This Thursday marked Google's first reported quarterly decline in revenue since it went public in 2004.
But Google's efforts to brace for the economy — cutting costs and minimizing expenses — were also reflected in the search giant's balance sheet. Net income for Q1 of 2009 was $1.42 billion, an 8% increase from last year, and higher than analyst expectations.
Meanwhile, revenue in Q1 rose 6% to $5.51 billion, from $5.2 billion the year previous. Growth was pegged at 42% in '08, and 63% in '07 — with the company continuing to outperform rivals and the online ad market at large.
Net income for the past three months totaled $1.42 billion ($4.49 per share), up from $1.31 billion ($4.12 per share) last year. Adjusted earnings — excluding the cost of stock options and other incidentals — were $5.16 a share, higher than analyst forecasts of the $4.93 a share.
Finally, net revenue, excluding commissions to ad partners, was $4.07 billion, 10% higher than the $3.7 billion garnered a year earlier. Analysts were on the ball there.
For the first time ever this quarter, Google's work force contracted more than it expanded. Q1 wrapped with 20164 — 58 workers fewer than at the end of 2008. The decline is small, The New York Times acknowledges, but it marks a contrast from 18 months prior, when the company added over 2100 in one quarter.
Google sales exec Omid Kordestani was also given a new role as senior advisor to Schmidt, as well as co-founders Larry Page and Sergey Brin. His current role will be occupied by Nikesh Arora, previously President-International Operations.
In a conference call with investors, CEO Eric Schmidt stated, "No company is recession-proof," but felt that "despite the tough economic climate, we think Google had a good quarter." Asked if recovery was over the horizon, Schmidt called the current economic situation "uncharted territory."
Asked point-blank about rumors that Google may acquire microblogging site Twitter, Schmidt remained reticent, but admitted he sees promising ad opportunities in the sector in general.
Notably, Schmidt expressed interest in helping sites like Twitter develop a profitable business model — asserting the company would be "very, very happy" to lend its expertise, reports Agence France Presse.
