2010 Annual Stockholders Meeting

Uploaded by GoogleIR on 13.05.2010

Ladies and gentlemen, please welcome chairman and chief executive officer, Dr. Eric Schmidt.
[ Applause ] >>Eric Schmidt: Thank you.
It's great to be back. It's great to have all of you back.
Your time is valuable. I hope you enjoyed the lunch.
[ Applause ] >>Eric Schmidt: All right.
The nice weather. [ Applause ]
>>Eric Schmidt: We like this model a lot. So let me officially welcome all of you to
our shareholder meeting. I'm Eric Schmidt.
You know who I am. And I hope everybody's been registered as
you all came in. And if you have not, just let us know as you're
leaving. And you have an agenda, I hope.
And there's a set of rules and so forth and so on.
We want to do everything by the book, as we always do, and do it professionally and want
to follow the agenda. At this time, I'm going to call the meeting
to order. By the way, what we're going to do is, we
had such a good time last year, we're going to repeat exactly the same sequence as we
did last year because it worked so well. So first, let me call the meeting to order.
I'd like to start by introducing, we have quite a few of our board members here, I want
to make sure that everybody knows that. We have John Hennessy.
If you could stand. Ann Mather.
Paul Otellini. And John Doerr.
And one more person snuck in. Larry, our founder.
[ Applause ] >>Eric Schmidt: That was for the whole board,
not just for Larry. So thank you, all, for coming.
We also have Debra Kelly, who is from Computershare. Just go ahead and raise your hand, Debra.
And then we have -- and you're going to be the inspector of elections.
Then we have Dave Cabral and Dianne Glynn. Where is Dave?
Hiding in the other corner. Who had worked with us for a very long time.
And they are our representatives from E&Y, Ernst & Young, as you all know.
We're going to have the formal portion of the meeting run by Kent Walker, our general
counsel, and then I'll come back up when he's finished and do a little talk about the company.
And then we'll do your questions and comments on anything and everything.
Kent. Thank you.
>>Kent Walker: Thank you, Eric. A quick note about stockholder proposals.
As stated in the rules of conduct, stockholders should not address the meeting until recognized.
We will provide a question and answer period, so you can ask questions after we've finished
the formal business of the meeting and Eric's presentation.
If you want to ask a question during the Q&A session, please move to one of the microphone
stands we've provided here and here. After being recognized, first identify yourself
and your status as a stockholder or stockholder representative.
Then ask your question. Thanks for cooperating with all of that.
I've received an Affidavit of Mailing of Computershare, which states that the notice of meeting, proxy
materials, and annual report were mailed to stockholders of record on March 15th, 2010,
the record date for this meeting. In addition, I've been advised by the Inspector
of Elections that holders of our outstanding Class A and Class B common stock representing
at least a majority of the voting power of our outstanding capital stock entitled to
vote is represented in person or by proxy at today's meeting.
Therefore, a quorum is present, the meeting is duly constituted, and the business of the
meeting may proceed. The first item of business is the election
of directors. Nine directors will be elected at today's
meeting. The directors elected today will hold office
until the 2011 annual meeting of stockholders and until their successors are duly elected
and qualified. The board of directors has nominated the following
persons: Eric Schmidt, Sergey Brin, Larry Page, John Doerr, John Hennessy, Ann Mather,
Paul Otellini, Ram Shriram, and Shirley Tilghman. Our bylaws require that stockholders provide
advance notice of their intent to nominate persons as directors.
No such notice was received. Accordingly, I declare the nominations for
directors closed. The next matter being submitted to our stockholders
is the ratification of the appointment by the board of directors of Ernst & Young as
our independent registered accounting firm. Our board of directors has recommended that
our stockholders ratify the appointment of Ernst & Young as Google's independent registered
public accounting firm for the 2010 fiscal year.
The third matter being submitted to our stockholders is the approval of an amendment to our 2004
stock plan to increase the number of shares of Class A common stock available for issuance
by 6,500,000 shares. Our board of directors has recommended that
our stockholders vote for the amendment to the 2004 stock plan.
The next three items being submitted are stockholder proposals.
Our board of directors has unanimously recommended that our stockholders vote against the three
stockholder proposals that will be presented. The first stockholder proposal is being brought
by Trillium Asset Management and First Affirmative Financial Network.
I would like to introduce Mr. Jonas Kron, a representative from Trillium Asset Management,
to present this proposal. Mr. Kron, you will have a total of three minutes
to make a statement regarding your proposal. And I will advise you when your time is about
to expire. Sir.
Can we get the mike up? >>Jonas Kron: Hello.
Mr. Chairman, fellow shareholders, my name is Jonas Kron, and I'm here today on behalf
of Trillium Asset Management Corporation to submit our shareholder proposal on sustainability
reporting. The proposal has been cofiled by the Connecticut
State Treasurer and First Affirmative Financial Network.
In requesting a sustainability report, the intention is simple: It is based on two familiar
premises. What gets measured gets managed, and what
gets disclosed gets done. Nearly 80% of the world's 250 largest companies
produce a sustainability report, two-thirds of the global FTSI 500 produce a sustainability
report, and two-thirds of the S&P 100 produce a sustainability report.
So why do these business leaders issue sustainability reports?
What is the value add? The reasons are varied and they are many.
But to summarize briefly, improved risk management, improved shareholder relations, improved performance.
Reports are often used to help the companies look at themselves and to focus their sustainability
efforts more effectively and efficiently. An MSCI study has recently shown a link between
sustainability reporting and financial returns. Shareholder demands.
Managers and investors representing over $20 trillion have pledged the United Nations principles
for responsible investment to seek standardized reporting on environmental, social, and governance
issues. And, finally, government demands.
The European Commission recommends corporate sustainability reporting.
And companies that are listed in Australia, South Africa, and France must provide information
on their social and environmental performance. Sustainability reporting encompasses a number
of issues, including environmental impacts on the company, employee relations and diversity,
health and safety, consumer relations, customer service and privacy, supplier and supply chain
standards, community impacts, philanthropy, and political spending.
On this last point, our company does not disclose -- does not publicly disclose its political
contributions or its membership in trade associations and the payments it makes to them that are
used for political purposes. In the wake of the Citizens' United decision,
pressure is growing on our company to be more transparent.
But in the end, excuse me, you do not need to take just my word for why Google should
issue a sustainability report, nor the word of the state treasurer of Connecticut, nor
the $20 trillion of assets under management represented by the UNPRI.
