Danny Gorog21 April 2008, 8:30 AM
Google has surprised stockmarket analysts by blowing past financial expectations to record net income of $US1.31 billion in just three months -- up 31 per cent.
Google this morning reported strong financial results for the quarter
ended March 31. In the current bear market analysts had predicted doom
and gloom for Google, among other tech shares. But as
Intel and
IBM did
a couple of days ago, Google blew past analyst expectations to record
net income of $US1.31 billion, up 31 percent from the same quarter a year
ago. Revenue was also up 42 percent to $5.19 billion.
According to
Google's
press release, Google-owned sites generated 66 percent of the total
revenue, while the AdSense program, where Google displays ads on
non-Google owned sites, generated the rest. Interestingly, 51 percent of
revenue came from outside the US - a positive sign, and one that was
reiterated in this mornings conference call by Eric Schmidt, CEO of
Google when he said 'It's clear to us that we're well positioned for
2008 and
beyond, regardless of the business environment that we find
ourselves surrounded by.'
Google also
revealed some other interesting tidbits during the conference call
including the fact that mobile search traffic is 'growing rapidly' and
users are adding ten hours of new video to YouTube every minute.
Despite its reputation for extraordinary indulgences for staffers, Google
held expenses at a constant 30 percent of revenues - which, if you do
the math works out at $1.53 billion. But what Google is doing with
that $1.53 billion in expenses in one quarter is anybody's guess... no doubt part of that was spent on some new features for Google Earth and the recent redesign of Google Docs.
On Friday, Google shares ere up 17 percent in after hours trading, but
GOOG
had already fallen from its 52 week high of $747.24 per share and
closed on Friday morning at $449.54. Next week we'll get more insight in
to the state of the tech market when Apple report earnings on Wednesday
morning.