Post on 16-Apr-2017
Evan Smith – evanws@umich.edu
EECS 441
How it started
Larry Page
Sergey Brin
How it started
1995 – Larry and Sergey meet
1997 – Google.com registered
2004 – IPO at $23B valuation
Where it’s at now
Core Business Other Bets
...
Where it’s at now
91% of total CAPEX
Core Business Other Bets
...
Products & Services
YouTubeSearch Android
And many more…
Products & Services
7 products with over a billion unique monthly active users
Core Strategy
Build products people want to use
Create ecosystem around products
Monetize products with ads
Business
Revenue $75.0B ↑ 13.6% YoY
Net Income $16.3B ↑ 15.6% YoY
OPM 25.8% ↑ 0.8% YoY
Data from Alphabet 2015 10-K
Business
Market Cap $478B ↑ 24.3% YoY
Revenue Mix 54% from outside U.S.90% from ads
Headcount 62k with 23k in R&D
Data from Alphabet 2015 10-K
Competition
General purpose information services
Vertical search engines
Social networks
Other advertising
Predictions
Relevant for the foreseeable future
Continued (but moderate) growth
Increase in non-ad based revenue
Questions?Evan Smith – evanws@umich.edu