Google (GOOG) 2009 Q1 法說會逐字稿

Good day, and welcome everyone to the Google Inc. conference call. Today's call is being recorded. At this time, I would like to turn the call over to Ms. Krista Bessinger, Director of Investor Relations. Please go ahead, ma'am.

美好的一天，歡迎大家參加 Google Inc. 電話會議。今天的通話正在錄音。現在，我想將電話轉給投資者關係總監 Krista Bessinger 女士。請繼續，女士。

Great. Thank you. Good afternoon, everyone, and welcome to Google's first quarter 2008 earnings follow-up conference call. With us are Patrick Pichette, Chief Financial Officer; and Jonathan Rosenberg, Senior Vice President of Product Management. I will quickly cover a few housekeeping items and then we'll open the call immediately to your questions. If you could, please limit yourself to one question and one follow-on.

偉大的。謝謝。大家下午好，歡迎參加 Google 2008 年第一季財報後續電話會議。與我們一起的有首席財務官帕特里克·皮切特 (Patrick Pichette)；喬納森‧羅森伯格（Jonathan Rosenberg），產品管理資深副總裁。我將快速介紹一些內務管理事項，然後我們將立即打開電話回答您的問題。如果可以的話，請將自己限制在一個問題和一個後續問題上。

Also please note that this call is being webcast from our Investor Relations website located at investor.Google.com. Please refer to our website for important information including our earnings press release and related slide deck and a replay of this call will be available on our website in a few hours. Please note that we routinely post important information on our Investor Relations website located at investor.Google.com. We encourage you to make use of that resource. So as a reminder, the purpose of this follow-up call is to give participants the opportunity to ask more detailed financial and product questions in an efficient and Reg FD compliant manner. Now I'll quickly cover the Safe Harbor statement.

另請注意，本次電話會議是透過我們的投資者關係網站（位於investor.Google.com）進行網路直播的。請參閱我們的網站以了解重要訊息，包括我們的收益新聞稿和相關幻燈片，幾個小時後我們的網站上將提供本次電話會議的重播。請注意，我們通常會在投資者關係網站 Investor.Google.com 上發布重要資訊。我們鼓勵您利用該資源。提醒一下，這次後續電話會議的目的是讓參與者有機會以高效且符合 FD 法規的方式提出更詳細的財務和產品問題。現在我將快速介紹安全港聲明。

Some of the statements we make today may be considered forward-looking and these statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Please refer to our SEC filings including our annual report on Form 10-K for the year ended December 31, 2008, as well as our earnings press release for a more detailed description of the risk factors that may affect our results. Copies can be obtained from the SEC or by visiting the Investor Relations section of our website. Please note that certain financial measures we use on this call such as EPS, net income, operating margin, and operating income, are expressed on a non-GAAP basis and have been adjusted to exclude charges relating to stock based compensation. We've also adjusted our net cash provided by operating activities to remove capital expenditures which we refer to as free cash flow. Our GAAP results and GAAP to non-GAAP reconciliation can be found in our earnings press release. So with that, we're ready to take your questions. Operator.

我們今天發表的一些聲明可能被認為是前瞻性的，這些聲明涉及許多風險和不確定性，可能導致實際結果出現重大差異。請注意，這些前瞻性聲明僅反映我們截至本簡報發布之日的意見，我們不承擔根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果的義務。請參閱我們向 SEC 提交的文件，包括截至 2008 年 12 月 31 日的年度 10-K 表格年度報告，以及我們的收益新聞稿，以了解可能影響我們業績的風險因素的更詳細說明。您可以從 SEC 或造訪我們網站的投資者關係部分取得副本。請注意，我們在本次電話會議中使用的某些財務指標，例如每股收益、淨利潤、營業利潤率和營業收入，均按非公認會計準則計算，並經過調整以排除與股票薪酬相關的費用。我們也調整了經營活動提供的淨現金，以消除資本支出，我們稱之為自由現金流。我們的 GAAP 業績以及 GAAP 與非 GAAP 調整表可以在我們的收益新聞稿中找到。因此，我們準備好回答您的問題。操作員。

Thank you. (Operator Instructions) We'll pause for just a moment to assemble the roster. Our first question from Heath Terry from FBR.

謝謝。 （操作員指示）我們將暫停片刻來集合名單。我們的第一個問題來自 FBR 的 Heath Terry。

Great. Thank you. Just wondering, as we look at the operating expense lines, we obviously saw pretty big declines in R&D and sales and marketing and we know from the headcount number in those areas that there wasn't as much of a decline. Can you talk to us about how you're getting those kind of cost savings without using headcount as a reduction and then just from the increase that we saw in G&A, is there anything outside of the charges related to the change in stock-based compensation that's driving that up this quarter?

偉大的。謝謝。只是想知道，當我們查看營運費用線時，我們顯然看到研發、銷售和行銷方面的大幅下降，而且從這些領域的員工人數中我們知道，下降幅度並沒有那麼大。您能否與我們談談您如何在不減少員工人數的情況下實現此類成本節省，然後僅從我們在一般管理費用中看到的增加來看，除了與股票薪酬變化相關的費用之外，還有其他什麼嗎？這推動了本季的成長？

So I'll answer that question. The overall, what you have seen, as we mentioned on the prior call that the biggest change from quarter-to-quarter, if you wish, and the trajectory of our costs, is, as we mentioned on the prior call, was this issue of the bonus accrual in Q4, which was kind of higher than we had originally planned because our results were better and now we're resetting the plan as what is a typical plan for the year so we're starting again fresh, and those bonus accruals which are tied to labor flow into different categories that do include R&D. It is -- it's also fair to say that across many of our categories of costs, we've continued to be quite diligent about our trajectories and you see them, that also is part of our results in a number of categories. So we continue to be prudent and that is essentially the biggest element that would have flowed through the Q4 to Q1 expenses.

所以我會回答這個問題。總體而言，正如我們在之前的電話會議中提到的那樣，如果您願意的話，季度與季度之間最大的變化以及我們的成本軌跡，正如我們在之前的電話會議中提到的那樣，是這個問題第四季度應計獎金的數量，這比我們最初計劃的要高，因為我們的結果更好，現在我們正在將計劃重置為今年的典型計劃，所以我們重新開始，這些獎金應計費用與勞動力流入不同類別（包括研發）相關。公平地說，在我們的許多成本類別中，我們繼續非常努力地制定我們的軌跡，你會看到它們，這也是我們在許多類別中的結果的一部分。因此，我們繼續保持謹慎態度，這本質上是流經第四季至第一季支出的最大因素。

And so just for the follow-up side of that, is it fair to say that looking at that delta in the bonus accrual is a reasonable expectation of kind of what your plans are for the level business needs to be at for outperformance to happen, and us to see the same thing that we saw in the fourth quarter last year for the necessary bonus accrual catch-up?

因此，就後續方面而言，可以公平地說，查看應計獎金的增量是對您的計劃的合理預期，以實現業務需要達到的水平，以實現優異的業績，我們是否會看到與去年第四季相同的情況，以追趕必要的應計獎金？

I'm not sure I understand the question. If your question is will -- like we have now reset our plan at let's say that it's 100%, right, whatever 100% is.

我不確定我是否理解這個問題。如果你的問題是——就像我們現在重置了我們的計劃一樣，我們可以說它是 100%，對吧，無論 100% 是什麼。

Yes.

是的。

So now we're running this year with the expectation of 100% and we hope to beat that in terms of -- because you always hope to beat your plan but that's what we're running with right now. If between now and the end of the year we see a big ramp-up in our performance, as we see that we will take appropriate accruals at that point.

所以現在我們今年的預期是 100%，我們希望能夠超越這個目標——因為你總是希望超越你的計劃，但這就是我們現在正在運行的。如果從現在到年底我們看到我們的業績大幅提升，我們將在那時採取適當的應計費用。

Great. That was my question.

偉大的。這就是我的問題。

Okay. Let's go to the next question.

好的。讓我們進入下一個問題。

We'll take our next question from Jim Friedland from you Cowen and Company.

我們將接受考恩公司的吉姆·弗里德蘭提出的下一個問題。

Thanks. Wanted to ask a question on Google apps that was indicated early in the last call as a key area for investment. And at this point in the evolution, is the investment more on new features or are you starting to do more in terms of building up an enterprise sales force and are you seeing additional enterprise wins, especially in this environment on the cost savings and can you name any?

