14 DAY TRIAL // In the first quarter of the 2008 financial year, Google managed to outperform analyst estimations, accounting for a total revenue of $5.70 billion. The Mountain View-based search giant kept its head well above the waters of the worldwide financial tsunami with the latest financial results, delivering proof that its almost exclusive focus on search was paying off, even in the context of the global economic crisis. The $5.70 billion revenue for Q4 2008 represents no less than a growth of 18% compared with the same period of the previous year ( $4.83 billion), and an increase of 3% over Q3 2008 ($5.54 billion).
“Google performed well in the fourth quarter, despite an increasingly difficult economic environment. Search query growth was strong, revenues were up in most verticals, and we successfully contained costs,” Eric Schmidt, CEO of Google, said. “It's unclear how long the global downturn will last, but our focus remains on the long term, and we'll continue to invest in Google's core search and ads business, as well as in strategic growth areas such as display, mobile, and enterprise.”
According to the Mountain View company, the volume of aggregate paid clicks jumped 18%, compared with Q4 2007, and 10% over Q3 2008 in the last quarter of this year. Simply putting it, Google is seeing more users and more clicks on its advertisements, be them through its own sites or via AdSense partners. At the same time, Google managed to increase the quality and coverage of the ads it served, improving the level of relevance for end-users. Still, despite the growth in revenue, the company's income actually dropped substantially.
“Generally Accepted Accounting Principles (GAAP) net income for the fourth quarter of 2008 was $382 million as compared to $1.29 billion in the third quarter of 2008. Non-GAAP net income was $1.62 billion in the fourth quarter of 2008, compared to $1.56 billion in the third quarter of 2008. GAAP EPS for the fourth quarter of 2008 was $1.21 on 317 million diluted shares outstanding, compared to $4.06 for the third quarter of 2008, on 318 million diluted shares outstanding. Non-GAAP EPS for the fourth quarter of 2008 was $5.10, compared to $4.92 in the third quarter of 2008,” Google revealed.