Risk Metrics Group, the nation's largest proxy advisory service, a highly respected shareholder
advisor, trusted by some of the most sophisticated investors in the world, has recommended that
Google shareholders report for the proposal. >>Kent Walker: Mr. Kron, You have 30 seconds
remaining. >>Jonas Kron: Therefore, it is my privilege
to submit this proposal requesting that Google issue a sustainability report.
Thank you for your time. Thank you for your time and consideration.
Please join me in letting our company know that now the time has come to begin comprehensive
annual sustainability reporting. Thank you.
>>Kent Walker: Thank you very much. The second stockholder proposal is being brought
by As You Sow, and Northwest & Ethical Investments. I would like to introduce Mr. Conrad MacKerron,
a representative from As You Sow, to present this proposal.
Mr. MacKerron, you will have a total of three minutes to make a statement regarding your
proposal. I will advise you when your time is about
to expire. Sir.
>>Conrad MacKerron: Good afternoon. I'm pleased to be here to present proposal
number 5 on the proxy statement, asking the company to strengthen its privacy policies
to better protect its customers. The filers are As You Sow, a nonprofit promoting
corporate social responsibility, based in San Francisco, and Northwest & Ethical Investments,
a manager of socially responsible mutual funds. First I want to congratulate the company for
its bold stand in routing its users in China to an uncensored search engine based in Hong
Kong. Few U.S. companies these days are inclined
to deal with the ethical implications of doing business in countries with repressive governments,
and I think Google should be congratulated for its stance.
But to our business today. Last year, Google started to use behavioral
advertising, which tracks consumers as they perform personal searches and then presents
ads based on the sites that they visit. Privacy advocates have held that sensitive
consumer data relating to health, finances, age, sexual orientation, and so forth can
be inferred from online tracking and used to target vulnerable consumers.
Now, we are pleased that the company says it doesn't offer ads based on these sensitive
categories. However, the issue is more complicated than
that. The company has been criticized for not providing
sufficient transparency on how it protects consumers from potential misuse of massive
amounts of data that it routinely gathers on the hundreds of millions of Web users to
provide these targeted ads. Many consumers are still unaware that they're
being tracked and unaware that they have the option not to be tracked.
Further, there's growing evidence that the American public is concerned about this.
A recent study conducted by academics from five leading universities found that a majority
of those polled, in fact, 66%, do not want marketers to tailor ads to their interests.
This data seems to fly in the face of Google's stated aim to provide customers services that
they want. While Google has commendably moved to provide
users a way of opting out, there are still questions about how the company shares data
streams with partner ad agencies and whether and how these parties follow the same procedures
as Google in terms of data collection and retention.
But behavioral ads are just one facet of, obviously, a broad range of security-related
issues and challenges we face. The use of deep-packet scanning of e-mails,
questions about data, how it will be used in the exploding mobile phone market, digitized
personal health records, and the push to get businesses and consumers to adopt cloud computing
are just a few of the examples of where privacy assurances will be critical in the days to
come. Google and other online providers apparently
remain vulnerable to hacking. The "Wall Street Journal" reported last month
that hackers who breached the company's systems last year gained access to computer code for
software that authenticates users of various programs.
Google's -- >>Kent Walker: Mr. MacKerron, You have 30
seconds left. >>Conrad MacKerron: Google's commitment to
privacy was further challenged in February when it released Buzz without adequate privacy
controls, prompting a backlash from users and a protest from privacy officers of nine
countries. I think the Buzz release showed that consumer
privacy was not a top priority in new product development, and hopefully that will change
going forward. In conclusion, I think it's important today
to just send a message to the company that Google needs to review all of its privacy
policies and be more forthcoming about how it protects customer data from potential misuse
by supporting proposal number 5 on the proxy today.
Thank you for your time. >>Kent Walker: Thank you very much.
The third and final stockholder proposal is being brought today by Dr. Jing Zhao.
I would like to introduce Dr. Zhao to present this proposal.
Dr. Zhao, you have a total of three minutes. I will advise you when your time is about
to expire. >>Jing Zhao: Good afternoon, shareholders.
I'm president of U.S., Japan, and China Comparative Policy Research Institute and secretary of
Humanitarian China. My proposal is number 6, human rights impacts
of Google business in China. Whereas mindful of the misuse of information
technology by the government of China to monitor electronic communications to restrict the
Internet access and the use and to our risk and to severely punish Internet users in China
for expressing and exercising their free speech and free association rights; and, whereas,
recognizing the special responsibilities and the obligations that these major abuses of
human rights places on Google to (inaudible) in China in ways that could contribute to
these abuses; and whereas, taking into account the fact of U.S. laws perhaps involvement
and the support of U.S. companies in major human rights abuses taking place in foreign
nations, and specifically protect actions by U.S. companies that contribute to major
human rights abuses by law enforcement authorities in China; therefore, be it resolved that the
following human rights principles should be formally adopted by Google to guide its actions
relating to its operations affecting China, (inaudible) information technology products
and technologies will be sold and no assistance will be provided to law enforcement authorities
in China that could contribute to human rights abuses in a contract.
Specifically, no user information will be provided and no technology assistance will
be made available that would place individuals at risk of prosecution based on their access
or use of the Internet or electronic communications for free speech and free association purposes.
Two, censorship of access or use of the Internet will not be used as a method of restricting
assistance to Chinese law enforcement authorities engaged in the Internet or electronic surveillance
that adversely affects the human rights of users.
Every effort will be made to assist the users to have access to encryption and other protective
technologies and approaches so that their access and the use of Internet will not be
restricted before resorting to censorship as a means of preventing unlawful surveillance
under repression by the Chinese law enforcement authorities.
Google will provide financial and the technological support to effect the developing and making
more accessible to users in China more advanced technologies that would allow them to evade
unlawful surveillance of their Internet use by Chinese authorities.
>>Kent Walker: Dr. Zhao, you have 30 seconds. >>> Three, Google will establish a human rights
committee with the specific responsibility to review and approve policies and actions
taken by the company that may affect human rights observance in countries where it has
business or where its products and technologies are being sold.
This committee will include high-level officers of Google and the respected outside human
rights exerts who are in a position to help Google understand the human rights impacts
of their activities abroad and the freedom approach that (inaudible) at Google contributed
human rights abuses (inaudible). Thank you very much.
>>Kent Walker: Thank you very much. Because no further business is scheduled to
come before the stockholders, the polls are now open.
If you previously voted by proxy, you do not need to vote today unless you wish to change
your vote. Please note that we received sufficient proxies
before the meeting to know that the proposals we discussed today will pass or fail in accordance
with the recommendations made by our board of directors in our proxy statements.
However, we want to make sure that everyone has the opportunity to vote.
