Highlights from Google s Earnings Call

Highlights From Google's Earnings Call

By: Nathan Weinberg
2006-10-20

Google stock has shot up $30.76 in after-hours trading, up 7% to $456.82. This puts it within striking distance of the all-time high of $475.11.

The numbers come from Seeking Alpha, which also has a full transcript of the earnings call.

Some quotes:

Eric Schmidt:

Partnerships, something we talked about last quarter. Each one defining a new and important market for us; it started, of course, with the Dell deal in Q2, where we got better access for end users to Google, followed by the Adobe deal, better integration of high-quality graphics in Google. Followed then by eBay, integration with Skype and bringing international advertisers into the fold. Intuit, advertising services to medium and small businesses that we couldnt otherwise reach or could not serve as well. MTV Networks, video distribution and video ad targeting and syndication, bringing in a whole new way in which we can make money for content video publishers. Fox MySpace, a search and advertising partner with us for the fastest-growing social network. And of course, culminating last week with the YouTube acquisition, sort of the ultimate partnership, if you will, recognizing the fundamental importance of video of all types.

George Reyes:

Revenue from the U.S. was $1.5 billion, driven by higher than expected traffic growth and continued monetization gains. International growth was very strong in Q3 as well. Our largest European markets, the UK and Germany, performed very well, as did many other countries throughout the world, including the Netherlands, Spain, France, Italy, Canada, and Australia. While still a small percentage of our overall revenues, many of our emerging markets, most notably India and Brazil, are growing at very high rates as well.

Sergey Brin:

When I perform a search, I often find that the best answer is not necessarily a web page. I know that sounds like heresy from Google, but in fact, if you are learning a sport, if you want to build a house, if you want to study a science, often videos are the best medium to learn about those things, to learn how to do those things. This has obviously been a significant initiative for us.

Larry Page:

We started with our text-based ads, and then contextual ads, and now we are working on mobile local video, radio, and prints products. Our increasing penetration of the Ad Age 100 and continually growing advertiser budgets confirm that our approach here is working.

Let me tell you a little bit about Google Checkout. We launched Google Checkout and our goal is really to improve the purchasing experience for users and deliver higher conversion rates for advertisers. We are making steady progress here with strong growth in the number of both buyers and sellers and we continue to penetrate the top 500 U.S. online retailers.

Sergey Brin, answering a question about features, not products:

Yes, exactly. What we are concerned about is that if we continue to develop so many new individual products that are all their assorted silos, you will have to essentially search for our products before you can even use them. And then you will have to search before you can do a search, in many cases.

Instead what were doing now is we are trying to create the horizontal functionality across a range of products, across media types and so forth. For example, I mentioned already Google Apps for Your Domain, and that in a sense is a product, but really it just combines a whole bunch of other offerings together, seamlessly integrated together so they can work well for an organization.

Another example which we havent gotten quite up and running yet, but when you want to share your documents or your pictures or your videos, it would be nice to have the exact same way to share all those things, to have all that functionality available across all of those media types in the identical way, rather than developing sort of one-offs for each of those products.

Del.icio.us |

Digg |

Yahoo! My Web |

Furl

View All Articles by Nathan Weinberg

About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

Visit the InsideGoogle blog.


Titan Quest Forum	Nintendo Wii	Graphics Forum
Halo 3 Forum	Mac Software