Google's Quarterly Earnings Analysis: By the Numbers

CapitalCube
Google Mountain View
SiliconValleyStock/Alamy

Google (GOOG) just reported its preliminary financial results for the quarter that ended Sept. 30, based upon which we provide a unique corporate earnings release based analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise). Google is one of the first companies amongst its peer group to announce earnings for this period.

Highlights

  • Summary numbers: Revenues of $16.523 billion, Net Earnings of $2.998 billion and EPS of $4.09. Performance focus more on top-line than bottom-line: same period year-on-year revenue change of 11.11% vs. change in earnings of 1.46%.

  • Gross margins now 68.84% from 63.43% compared to the same period last year, EBITDA margins now 31.90% from 29.63%

  • Ability to strengthen the balance sheet? Year-on-year change in Operating Cash Flow of 17.92% better than change in earnings.

  • Earnings growth due to the contribution of unusual items