse effect on our business,
consolidated financial position, results of operations, or cash flows;
as well as other statements regarding our future operations, financial condition and prospects and business
strategies. These forward-looking statements are subject to certain risks and uncertainties that could cause our
36