Even in a time of an economic slow down, Google posted an 18% increase in revenues for the 4th quarter of 2008 compared to the same period in 2007. Google posted their plans for offering employee mew stock options to help keep employees at Google. I read this as the search giant is having problems keep their brainy people on board the Google ship.
Over at their website they stated that:
Q4 Financial Summary
Google reported revenues of $5.70 billion for the quarter ended December 31, 2008, an increase of 18% compared to the fourth quarter of 2007 and an increase of 3% compared to the third quarter of 2008. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the fourth quarter of 2008, TAC totaled $1.48 billion, or 27% 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.
In reference to employee stock options Google states:
Employee Stock Option Exchange – Our Board of Directors has approved an exchange offer to allow employees the opportunity to exchange all or a portion of their existing stock options for the same number of new options. This program is currently scheduled to commence on January 29, 2009 and end on March 3, 2009 at 6:00 a.m. Pacific Time, unless Google is required or opts to extend the offer period to a later date. Currently, we expect that new options will have an exercise price equal to the closing price per share of our common stock on March 2, 2009 and that stock options with exercise prices above this closing price will be eligible for exchange, but this may change. Generally, all employees with options are eligible to participate in the program (Eric Schmidt, Sergey Brin, and Larry Page do not hold options).
In a time of economic doom and gloom it is refreshing to know that some companies are still doing well. So what do you think? Will Google continue to do well? Will advertisers continue to flock to the search giant?