Google Financial Report - Third Quarter 2008 Results

Google reported its third quarter financial report on October 16th. The third quarter 2008 results were for the quarter ended September 30.

Stock performance of Google Stock will not be discussed in this article, and neither will a fiancial statement analysis of Google's third quarter results. The article will merely to provide investors with a quick look at google's books. Google's Income Statement, Balance Sheet, and Cash Flow will be presented in the article.

A Quick Summary of Google's Third Quarter Results

Google Inc had a revenues in tune of $5.54 billion dollars for this quarter, which was a 31% increase over last years's third quarter. The revenues increased 3% compared to previous (second) quarter of 2008. The following are GAAP EPS estimates of Google - Earnings Per Share (EPS) for Google this quarter was $4.24, while second quarter's Earnings Per Share FY 2008 stood at $3.92.

Google Balance Sheets

You can look at Google Balance Sheets Below

December 31,
2007 *

September 30,
2008

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$ 6,081,593

$ 8,370,469

Marketable securities

8,137,020

6,042,140

Accounts receivable, net of allowance

2,162,521

2,541,492

Deferred income taxes, net

68,538

111,401

Income taxes receivable

145,253

Prepaid revenue share, expenses and other assets

694,213

897,349

Total current assets

17,289,138

17,962,851

Prepaid revenue share, expenses and other assets, non-current

168,530

426,478

Deferred income taxes, net, non-current

33,219

165,448

Non-marketable equity securities

1,059,694

1,100,896

Property and equipment, net

4,039,261

5,213,167

Intangible assets, net

446,596

1,047,717

Goodwill

2,299,368

4,821,646

Total assets

$ 25,335,806

$ 30,738,203

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$ 282,106

$ 240,706

Accrued compensation and benefits

588,390

622,658

Accrued expenses and other current liabilities

465,032

532,627

Accrued revenue share

522,001

515,949

Deferred revenue

178,073

200,378

Income taxes payable

99,959

Total current liabilities

2,035,602

2,212,277

Deferred revenue, non-current

30,249

29,992

Deferred income taxes, net, non-current

20,420

Income taxes payable, non-current

478,372

783,348

Other long-term liabilities

101,904

161,075

Stockholders' equity:

Common stock

313

315

Additional paid-in capital

13,241,221

14,194,197

Accumulated other comprehensive income

113,373

101,162

Retained earnings

9,334,772

13,235,417

Total stockholders' equity

22,689,679

27,531,091

Total liabilities and stockholders' equity

$ 25,335,806

$ 30,738,203

*Derived from audited financial statements.

Google Inc.
Consolidated Statements of Income
(In thousands, except per share amounts, unaudited)


	Three Months Ended September 30,		Nine Months Ended September 30,
	2007	2008	2007	2008
	(unaudited)
Revenues	$ 4,231,351	$ 5,541,391	$ 11,767,307	$ 16,094,646

Costs and expenses:
Cost of revenues (including stock-based compensation expense of $4,031, $10,729, $16,080, $29,240)	1,662,579	2,173,390	4,693,261	6,431,501
Research and development (including stock-based compensation expense of $130,655, $169,263, $408,425, $550,343)	548,712	704,571	1,489,202	2,059,851
Sales and marketing (including stock-based compensation expense of $29,918, $64,497, $93,553, $149,666)	380,820	508,801	1,038,976	1,440,252
General and administrative (including stock-based compensation expense of $33,352, $35,550, $105,288, $104,345)	321,398	411,964	902,202	1,296,178