謝謝。想問一個有關 Google 應用程式的問題，該問題在上次電話會議初期就被指出是投資的關鍵領域。在發展的這一點上，是對新功能進行更多的投資，還是您開始在建立企業銷售隊伍方面做更多的事情，您是否看到了更多的企業勝利，特別是在這種節省成本的在環境中，您可以嗎？說出任何一個嗎？

Sure. This is Jonathan. We had some pretty large deployments this quarter. Avago, which I think is the semiconductor division of HP deployed the app suite to several thousand, maybe 5,000 or 6,000 users. We had some progress in one of the big Mexican, states of Mexico too which we launched in early Q1. We also had quite a bit of progress on the EDU side with 60 colleges and universities that we signed deals with. Some of them I believe were Cornell and Georgetown. I know we signed other significant deals with T-Mobile, Fujisoft, Euro Master which I think is a subsidiary of Michelin. So I think there's significant progress there.

當然。這是喬納森。本季我們進行了一些相當大的部署。 Avago（我認為是 HP 的半導體部門）向數千（也許 5,000 或 6,000）用戶部署了該應用程式套件。我們在第一季初推出的墨西哥大州之一也取得了一些進展。我們在 EDU 方面也取得了相當大的進展，與我們簽署了協議的 60 所學院和大學。我相信其中一些是康乃爾大學和喬治城大學。我知道我們也與 T-Mobile、Fujisoft、Euro Master 簽署了其他重要協議，我認為它們是米其林的子公司。所以我認為這方面取得了重大進展。

The kind of functionality that we're working on are some of the big -- some of the big holes that I think we still had in the suite, offline support was probably one of the more significant pieces, as was better synching with mobile devices. We're seeing pretty strong demand and traction in organizations in sort of the 3,000 to 15,000 size range. We're getting a lot of help with the reseller program that we launched and I think your observation about what is the state in a cost challenging environment, I think we are seeing that we've got a number of customers who are using the paid apps version. I think we're signing on more customers because of the cost savings relative to competitors. There's a big Forester study that showed that we're a fraction of the price of the competition even relative to their Cloud based offerings.

我們正在開發的功能是一些大的——我認為我們在套件中仍然存在一些大漏洞，離線支援可能是更重要的部分之一，與行動裝置的更好同步也是如此。我們看到規模在 3,000 到 15,000 人之間的組織的需求和吸引力相當強勁。我們透過我們推出的經銷商計畫獲得了很多幫助，我認為您對成本充滿挑戰的環境中的狀態的觀察，我認為我們看到我們有許多客戶正在使用付費服務應用程式版本。我認為我們正在簽約更多客戶，因為相對於競爭對手可以節省成本。 Forester 的一項大型研究表明，即使相對於他們基於雲端的產品，我們的價格也只是競爭對手的一小部分。

So I think we're doing pretty well. There's one category, manufacturing and spinoffs of large companies, seem to make a lot of sense, particularly when a company's building new infrastructure and we've got some examples. I think the Avago example is one of those and I know there are more.

所以我認為我們做得很好。有一個類別，大公司的製造和分拆，似乎很有意義，特別是當一家公司正在建造新的基礎設施時，我們有一些例子。我認為 Avago 的例子就是其中之一，而且我知道還有更多。

Are there particular -- sorry, are there particular industries where apps are being sort of better adopted at this point versus others where maybe it's a little bit more complex and harder to get into?

抱歉，是否有特定行業的應用程式在這一點上得到了更好的採用，而其他行業可能更複雜、更難進入？

I'm not sure I could establish any correlation in terms of the categories of industries, I think it's more a function of how the users and the IT departments are set up. Certainly, the educational institutions have made relatively quick and robust progress, as have companies that I mentioned that have sort of spun out and are out to start from scratch and build and don't have the legacy dynamics that established companies do. But I think that's really the only broad observation that I could make. It's more a function of the size of the Enterprise than it is the industry. So it's a few to several or 10,000 even 15,000.

我不確定是否可以在行業類別方面建立任何關聯，我認為這更多地取決於使用者和 IT 部門的設定方式。當然，教育機構已經取得了相對快速和強勁的進展，就像我提到的那些已經分拆出來的公司一樣，它們是從頭開始建立的，並且沒有老牌公司所擁有的遺留動力。但我認為這確實是我能做出的唯一廣泛的觀察。它更多的是企業規模的函數，而不是產業的函數。所以是幾個到幾個或一萬甚至一萬五千。

I think we'll go to the next question, please.

我想我們將討論下一個問題。

Thanks.

謝謝。

And we'll take our next question from Steve Weinstein from Pacific Crest.

我們將回答 Pacific Crest 的 Steve Weinstein 提出的下一個問題。

Great. Thank you very much. Just trying to understand, you had almost a full quarter still benefit from the DoubleClick acquisition and so when I look at your US business where you're reporting basically 3% growth, without DoubleClick, was the business in the US basically flat year-over-year?

偉大的。非常感謝。只是想了解一下，您幾乎整個季度仍然受益於 DoubleClick 收購，因此，當我查看您的美國業務時，您報告的增長基本上為 3％，沒有 DoubleClick，美國業務與去年同期基本持平-年？

I don't have those details. So I won't answer it. It is true that we have -- so if you think of the coming quarters, DoubleClick will be -- like we're finishing the first year of DoubleClick. What I can say which is a factual statement is we had in Q1, we're finishing the first full year of recognizing revenues for DoubleClick but now DoubleClick is integrated in all the display business so in Q2 you'll see the effect of that.

我沒有這些細節。所以我不會回答。確實，我們已經——所以如果你想到未來幾個季度，DoubleClick 將會——就像我們即將結束 DoubleClick 的第一年一樣。我可以說的是，這是一個事實陳述，我們在第一季完成了DoubleClick 確認收入的第一個全年，但現在DoubleClick 已整合到所有顯示業務中，因此在第二季您將看到其效果。

Okay. As a follow-up, then, hopefully you can clarify one more thing on the G&A expenses. So if we back out basically the $46 million in expenses you kind of recognize as sort of one time, is that the fair run rate to work on right now? I guess I'm missing something about how the bonus accruals is going to change throughout the year.

好的。那麼，作為後續行動，希望您能澄清另一件事有關一般行政費用的事實。因此，如果我們基本上取消您認為一次性的 4600 萬美元費用，那麼現在的運行率是否公平？我想我錯過了有關全年獎金應計情況如何變化的信息。

No, what I've mentioned is that the bonus accrual that we took in Q4, that did not get moved into Q1 because we reset it much more than offset these additional expense pressures that we talked about.

不，我提到的是，我們在第四季度獲得的應計獎金並沒有轉移到第一季度，因為我們重置它的程度遠遠超過了抵消我們談到的這些額外費用壓力。

Much more. All right. Thanks.

多得多。好的。謝謝。

Next question, please.

請下一個問題。

And we'll take our next question from Richard Fetyko from Merriman and Company.

我們將回答來自 Merriman and Company 的 Richard Fetyko 的下一個問題。

If you were to compare the mobile and the display initiatives and if you include YouTube within the display, which one do you expect to be bigger opportunity the next two, three years? And then a follow-up up on that, could you elaborate more on the display ad strategy, you have the ad exchange, you have also the AdSense for display or for content that you're integrating display into. Just give us a little more color on what sort of strategy or products you're emphasizing within that display initiative.

如果您要比較行動裝置和顯示裝置計劃，並將 YouTube 納入顯示裝置中，您預計哪一項在未來兩三年內會帶來更大的機會？接下來，您能否詳細說明一下展示廣告策略，您有廣告交易平台，您還有用於展示的 AdSense 或用於將展示整合到其中的內容。只需向我們提供更多關於您在該展示計劃中強調的策略或產品類型的信息即可。

I guess I'm not -- basically, I mean, broadly, the story and the strategy is to address the issues of and the challenges around the way display ads are bought and sold and we do fundamentally believe that those are going to change over the coming years and we're trying to bring much more measurability, the kind of efficiency that we had with Search advertising to display and make it much more efficient for both advertisers and publishers to offer better ads for users. So I mean, it's basically building the largest scale network that we can, that's going to give the best ROI to advertisers on the one side and the best yield to publishers on the other.

我想我不是——基本上，我的意思是，從廣義上講，這個故事和策略是為了解決展示廣告買賣方式的問題和挑戰，我們從根本上相信這些將會改變在接下來的幾年裡，我們將努力提高可衡量性，即我們在搜尋廣告中展示的效率，並使廣告商和發布商能夠更有效率地為用戶提供更好的廣告。所以我的意思是，它基本上是建立我們能做到的最大規模的網絡，這將一方面為廣告商提供最佳的投資回報率，另一方面為出版商提供最佳的收益。

So if we get full integration of DoubleClick and Google products we're going to have the combination of this big leading platform for advertisers to create and manage the most effective campaign and publishers to, on the other side manage and monetize their inventories so I think it's the combination of being able to do both of those things, we expect will be very, very powerful. It's hard for me to handicap whether or not the scope of overall revenue on the display side or the mobile side will be bigger. We're obviously very, very excited about both and making strong progress in both.

