[FoRK] Googlicious

Owen Byrne owen at permafrost.net
Thu Apr 21 21:23:29 PDT 2005


Ok its official. Even crappy old geezers like me are getting recruited 
heavily. And Beberg? its officially time to lighten the fuck up.
Owen

http://money.cnn.com/2005/04/21/technology/google_analysis/index.htm

> Ga-ga for Google
> Search engine blows away estimates, putting to rest doubts about a 
> dot-com slowdown; shares soar.
> April 21, 2005: 6:06 PM EDT
> By Paul R. La Monica 
> <http://money.cnn.com/2005/04/21/technology/google_analysis/mailtoPaul.lamonica@turner.com>, 
> CNN/Money senior writer
>
> *NEW YORK (CNN/Money) - What Internet advertising slowdown? *
>
> Google, the world's leading search engine company, reported first 
> quarter sales and earnings that crushed even the most optimistic of 
> Wall Street analysts' expectations. The company reported a nearly 
> six-fold increase in net income and pro-forma earnings, excluding 
> various charges, that were substantially higher than consensus estimates.
>
> Sales, excluding advertising fees that Google shares with partners 
> (known in the industry as traffic acquisition costs or TAC) came in at 
> $794 million, well above Wall Street's forecast of $731 million. In 
> fact, the highest estimate on the Street was $767 million.
>
> Google's news is further evidence that fears of a slowdown in online 
> advertising earlier this year were way overdone. Google rival Yahoo! 
> <http://money.cnn.com/quote/quote.html?shownav=true&symb=YHOO> 
> (Research 
> <http://cnnfn.investor.reuters.com/Reports.aspx?ticker=YHOO>) issued a 
> strong first quarter report on Tuesday and issued bullish guidance for 
> the second quarter and remainder of the year.
>
> "These are extremely strong results. There is nothing to quibble 
> with," said Marianne Wolk, an analyst with Susquehanna Financial Group.
>
> Shares of Google 
> <http://money.cnn.com/quote/quote.html?shownav=true&symb=GOOG> 
> (Research 
> <http://cnnfn.investor.reuters.com/Reports.aspx?ticker=GOOG>) gained 
> more than 3 percent in regular trading on the Nasdaq Thursday closing 
> above the $200 level for the first time since early February when 
> Google announced better than expected fourth quarter results.
>
> The stock surged more than 6 percent after hours, according to INET. 
> Based on after-hours prices, Google appears set to open near its 
> all-time high. The company's stock has skyrocketed more than 140 
> percent since going public in August.
>
> Google's results show that despite tough competition, the online 
> advertising business is still booming. Google and Yahoo! have been 
> locked in a fierce battle for Web users and the two are constantly 
> rolling out new features to attract users, and advertisers.
>
> To that end, Google unveiled a new feature that allows people to 
> browse an archive of prior searches on Thursday. Also on Thursday, 
> Yahoo! announced that it formed a partnership with retailer Target 
> <http://money.cnn.com/quote/quote.html?shownav=true&symb=TGT> 
> (Research <http://cnnfn.investor.reuters.com/Reports.aspx?ticker=TGT>) 
> to form a co-branded web site for storing digital photos.
>
> "The way I look at Google is that they are riding a wave and simply 
> stated, the wave is keyword advertising," said Scott Kessler, an 
> equity analyst with Standard & Poor's.
>
> During a conference call with analysts, Google CEO Eric Schmidt said 
> that the company would continue its practice of not giving guidance to 
> Wall Street.
>
> But given that Google beat Wall Street's estimates by such a 
> substantial amount in the first quarter, it seems safe to say that 
> second quarter consensus estimates should head higher in the next few 
> days.
>
> Analysts are currently predicting that Google will earn a pro-forma 
> profit of 93 cents per share, up from 58 cents in pro-forma earnings 
> during the same period last year, according to Thomson/First Call. 
> Sales, excluding TAC, are expected to be $768 million, compared to 
> revenues of $423 million a year ago.
>
> "2005 is off to a very healthy start," said Google chief financial 
> officer George Reyes during the conference call, adding that the 
> strength is mainly due to increased traffic on Google sites. In 
> addition, he said that there is no reason why Google would not at 
> least track the growth rates seen in the rest of the online ad industry.
>
> But Google appears to be growing at a more rapid pace than its 
> competitors. The company's revenues, excluding TAC, increased 21 
> percent from the fourth quarter of 2004. Yahoo!'s sales, by way of 
> comparison, were up just 4.6 percent on a sequential basis in the 
> first quarter.
>
> Reyes said during the conference call that international revenues are 
> becoming an increasingly important part of Google's overall sales, 
> with international operations accounting for 39 percent of total 
> sales, up from 35 percent in the fourth quarter.
>
> As such, Susquehanna's Wolk said that Google's success abroad is a key 
> reason why she thinks the company can continue to post results that 
> outpace the rest of the industry.
>
> "Google is the stronger play on the exceptional growth that search is 
> seeing overseas," she said.
>
> Executives added during the call that the company expected to continue 
> to invest in new products and that it was not planning a stock buyback 
> anytime soon, as many other techs have done. Yahoo!, for example, 
> recently announced a plan to repurchase as much as $3 billion's worth 
> oft its shares over the next five years.
>
> Google finished the first quarter with $2.5 billion in cash, up from 
> $2.1 billion at the end of December.
>
> But David Garrity, an analyst with Caris & Co., thinks that the fact 
> that Google is not interested in a stock buyback, could be a sign that 
> Google is gearing up for big acquisitions.
>
> /Analysts quoted in this story do not own shares of Google and their 
> firms have no investment banking relationships with the companies./
>



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