So if you want to vote, please raise your hand, and we will distribute a ballot for
you to complete. So if people could go through the audience,
distribute ballots. We will take a couple of minutes here to allow
everyone to receive a ballot, fill it out, and then pass it back in.
At this time, I declare the polls for each matter voted upon, closed, and direct the
Inspector of Elections to collect the ballots. Please hold up your hand so that your ballot
can be collected. Okay.
All right. I have been advised by the Inspector of Elections
that the nominees for election to the board of directors have been duly elected.
I have been further advised by the Inspector of Elections that a majority of the shares
present at the meeting in person or by proxy voted in favor of the ratification of the
appointment of Ernst & Young to act as our independent registered public accounting firm
for the 2010 fiscal year and the approval of the amendment to our 2004 stock plan.
Therefore, each of these proposals has been approved by our stockholders.
I have been further advised by the Inspector of Elections that a majority of shares present
at the meeting in person or by proxy voted against the stockholder proposal against a
sustainability report, the stockholder proposal report against online advertising and sensitive
information and the stockholder proposal regarding human rights with respect to business this
China. Each of these has not been approved by our
stockholders. We will provide preliminary results on our
investment relations Web site after the meeting. After the final tabulations are complete,
we will provided of provide the final results in a filing with the SEC and on our Web site.
That ends the formal portion of our meeting and the business.
Eric will now make his presentation about the business.
You will have an opportunity to ask any questions. I would like to note that Eric's presentation
and our answers to questions you may ask may contain forward-looking statements regarding
Google's business outlook. Our actual results may differ from those made
in any forward-looking statements due to a number of risks and uncertainties.
These risks and uncertainties are detailed in our public filings with the SEC.
I will now turn the meeting back over to Eric. >>Eric Schmidt: Thank you, Kent.
And thank you, all, for participating in our formal part.
Because we spend so much time talking about our financials and our results each quarter,
I'm not going to go through charts of our revenue and so forth.
Those are all widely available, and all of you have taken a look at them.
I will tell you that we've had a very good year.
All right? And we're pretty proud of that.
I'm particularly proud of the actions of the company and the management at a point of crisis
more than a year ago. It's as though we have forgotten what it was
like a year and a half ago or 15 months ago. Some people look like you remember.
I remember. And I remember looking at this horrific mess
that the country got itself into. And I'm pleased to say that we had a better,
if you will, crisis than most other companies. We moved quickly to make sure we were using
our money wisely. Our sales teams went to our customers and
said, "The solution to most problems is more revenue, and you'll get more revenue out of
Google if you work with us and increase your orders, not decrease them."
And that strategy worked and it worked roughly starting April or May last year, roughly at
the time of our meeting last year. So since our last meeting, our performance
as a business, our cash flow, our revenue growth, and so forth, have really been very,
very good. And if you take a look at the quarter that
we just announced, the one that ended in March, when I look at that quarter, I go, "Oh, my
God, this is pretty good." Our core business grew quite well.
Our new businesses were growing significantly faster than our core business.
All of our international businesses were also growing well.
And it was across every category and every part of our businesses, both in advertising
and in our direct and enterprise businesses. So all is well after a year of great -- of
great tumult. So thinking forward, you know, one of the
tricks in a business is, you don't spend more than that amount of time thinking about your
good work of the past. You think about what's next.
All right? And you always say to yourself, "What's next?"
So let's get the next slide. Something happened in the last ten years that
happened so subtly, most people have forgotten. We went from a static Internet, just think
about ten years ago, static Web pages and so forth, to this richness that is -- it's
palpable. Video, audio, mobile, entertainment, interactivity.
And the explosion of information on the Internet is really quite startling.
Some interesting statistics. On the order of 300 million Internet users
ten years ago. Now, on the order of 1.8 to 2 billion.
Pretty big number. We're still, by the way, only a third of the
world. But we're working on it.
And a lot of those people will be on mobile devices, which is a separate conversation.
You wouldn't have had tweets and social and so forth back then.
Today, there are about 800 exabytes of information is the current estimate on the reachable Internet.
An exabyte is about a billion gigabytes. It's a very, very large number.
You sit there and you go, "Not that big a number."
It's a really big number. In fact, let me give you an idea of how big
that number is. Between the dawn of civilization and 2003,
there were exactly five gigabytes -- excuse me, exabytes created.
We create that, we, society, every two days now.
No wonder we all have headaches. By the way, this is a perfect opportunity
for Google. What do we do?
We do search. Not even the smartest person in the world
can manage that amount of information. You need computers.
And you need what we do. And we do it better than anybody else.
So the good news is, the need for Google is only increasing.
And, in fact, the -- this explosion of information which has occurred largely without a lot of
people focusing on the implications of it has created every known interesting problem.
Questions about privacy and legitimacy and government and censorship and so forth.
Because all of a sudden information that was largely in the hands of a few is now in the
hands of everyone for good and also for not so good.
Next slide. So in the -- you just can't manage this without
search. Of course, this is what we do better than
anybody else, we think. And search is no longer just a static Web
page. We now have integrated much, much of this
information into search. Obviously, when you have a link, you want
to maybe see a picture, or maybe you want to see a video.
The audience of YouTube is now larger than most of the audiences of most of the television
firms. This is a much, much larger impact when you
start to add static and dynamic pages as well as video, and then this explosion in social
networking, Facebook, Twitter, and so forth and so on.
All that user-generated content, it scales greater.
So we're overwhelmed by the amount of real-time, user-generated content that Google indexes.
One of our key goals in the past year, and I suspect for many years in the future will
be to keep up with that and to index it and to make it available to people in ways that
make sense. It's interesting that search, which is sort
of the default model of this, you type in -- everybody does this, you type in a query,
well, that's taking off, too. It's taking off in mobile.
The number of mobile searches is up about five times what it was two years ago.
And I think that growth rate's just going to accelerate for all the obvious reasons.
But there's another way to search. We introduced a little while ago a product
called Google Goggles where you take a picture of something, and the picture is the search.
And the way it works, really neat, take a picture.
It sends it to 14 or 15 large collections of computers, and each of them votes and says,
oh, it's a landmark. Oh, it's a menu.
Oh, it's somebody's house. Oh, it's a map.
Oh, it's -- I'm not sure what it is. And they vote, and they do a pretty good job
of telling you what that picture is. Shows you the notion that search is not just
a query. Pretty powerful idea illustrated by that one
example. But it's more fun than that.
So on a mobile device, since the mobile device knows where it is, you can say, well, tell
me what's near me now. It's another kind of search.
And you don't have to type "near me now," you just press the "near me now" button.