因此，如果我們完全整合 DoubleClick 和 Google 產品，我們將擁有這個大型領先平台的組合，讓廣告商創建和管理最有效的廣告活動，而發布商則可以管理他們的庫存並從中獲利，所以我認為我們預計，將能夠完成這兩件事的結合起來將非常非常強大。我很難判斷顯示端或行動端的整體收入範圍是否會更大。顯然，我們對這兩方面都非常非常興奮，並且在這兩方面都取得了巨大進展。

So I don't have a sense of what the size of those industries would look like in two or three years. All right. Thanks.

所以我不知道兩三年後這些產業的規模會是什麼樣子。好的。謝謝。

Next question, please.

請下一個問題。

We'll take our next question from Doug Anmuth from Barclays Capital.

我們將回答巴克萊資本 (Barclays Capital) 的 Doug Anmuth 提出的下一個問題。

Thanks for taking my question. Can you provide some color, Patrick, on the reasons for the sequential decline in other costs of revenues?

感謝您提出我的問題。派崔克，你能提供一些關於其他收入成本連續下降的原因嗎？

Hold on just for a second. I'll just take a look at my notes here. A gain in other cost of revenue, if I just go through my notes, they are still tied mostly to payroll issues, rather than equipment issues or machine utilization. And so that's basically it.

請稍等一下。我就在這裡看一下我的筆記。其他收入成本的收益，如果我只是瀏覽我的筆記，它們仍然主要與工資問題相關，而不是設備問題或機器利用率。基本上就是這樣。

So just to clarify, so you're saying more related to the bonus accrual than to--?

所以為了澄清一下，你是說與應計獎金更多相關，而不是——？

That's correct.

這是正確的。

Depreciation?

折舊？

That's correct.

這是正確的。

Thank you.

謝謝。

Next question, please.

請下一個問題。

And we'll go next to George Askew from Stifel Nicolaus.

接下來我們將邀請來自 Stifel Nicolaus 的 George Askew。

Thank you. George Askew, at Stifel Nicolaus. I'm going to address this bonus issue one more time. I'm just trying to get a sense of the size of the bonus accrual in the first quarter. If you look at it as a percentage of sales, for example, in the first quarter '09 compared to the year-ago quarter, first quarter '08, was it materially different?

謝謝。喬治阿斯丘 (George Askew)，來自 Stifel Nicolaus。我將再次解決這個獎金問題。我只是想了解第一季應計獎金的規模。例如，如果將其視為銷售額的百分比，那麼 09 年第一季與去年同期（08 年第一季）相比，是否存在重大差異？

I don't have the answer to that question. But I think again, in general terms, if you think of your modeling, I think looking at run rates from a year ago or may be useful to get a sense of magnitude versus Q4 because Q4 as I said was sufficiently different and actually it does make a difference between Q4 and Q1.

我沒有這個問題的答案。但我再次認為，一般來說，如果你考慮你的模型，我認為查看一年前的運行率或可能有助於了解與第四季度相比的規模，因為正如我所說，第四季度有足夠的不同，實際上確實如此Q4 和 Q1 之間存在差異。

Okay. Okay. Fair enough. And then secondly, as a follow-up, there's media reports hinting this late this afternoon here that YouTube is partnering to stream full length movies, TV shows, et cetera, a redesign happening there. Is there -- what can you tell us about this kind of news on YouTube and the redesign that appears to be imminent?

好的。好的。很公平。其次，作為後續行動，今天下午晚些時候有媒體報導暗示 YouTube 正在合作播放完整長度的電影、電視節目等，那裡正在進行重新設計。關於 YouTube 上的這類新聞以及即將進行的重新設計，您能告訴我們什麼嗎？

This is Jonathan. Certainly, what we're hearing from both viewers and advertisers is that they want premium content and the premium viewing experience and we want YouTube to be as comprehensive as Search there and we want to attract as much professional quality content as we can and advertisers as we can of all sizes and types. I believe there's a conference or some additional details on the Sony issues coming out directly from the folks at YouTube. So you might want to take a look and watch for that. They should have all of the details about the Sony relationship and dynamics from Sam Bruno.

這是喬納森。當然，我們從觀眾和廣告商那裡聽到的是，他們想要優質的內容和優質的觀看體驗，我們希望 YouTube 與搜尋一樣全面，我們希望吸引盡可能多的專業品質內容，並吸引廣告商。我們可以提供各種尺寸和類型的產品。我相信 YouTube 的人員會直接透露有關索尼問題的會議或一些其他細節。所以你可能想看一下並注意這一點。他們應該從薩姆布魯諾那裡了解有關索尼關係和動態的所有細節。

Got you. Okay. Fair enough. Thank you.

明白你了。好的。很公平。謝謝。

Next question.

下一個問題。

And we'll take our next question from Mark Mahaney from Citigroup.

我們將回答花旗集團馬克·馬哈尼的下一個問題。

Just one quick financial goals question. In past historic years I think there was a goal and I know it was stated at Investor Days in the past to simply expand pro forma operating income sequentially as long as possible. Is that still a goal within the Company, that happened this quarter but is the way as you think about the financial goals, is just to expand that sequentially going forward, that non-GAAP operating income?

只是一個快速的財務目標問題。在過去的歷史歲月裡，我認為有一個目標，而且我知道在過去的投資者日上曾說過，就是盡可能地連續擴大預計營業收入。這仍然是公司內部的一個目標嗎？本季發生的事情，但你考慮財務目標的方式是，只是擴大未來的非公認會計準則營業收入？

So two points. I wasn't there in the old days when whoever who have said what. But certainly under my rule, we don't give any guidance going forward on any of these dimensions. All I think it's important that people understand is we are -- we're demonstrating responsible management over our resources. You should consider as you think of your modeling, you know, the fact that we talked at length on the previous call that our revenues are seasonal and you just got to think of our expenses as much more of a kind of fixed cost. They're not seasonal in a way. So our labor is not seasonal and our expenses are not. Because we're still growing. So that's the mindset that you should apply to your modeling.

所以有兩點。過去，無論誰說了些什麼，我都不在場。但當然，根據我的規則，我們不會在任何這些方面提供任何指導。我認為重要的是，人們要了解我們——我們正在展示對我們資源的負責任的管理。當你考慮你的模型時，你應該考慮到我們在之前的電話中詳細討論過的事實，即我們的收入是季節性的，你只需將我們的支出更多地視為一種固定成本。它們在某種程度上不是季節性的。所以我們的勞力不是季節性的，我們的開銷也不是。因為我們還在成長。這就是您應該應用於建模的心態。

Thank you.

謝謝。

Next question, please.

請下一個問題。

We'll go next to [Sumit Suna] rom JMP Securities.

接下來我們將前往 JMP 證券公司的 [Sumit Suna]。

Yes, thank you. Couple of questions. If you could talk about the networks business, understandably you've been taking some initiatives over the last couple of quarters to clean it out. When can we start to see improvement in that business, when you end these initiatives and then I have a housekeeping follow-up.

是的，謝謝。有幾個問題。如果您可以談論網路業務，那麼可以理解的是，您在過去幾個季度一直在採取一些舉措來清理它。當你結束這些措施時，我們什麼時候才能開始看到該業務的改善，然後我會進行內務跟進。

Could you clarify exactly -- are you asking about AdSense for Search? What exactly are you asking?

能具體說明一下嗎？您是在詢問 AdSense 搜尋廣告嗎？你到底想問什麼？

The Google networks business, I'm just looking at that, kind of open it up over here. It was down sequentially a little bigger than it was down last quarter. So I'm talking about that, you had some -- you were getting rid of some arbitrage, players, things like that. When are those activities -- when do you think that ends?

谷歌網路業務，我只是在關注它，有點在這裡打開它。環比下降幅度略大於上季的下降幅度。所以我說的是，你有一些 - 你正在擺脫一些套利，球員，類似的東西。這些活動什麼時候──你認為什麼時候結束？

Some of that relates to partner issues. Some of it is the network clean-up. I think that to date, the clean-up has been largely successful, but it's kind of an ongoing cat and mouse game, just like e-mail spam. So I don't think I would necessarily want to suggest that the clean-up issue has been fixed. I think we did start engaging pretty aggressively in those efforts last year and we've made great progress. I think the other piece that you may see is there's probably some FX issues and other partners that we have that our built in there that are seeing the same kind of economic issues that we have as well as having to sort of understand which partners are in the overall mix, which is a factor. We don't give you the full list of those dynamics.

其中一些與合作夥伴問題有關。其中一些是網路清理。我認為迄今為止，清理工作已基本成功，但這就像一場持續的貓捉老鼠遊戲，就像垃圾郵件一樣。因此，我認為我不一定要建議清理問題已解決。我認為我們去年確實開始積極參與這些努力，並且取得了巨大進展。我認為您可能會看到的另一件事是，可能存在一些外匯問題，我們內建的其他合作夥伴也遇到了與我們相同的經濟問題，並且必須了解哪些合作夥伴處於其中整體組合，這是一個因素。我們不會向您提供這些動態的完整清單。

Sure. In terms of the follow-up, can you talk about the correct share count to use. You had repriced some options. Would these become dilutive any time during the year?

