Google's 2005 Growth Story: Fool by Numbers

On Jan. 31, Google (Nasdaq: GOOG  ) released Q4 and full-year fiscal 2005 earnings for the period ending Dec. 31, 2005.

  • Sales of $6.1 billion easily surpassed guidance. But EPS of $5.50, which excluded one-time items such as stock-based compensation, fell far short of $5.90 per stub.
  • Though extraordinary in size and scope, Google's network partners didn't drive revenue in 2005. Google's own sites did the trick, capturing 55% of sales.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2005

FY 2004

Change

Sales

$4,030,000

$6,138,560

$3,189,223

+92.5%

Net Profit

--

$1,465,397

$399,119

+267.2%

EPS

$5.90

$5.02

$1.46

+243.8%

Get back to basics with a look at the income statement.

Margin Checkup

FY 2005

FY 2004

Change

Gross Margin

58.11%

54.29%

+3.81%

Op. Margin

32.86%

20.07%

+12.79%

Net Margin

23.87%

12.51%

+11.36%

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2005

FY 2004

Change

Cash+ ST Invest.

$8,034,227

$2,132,297

+276.8%

Inventory

$-

$-

N/A

Accounts Rec.

$687,976

$311,836

+120.6%



Liabilities

Long-Term Debt

$-

$-

N/A

Accounts Pay.

$115,575

$32,672

+253.7%



Cash Flow Highlights

FY 2005

FY 2004

Change

Cash From Ops

$2,459,422

$977,044

+151.7%

Capital Expend.

$838,217

$318,995

+162.8%

Free Cash Flow

$1,621,205

$658,049

+146.4%

Find out why Fools always follow the money.

Related Companies:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

Microsoft is a Motley Fool Inside Value recommendation.Sign upfor a risk-free 30-day trial to get the inside scoop on all the picks that are helping chief analyst Philip Durell beat the market by nearly 5% as of this writing. Orsubscribeorrenewtoday and we'll throw inStocks 2006, which features our analysts' best picks for the year ahead. All you have to lose is the prospect of better returns.

Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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