Google Inc projected back in 2010 it would get more than 35 percent of its 2013 revenue from outside its flagship search operation, anticipating three non-search businesses, including commerce, would generate over $5 billion each, according to internal company documents filed in court.<\/p>\n
The documents provide a rare glimpse into Google’s mindset in 2010, as the company does not break down the percentage of its revenue that comes from search advertising versus its other businesses.<\/p>\n
Display advertising would generate $8 billion in revenue in 2013, commerce would bring in $5 billion, while YouTube and Google TV would combine for $5 billion, according to documents revealed during the high-stakes trial of Oracle Corp against Google over smartphone technology.<\/p>\n
Search, meanwhile, had been pegged to generate $34 billion in 2013, the 2010 projections say. Company staffers compiled the documents in October 2010 for a Google board presentation, according to testimony in U.S. District Court in San Francisco on Wednesday.<\/p>\n
Google had forecast that its total revenue in 2013 would be $55 billion, according to the documents.<\/p>\n
Estimating the ratio is complicated because of the limited information Google discloses about its various businesses. Analysts’ estimates for Google’s non-search business currently range from 10 percent of the company’s revenue to as much as 25 percent.<\/p>\n
“Their core business has done better than they were forecasting. Search is growing faster than 10 percent a year,” said Colin Sebastian, an analyst at RW Baird.<\/p>\n
However, Google still has work to do in areas like commerce, he said, adding that Google’s mobile wallet product has not made as much progress as it hoped.<\/p>\n
“This document suggests those businesses may not be meeting Google’s initial expectations,” Sebastian said.<\/p>\n
Google spokesman Jim Prosser said the documents do not represent current thinking about its business operations.<\/p>\n
“Our industry continues to evolve incredibly fast and so do our aspirations for our various products and services,” Prosser said.<\/p>\n
Oracle has accused Google of violating its intellectual property rights to the Java programming language. An Oracle spokeswoman declined to comment on the figures.<\/p>\n
Oracle attorney David Boies briefly referred to the documents on Wednesday while questioning Android mobile software chief Andy Rubin, but Boies did not delve into the projections. However, a full copy of the internal documents has been formally admitted into evidence in the case.<\/p>\n
The 2010 documents show that Google’s search business generated $19.2 billion in 2009, while the display business brought in $3.2 billion that year. YouTube made $300 million, while e-commerce brought in no revenue.<\/p>\n
Enterprise software was projected to generate $2 billion in revenue in 2013. Overlaying all of the business units are Google’s Android and Chrome platforms, the documents said.<\/p>\n
“Android and Chrome platforms critical assets for their success,” the documents say.<\/p>\n","protected":false},"excerpt":{"rendered":"
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