Expectations were high for Google’s Q3 given some of the positive
reports coming out about clicks and search volumes from third parties
such as Efficient Frontier and comScore. Even though Google performed
solidly (almost $6 billion in a still-bad economy) there may be some
disappointment on Wall Street (apparently not). Google’s Eric Schmidt
said “The worst of the recession is behind us.” He added, “We’re very
pleased with the third quarter.”
Most metrics were flat. Here are the earnings release and associated highlights:
Google reported revenues of $5.94 billion for the
quarter ended September 30, 2009, an increase of 7% compared to the
third quarter of 2008. Google reports its revenues, consistent with
GAAP, on a gross basis without deducting traffic acquisition costs
(TAC). In the third quarter of 2009, TAC totaled $1.56 billion, or 27%
of advertising revenues . . .
- GAAP operating income in the third quarter of 2009 was $2.07
billion, or 35% of revenues. This compares to GAAP operating income of
$1.65 billion, or 30% of revenues, in the third quarter of 2008.
Non-GAAP operating income in the third quarter of 2009 was $2.39
billion, or 40% of revenues. This compares to non-GAAP operating income
of $2.02 billion, or 37% of revenues, in the third quarter of 2008.
- GAAP net income in the third quarter of 2009 was $1.64 billion,
compared to $1.29 billion in the third quarter of 2008. Non-GAAP net
income in the third quarter of 2009 was $1.88 billion, compared to
$1.56 billion in the third quarter of 2008 . . .
Google Sites Revenues – Google-owned
sites generated revenues of $3.96 billion, or 67% of total revenues, in
the third quarter of 2009. This represents an 8% increase over third
quarter 2008 revenues of $3.67 billion.
Google Network Revenues – Google’s partner sites
generated revenues, through AdSense programs, of $1.80 billion, or 30%
of total revenues, in the third quarter of 2009. This represents a 7%
increase from third quarter 2008 network revenues of $1.68 billion.
Google continues to dominate even in a horrible economy, this is one solid company.