Google Earnings Soar in Opener

By Matthew Hicks  |  Posted 2004-10-21 Print this article Print

In its first earnings announcement since going public, the search company soars to $805.9 million in revenue from strong advertising gains.

In its first earnings announcement since going public, Google Inc. doubled its revenues and profits as advertising continued to climb on its Web sites and on those of its partners. Google on Thursday reported that revenues climbed to $805.9 million for the three months ended Sept. 30, a 105 percent jump from the same quarter a year earlier. Net income followed a similar rise, reaching $52 million, or 19 cents per share. That was more than double its net income a year earlier of $20.4 million, or 8 cents per share.
"This company delivered on its commitments, the commitments we made when we announced we were going public," Google CEO Eric Schmidt said during a conference call with analysts.
Profits were higher after excluding a $102 million payment to settle a dispute with Yahoo Inc. and excluding stock-based compensation charges. The company said that without those nonrecurring expenses, net income was $125 million, or 45 cents per share. The record earnings follow Googles closely watched IPO in August, in which the company raised $1.7 billion. Google didnt provide any guidance on the performance it expects in future quarters. Its first earnings news did send its stock climbing higher. It closed at $149.38 a share on the Nasdaq exchange. Google derived almost 99 percent of its revenues from advertising during the quarter and reported a continued boom in its growth. But the company is more aggressively pursuing the enterprise market this year, executive have told, where revenue is generated through the licensing of its search appliance. Advertising dollars come through Googles AdWords program, where advertisers bid for placement in ads that appear based on keywords entered during searches. Ads on its own sites generated 51 percent of the ad revenue, or $411.7 million. Next Page: Google execs say advertising demand not yet met.

Matthew Hicks As an online reporter for, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

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