Why the new 'leaked' Android numbers put Google in such an uncomfortable position

Google isn't pleased about some "extremely sensitive information" that Oracle slipped into a recent court hearing. 

As part of an on-going lawsuit between the two companies, an Oracle lawyer said that Google's Android operating system has generated $31 billion in revenue and $22 billion in profit, Bloomberg reports.

Those numbers came from a calculation that Oracle made after winning the right to see some of Google's internal financial documents. 

"That non-public financial data is highly sensitive, and public disclosure could have significant negative effects on Google's business," the company said in a filing to redact and seal the court transcript. 

It's unclear how Oracle calculated the revenue and profit numbers from Google's documents. Some of the revenue comes from paid app installations that occur on Android, while Google's sprawling and opaque mobile advertising business contributes another big chunk of the revenue. 

The Information's Amir Efrati explains on Twitter: 

 

Whatever method Oracle used to arrive at its numbers, the number are out there now. 

And that puts Google between a rock and a hard place. 

Feeding the damages

The narrative in the past has been that Android isn't making Google much money. In that light, these numbers look pretty good! 

From an investor relations perspective, that's great for Google. Wall Street, which has criticized Google for spending money on efforts that don't deliver an immediate payoff, will now have a better understanding of how big of a money-making engine its Android business really is. 

The problem is that Oracle is using those numbers to try to prove that Google should pay more in damages, should Oracle prevail in the lawsuit. (Oracle is suing Google with accusations that the search giant illegally copied part of programming language Java, which it owns).

So depending on how Google argues in court, it will either feed Oracle's damages ask, which Bloomberg reports may now exceed $1 billion, or it will be forced to make the case that Android isn't as hearty, which won't thrill investors.