Q1 Financial Summary
Google’s results for the quarter ended March 31,
2008, include the operations of DoubleClick Inc. from the date of acquisition,
March 11, 2008, through the end of the quarter, and are compared to
pre-acquisition results of prior periods. The overall impact of DoubleClick in
the first quarter of 2008 was immaterial to revenue and only slightly dilutive
to both GAAP and non-GAAP operating income, net income and earnings per
share. Google reported revenues of $5.19 billion for the quarter ended March 31,
2008, an increase of 42% compared to the first quarter of 2007 and an increase
of 7% compared to the fourth quarter of 2007. Google reports its revenues,
consistent with GAAP, on a gross basis without deducting traffic acquisition
costs, or TAC. In the first quarter of 2008, TAC totaled $1.49 billion, or
29% of advertising revenues. Google reports operating income, net income, and
earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP
measures, as well as free cash flow, an alternative non-GAAP measure of
liquidity, are described below and are reconciled to the corresponding GAAP
measures in the accompanying financial tables.
GAAP operating income
for the first quarter of 2008 was $1.55 billion, or 30% of revenues. This
compares to GAAP operating income of $1.44 billion, or 30% of revenues, in the
fourth quarter of 2007. Non-GAAP operating income in the first quarter of
2008 was $1.83 billion, or 35% of revenues. This compares to non-GAAP operating
income of $1.69 billion, or 35% of revenues, in the fourth quarter of 2007.<\/p>\n

GAAP net income for the first quarter of 2008 was $1.31 billion
as compared to $1.21 billion in the fourth quarter of 2007. Non-GAAP net
income in the first quarter of 2008 was $1.54 billion, compared to $1.41 billion
in the fourth quarter of 2007.
GAAP EPS for the first quarter of 2008 was
$4.12 on 317 million diluted shares outstanding, compared to $3.79 for the
fourth quarter of 2007 on 318 million diluted shares outstanding. Non-GAAP
EPS in the first quarter of 2008 was $4.84, compared to $4.43 in the fourth
quarter of 2007.
Non-GAAP operating income, non-GAAP operating margin,
non-GAAP net income, and non-GAAP EPS are computed net of stock-based
compensation (SBC). In the first quarter of 2008, the charge related to
SBC was $281 million as compared to $245 million in the fourth quarter of
2007. Tax benefits related to SBC have also been excluded from these
non-GAAP measures. The tax benefit related to SBC was $51 million in the
first quarter of 2008 and $42 million in the fourth quarter of 2007.
Reconciliations of non-GAAP measures to GAAP operating income, operating margin,
net income, and EPS are included at the end of this release.
GOOG Financial results.<\/p>\n