The Giant “Google” (??) – 2007 1st Quarter?

“If you are a regular reader of my blog, so you know well about this series about The Giant Google, and if you are new all you have to do is to read the previous parts in this series, than come back to this post and read this new part.”

Well I decided to stop the numbering thing for every part, because with all what is going over with Google numbers wont be enough to list how many parts this series will go on, as I believe as much as I am writing on this blog and being and internet freak, I will always follow up on Google news and write about them, so the numbers will be replaced by the post topic.

Google ended 2006 with the acquisition of YouTube for 1.65 billion $, 10,600 employees. Where they did start the first quarter of 2007 with the acquisition of Double Click for 3.1 billion, and 12,000 employees.
Google Inc. declared on Thursday that their profit for the first quarter rose up to 63% from the past year. These results did beat all Wall Street expectations as the company turned search market share gains into even more revenue from its core paid search advertising business.

As for CEO Eric Schmidt, their core business is very strong, and that’s what is driving their big success, but still other products are doing well such as YouTube and others. Also this growth is giving them the ability to take risks into new markets and products.

Back to the first quarter reports, Net Income for the first quarter was $1 billion, or $3.18 a share, up from $592 million, or $1.95 a share, a year ago. Excluding one-time items such as employee stock-based compensation, income was $3.68 a share, higher than analyst expectations of $3.30 a share, according to a poll by Thomson Financial.

Total revenue reached a new high of $3.66 billion, up 63 percent from $2.25 billion a year earlier. Excluding traffic acquisition costs, or commission paid to content partners, revenue was $2.53 billion. On that basis, analysts were expecting revenue of $2.49 billion. Google paid $1.13 billion, or 31 percent of advertising revenues, in commission to partners.

Paid search represents nearly all of Google’s revenue at this point. However, if its planned $3.1 billion acquisition of DoubleClick goes through, it will have a huge display, or banner ad, business, too. The company is aggressively expanding its advertising platform to the offline world, including partnerships to sell ads to run on Clear Channel radio stations, on EchoStar Dish satellite TV network and in newspapers.
Google does not provide forward guidance, but Schmidt did warn that the second quarter is typically weaker than the first quarter.

The company also announced that Schmidt had been elected to be chairman of the board of directors and Stanford University President John Hennessy was elected lead independent director.

“That’s what Google did in the first quarter, talking about competitors? Ok Yahoo failed with its Panama project and they did below the expectations, that’s enough I think.”

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