Google's Profit Drops, But Still Beats Forecasts

$382M is off 68% from Q4 of '07; search giants looks to have restrained spending
By Newser Editors and Wire Services
Posted Jan 22, 2009 3:49 PM CST
Google's Profit Drops, But Still Beats Forecasts
Google signs inside its headquarters in Mountain View, Calif.   (AP Photo)

Quarterly profit at Google fell for the first time, although the performance was better than analysts anticipated. Google made $382 million, or $1.21 per share, in the three months ending in December—a 68% drop from the same period in 2007. The results indicated the company was able to rein in its free-spending ways enough to offset a slowdown in the online ad market that generates most of its revenue.
 

The news contrasted with a missed forecast and 5,000 layoffs announced earlier in the day by rival Microsoft. If not for employee stock compensation costs and a charge to account for deteriorating investments, Google said it would have made $5.10 per share. That beat the average estimate of $4.95 per share among analysts polled by Thomson Reuters. (More Google stories.)

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