It's fantastic, if you haven't done it. So not only is search the text search that
we largely pioneered and largely are the leader in now, but it's other kind of searches.
So our Search team sees search in a much broader way than text as it's been defined.
But we're also making core quality improvements, 550 quality improvements in the last few months.
On and on. And, in fact, two weeks ago -- last week,
Marissa, I think? -- we rolled out globally a completely new search design that shows
how you fully integrate all these different modalities, types of information to great
positive feedback which we're very, very proud of.
And of course as we learn more and get more integrated, this will be yet another signpost
through integrating everybody's information. Next slide.
Now, one of the things that happened along the way -- if you remember the narrative about
television, that the first shows on television were just the radio shows with people sitting
in front of a TV. And then people, Lucille Ball and others,
figured out a way to actually do a new form of television, which came to dominate it.
And everyone sort of forgot the radio model. There's something similar going on with the
Internet. And I want to call it the engaging Internet.
And the simplest way to think about it is, it's no longer just static reading; it's now
you're completely enveloped and engaged by what's going on on the Internet.
We have obviously helped you get there. You see this with many, many interesting new
applications, ads, and so on. Obviously, in our case, YouTube is a very
good example of this. There is an extremely alarming statistic that
24 hours of video are uploaded every minute to YouTube.
You sit there and go, like, boy, people have a lot of free time.
But, never -- and that number just continues to grow as people really want to be engaged
in this kind of content. It's just phenomenal.
And what's interesting is about half of those videos -- you always assume that no one watches
all of the videos except for you, the person that uploaded it.
But it's interesting that about half the videos get comments and ratings from other viewers.
So we -- it's much more subtle than that. There are, in fact, markets for a lot of this
information that have never been tapped before. Now, this means a lot, but in particular has
an impact on advertising, because now all of a sudden the ads need to be engaging, too.
And I think in the next five or ten years, the traditional 30-second ad and so forth
and so on that we've all grown up with is really going to go away and it's going to
go away and be replaced by extremely dynamic ads that keep your interest, get you excited,
and ultimately, get you to understand the brand and want to go ahead and buy the product,
which is ultimately what advertising is all about.
Next slide. Now, in AdWords, which, of course, is a core
driver of revenue for Google, we started asking why do -- is there something that we can do
with respect to this insight of search and ads?
So an example would be that we now go and we do something called site links, where we
will actually, in an ad -- and this, of course, is done by the advertiser, but we do it automatically
for them, or with their permission -- we will actually show the parts of where they should
go on that site as part of the navigation and sending people to try to market their
product or sell. It's a huge success for us.
Click-through rates in some cases are up 30% just because of that.
That's an example of a technology innovation that Google was able to do just by refining
our understanding of this engagement principle. Another one that I particularly like is the
store locator ad. The ad shows up, boom, there's the shop.
And you sit there and go, well, I'm just sitting in front of me PC or my Mac.
A lot of this is on a mobile device. And so you're going to go there.
And furthermore, you'll click, and there Google Maps takes you there and gives you directions,
because it knows where you are. Click to Call, another obvious one.
Here's an advertiser. We want to sell you the product.
Boom, click, here's the call. There you go.
Working very, very well for us. These refinements are just some of the many,
many reasons why our ad system became much more efficient and we benefited from the efficiency
in the last year, the tightening, if you will, of the market.
We got smarter about how to approach these problems to ultimately bring in revenue to
the partners that are trying to advertise. Next slide.
A huge success for us is now display. Display, of course, are the ads that you see
on Web sites and in other forms of display. We bought a company, you'll remember a couple
years ago, called DoubleClick. DoubleClick had relationships with both advertisers
and publishers. We paid a fortune for it.
And this was money extremely well spent. Because those relationships enabled us to
take our very large set of advertising partners and so forth and all the ads and put that
in a solution that solves the display problem for both the publisher, that is, the people
trying to get ads, if you will, and the advertisers themselves.
And we can measure everything. So we've ultimately been improving the performance
of what is known as the Google Content Network, all of these advertisers who advertise all
over the things. Then we can do one more thing, and that one
more thing we did was we announced an Ad Exchange. This is it.
The notion that a single exchange, the Web site comes and says, hey, what kind of good
ads do you have for us. And because our computers are so fast, we
can figure out which ad to serve then and there in a microsecond.
By doing that, the efficiency of the advertising network is the best in the entire world, both
the transparency and the value, in our view, to consumers is just amazing.
It's interesting that the Ad Exchange, the key and third part of our strategy from a
few years ago, is today bringing in -- 60% of its advertisers are new to display.
So we know we've really created new value. This is probably our next huge business as
we grow, as we learn how these customers work, as we develop better technology and so forth.
And you'll hear more and more and more about this from Google.
Just because of the scale. Next slide.
I was thinking about sort of the wow factor. What are the things that were impossible,
you know, when I was a young person? Landing on the moon, a four-minute mile, I
never achieved that, I should add. All sorts of things.
It's now possible to do things that seem -- seemed impossible even ten years ago.
We're translating 160 million pages per day. In 70 different languages.
And we do that, by the way, without a dictionary. It's done using some math that I don't understand.
It's magic to me. It's interesting that the new version of Chrome
automatically translates pages for a language. So now when I'm using Chrome, I don't see
the other languages. It just, by default, translates into my language.
Since a lot of stuff that we operate in is English, that's fine.
But imagine if you're not a native English speaker and you want to understand the complexity
of the world. This is a huge leap forward.
It really changes. You can imagine this technology will ultimately
allow me to sit next to my friend and SMS or text or what have you between them and
not be able to speak a word of their language. That's amazing.
Another example would be Google Voice. Our Google Voice recognition -- if you haven't
tried it, we have by far the best one around. What it does is, it -- the phone in this particular
case, because you're talking -- it doesn't have the code to do all the voice recognition.
It takes your voice and it sends it to thousands of computers somewhere in the Google ecosystem.
Maybe near you, maybe in some other country. I'm never really quite sure.
And it does them all in parallel. And it chooses, again, the best answer.
So this notion, which I'm going to explore in a minute, think of it as cloud computing,
where I have this relatively simple device that is connected to this enormous cyber infrastructure,
the world's largest collection of computers, I suspect, certainly the most powerful, working
in tandem to create magic. That's one way to understand how the Internet
will continue to do things that are truly impossible.
Next slide. We're doing the same thing in the enterprise.
We've had a tremendous success, our enterprise business is growing very, very quickly.
I can't remember the exact numbers, but it's on the order of a few thousand businesses
per day sign up for this. And what they do is they basically say, look,
we're tired of spending all that money and all those very nice people that we didn't
quite understand what they were doing to manage all these systems.
