By Dan Levine and Alexei Oreskovic
April 25 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
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
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.
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
Google had forecast that its total revenue in 2013 would be
$55 billion, according to the documents.
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
"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.
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.
"This document suggests those businesses may not be meeting
Google's initial expectations," Sebastian said.
Google spokesman Jim Prosser said the documents do not
represent current thinking about its business operations.
"Our industry continues to evolve incredibly fast and so do
our aspirations for our various products and services," Prosser
Oracle has accused Google of violating its intellectual
property rights to the Java programming language. An Oracle
spokeswoman declined to comment on the figures.
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.
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.
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.
"Android and Chrome platforms critical assets for their
success," the documents say.
The case in U.S. District Court, Northern District of
California, is Oracle America, Inc v. Google Inc, 10-3561.