Google Q4 earnings plummet, revenue up 18%

Google's profit took a dive in the fourth quarter, but revenue grew almost 20 percent.

Google's profit took a dive in the fourth quarter, which ended Dec. 31, while revenue grew almost 20 percent, the company announced Thursday.

In a statement, CEO Eric Schmidt said Google performed well despite the difficult economic environment. "Search query growth was strong, revenues were up in most verticals, and we successfully contained costs," he said.

Google reported revenue of US$5.70 billion, up 18 percent compared with the $4.83 billion in 2007's fourth quarter. Subtracting the commissions Google pays to its ad network partners, revenue came in at $4.22 billion.

Net income was $382 million, or $1.21 per share, down from the $1.2 billion, or $3.79 per share, recorded in 2007's fourth quarter.

On a pro forma basis, which excludes one-time items, net income was $1.62 billion, or $5.10 per share. This excludes expenses such as stock-based compensation and costs related to the settlement of the copyright infringement lawsuits brought by the Authors Guild and the Association of American Publishers (AAP) over Google's Book Search service. It also excludes charges such as write-offs of $1.09 billion of Google investments primarily in AOL and Clearwire.

Google also announced Thursday it plans to offer employees a voluntary, one-for-one stock option exchange intended to create more incentives for employees to remain at Google.

Paid clicks on Google sites and partner sites increased approximately 18 percent compared with 2007's fourth quarter.

Google finished the quarter with 20,222 full-time employees, up from 20,123 full-time employees as of Sept. 30, 2008.

(More to follow.)

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Google

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?