You just manage it for us. Just turnkey.
It's all managed in the cloud. We manage their e-mail, their calendar, their
Docs and apps and so forth and so on. This is, again, likely a very, very large
business for Google over the next few years as we learn how to integrate into existing
businesses. I think the view internally at Google is that
the -- while we have a number of very large wins, 10,000, 20,000, 30,000, it's probably
possible to even jump-start this further by simply saying that every new business that's
created just must need this package that we're putting together.
And that's where our growth will come from, we suspect.
Next slide. Everybody here knows about the -- the mobile
phones and the mobile phone explosion. Looks like the market is ending up with a
couple of players. And it looks like Android is going to be either
the number one or number two player in that market.
We're not really quite sure yet. Our strategy is very different from everybody
else's. We license our code for free.
So that's pretty revolutionary in and of itself. And we're trying to build an entire ecosystem
of openness. The inverse of the other guys.
Very important. So if they say no, we say yes.
Easy to understand. In our case, we support all known interesting
applications, all known interesting standards, and we are open to having people add more.
We have so many partners. Give you the numbers, it's quite interesting.
We went from one device in one country in a year on one carrier to now 34 devices and
60 carriers in 49 countries and 19 languages. Shows you the power of openness.
I'm required to say that our partners are shipping about 65,000 Android handsets per
day. But if you check the blogosphere, you'll discover
that there are reports that that number might be quite low.
You get my drift. Next slide.
And just to sum up, speed matters. Cloud computing, this interaction that I'm
describing, really does mean that the device has to be fast, the network has to be fast,
and the server has to be fast. In our case, we've built a browser called
Chrome, another huge success. And if you're not using Chrome, you need to
give it a try, because everybody else is now. The growth rate of Chrome is such that it
will become a very, very significant browser by the end of this year.
I won't give you the exact numbers. But trust me, its growth rate is phenomenal.
But more importantly, it's winning because of its simplicity, its speed, and, by the
way, its security. In fact, it's almost impossible to break it.
It has a very different model for computation. And our architecture depends on having very
fast Internet access in order for these powerful applications to get built.
What's neat about Chrome is that Chrome has given us an opportunity to announce, and we'll
be shipping later this year, a whole new hardware architecture.
It won't be -- the hardware won't be from Google, of course, but our hardware partners
will take Chrome and an operating system called Chrome OS through an open source program called
Chromium, and they're going to put it out there.
And in my opinion, it's likely to become a third platform of choice both for consumers
and for enterprises. The first two, of course, being PC and the
Mac. And why am I so proud of that?
There hasn't been one in ten or -- in 20 or 25 years.
We finally now have enough speed, enough performance, and enough architectural -- that we can build
competitive platforms for computation as part of cloud computing, that are secure, boot
up in a few seconds, and wow everybody. With that, why don't we roll our video of
Chrome on speed. [ Video. ]
(Buzzer). (Buzzer).
(Singing). >>Eric Schmidt: If you do test it, please
do not simulate the lightning without an approved lightning creator in your room.
It really is that fast. Let's go ahead and do questions and comments.
Let's have Kent, this is Patrick Pichette, who's our chief financial officer.
I think everybody here knows Susan and Marissa from last year, Susan Wojcicki, and Marissa
Mayer. And, Larry, are you going to join us or sort
of heckle from the crowd. I can see we dressed for the occasion, Patrick.
>>Patrick Pichette: I have a white shirt. >>Eric Schmidt: It's not white.
>>Patrick Pichette: Sort of white. >>Eric Schmidt: We have a joke -- we -- every
Friday, we have a joke that Patrick keeps all of the cash of his company in his orange
backpack. Did you put it back in the safe?
>>Patrick Pichette: By my lawyer. >>Eric Schmidt: Yes, the lawyer has the orange
backpack. In any case, why don't we start with questions
or comments. I think we have mikes here.
And we'll try to answer your questions. Looks like we have our first question.
And if you could identify yourself, that would be helpful.
>>John Simpson: Good afternoon. My name is John Simpson.
I'm here as a shareholder. But in full disclosure, I should also say
that I work for Consumer Watchdog. I just -- a question.
I understand we are allowed two. Should I ask one now and a second later?
>>Eric Schmidt: Just ask your questions, and we'll try to answer.
We're friendly here. >>John Simpson: I am, too.
Thank you. Well, this week, there was a lot of press
coverage about a search site called Scroogle, which I believe scrapes your site and uses
its site as a proxy service so data is not gathered.
You made some sort of a change which essentially shut it down.
And I think that had to do with not supporting Internet Explorer 6.
They figured out a way to be back up. The question is -- I mean, they're essentially
ripping off your data, I guess. Do you think you'll -- you'll shut them down?
Or will you let them continue to operate? >>Marissa Mayer: We do have ways we sin syndicate
our search technology. People can use the API, they sign up and register
and can get our search results and put it into your own user experience.
I think in that particular case, they weren't using the API and didn't comply with the terms
of service. Obviously, in terms of our search technology,
we do think we provide the best user experience on our site and strive to do so, that's where
we really would like users to experience the search.
>>John Simpson: So will Scroogle go out of business?
>>Eric Schmidt: In the spirit of timeliness, could you ask the second question.
>>John Simpson: All right. Second question.
Last time we talked, Dr. Schmidt, I had asked you about SSL encryption.
I'm delighted to see you have implemented that in the default mode in GMail.
>>Eric Schmidt: Thank you. >>John Simpson: Very glad you've done that.
I'm wondering with whether you're going to be offering that as a default mode in some
of the other services, say, in search. >>Eric Schmidt: What an interesting question.
Yes? >>Marissa Mayer: I think the answer is, "Stay
tuned." It's --
>>Eric Schmidt: Do you get the drift of the answer?
>>John Simpson: I'll answer that if I get a third question.
>>Eric Schmidt: Ah. Okay.
Yes, sir, next question. [ Laughter ]
>>John Simpson: Final question. I wouldn't want to ask you to talk about pending
litigation, but -- >>Eric Schmidt: That would be Kent's job.
>>John Simpson: Against the rules, and I wouldn't do that.
But I want to ask a question that comes out of something that's going on there.
There was a press report that said there was a $700 million kill fee associated with the
possibility of AdMob not closing. I wonder as a shareholder whether that is
correct that there was that large a kill fee associated with the deal, and what sort of
kill fees in general, you would have as you go forward with, I expect, further deals.
>>Eric Schmidt: It's important to state that we do not expect to pay any such feels or
whatever you want to call them, because we expect these things to get approved.