當然。後續方面，您能談談正確使用的份額數嗎？您重新定價了一些選項。這些會在一年中的任何時候被稀釋嗎？

Restate the question for me, please.

請為我重述一下問題。

You repriced some options, some underwater options, do they become part of the diluted share base now that they are in the money? They were priced at my sense is about 306.

你重新定價了一些選擇權，一些水下選擇權，既然它們是實值的，它們是否會成為稀釋股票基礎的一部分？按照我的感覺，它們的價格大約是306。

No, not any time soon is the answer. Very small, very small. So you wouldn't count on them.

不，答案不會很快。很小，很小。所以你不會指望他們。

Okay. Thank you very much.

好的。非常感謝。

Just to complement Jonathan on the -- to come back to the issue of the network, I mean, there is a difference between obviously AdSense for search and AdSense for content and clearly two types of businesses with two different kind of rationales, if you think in the behavior and the content side obviously branding oriented display campaigns as I mentioned a bit earlier. So on that side, obviously remaining challenging in Q1 because those advertisers kind of typically will shift to more relative to their performance based advertising if they have a chance and tighter budgets. So really a tale of two cities between the AdSense for Search and AdSense for content. Just to complement Jonathan's.

只是為了補充喬納森 - 回到網路問題，我的意思是，顯然 AdSense 搜尋廣告和 AdSense 內容廣告之間存在差異，並且顯然是具有兩種不同原理的兩種類型的業務，如果您認為正如我之前提到的，在行為和內容方面，顯然是以品牌為導向的展示活動。因此，從另一方面來說，第一季顯然仍面臨挑戰，因為如果有機會且預算更緊，這些廣告商通常會轉向更多基於效果的廣告。這實際上是 AdSense 搜尋廣告和 AdSense 內容廣告之間兩個城市的故事。只是為了補充喬納森的。

I agree. That's correct.

我同意。這是正確的。

Sure. Thank you.

當然。謝謝。

Next question, please.

請下一個問題。

And we'll take James Mitchell from Goldman Sachs.

我們將聘請來自高盛的詹姆斯·米切爾。

Hi, thank you for taking my question. Can you talk about the impact of no longer providing rebates to agencies on your revenue growth in the international business?

你好，謝謝你回答我的問題。您能談談不再向代理商提供回扣對您國際業務收入成長的影響嗎？

Hold on just for a second.

請稍等一下。

You're referring to the best practices funding?

您指的是最佳實踐資助嗎？

Indeed.

的確。

Which we've phased out over the course of the last year. Patrick wasn't here for all of that, so.

我們在去年已經逐步淘汰了它。派崔克並不在這裡，所以。

What would be specific, James, in your question, like what would you like? What do you want?

詹姆斯，你的問題具體是什麼，例如你想要什麼？你想要什麼？

There was something that materially impacted the first quarter or is it something that because it was phasing over the last year, it's been more--?

有什麼事情對第一季產生了重大影響，還是因為它是在去年分階段發生的，所以影響更大——？

No, it wouldn't have been material.

不，這不會是實質的。

Okay. Thank you.

好的。謝謝。

Next question, please.

請下一個問題。

We'll go next to Youssef Squali from Jefferies & Company.

接下來我們將邀請 Jefferies & Company 的 Youssef Squali。

Thank you. So just to reiterate on the BPF, our understanding is that a number of agencies were still getting a fair amount of money, somewhere between 6 and 7% back as of Q4 and starting January 1, that went down to zero. So you're saying that the year on year decline of 9% call it in the UK I guess was not materially impacted by that?

謝謝。因此，重申 BPF，我們的理解是，許多機構仍然獲得了相當多的資金，截至第四季度，返還金額在 6% 到 7% 之間，從 1 月 1 日開始，返還金額降至零。所以你是說英國年減 9%，我想這並沒有受到重大影響？

That's correct. For total revenue, you may have had one agency for whom it would have mattered for that agency but in the total of our revenues it wouldn't have been material.

這是正確的。就總收入而言，您可能有一個機構，這對該機構來說很重要，但就我們的總收入而言，這並不重要。

Clarification. Why was DoubleClick revenues weaker this quarter? I think on the prior call, you kind of talked about that but you didn't kind of provide the reasons why.

澄清。為什麼本季 DoubleClick 營收較弱？我認為在之前的電話中，您談到了這一點，但沒有提供原因。

Well, I think there's two elements on it. One is seasonality because if you think of DoubleClick and Q4 it's been a very strong quarter for the display advertising related to the Christmas, certainly in North America which is a big element of the DoubleClick and then second is the entire economic environment right now is putting a lot of pressure on that business. So it's the combination of these two things that really we're seeing in the market.

嗯，我認為有兩個要素。一是季節性，因為如果你想到DoubleClick 和第四季度，對於與聖誕節相關的展示廣告來說，這是一個非常強勁的季度，當然在北美，這是DoubleClick 的一個重要組成部分，其次是現在的整個經濟環境正在改變。該業務承受很大壓力。因此，我們在市場上真正看到的是這兩件事的結合。

Okay. That's helpful. Thanks, Patrick.

好的。這很有幫助。謝謝，派崔克。

You're welcome.

不客氣。

And next question, please.

請提出下一個問題。

We'll take our next question from Christa Quarles from Thomas Weisel Partners.

我們將回答 Thomas Weisel Partners 的 Christa Quarles 提出的下一個問題。

I was wondering if you guys to dig into some of the mobile data a little bit more. I guess what I'm seeking is in this example that you have in Japan, do you have a sort of RPS relative to what you're seeing in other markets in terms of increase? I listened to your mobile webinars where you guided advertisers to bid maybe 4X with their bidding on the PC, simply because there are fewer chances to be shown. I mean, is there I guess any quantification whatsoever you can provide around how monetization is ultimately different on the mobile relative to the PC?

我想知道你們是否能進一步深入研究一些行動數據。我想我要尋找的是在日本的這個例子中，相對於其他市場的成長而言，您是否有一定的 RPS？我聽了你們的行動網路研討會，你們指導廣告主的出價可能是 PC 上出價的 4 倍，只是因為展示的機會較少。我的意思是，我猜您是否可以提供任何量化數據來說明行動裝置與 PC 端的獲利最終有何不同？

I think it's really too early. It's too early to say. I think that we -- we certainly see the promise, we think. I mean, if you're asking specifically about Japan or are you asking--?

我覺得實在太早了。現在說還太早。我認為我們——我們當然看到了承諾，我們認為。我的意思是，如果你是專門問日本，或是你在問——？

Well, I guess what I'm trying to ultimately do is quantify. I thought Eric's comment was really interesting that you guys are now, what was it, 8% mobile browsing share.

好吧，我想我最終想做的是量化。我認為埃里克的評論真的很有趣，你們現在，是什麼，8% 的行動瀏覽份額。

I think I said that.

我想我是這麼說的。

Or you said it. Yes. Somebody said it. Which is the first time I had seen that data out of you guys. So again, trying to quantify what this opportunity could ultimately mean and if monetization ultimately becomes even more intriguing, interesting in a mobile context relative to a PC one, then people might get more excited.

或者你說的。是的。有人說過。這是我第一次看到你們的數據。所以，再次嘗試量化這個機會最終意味著什麼，如果貨幣化最終在行動環境中相對於 PC 變得更加有趣，那麼人們可能會更加興奮。

Yes. I personally think mobile is going to be very significant. I talked in my prepared remarks about how powerful the phones are and the degree to which search traffic is up over five times in the last couple of years. It is the case that nearly 80% of our mobile search queries come from outside of the US so a lot of the lessons that we're learning at this point are lessons that we're learning from markets like Japan to some extent, China and India.

是的。我個人認為移動將非常重要。我在準備好的發言中談到了手機的強大功能以及過去幾年搜尋流量增加了五倍多的程度。事實上，我們近 80% 的行動搜尋查詢來自美國以外的地區，因此我們目前學到的許多經驗教訓都是我們從日本、中國和日本等市場學到的經驗教訓。印度。

I think the thing you really have to look at is if we've got 100 million, 175 million SmartPhones shipping in 2009 and they all have this much, much different, very rich mobile browsing experience, you're basically talking about something that didn't exist on phones a couple of years ago. They didn't have the processing power. They didn't have the battery life. They didn't have the rich display. They didn't have an impact mechanism that worked well. We didn't have the kind of fast networks that we have today and we're now seeing many people, many developers understand that the web is this wonderful platform for these mobile apps and they could be fast. They could be location aware. They can offer a rich experience and even work offline and that I think is fundamentally going to change the whole value equation with these devices. And you're going to see that users are much more likely in my opinion in the long run to consummate a transaction against an ad that they were served on a mobile phone because they're much -- they're probably clicking on that ad or interested in that ad because they're out somewhere and ready to go consummate a transaction.

