Quantcast

Google Releases First Quarter Results

Get the WebProNews Newsletter:


[ Business]

Google announced financial results for the quarter ended March 31, 2005. Google reported record revenues of $1.256 billion for the quarter ended March 31, 2005, up 93% year over year.

“This was a very strong quarter for Google. We continue to execute well and we have been able to take full advantage of the growth in online advertising,” said Eric Schmidt, Google chief executive officer. “In addition, we performed well across our operations with our engineering and product teams delivering dozens of new products and features for Google users around the world.”

Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs or TAC, the portion of revenues shared with partners.

Income from operations, on a GAAP basis, was $443 million, or 35.2% of revenues for the quarter ended March 31, 2005 compared to $155 million or 23.8% of revenues for the first quarter of 2004.

Income from operations includes a $49 million non-cash, stock-based compensation charge compared to a $76 million non-cash, stock-based compensation charge in the prior year’s first quarter.

Net income on a GAAP basis for the quarter ended March 31, 2005 was computed based on the following income statement or condensed income statement line items. Revenues of $1.256 billion less TAC of $462 million, less both other costs and expenses before stock-based compensation of $303 million and stock-based compensation of $49 million, increased by other income of $14 million and then reduced by a provision for income taxes of $87 million.

Net income on a GAAP basis in the first quarter of 2005 was $369 million or $1.29 per share on a basis of a diluted 286.6 million weighted average shares outstanding. This compared to net income for the first quarter of 2004 of $64 million or $0.24 per share on a basis of a diluted 264.2 million weighted average shares outstanding.

Some Wall Street analysts use non-GAAP measures to analyze our operating results. For instance, they may subtract TAC of $462 million from revenues of $1.256 billion to arrive at a net revenues amount. Also, certain analysts may arrive at net income before stock-based compensation by subtracting traffic acquisition costs of $462 million, other costs and expenses before stock-based compensation of $303 million, adding back other income of $14 million and subtracting our provision for income taxes of $87 million from revenues of $1.256 billion.

Net cash provided by operating activities for the three months ended March 31, 2005 totaled $530 million as compared to $208 million for the first quarter of 2004, an increase of 155%.

Adjusted EBITDA, which is an alternative measure of liquidity to GAAP net cash provided by operating activities (and is defined as income before interest, taxes, depreciation, amortization, the non-cash stock-based compensation charge and in-process R&D), increased by $293 million or 115% to $ 548 million (or 44% of revenues) in the first quarter of 2005 from $255 million in the first quarter of 2004 (or 39% of revenues).

WebProNews | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.

Google Releases First Quarter Results
Comments Off


Top Rated White Papers and Resources

Comments are closed.

  • Join for Access to Our Exclusive Web Tools
  • Sidebar Top
  • Sidebar Middle
  • Sign Up For The Free Newsletter
  • Sidebar Bottom