Because, from our perspective, this is a highly competitive market.
And I have so testified. >>> And we have disagreed, respectfully.
>>Kent Walker: More generally, we obviously don't comment about the details of pending
transactions. As you know, this transaction is under review
by the Federal Trade Commission, and, you know, until such time as we deem something
material and we disclose all the details, we're not saying anything more than that.
>>Eric Schmidt: Yes, sir, go ahead. >>> Tony Manzapelli (phonetic), shareholder.
Thank you for the product demos. They're really impressive every year.
I asked Steve Jobs about the relationship, Apple and Google in the mobile device area.
And the expression that came on his face spoke volumes.
You can imagine. I think it reflects the size and importance
of the mobile device market area. If you just look at how much their company
has increased in market value in just the last five years, think of that as a proxy
for the value of the market, they've increased their value in five years more than this whole
company, which is a lot. Google, on the other hand, does not profit
directly from mobile devices yet. We -- like you said, we give away the license
for Android, maybe Chrome, who knows. We have a strategic reason for doing that.
Keeps -- gives us the access to the mobile user eyes, helps us sell services over mobile
devices, et cetera. But I'm surprised we don't do mobile devices,
mobile platforms more directly. We have a lot of talent in this company, we
have the product that's getting very popular and taking off.
We even have talent on our board, people who are experts in microprocessors, people who
help fund app development. So I'm wondering why we aren't more directly
involved. Is there a barrier for us really getting
-- going after that market? >>Eric Schmidt: Larry.
>>Larry Page: Well, I think we're making tremendous progress in those areas.
I think you asked a very good question. I think if you look at the history of Google,
we went through a period where we gained tremendous usage.
And I remember, actually, we were just, you know, maybe ten people, you know, in a little
teeny office and, you know, we had millions and millions of users.
And we didn't make any money at all. Actually, it took a long time before we figured
out how to monetize search. I think the -- on the mobile devices, we definitely
are taking a strategic towards openness, as Eric mentioned, and towards market share.
And I think that's a good strategy. I think you'll see -- and we actually do benefit
from those -- those increases in market share and so on directly through more searches and
other things that we do. But I think you'll see us as those products
mature, we'll figure out how to make more and more money from them.
>>Eric Schmidt: I would add that our strategy, remember, is not just a mobile device or the
server. It's really a total model of computing.
And while it's true that we are very happy to give away Android, the applications and
the services that can be provided on a very large, very broad framework could be enormously
valuable over the next five or ten years. If Android doesn't get any users, if it's
too expensive or doesn't work very well, then we miss out on that opportunity.
So part of the reason I think we're so proud of what Android is doing is it is getting
the users and it's getting them very, very quickly.
Yes, sir. >>Doug McKenzie: Hi, my name is Doug McKenzie.
Thank you for your great company, all the great history and great promise.
I have a question about China. Just really an open-ended question.
I believe -- I don't have a rant about it. I believe that you guys probably are working
through that difficult situation as to whether to pull out or not.
So it's not so much an opinion I have. But I'm wondering, what are the sort of possible
outcomes from here? There's this huge country that could benefit
by you guys doing well and doing good and so on.
How do you foresee that playing out? Is it over?
Are there possibilities? >>Eric Schmidt: The -- the quick summary is
that we made a decision to move our search services to Hong Kong.
Remember, it's one country, two systems. We like the other system better.
And the other system, there's a firewall censorship barrier between Hong Kong and mainland China.
And that barrier is providing the censorship so that Google does not have -- does not have
to under their law. The situation seems to be stable.
We have maintained our business relationships and our engineering centers in China.
I do want to make sure, we've said publicly, that should the Chinese government become
upset with us or become further upset with us or what have you, they do have the ability
to change this outcome. From Google's perspective, we made our decision.
We've implemented it. We want to continue to serve the Chinese citizens
in this manner. We want to continue our business operations
in China. And I think it's a mistake to speculate beyond
that, because, frankly, we don't know. Let's see.
The lady in the back first. >>> Hi.
Cheryl Orth (phonetic), stockholder. What you said at the very beginning about
the amount of data created from the beginning up to 2000 and now it's being created every
two days, it's mind-boggling. Do you ever feel that you're going to at some
point in time it's going to catch up with you and you're going to run out of computer
space? >>Eric Schmidt: Well, you can never have enough
computers. >>> It's just phenomenal the numbers that
you presented. >>Eric Schmidt: Susan and Marissa.
>>Marissa Mayer: Yes, it's a big challenge to keep up with that amount of data.
But that's what we like about it. So we like exabytes.
We hope there's more of them. And we're going to do our most --
>>Eric Schmidt: The next is zettabytes. You need Google even more in that case.
>>Susan Wojcicki: I'll add, the technology is changing so much, so our ability and the
way we're actually storing and processing the data and our algorithms are also changing.
So although there may be a lot of increase in data, over time, we'll also have much better
technologies to be able to search them. >>Eric Schmidt: Yes, sir.
>>Matthew Rafat: Matthew Rafat, shareholder. I want to thank you for captioning YouTube
videos. It really allows people who are hearing-impaired
or deaf to have access to media that -- >>Eric Schmidt: This is the captioning of
the videos? >>Matthew Rafat: Yes, sir.
>>Eric Schmidt: Yes. Okay.
>>Matthew Rafat: And Netflix had issues with that.
And I think that they're slowly coming around. But you and Hulu.com are at the forefront.
And I wanted to thank you for that. There's a lot of people that are very grateful
to you for allowing online media to be accessible. And thank you.
I'd also like to thank you for Google scholar. It's not something that gets a lot of publicity.
But I love the case law that you put on there. I think it makes a lot of things accessible.
And I am a lawyer as well. So it's definitely something that's -- that
may one day create revenue and challenge the west law, Thompson, and Lexis/Nexis, duopoly.
At some point maybe you can make money off of it, maybe even more than you are now.
So thank you for Google Scholar. I have two questions.
One is for Mr. Page. First of all, thank you for showing up this
year. [ Laughter ]
>>Matthew Rafat: And I say that because I remember back in the day when it was just
you and Sergey sitting down in jeans, answering questions.
And it was a wonderful experience. My question --
>>Larry Page: I think we had Eric also at that time.
>>Eric Schmidt: I was wearing jeans, too. [ Laughter ]
>>> My question for Mr. Page is, what do you see as the next big thing?
Just from a very -- obviously, very open-ended question.
But you came up with Google. So I am interested in that.
My second question is, what about fantasy sports?
What is the status of that? >>Eric Schmidt: Go ahead.
