Google Delivers (GOOG)

Google Inc. (NASDAQ: GOOG) has just reported earnings of $5.89 non-GAAP EPS and revenues of $5.94 billion gross and $4.38 billion on an ex-TAC basis.  Thomson Reuters had estimates for the King of Internet Search at $5.42 EPS and $4.24 billion on an ex-TAC revenue basis.  This is back to growth for Google’s top-line.  Google does not offer guidance, but shares are running higher in after-hours trading.

TAC refers to traffic acquisition costs, the fee which it pays to content creators.  That was listed as 27% of revenues.  Paid clicks also rose by 14%.  The company ended the quarter with some 19,665 full-time employees, down from 19,786 at the end of June.   There is a huge number here as well for acquisitions or for other shareholder friendly activities if it chooses: it ended with $22.0 billion in cash and equivalents.

The company also noted that Google-owned websites generated some $3.96 billion in revenue.  Partner-generated site revenues were $1.8 billion.  The big surprise here was the company-owned sites.  The TAC and partner-generated revenues were not a surprise at all if you are a publisher.  CPMs have risen significantly from Q2 levels.  On that note, they are running higher in October than they averaged during the Q3 period as well.

International revenue accounted for some $3.14 billion in sales.  One thing Google did note was $1.1 billion in SBC charges before October 1 and the company noted that it sees continuing significant cap-ex spending.

Google put in a new 52-week high today of $536.90 on an intra-day basis, but shares closed down 1% at $529.91.  If the after-hours gains hold up at $539.00 to $540.00, then there will be even higher 52-week highs tomorrow.

JON C. OGG
OCTOBER 15, 2009