我認為你真正需要關注的是，如果2009 年我們有1 億、1.75 億部智慧型手機出貨，而且它們都擁有非常非常不同、非常豐富的行動瀏覽體驗，那麼你基本上是在談論一些沒有的東西。幾年前手機上還不存在。他們沒有處理能力。他們沒有電池壽命。他們沒有豐富的展示。他們沒有有效的影響機制。我們當時沒有像今天這樣快速的網絡，但現在我們看到很多人、很多開發人員都明白，網絡是這些行動應用程式的絕佳平台，而且它們可以很快。他們可能知道位置。它們可以提供豐富的體驗，甚至可以離線工作，我認為這將從根本上改變這些設備的整個價值方程式。你會發現，在我看來，從長遠來看，用戶更有可能針對在手機上投放的廣告完成交易，因為他們很可能會點擊該廣告或對該廣告感興趣，因為他們在某個地方並準備好完成交易。

So I think there's lots of reasons to think about where the business is going and where these phones are going, which make us very excited. There's not a great deal of data yet on what the pace of revenue growth will be there. Other than what we're seeing in Japan, which is very promising.

所以我認為有很多理由去思考業務的發展方向以及這些手機的發展方向，這讓我們非常興奮。目前還沒有大量關於收入成長速度的數據。除了我們在日本看到的情況之外，日本的情況非常有希望。

Just want to follow-up on the mobile side, you guys have an investment in Clearwire. Obviously there's broad based concerns there, would you guys ante-up further if they needed additional cash or I guess what's the -- is there any plan around that investment?

只是想跟進行動端，你們投資了 Clearwire。顯然，存在廣泛的擔憂，如果他們需要額外的現金，你們會進一步加大賭注嗎？或者我猜是什麼——圍繞這項投資有什麼計劃嗎？

The lawyer across the table is telling me to tell you we don't comment on future potential investments.

桌子對面的律師要我告訴你，我們不會對未來的潛在投資發表評論。

All right.

好的。

One thing I would actually urge you to think about when you look at some of these other markets like Japan is that in some of these markets there are many users who only access the web through their mobile devices and that makes the dynamic very, very different. And of course, Japan is far ahead in terms of mobile consumption than other markets so it's an interesting market to look at in terms of where I think the trends are going to be.

當您查看日本等其他一些市場時，我實際上敦促您考慮的一件事是，在其中一些市場中，有許多用戶僅透過行動裝置存取網絡，這使得動態非常非常不同。當然，日本在行動消費方面遠遠領先其他市場，因此就我認為的趨勢而言，這是一個值得關注的有趣市場。

Got it. Thanks, guys.

知道了。多謝你們。

Thank you, Christa.

謝謝你，克里斯塔。

Next question, please.

請下一個問題。

We'll go next to Justin Post from Merrill Lynch.

接下來我們將邀請來自美林證券的賈斯汀·波斯特。

Hi, I apologize if you've already addressed this but one of the things I see really interesting on YouTube is the quantity of searches and it's becoming one of the leading search engines out there and I think you've rolled out some new ads, what is the click through rates on some of those video advertisements that are showing up in sponsored search results? Are you happy with that and do you see that as maybe one of the bigger opportunities on YouTube and if not, what really is working right now?

您好，如果您已經解決了這個問題，我很抱歉，但我在YouTube 上發現真正有趣的事情之一是搜尋量，它正在成為領先的搜尋引擎之一，我認為您已經推出了一些新廣告，贊助搜尋結果中顯示的一些影片廣告的點擊率是多少？您對此感到滿意嗎？您是否認為這可能是 YouTube 上更大的機會之一？如果不滿意，那麼目前真正有效的是什麼？

I think we're still in the experimental stage on a lot of this. There's no doubt from a traffic perspective, the YouTube phenomenon continues. We're definitely hitting on an ongoing basis new playback and upload highs. We're basically at this point looking at multiple different ad formats. We're certainly monetizing hundreds of millions of videos in the US every month, which more than the total of US monthly views on any other online video site. We don't give you the specifics in terms of click through rates but we've got a whole bunch of new form and new content. We just launched in-stream ads on long form content so if you do a query on YouTube for Star Trek Charlie X which is one of the episodes you'll see an example of some of the new ads that we have there. Omid mentioned the home page format ad that we have which we're very, very happy with the results on which basically is a masthead that goes across the top. I think today it's Frank 2 and yesterday it was Volvo. We've also got the promoted videos which we launched last quarter which are doing pretty well but I can't give you any more details on the click through rates.

我認為我們在許多方面仍處於實驗階段。毫無疑問，從流量角度來看，YouTube 現象仍在持續。我們肯定會持續創下播放和上傳新高。目前我們基本上正在研究多種不同的廣告格式。當然，我們每個月在美國透過數億個影片獲利，這比任何其他線上影片網站上美國每月觀看次數的總和還要多。我們不會向您提供點擊率方面的具體信息，但我們有一大堆新形式和新內容。我們剛剛針對長格式內容推出了插播廣告，因此，如果您在 YouTube 上查詢其中一集《星際爭霸戰：查理 X》，您將看到我們在那裡投放的一些新廣告的範例。奧米德提到了我們的主頁格式廣告，我們對結果非常非常滿意，基本上是一個橫跨頂部的標題。我想今天是法蘭克 2，昨天是沃爾沃。我們還提供了上季度推出的推廣視頻，效果相當不錯，但我無法向您提供有關點擊率的更多詳細信息。

Okay. And can you tell us how the engine is doing as far as profitability? Any thoughts on margins? Are they getting better or worse? And then just a follow-up on DoubleClick. Are all those revenues going in the licensing line and did display help your overall growth rate, the 6%, was display something that grew faster than that and helped the overall growth rate?

好的。您能告訴我們該引擎的獲利能力如何嗎？關於利潤率有什麼想法嗎？他們變得更好還是更糟？然後是 DoubleClick 的後續行動。所有這些收入是否都進入許可系列，並且顯示器是否有助於您的整體增長率（6％），顯示器的增長是否比該數字更快並有助於整體增長率？

So I think on the display side, it does go, right, through the licensing line. So it does and then you can back out if it does make -- DoubleClick, sorry, yes, DoubleClick does go through that line.

所以我認為在顯示方面，它確實通過了許可線。確實如此，然後您可以退出（如果確實如此）--DoubleClick，抱歉，是的，DoubleClick 確實經過了該行。

So we can kind of back that out and see how it's affecting the overall growth rate.

因此，我們可以反駁這一點，看看它如何影響整體成長率。

I guess so.

大概吧。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Next question, please.

請下一個問題。

We'll go next to Jeffrey Lindsay from Sanford Bernstein.

接下來我們將請桑福德伯恩斯坦公司的傑弗瑞‧林賽 (Jeffrey Lindsay)。

Thank you. Just want to ask about the large reduction in traffic acquisition cost. This was due to mix shift or is it that you're rolling off expensive deals? What I'm interested in is how sustainable is that, that trend, and then if you could just mention -- I don't know if it's public or not, just how long you've got to run on the current AOL and Ask deals?

謝謝。只是想問一下流量獲取成本的大幅降低。這是由於混合轉變還是您正在推出昂貴的交易？我感興趣的是這種趨勢的可持續性如何，然後你是否可以提一下——我不知道它是否是公開的，你需要在當前的 AOL 上運行多長時間並詢問交易？

Okay. So the short answer is it is mix. And we obviously don't comment on any deals that we have in our pipeline. I think it's also, if you look at our Q4 '08 versus Q1 '09, our Google TAC versus Google total revenue on the Google side, it's gone up slightly and that's -- if you think of -- there's the mix within the category and then there's mix between categories and on the Google side, obviously it reflects the growth in our revenue from tool bars and browser distribution agreements. So that's how I would think about it.

好的。所以簡短的答案是它是混合的。我們顯然不會對我們正在進行的任何交易發表評論。我認為，如果你看看我們08 年第4 季與09 年第1 季的對比，我們的Google TAC 與Google 方面的總收入對比，你會發現它略有上升，如果你想到的話，該類別中存在混合情況然後類別之間存在混合，在谷歌方面，顯然這反映了我們來自工具列和瀏覽器分發協議的收入的增長。這就是我的想法。

Next question, please.

請下一個問題。

We'll take our next question from Jeetil Patel from Deutsche Bank.