>>Marissa Mayer: I can do the fantasy sports first.
We actually do have some support for fantasy sports on iGoogle.
So iGoogle is our personalized home page where you can go and install applications that you
like to see. So you can see things like the "New York Times,"
the weather, stocks, but you can also play games there.
And there actually are various fantasy sports gadgets available on iGoogle.
So you can see them each time you visit your home page.
And we're excited to be collaborating with our partners and developers in providing that
service. >>Larry Page: I actually think one of the
next big things is one thing that was already mentioned in Eric's talk, which is translation.
And if you think about the world now, we mentioned, you know, there's now I think a third of the
people are online in some form. The other two-thirds really do matter.
And they also mostly don't speak languages -- they mostly speak different languages
and all that. And I think the ability to instantly have
access to the Internet and all information on the Internet, regardless of what language
it's in, you know, from your pocket, from your mobile phone running Android, with a
pretty good experience, no matter where you are in the world, I think that's a really
big deal. And that's likely to happen pretty quickly.
You know, almost anywhere you go in Africa, you get a good cell phone signal.
You don't currently get Internet access generally. But a year or two from now, you will.
And you think about just the access of everybody in the world to all information, again, regardless
of language. I think that's really going to significantly
change the world, and probably for the better. >>Eric Schmidt: Yes, ma'am.
>>> Good afternoon. Catherine Alexander.
>>Eric Schmidt: Closer to the mike, please. >>> Good afternoon.
Is that better? Catherine Alexander, shareholder of quite
a few shares. Having held them for five years, not having
moved our address for 43 years, we received no notice whatsoever.
Our son indicated to us electronically that he -- that there was the meeting.
We then went online with my husband for a couple of hours.
Your proxy online cannot be entered. It indicates a phone number, which requires
a number from the proxy. Had no proxy.
I sent two letters to your investors group. Neither was confirmed.
We didn't know how to get in touch with you, because telephone doesn't work.
E-mail doesn't work. The computer didn't work.
Still no notice. Finally you sent me just this one, which said,
"See your proxy," but there was no proxy. So maybe you should contact, if you really
did mail these out, the post office. >>Eric Schmidt: Well, thank you for showing
up, after all of that. Right.
That's quite an accomplishment. Patrick.
[ Applause ] >>Patrick Pichette: We have, obviously, on
our IR site, accessibility, you obviously had an issue with it.
So I'd love to kind of follow up with you afterwards.
But, in general, we have all the tools available that are all the standards in the industry.
And I'm sure that Kent can give you more details about it.
But for some reason, it didn't work for you, so I'd love to --
>>> (Off mike). >>Eric Schmidt: Lots of people who did not
know? I want to make sure -- lots of people didn't
know about the lunch? >>> (Off mike).
>>Patrick Pichette: We'll obviously bring that forward.
>>Eric Schmidt: Just for your -- hopefully, we'll get this fixed for next year.
But I hope to have a very nice lunch next year.
Please just show up. Okay.
Let's see if we can get this fixed, guys. Not good.
Let's see. Yes, sir.
>>> Hi. Todd Perry, shareholder.
I'm concerned that a lot of the useful information being created is on somewhat closed platforms
like Facebook or Apple's platform applications. How do you ensure that Google can index all
this information and return it in search results? >>Eric Schmidt: The first thing that would
be helpful is if you would ask them to make their systems more open.
And if there's enough of you, maybe it will have a difference.
Comments? >>Marissa Mayer: Part of what Susan said earlier
in terms of making our search technology more and more sophisticated is around getting to
information and actually being able to crawl and index it.
While some of these systems are markedly closed, there are other systems where information
is in databases and so on, and so by making our crawler more sophisticated, we can actually
get to that information or index a more complicated, interactive Web page.
And we're always working to do that. In addition, we're also rolling out programs
to help people create more information online. So things like Google Buzz, Google Translate,
all of those create new types of information, also make it more accessible.
And we work to index those as well. >>Eric Schmidt: Okay.
How are we doing on questions? Another question.
Yes, sir. >>Doug McKenzie: May I ask another?
Doug McKenzie again. >>Eric Schmidt: Of course.
>>Doug McKenzie: You had mentioned how it would be interesting to have a person text-messaging
another person they don't speak the same language, but almost in the same sentence you mentioned
that Google's voice recognition. So where do we get to the point where somebody
speaks and the other person hears. >>Eric Schmidt: We're working on it.
Same answer as we said before. Watch this space.
These are very hard problems. But every one of them is a phenomenal break
through. >>> Mark Jacobs, shareholder.
I was going to suggest the possibility of an e-mail or print newsletter, because the
people to tell about the new products are, obviously, the shareholders who are interested
in the growth of the company, and it would be nice to know about how do you access and
what's the benefit of the AdWords or like how do you use it without having to go buy
a McGraw Hill book of how to do these things. >>Eric Schmidt: What you'd like to see is
a distribution list or other way to reach you.
>>> Whether the general public or just the shareholders can get information about the
-- the improvements. You said you rolled out all these improvements.
I didn't know about that. And I echo the lady trying to get ahold of
investor relations. That's a loser.
[ Applause ] >>Eric Schmidt: Thank you for the feedback.
We have a series of Google blogs where we announce a lot of this stuff.
But I think your idea is a good one. We should do even more communication.
Yes, sir. >>Tony Cruz: Good afternoon.
Tony Cruz, shareholder with Amnesty International. I notice that Sergey wasn't here today, and
I was actually hoping he would be, because I was remembering a conversation we had four
years ago when we started this whole dialogue about Internet censorship.
And in this field, in this type of work we do, we rarely see successes.
And when this -- when you guys decided to end censorship in China, in March, it was
really an amazing thing to see. It was really great.
And we would just like to commend Google for making that decision.
It was a really fantastic decision. We know that decision wasn't made lightly.
And we know there were a lot of hard steps. I wanted to ask a question, but I think you
may have addressed it earlier. But if you could just, for clarification,
so there are some experts who are saying because Hong Kong is outside of the jurisdiction,
I guess, of the public -- People's Republic of China, that at some point because of the
great firewall of China, China can then censor information to Hong Kong.
Is there a contingency plan? Does Google have a plan in the event that
does happen? >>Eric Schmidt: I would prefer not to speculate
on the actions of the Chinese government, nor say anything in specific.
I'll tell you that, in general, it's widely understood as follows: It's one country.
Hong Kong is part of the government, run through a separate structure.
But a different set of laws. And at some point in the future, that may
change. It will be difficult for us to speculate.
But right now, by moving our search services to Hong Kong, we were able to operate legally
in China under a different set of rules than had we maintained them in Beijing.
