Google's revenue rose 24 percent during Q1. In more good news for investors, the company announced a 2-for-1 stock split involving a new class of non-voting stock.
that it's enjoying "tremendous momentum" from products including the
Apple-fighting Android operating system, the Chrome browser and the YouTube
video site, Google announced April 12 that revenue was up 24 percent year on
year, to $10.65 billion.
additionally announced a 2-for-1 stock split that will give a new class of
non-voting capital stock to shareholders. Investors, pointing to what Google
revealed was a $49.3 billion cash pile as of March 31, had been asking Google
to issue a dividendwhat it did instead is designed to better keep the
company's co-founders, Larry Page and Sergey Brin, in control of "Google's
destiny" over the long term.
, Page wrote that when the company went public in 2004, a
dual-class voting structure was established. "Our goal was to maintain the
freedom to focus on the long term by ensuring that the management team, in
particular [executive chairman Eric Schmidt], Sergey and I, retained control
over Google's destiny," wrote Page.
further, he quoted from Google's first founders' letter, in which they had
written, "We want Google to become an important and significant
institution. That takes time, stability and independence."
discussing the details of the first quarter, Page again emphasized the need for
patience and a long-term view. Android, he explained, took Google three years
to develop and another three years to reach a critical mass. Such projects, he
said, "are not for the faint-hearted."
returned to this theme again later, explaining that the public wasn't privy to
those six years that Google devoted to Android immense amounts of time and
energy, both finite and valuable resources. "It's an important discipline
for a company to have," he said.
comment came in response to a question regarding projects that fit
what Page has previously called a "healthy disregard for the
Google has said it divvies up its money 70, 20, 1070
percent on the mainstream investments, 20 percent on more near-term endeavors
and 10 percent on the "Who knows?" projects.
our history we've even struggled to give 10 percent to the speculative
things," Page admitted, surely to the relief of more conservative
investors. There are a limited number of things that can get done, so Google
wants to make sure it has the right mix of products.
very much includes Android, Page said, when asked about its benefit to Google.
He emphasized its ability to offer users a great experience, which is critical
to a central Google goal of offering a very integrated experience across
think people are going to get a lot more devices. Each one is a hassle, and you
think about the issues with it. [In the future] I think you're going to have a
pretty unified experience and a great experience," said Page. "You're
not going to have to think about it so much."
added that Google is very excited about tablets and expects, in the more near
term, lower-end models running a limited version of Android to have a good
amount of success, believing "it's an important area."
are still at the very early stages of what technology can do to improve
people's lives and we have enormous opportunities ahead," Page said in a
statement and loosely repeated in his prepared remarks. "It is a very
exciting time to be at Google."