我們將回答德意志銀行 Jeetil Patel 的下一個問題。

Couple of questions. Broadly two different questions. If you adjust for FX and you look at your CPCs, they look like they were still up or flattish on a year on year basis when adjusting for FX but not as much as before. Can you talk about I guess conversion rate coming off and I guess in particular, which regions are more -- are you seeing more pronounced changes in CPC or conversion rates out there that could fluctuate the overall CPC trend. And then second, I guess it looks like the UK obviously fell pretty quickly in terms of revenue, constant currency and then came back. US it seems like more of a steady decline but holding its own and rest of world is kind of a mixed bag. I guess can you characterize where do you think we are in the rest of world camp in general in terms of kind going through this recession and seeing that impact in some of your regions? Is it probably early stages similar to US trend or does it look like it will pace similar to the UK? Thanks.

有幾個問題。大致上是兩個不同的問題。如果您根據外匯進行調整並查看您的每次點擊費用，您會發現在根據外匯進行調整時，它們看起來仍然同比上漲或持平，但沒有以前那麼多了。您能談談我猜想轉換率會下降嗎？我猜想特別是哪些地區的轉換率會下降？您是否看到 CPC 或轉換率發生了更明顯的變化，這可能會影響整體 CPC 趨勢。其次，我想英國的收入、貨幣不變等方面明顯下降得很快，然後又回來了。美國似乎在穩步下降，但其自身和世界其他地區的情況卻好壞參半。我想您能否描述一下您認為我們在世界其他地區的整體狀況，即經歷這次衰退並在您的某些地區看到這種影響？它可能處於早期階段，與美國的趨勢相似，還是看起來會與英國的趨勢相似？謝謝。

So this is Jonathan. I mean, we don't really break out the components of the RPM equation so I'm not sure I'm going to give you a whole lot of color here. You can't derive price directly from paid clicks growth. In the total amount of information that we give you, I think I did say on the call that some of what we're seeing on CPC is mix issues. It's particularly mix issues from the smaller emerging markets. It's certainly an FX component. It's certainly the lower dollar items and the issue of conversions being relatively lower than they had in the past and as Eric mentioned the auction working and advertisers, advertisers lowering their bids. So I think that that is -- those are components. We certainly had seen a lot of CPC growth in the quarters before the economy collapsed. But I can't give you any more detail than that.

這就是喬納森。我的意思是，我們並沒有真正分解 RPM 方程式的組成部分，所以我不確定我是否會在這裡給你很多資訊。您無法直接從付費點擊次數的成長中得出價格。在我們向您提供的全部資訊中，我想我確實在電話中說過，我們在 CPC 上看到的一些內容是混合問題。尤其是較小的新興市場的混合問題。它肯定是一個外匯元件。這肯定是因為價格較低的商品和轉換率比過去相對較低的問題，正如艾瑞克提到的拍賣工作和廣告商，廣告商降低了出價。所以我認為這些都是組成部分。在經濟崩潰之前的幾個季度，我們當然看到了每次點擊費用的大幅增加。但我無法向您提供更多細節。

I guess in some of the nascent regions that are still ramping, if you open up more distribution or more coverage, are you seeing bid prices improve like you saw over the course of the last couple years here or in some of the more mature markets or is it a different dynamic in some of these emerging markets?

我想在一些仍在增長的新興地區，如果你開放更多的分銷或更多的覆蓋範圍，你是否會看到投標價格有所改善，就像過去幾年在這裡或在一些更成熟的市場中看到的其中一些新興市場的動態是否有所不同？

So I think that we're seeing different because a lot of those markets are sort of at the more nascent stages of the growth rate so if you sort of map them against what we saw in the US or the UK which was actually the leading market and said they're N years behind us, many of them are on growth trajectories that are strong but obviously they're being, just as we were a few years ago, but obviously that's being dampened by the economic dynamics just like things are here and of course you also have the FX effects there too.

因此，我認為我們看到的情況有所不同，因為其中許多市場都處於成長率的初級階段，因此如果你將它們與我們在美國或英國看到的情況進行比較，這些市場實際上是領先的市場並表示他們落後我們N年，其中許多都處於強勁的成長軌跡，但顯然他們正在這樣做，就像我們幾年前一樣，但顯然這受到經濟動態的抑制，就像現在的情況一樣當然，您也可以使用FX 效果。

Next question, please.

請下一個問題。

We'll go next to Ross Sandler from RBC Capital Markets.

接下來我們請來自加拿大皇家銀行資本市場的羅斯桑德勒 (Ross Sandler)。

Hey, guys. One kind of high level question and then one or -- one or two accounting questions. Follow-up on the pharma ads issue earlier. So looks like the FDA may actually require all these pharma advertisers to add all the disclosures to their ad creatives. Is that a fairly easy task for Google to increase the available character length on those particular ads or is that going to be a little bit more challenging, given the complicated technology?

大家好。一種高級問題，然後是一兩個會計問題。早些時候對藥品廣告問題的後續行動。因此，看起來 FDA 實際上可能會要求所有這些藥品廣告商將所有披露資訊添加到他們的廣告創意中。對於Google來說，增加這些特定廣告的可用字元長度是一項相當容易的任務，還是考慮到複雜的技術，這是否會更具挑戰性？

Yes, I'm not sure what we're actually going to do there. I'm not convinced that we won't be able to come to some agreement in terms of what the right solution is with respect to some of these issues. Certainly, it wouldn't be ideal if we had to modify the user interface to accommodate substantially more information. Can it be done? Yes. Is it easy? Maybe not.

是的，我不確定我們實際上要在那裡做什麼。我不相信我們無法就其中一些問題的正確解決方案達成一致。當然，如果我們必須修改用戶介面以容納更多信息，那將是不理想的。能做到嗎？是的。這簡單嗎？也許不會。

Okay.

好的。

So we're going to find a way with the advertisers to make this work in one way or another and you could do it within the existing creatives if you had to.

因此，我們將與廣告商一起找到一種方法，以這樣或那樣的方式完成這項工作，如果需要的話，您可以在現有的廣告素材中做到這一點。

I mean, just a quick follow-up on that. Are the advertisers actually still doing stuff right now or are they completely on hold until this issue gets resolved or can you not comment on that?

我的意思是，只是對此進行快速跟進。廣告商現在實際上還在做事情嗎？或者他們完全處於擱置狀態，直到這個問題得到解決，或者你不能對此發表評論嗎？

I believe there are some things that have been shut off but I don't know all of the details about what subset of the activity there has been shut off. Some of them are I think attempting to change relative to the new standard which they need to try to address. It's not really as big a deal I think as folks are making it. I know that I said that health was a vertical that was doing particularly well and pharma is important but it's really a pretty small segment of the whole vertical.

我相信有些事情已經關閉，但我不知道有關哪些活動子集已關閉的所有細節。我認為其中一些正在嘗試相對於他們需要嘗試解決的新標準進行更改。我認為這並不像人們所做的那麼重要。我知道我說過健康是一個做得特別好的垂直產業，製藥業很重要，但它實際上只是整個垂直產業的一小部分。

That's good color. And then Patrick, if we can just get a little more clarification on the accounting around the hedging program, kind of going forward. So the way it was explained before, was an 18 month kind of rolling forward of these contracts. So why did we see the one-time boost in the first quarter and are we to expect more of that or is it -- how do we think about the accounting around the hedging program?

這顏色真好啊然後派崔克，如果我們能就對沖計畫的會計問題得到更多的澄清，那就有點向前推進了。因此，按照先前的解釋，這些合約將延期 18 個月。那麼，為什麼我們在第一季看到了一次性的成長，我們是否會期待更多的成長，或者我們如何看待圍繞對沖計劃的會計處理？

Okay. So the fundamental issue that you have is it's not one-time. It just happens that as every quarter we set up another tranche of hedges. Some for the immediate short-term that we don't have covered yet, but covered more and all the way to 18 months out. Think of it as kind of you're building the equivalent of a ladder every quarter, kind of filling the pipeline as every quarter retires so in Q3 of '08, we happened to -- that's when we actually put originally the first set of pound hedges that we built over a couple of quarters and now we'll have a full 18 month ladder built over the coming quarter. So that we'll just be rolling that entire set of hedges every quarter going forward but in Q3 we put in a bunch of them for the next quarter and the next quarter and the decreasing rate, not rates but exposure levels all the way down to 18 months and it happened that the ones we put in Q3, because of where the pound went, gave us a substantial gain for Q1.

