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Google profits grow over 600%!
Another blowout quarter for the Google boys. They made about $400 million in cash money for their investors from July through September, over 7 times what they made during the same quarter a year ago! Revenue is growing at a 100% pace this year.
This is just stunning. They're making a lot of people very rich very quickly out of this little business started in a college dorm room. A true American success story.
...and...
This is just stunning. They're making a lot of people very rich very quickly out of this little business started in a college dorm room. A true American success story.
...and...
Google sales and profit jump
Results exceed Wall Street's consensus forecasts
By Bambi Francisco, MarketWatch
Last Update: 6:04 PM ET Oct. 20, 2005
SAN FRANCISCO (MarketWatch) -- Google Inc., the Internet's leading search engine, said third-quarter profit surged sevenfold and sales nearly doubled, exceeding Wall Street's expectations, as net revenue topped $1 billion for the first time.
Google shares rose more than 9% to a new record and topped $331 in evening trading after the results.
Google said late Thursday that net income rose more than sevenfold to $381 million, or a $1.32 a share. Excluding certain charges, Google earned $437 million, or $1.51 a share, topping analysts' forecasts of $1.37.
Google also said that sales grew 96% to $1.578 billion, of which 39% came from international markets. Excluding the commissions Google pays to its distribution partners, net revenue rose 110% to $1.05 billion, exceeding analysts' consensus estimate of $942 million, and even more aggressive estimates of $979 million.
Revenue from Google's own properties grew faster than advertising revenue from Google's partner sites, said Google finance chief, George Reyes, on the conference call following the release. Revenue from Google's own properties grew to $885 million in the quarter, up 20% from the previous quarter versus 7% sequential revenue growth from Google's distribution partners.
While sales soared, Google said sales and marketing as a percentage of revenue declined in the quarter to 6.7% from 7% in the prior quarter.
The company founded by former Stanford graduate students Larry Page and Sergey Brin has seen its business explode as more businesses pay to have their online ads displayed next to Google's search results.
In recent months Google has been using its cash hoard and the proceeds of a secondary stock sale to invest in new markets and take on rivals Yahoo and Microsoft.
Mountain View, Calif.-based Google does not offer an outlook for the upcoming quarters or the year, but analysts expect Google to earn $5.63 a share on sales of $3.79 billion for the year.
Google is currently estimated to earn $7.33 a share on sales of $5.46 billion in 2006. But by excluding the tax charge and benefit of stock-based compensation, Google is estimated to earn $7.14 a share in 2006.
Analysts are expected to revise those forecasts given Google's results and the information provided on the conference call late Thursday.
On that call, Google said it would raise capital expenditures by $100 million to $800 million for the full year 2005.
"Based on these results, estimates for 2006 will likely lead to an implied value that is slightly above the aggressive scenario we provided of $398 [a share]," wrote Anthony Noto, an analyst at Goldman Sachs.
Results exceed Wall Street's consensus forecasts
By Bambi Francisco, MarketWatch
Last Update: 6:04 PM ET Oct. 20, 2005
SAN FRANCISCO (MarketWatch) -- Google Inc., the Internet's leading search engine, said third-quarter profit surged sevenfold and sales nearly doubled, exceeding Wall Street's expectations, as net revenue topped $1 billion for the first time.
Google shares rose more than 9% to a new record and topped $331 in evening trading after the results.
Google said late Thursday that net income rose more than sevenfold to $381 million, or a $1.32 a share. Excluding certain charges, Google earned $437 million, or $1.51 a share, topping analysts' forecasts of $1.37.
Google also said that sales grew 96% to $1.578 billion, of which 39% came from international markets. Excluding the commissions Google pays to its distribution partners, net revenue rose 110% to $1.05 billion, exceeding analysts' consensus estimate of $942 million, and even more aggressive estimates of $979 million.
Revenue from Google's own properties grew faster than advertising revenue from Google's partner sites, said Google finance chief, George Reyes, on the conference call following the release. Revenue from Google's own properties grew to $885 million in the quarter, up 20% from the previous quarter versus 7% sequential revenue growth from Google's distribution partners.
While sales soared, Google said sales and marketing as a percentage of revenue declined in the quarter to 6.7% from 7% in the prior quarter.
The company founded by former Stanford graduate students Larry Page and Sergey Brin has seen its business explode as more businesses pay to have their online ads displayed next to Google's search results.
In recent months Google has been using its cash hoard and the proceeds of a secondary stock sale to invest in new markets and take on rivals Yahoo and Microsoft.
Mountain View, Calif.-based Google does not offer an outlook for the upcoming quarters or the year, but analysts expect Google to earn $5.63 a share on sales of $3.79 billion for the year.
Google is currently estimated to earn $7.33 a share on sales of $5.46 billion in 2006. But by excluding the tax charge and benefit of stock-based compensation, Google is estimated to earn $7.14 a share in 2006.
Analysts are expected to revise those forecasts given Google's results and the information provided on the conference call late Thursday.
On that call, Google said it would raise capital expenditures by $100 million to $800 million for the full year 2005.
"Based on these results, estimates for 2006 will likely lead to an implied value that is slightly above the aggressive scenario we provided of $398 [a share]," wrote Anthony Noto, an analyst at Goldman Sachs.
Under the theory of trickle-down economics, Google's employees will be getting 600% raises. 
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