Google has a habit of blowing away the analysts’ expectations with its financial performance. It showed its penchant for this again, when it announced its quarterly results yesterday.
Google Inc. posted 1Q profit of $1 billion, up 69 percent from the year ago period. The quarterly results are a clear testimony of the market domination of the company. Born less than decade ago, Google now reigns as the most profitable - and probably most powerful - force on the Web.
Analysts had expected Google, California based company, to report a profit of $3.30 a share. However, Google once again surpassed their expectations to report a profit of $3.68 a share.
It reported revenue of $3.66 billion, up 63 percent from a year earlier. After taking out advertising sales that Google shares with its affiliates, the company reported revenue of $2.53 billion, better than what Wall Street’s consensus had estimated ($2.49 billion.) The revenue is up 66 percent from $1.53 billion reported in first quarter of last year.
Google’s results come just days after its rival; Yahoo Inc. had posted a profit decrease of 11 percent in the first quarter.
The results come in a month when Google has already hit the headlines with several corporate deals. This month, the company announced a radio advertising deal with Clear Channel communications, partnerships with content providers for You-Tube and the all cash acquisition of DoubleClick - a leading Internet display advertising company. Besides acquiring other companies, Google is investing heavily to drive its growth by adding workforce and additional computer capacity.
As usual, Google’s omnipotent search engine has driven its financial performance.
Eric E. Schmidt, Google’s CEO, said in a conference call:
We are ecstatic about our financial results this past quarter. The core business is search and ads; we are still at the beginning of that business. It is a huge business, and we have a lot of room to grow.
Google said its overseas business was particularly strong. 47 percent of the total revenue was from outside the States.
Source: kansascity
