Filings Watch: Google’s 10-K: Headcount; Acquisition Spend ~ Encyclopedia - Online Marketing With Google Yahoo MSN

Monday, February 18, 2008

Filings Watch: Google’s 10-K: Headcount; Acquisition Spend

Google (NSDQ: GOOG) filed its annual 10-K report with SEC this Friday, and not much in it that we don’t know already, but good to get a yearly perspective on umbers, rather than the quarter-to-quarter we all chase.

Some points that caught my eye:
-- Our full-time employee headcount has significantly increased over the last 12 months, growing from 10,674 at December 31, 2006 to 16,805 at December 31, 2007...consisting of 5,788 in research and development, 6,647 in sales and marketing, 2,844 in general and administrative and 1,526 in operations. All of Google’s employees are also equityholders, with significant collective employee ownership.

-- Minimum guaranteed payments to the likes of MySpace and others: At December 31, 2007, our aggregate outstanding non-cancelable guaranteed minimum revenue share commitments totaled $1.75 billion through 2012 compared to $1.17 billion at December 31, 2006. (issues here of lower-performance of MySpace inventory, which we have written about before)

-- Cash used in investing activities in 2007 of $3,681.6 million was attributable to capital expenditures of $2,402.8 million, cash consideration used in acquisitions and other investments of $941.2 million, of which $545.7 million related to the acquisition of Postini in the third quarter of 2007, and net purchases of marketable securities of $337.6 million.

-- Besides DoubleClick and Postini, during the year ended December 31, 2007, we also completed seventeen other acquisitions. Three of these transactions were accounted for as asset purchases; the remaining 14 transactions were accounted for as business combinations. The total initial purchase price for these transactions was $281.6 million.

-- In addition, during the year ended December 31, 2007, we capitalized intangible assets of $5.2 million, paid in cash, related to patent purchases.

-- Cost of revenues increased $2,424.1 million from 2006 to 2007. This increase was primarily the result of additional traffic acquisition costs, the depreciation of additional information technology assets purchased in the current and prior periods, other additional data center costs and additional credit card and other transaction fees. There was an increase in traffic acquisition costs of $1,625.1 million which includes an increase of $216.7 million in fees related to distribution arrangements.

-- Advertising revenues made up 99% of our revenues in 2005, 2006 and 2007. We derive the balance of our revenues from the license of our web search technology, the license of our search solutions to enterprises and the sale and license of other products and services.

-- Our international revenues have grown as a percentage of our total revenues to 48% in 2007 from 43% in 2006.

-- Aggregate paid clicks on our web sites and our Google Network members’ web sites increased approximately 9% from the three months ended September 30, 2007 to the three months ended December 31, 2007, approximately 43% from the year ended 2006 to the year ended 2007 and approximately 65% from the year ended 2005 to the year ended 2006.


Source: http://www.paidcontent.org/entry/419-filings-watch-googles-10-k-headcount-acquisition-spend/

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