Below is a summary of Google October 2011 earnings call, led by Jane C. Penner (Vice PresidentCommunications) , Lawrence E.

Page (Chief Executive Officer & Director) , Patrick Pichette (Chief Financial Officer & Senior Vice President), Nikesh Arora (Chief Business Officer & Senior Vice President), Susan Wojcicki (Vice President-Product Management) : Major Themes of the Earnings Call The managements outlook is positive and they are very pleased with their financial performance. Greater usage and increased revenue by simplifying and streamlining products and shutting down over 20 product lines. This helps focus on relevant investments in the current scenario. Increased use of mobile platform has increased revenue numbers 2.5 times. Striving for innovation in future products fed by the revenues from todays well managed portfolio of products Headcount is consistent and attrition rate is low. Key Initiatives Interesting activities done by the company which help them expand business and generate revenue like Get your business online program : helps small businesses and brings their companies online and the Space Lab: a partnership between YouTube and Lenovo which is a video competition for 14 to 18 year-olds as a driver to increase revenues for YouTube. Mobile advertising is rising and adding to it is the androids latest version ice cream sandwich is due to be launched. Already mobile platform has shown steady performance and has increasing proportion of revenues. Improvement in features for better user friendliness across various applications and websites including Google Analytics, Google Offers and Google Wallet. Started working with Visa, American Express and Discover as partners to strengthen the Google Wallet application. Financial Review and Specific Items Discussed

Gross revenue grew 33% year-over-year to $9.7 billion and 8% quarter-over-quarter. Operating expenses were $3.28 billion or 34% of the revenues, compared to $2.19 billion or 30% of revenues. This doesnt include SBC (stock based compensation). The stock based compensation for rd rd 3 quarter of 2011 was $571 million , compared to $ 380 million in 3 quarter of 2010. Of this 69% revenue ($6.74 billion) comes from Google sites, showing a 39% increase from previous year ($4.83 billion) and 27% ( $2.6 billion) of them came from Google network, showing an increase of 18% over the previous year ($2.2 billion). Operating margins dipped from 35% in Q3 2010 to 31.5% in Q3 2011. Effective tax rate for the current quarter was 19%,flat with Q2, and the lower tax rate is driven by a mix of earnings between domestic and international subsidiaries. Geographical Segmentation : Revenue from the U.S. was up 26% year-over-year to $4.4 billion and the non-U.S. revenue accounted for 55% of total revenue or $5.3 billion, up 41% year-over-year, which includes a $1 million of benefits from hedging program. The U.K. was up 25% to $1 billion.