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Impact of Recessions

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Analysis by:

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Silicon Alley Insider

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What will happen to advertising-driven Internet companies if U.S. economy goes into recession?NEXT 4 QTRS

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SCENARIOS:GOODBADUGLY

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Revenue20%0%-20%

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GOOGLEQ207AAnnualizedExpenses20%10%10%

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Revenue$3,872$15,488$18,586$15,488$12,390

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Expenses$2,767$11,068$13,282$12,175$12,175

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Operating Income$1,105$4,420$5,304$3,313$216

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Margin29%29%29%21%2%

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Assumptions:

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% Advertising Revenue100%

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SCENARIOS:GOODBADUGLY

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Revenue5%-5%-20%

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YAHOOQ207AAnnualizedExpenses5%0%0%

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Revenue$1,698$6,792$7,132$6,452$5,434

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Expenses$1,513$6,052$6,355$6,052$6,052

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Operating Income$185$740$777$400-$618

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Margin11%11%11%6%-11%

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Assumptions:

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% Advertising Revenue100%

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Analysis by:

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Silicon Alley Insider