And, again, I won't speak to whether the Chinese government will change that, how it could
change that. It would be just speculation on our part.
>>Tony Cruz: Yeah, and Amnesty would just like to say, we would like to continue to
offer our support to you in your battle against Internet censorship.
>>Eric Schmidt: Well, thank you very much. [ Applause ]
>>Eric Schmidt: Yes, sir. >>Jacky Sterling: My name is Jacky Sterling
(phonetic), and I have a couple shares of the stock.
I've come before you before and asked you a question.
I'll come to that. I don't know the man's name, I can't think
of his name. But he has Berkshire Hathaway.
I'm sure you've heard of him. I think, Schmidt, you're kind of in his position
also. My question goes to -- I'd like for you not
to split the stock. I'd like for you to keep the stock whole.
I think -- >>Eric Schmidt: I'm sorry.
So you would -- you're asking us to not split the stock.
>>Jacky Sterling: Right. Because I think, like Berkshire Hathaway,
I heard them say one time having the stock split all the time just gives the traders
more time to play around with the company. And that's not good for the company.
So I would like for you not to split the stock, if you can do that.
Also, I'd like to also mention that last night, Baidu stock was selling for $777 a share.
This morning, it's selling for $77 a share. They split the stock.
I think that's not good for them. And I'd like to think that Google would not
do that. I think that the Google stock is good, and
I think -- >>Eric Schmidt: Since we've not announced
a stock split, I will simply take this as future advice to our board members that this
particular shareholder does not want us to do the thing that we've not yet announced
that we are going to do. >>> Right, right, right.
>>Eric Schmidt: Are we clear? Okay.
>>> That's right. Thank you.
>>Eric Schmidt: Good. Thank you.
Yes, ma'am. >>Yuyu: My name is Yuyu (phonetic).
I'm a stockholder and just one lady was talking about the investor relations.
I also have some experience I want to share. I wish there's a direct number we can contact.
I left a message. I called twice.
And I didn't get -- I didn't get a phone call back until three weeks later.
And all I want to ask is about how to attend this shareholder meeting, what I need to bring.
And every time I call the -- the operator number, she just forward me to a voice mail.
>>Eric Schmidt: When our meeting is over, could we have the people who have these issues,
could -- Patrick, can you just meet with them right here?
And we'll make sure we hear all the details and make sure we address them.
And, again, I apologize on behalf of the company. >>Yuyu: And my -- the question I want to ask
is, I'm okay with the satellite view of the personal property, but I personally kind of
big turnoff that Google send out some people to take really close photos of the front of
the house or the car or -- you know. So I just don't know if there is something
you can do to kind of blur the picture, not to make it so clear.
'Cause somehow, you know, some people misuse the picture, and then we kind of become a
victim. >>Eric Schmidt: So, again, the question had
to do with a product we have called Street View.
We already do face-blurring, license plate blurring.
We also omit some very sensitive sites as well.
Do you want -- any other comments on that? >>Larry Page: Yeah.
And if you're really concerned about it, you can ask for your house to be removed or whatever.
>>Eric Schmidt: Yes, sir. >>> Jerry (saying name), shareholder.
I'm just wondering, what's happening with Google's offer to completely wire a city with
fiberoptic's? >>Eric Schmidt: Ah.
We received so many applications, you cannot imagine.
[ Laughter ] >>Eric Schmidt: We got videograms, we had
mayors jumping into lakes, we had people changing their names temporarily to "Google."
>>> Google, Kansas. >>Eric Schmidt: We reciprocated by changing
our name to Topeka. What was heart-warming about it was a sense
of the creativity of America. In reading and watching the approaches people
took. Do you want to summarize where we are, Larry?
You don't want to talk about where we are? They're winnowing the list down.
They're trying to go from something like 1,000 to at least a set of representative ones.
But we have not made a decision yet. >>> I live in Daly City.
Let's do it in Daly City. >>Eric Schmidt: Daly City.
Okay. Perfect.
Yes, ma'am. >>Larry Page: We also had an Olympics here
for people digging trenches. Which was quite entertaining.
So they had all these big trucks, and then they -- you know, they had the starting line.
They had them go, you know, they all went off at one mile an hour, cutting holes into
our parking lot, which was quite exciting. >>Eric Schmidt: This is what you find exciting,
Larry. [ Laughter ]
>>Eric Schmidt: This contest was actually filmed and presented to all of the employees,
showing look at what we got ourselves into. Yes, ma'am.
>>Elaine Kessinger: My name is Elaine Kessinger. I am also a shareholder, long term, and I'm
also here representing the city of Frederick. And since the door was opened regarding the
high-speed fiberoptic network, I am here to make a personal plea for seriously considering
our city. And I just thought --
>>Eric Schmidt: Remind me of the name of that city.
>>Elaine Kessinger: Frederick City, Maryland. >>Eric Schmidt: Frederick City, Maryland.
>>Elaine Kessinger: Let me tell you what I did, because I know Google was really keen
on this city enthusiasm and creativity and, you know, all that we can do to convince you
to select us. Well, our city is in kind of an economic tough
time. And so I personally restored a 1989 Jeep.
I colored it the color of blue. I got "GOGOOG" license plates.
I have an "I'm Feeling Lucky" license plate holder.
It's a Jeep thing on the front license plate, came all the way from Frederick, Maryland,
in six days, 3,156 miles -- >>Eric Schmidt: Listen to this.
This is phenomenal! [ Applause ]
>>Eric Schmidt: Unbelievable. >>Elaine Kessinger: I stopped in Topeka, Kansas.
I stopped in Google, Kansas, they said they would give me a key to the city.
It hasn't happened yet. I wanted a parade.
It didn't happen. But I let them know I would put a plug in
for them as well. And I am dead serious.
I am so passionate, and everyone in my city thinks I'm crazy.
But please pick us! >>Eric Schmidt: We love your energy.
This is phenomenal. Thank you so much.
>>Elaine Kessinger: Well, on a happy note, I asked for -- I asked for a beauty pageant,
you know, like a banner, saying, "Pick Frederick, Maryland," but they thought that was a little
much. Thank you.
>>Eric Schmidt: You see what happens when we try to do something good?
Look at this. Amazing.
As -- I was serious about the creativity of America.
If you ever wonder and you get depressed watching the television, we have a great country.
I think this is a wonderful comment, and a wonderful time to say thank you so much for
coming. Thank you for your questions.
We look forward to seeing you in a year. And we hope for a very good year.
And thank you, all, so much. Thank you to our panelists.
Thank you to our board. [ Applause ]