好的。所以你面臨的根本問題是它不是一次性的。碰巧的是，每個季度我們都會設定另一批對沖。有些是短期的，我們尚未涵蓋，但涵蓋了更多，一直到 18 個月。可以把它想像成你每個季度都在建造一個相當於梯子的東西，在每個季度退休時填充管道，所以在08 年第三季度，我們碰巧——那時我們實際上最初投入了第一組英鎊我們在幾個季度內建立了對沖，現在我們將在下個季度建立一個完整的 18 個月的階梯。因此，我們將在未來每個季度滾動整套對沖，但在第三季度，我們為下一個季度和下一個季度投入了一堆對沖，並且利率下降，不是利率，而是風險敞口水平一直下降到18 個月後，由於英鎊的走勢，我們在第三季投入的資金恰好為我們在第一季帶來了可觀的收益。

I mean, next quarter, we'll have more hedges that will kind of come to fruition and we'll have to decide what to do with the options that we've got. It's not a one time item. The real item that happened is the ones that we had put in September because of the wild fluctuation and variability of the pound over the last six months, we just happened to gain a lot. Had we had, I'll give the extreme other case where assume that the pound had gone nowhere, had been very stable through the entire period, right? We would have spent the money and we would have had no benefits because there's nothing to capture because there's no volatility. So it really was driven, the last six months, and -- in a way, I really feel for the investment community and the analysts trying to run these models. I really do feel for everybody because you have such high volatility in the last kind of nine months and because of that is compounded by the FAS 133, that says well, if you're in or you're out, you've got to book it all or not the minute that you get a decent amount of volatility. It just swings the numbers all over the place.

我的意思是，下個季度，我們將有更多的對沖，這些對沖將會實現，我們將必須決定如何處理我們所擁有的選擇。這不是一次性物品。真正發生的事情是我們在 9 月投入的那些，因為過去六個月英鎊的劇烈波動和變化，我們只是碰巧獲得了很多。如果我們有的話，我會給出另一個極端的情況，假設英鎊在整個時期內沒有任何變化，一直非常穩定，對吧？我們會花掉這些錢，但我們不會得到任何好處，因為沒有任何東西可以捕獲，因為沒有波動性。因此，在過去的六個月裡，它確實受到了推動，並且在某種程度上，我真的很同情投資界和試圖運行這些模型的分析師。我真的很同情每個人，因為過去九個月的波動性如此之高，而且 FAS 133 加劇了這一點，這很好地說明了，無論你是進還是出，你都必須當您獲得相當大的波動性時，就立即預訂或不預訂。它只是讓數字到處搖擺。

So what we have to think about, from our perspective, is we continue to have a very stable hedging program in place. It continues to deliver us the value when there's high volatility which is what happened and, we, because of the forced mark-to-market you have a decent amount of numbers floating around but shouldn't worry about that too much.

因此，從我們的角度來看，我們必須考慮的是我們繼續實施非常穩定的對沖計劃。當出現高波動性時，它繼續為我們提供價值，這就是所發生的情況，而且，我們，由於強制按市價計價，你有相當數量的數字在流動，但不應該太擔心。

That's helpful. One last question, I promise the last one. On the bonus accrual issue, so a couple years ago Google used to accrue for bonuses with kind of a progressive growth manner so 1Q the accrual was kind of the lowest and it ramped up throughout the year and 4Q was the highest and then in 2Q '07 you went to more of a flat quarterly accrual program. Take $100 spread it out over the course of four quarters, that is going to be 25, 25, 25, 25 or does it start at 10 go up higher on the bonus accrual issue.

這很有幫助。最後一個問題，我保證最後一個。關於獎金應計問題，幾年前，谷歌過去常常以漸進式增長的方式累積獎金，所以第一季度的應計獎金是最低的，然後全年都在上升，第四季度是最高的，然後是第二季。07 年，您更多地採用了固定的季度應計計劃。將 100 美元分攤到四個季度，即 25、25、25、25，還是從 10 開始，在獎金應計問題上更高。

We tried to, if you think about it, we tried to -- as they -- when you start the year, you have a plan in place and that plan you accrue according to what you think the year's going to unfold and that's all we do and then as the year unfolds, we would if we had more information to raise the accrual, would do so. So that's how we plan the year. That's why the number has gone down relative to Q4 because I mean, if there's a good proof of how uncertain an unchartered territory we live in, look at Q4 and our results in Q4 and the economic activity that was really in all of the turmoil that was happening, we had a very strong revenue quarter in Q4. And that created a bonus accrual that, if you had thought even, kind of September or August, right, we hadn't foreseen. So we're very happy with the results and therefore happy to take the accrual and celebrate with all the Googlers and now we're back to our regular territory, of here's the year and here's the plan the way we go. That's why variability. Because the world is very uncertain and we're living through it right now, all of us together.

我們試圖，如果你想一想，我們試圖——就像他們一樣——當你開始新的一年時，你有一個適當的計劃，並且你根據你認為這一年將要展開的事情來製定該計劃，這就是我們的全部這樣做，然後隨著這一年的展開，如果我們有更多資訊來提高應計費用，我們就會這樣做。這就是我們今年的計畫。這就是為什麼這個數字相對於第四季度有所下降，因為我的意思是，如果有充分的證據證明我們生活在一個未知的領域有多麼不確定，看看第四季度和我們第四季度的結果，以及在所有動盪中真正存在的經濟活動。發生了，我們在第四季度的收入非常強勁。這創造了應計獎金，如果你甚至想到九月或八月，對吧，我們沒有預見到。因此，我們對結果非常滿意，因此很高興獲得應計收益並與所有 Google 員工一起慶祝，現在我們回到了我們的常規領域，這是今年的計劃，這就是我們的計劃。這就是可變性的原因。因為世界非常不確定，而我們所有人現在都在經歷它。

Thanks. That's very helpful.

謝謝。這非常有幫助。

Next question, please.

請下一個問題。

We'll take our next question from Sandeep Aggarwal from Collins Stewart.

我們將回答柯林斯·史都華 (Collins Stewart) 的桑迪普·阿加瓦爾 (Sandeep Aggarwal) 提出的下一個問題。

Thank you for taking my questions. Jonathan, one question is, we are seeing little bit higher traction for Search engine optimization and so question to you is does that -- how does that basically -- does that mean the ecosystem of paid search is expanding or does this mean there's some potential threat to the paid search campaign? And then I have one follow-up question.

感謝您回答我的問題。喬納森，一個問題是，我們看到搜尋引擎優化的吸引力有所提高，所以對您來說，這是否意味著付費搜尋生態系統正在擴大，或者這是否意味著有一些潛力對付費搜尋活動的威脅？然後我還有一個後續問題。

I guess I'm not sure what is the perceived threat that you're articulating, as a result of search engine optimizers?

我想我不確定您所闡述的搜尋引擎優化器帶來的感知威脅是什麼？

Well, if I'm running a Google ad campaign and then I'm also running searching an optimization, Google receiving the money I'm running more, optimizing my website, landing pages, et cetera, in that case am I likely to cut my paid search budget and I look at someone for search and payment optimization?

好吧，如果我正在運行谷歌廣告活動，然後我也在運行搜尋優化，谷歌收到我運行更多的錢，優化我的網站，登陸頁面等等，在這種情況下我可能會削減我的付費搜尋預算，並且我尋找某人進行搜尋和支付優化？

I honestly don't have any idea. You're basically saying is there going to be a shift in AdWords spending, spending on SEOs. And I don't know.

老實說我不知道。您基本上是在說 AdWords 支出、SEO 支出是否會改變。我不知道。

Okay. And just one question, Patrick. On a sale team side, just one thing. I think too many things happened too quickly. Is there -- I know Omid tried to address some of those things in the previous call you hosted but is there any of the read through in terms of is there -- if this is -- should we expect some more changes in the sales structure, sales channel or anything else of that sort?

好的。只有一個問題，派崔克。在銷售團隊方面，只有一件事。我認為太多的事情發生得太快了。我知道奧米德在您主持的上一次電話會議中試圖解決其中的一些問題，但是否有任何通讀內容：如果是的話，我們是否應該期望銷售結構發生更多變化、銷售管道或其他類似的東西？

We have no plans right now. I think that the work that was done by the team was very well done and that's why, as you can imagine, for any organization, the last thing you want is announcement every two weeks of changes. That just drives everybody nuts. And so we had an opportunity in the sales group to do the things that we announced and so we did announce them a few weeks ago and right now we have no more plans. I mean, it's obvious that the world continues to be quite uncertain. Right? So in that kind of world, you've got to stay flexible but right now we have no other plans.

我們現在沒有計劃。我認為團隊所做的工作做得非常好，這就是為什麼，正如你可以想像的那樣，對於任何組織來說，你最不想要的就是每兩周宣布一次變更。這簡直讓每個人都抓狂。因此，我們在銷售團隊中有機會做我們宣布的事情，所以我們確實在幾週前宣布了這些事情，現在我們沒有更多的計劃。我的意思是，很明顯，世界仍然充滿不確定性。正確的？所以在那種世界裡，你必須保持彈性，但現在我們沒有其他計畫。

And just one thing about, is there going to be any future revenue contribution from that discontinued audio business?

有一件事是，已終止的音訊業務未來是否會帶來任何收入貢獻？

Is there going to be any--?

會不會有——？

No.

不。

Okay. Thank you very much.

