InsideGoogle

Google Reports Six-Fold Increase In Earnings

Google has announced a 6X increase in income over the same quarter a year ago.

Reuters:

Google reported third-quarter net income rose to $381.2 million, or $1.32 per diluted share, more than six times higher than the year-ago quarter’s $52.0 million, or 19 cents a share. The prior quarter included a non-cash charge of $201.0 million to settle a patent dispute with rival Yahoo Inc..

That makes real profit up $123 million, or about 33%. Significant, but not as striking.

Consensus estimates had earnings per share at $1.36, excluding one-time items, but Google reported $1.51 per share. Revenues reached a new high of $1.58 billion, 96% higher than a year ago.

Google hired its 4,989th employee at the end of September.

Bloomberg:

Google shares jumped $22.20 to $325.40 in extended trading. They earlier fell $5.50 to $303.20 in Nasdaq Stock Market composite trading. The shares rose 57 percent this year as Fidelity Investments and Legg Mason Inc. boosted their holdings.

Search Engine Watch:

Google Sites Revenues - Google-owned sites generated $885 million, or 56% of total revenues. This represents a 20% increase over the second quarter revenues of $737 million.

Google Network Revenues - Revenues generated on Google’s partner sites, through AdSense programs, contributed $675 million, or 43% of total revenues. This is a 7% increase over network revenues of $630 million generated in the second quarter.

In previous quarters, Google-owned sites accounted for 50-51% of revenues (totalling half a billion), so it is clear Google’s sites are growing at a far faster pace than the AdSense program, which will in the future face strong competition as Yahoo’s Publisher Network expands.

Over the last three quarters, Google AdSense revenue has increased 19%, 8% and 7%, while Google site revenues have increased 24%, 12% and 20%.

UPDATE: SEW has a quasi-transcript of the earnings conference call.

Also Google stock is up over 30 points in after-hours trading:

303.20 -5.50 (-1.78%)  20 Oct at 4:00PM ET Open:  309.99 High:  311.13 Low:  301.21   Volume:  14,281,852 Avg Vol:  8,404,000 Mkt Cap:  84.66B Nasdaq data delayed by 15 minutes - Disclaimer

October 20th, 2005 Posted by Nathan Weinberg | Stock Market, General | 3 comments