好的。非常感謝。

Sandeep, I'm just thinking about your original question a little bit and I think the one comment that I could offer is I don't tend to think of these advertisers that we have as having fixed budgets and I think it's kind of unlikely that someone who is running an AdWords campaign where they're measuring the ROI that on an incremental basis is experiencing positive ROI from each incremental AdWords click. It seems unlikely that they would throttle that budget back if they're making positive gross margin on each of the AdWords clicks. So what you're proposing seems unlikely to me but plausible.

桑迪普，我只是想了一下你原來的問題，我想我可以提供的一個評論是，我不傾向於認為我們擁有的這些廣告商有固定的預算，我認為這不太可能正在運行AdWords 廣告系列的人正在衡量投資報酬率，每次遞增的AdWords 點擊都會帶來正面的投資報酬率。如果他們每次 AdWords 點擊都能獲得正的毛利率，他們似乎就不太可能削減預算。所以你的提議對我來說似乎不太可能，但似乎是合理的。

Okay. Sure. Thank you so much.

好的。當然。太感謝了。

We have time for two more questions, operator.

我們還有時間回答兩個問題，接線生。

Thank you. We'll take our next question from Brian Bolan from [Start Event & Company].

謝謝。我們將回答 [Start Event & Company] 的 Brian Bolan 提出的下一個問題。

Hi. I want to touch back on the question or the idea that Eric brought up, the ROIs moving more into Google's favor. As we look at the moving parts in there, we just look at like clicks and searches, costs and conversions, with the market pretty much moving cost lower, isn't that going to be the major factor or what is really driving the ROIs up anything more than just the costs coming down as advertisers moving out of the space? And is there anything that will, other than keeping the costs low, allow for advertisers to actually really stage up and spike into the market to push ROIs higher?

你好。我想回顧一下艾瑞克提出的問題或想法，投資報酬率越來越有利於谷歌。當我們觀察其中的移動部分時，我們只關注點擊和搜尋、成本和轉化，市場移動成本幾乎更低，這不是主要因素或真正推動投資回報率上升的因素除了廣告商撤離該領域帶來的成本下降之外，還有其他因素嗎？除了保持較低的成本之外，還有什麼可以讓廣告主真正進入市場並提高投資報酬率嗎？

I think really the main thing that drives ROI is to the degree to which we're able to develop better ads and ad systems, that target more efficiently and are more -- deliver an ad such that if the user clicks on it, they're more likely to consummate a transaction. I think the conversion rate is probably the most significant component and that's a function of the targeting of the ad and the creative on the ad. Also, some of the tools that we offer with respect to optimizing users website, which analytics and the website optimizer, things that allow the advertiser to get higher conversion rates on their site. I think that's basically the kind of things that we're going to do that will improve, that will continue to improve ROI.

我認為真正推動投資回報率的主要因素是我們能夠在多大程度上開發出更好的廣告和廣告系統，這些廣告和系統能夠更有效地定位目標並提供更多廣告，以便如果用戶點擊它，他們就會「更有可能完成交易。我認為轉換率可能是最重要的組成部分，它是廣告定位和廣告創意的函數。此外，我們提供的一些關於優化用戶網站的工具，包括分析和網站優化器，可讓廣告商在其網站上獲得更高的轉換率。我認為這基本上就是我們要做的事情，這些事情將會得到改善，並將繼續提高投資報酬率。

Okay. And you talked about the optimizer there. About what percent of customers are using the optimizer?

好的。你在那裡談到了優化器。大約有百分之多少的客戶正在使用優化器？

I don't think that we've said. You'd have to talk to customers directly yourself. There is a blog post if you look at -- if you type conversion optimizer on Google where we describe some of the details of a study that we ran with a bunch of advertisers from which I got the percentage improvement and different pieces but we don't release that number. A pretty large portion of our advertisers are using some of the various -- some subset of the various tools that I've mentioned, the website optimizer, the key word piece, the conversion optimizer, Google analytic.

我認為我們沒有說過。您必須親自直接與客戶交談。如果您查看一篇部落格文章 - 如果您在 Google 上輸入轉換優化器，其中我們描述了我們與一群廣告商進行的一項研究的一些細節，我從中獲得了百分比改進和不同的部分，但我們沒有不要公佈那個號碼。我們的廣告主中有很大一部分正在使用我提到的各種工具的一些子集、網站優化器、關鍵字片段、轉換優化器、Google分析。

Great. Thanks a lot.

偉大的。多謝。

Last question, operator.

最後一個問題，接線生。

Thank you. We'll take our final question from Robert Haley from Gabelli.

謝謝。我們將接受 Gabelli 的 Robert Haley 提出的最後一個問題。

Great. Thanks. Wanted to just ask one question on your paid click growth. And if you could talk about what's driving that growth, whether it's growth in the number of advertisers using Google or maybe talk about paid click growth on a per advertiser basis. And how that's impacted by changes in budgets, allocated to Google, versus changes in consumer click-through behavior?

偉大的。謝謝。我只想問一個有關付費點擊增長的問題。如果您能談談推動這種成長的因素，無論是使用 Google 的廣告客戶數量的成長，還是每個廣告客戶的付費點擊成長。分配給Google的預算變化與消費者點擊行為的變化有何影響？

I'll make just a broad statement and then let Jonathan complement if you wish. There is -- I mean, our traffic continues to grow. I mean, so if you think of general principles of what's going in our favor, our traffic continues to grow and we continue to have paid clicks to our network. There are different effects within that, which obviously at the macro level, if you're in a mature market like the US versus an emerging market like India, you get mix issues, you get vertical issues and you get value issues and that's basically how we think about it and manage it. I don't know if Jonathan you have additional information you want to share or if I missed something big.

我將做一個廣泛的陳述，然後讓喬納森補充，如果你願意的話。我的意思是，我們的流量持續成長。我的意思是，如果你考慮對我們有利的一般原則，我們的流量將繼續增長，我們的網路將繼續獲得付費點擊。其中有不同的影響，顯然在宏觀層面上，如果你處於像美國這樣的成熟市場，而不是像印度這樣的新興市場，你會遇到混合問題，你會遇到垂直問題，你會遇到價值問題，這基本上就是如何我們思考並管理它。我不知道喬納森您是否有其他想要分享的信息，或者我是否錯過了一些重要的事情。

I mean, Patrick got the biggest thing, it's clearly query growth is the primary driver there and beyond that I don't think we really go into detail on the other components of the equation. I don't think that there's significant activity with advertisers withdrawing themselves from a budgeting perspective all together. I would echo what Omid said there, that to the extent we are impacted by budget reductions, it tends to be the larger organizations where a CFO, somebody in Patrick's role basically says we want to cut budgets N percent across the Company and that impacts the CMO. That's much less a factor in the small and medium businesses and interestingly, it's less a factor even in some very large companies that really understand the concept that Omid mentioned about Google being a sales channel as opposed to a marketing expense and I would take to heart the comments about the auto industry where I think you're otherwise seeing the relative shrinkage in overall marketing budgets and yet some robust growth in paid search and online advertising.

我的意思是，帕特里克得到了最重要的東西，很明顯，查詢增長是那裡的主要驅動因素，除此之外，我認為我們沒有真正詳細討論方程式的其他組成部分。我不認為廣告商會從預算角度完全撤回自己的重大活動。我同意奧米德在那裡所說的，就我們受到預算削減的影響而言，往往是較大的組織，首席財務官，帕特里克角色的某人基本上說我們希望在整個公司削減N% 的預算，這會影響首席行銷長。對於中小型企業來說，這不是一個因素，有趣的是，即使對於一些非常大的公司來說，這也不是一個因素，這些公司真正理解奧米德提到的谷歌是一個銷售管道而不是行銷費用的概念，我會牢記在心關於汽車行業的評論，我認為您會看到整體行銷預算的相對收縮，但付費搜尋和線上廣告的強勁增長。

So I think there is still value. I think we're seeing a lot of value in terms of shift in markets like that one from a budget perspective. By the way, the one other obvious area there is I don't think you're seeing much budget reduction at all in the pure play online companies who really understand and measure the metrics of a lot of this traffic. I think they're much less budget -- they're much less prone to adjusting their budget.

所以我覺得還是有價值的。我認為，從預算的角度來看，我們看到了市場轉變的巨大價值。順便說一句，另一個明顯的領域是，我認為在真正了解並衡量大量流量指標的純線上公司中，您根本沒有看到太多預算削減。我認為他們的預算要少得多——他們不太願意調整預算。

Great. So thank you everyone for your time today. If you have any further follow-up questions, please don't hesitate to contact either myself or Maria. We're happy to answer your questions, and thanks again for your time.

偉大的。謝謝大家今天抽出時間。如果您有任何進一步的後續問題，請隨時與我本人或瑪麗亞聯繫。我們很高興回答您的問題，並再次感謝您的寶貴時間。

And this concludes today's conference. We thank you for your participation. You may now disconnect.

今天的會議到此結束。我們感謝您的參與。您現在可以斷開連線。