Lose something every day. Accept the fluster
of lost door keys, the hour badly spent.
The art of losing isn't hard to master.
-- From "One Art" by Elizabeth Bishop, in honor of the 24th annual National Poetry Month.
Come on, Google
I was hoping for a really bad showing from the search giant last night. This recession, too, shall pass -- and it would have been sweet to see Google's shares swoon on the heels of short-term pains while the long-term future remained as bright as ever. Instead, Google pulled out a surprisingly healthy first quarter. Thanks a lot, dude.
Okay, so I shouldn't really complain that a company I own and respect is doing well. Net revenue (gross sales minus traffic acquisition costs) came in at $4.07 billion, up from $3.7 billion a year ago. GAAP earnings jumped 9% year over year to $4.49 per diluted share. And free cash flows more than doubled to a cool $2 billion.
Paid clicks ticked up 3% over last quarter and 17% over the year-ago period. Higher volume and lower revenue in an auction-style system like AdWords make me think that the model is still working and driving new traffic to Google, but advertisers are scaling back their marketing budgets. I don't know how long this downturn will last, but I can say with certainty that it will end.
However, net revenue came in lower than last quarter's $4.2 billion, and that has never happened to Google before. I see parallels -- albeit on a much larger scale -- to the bump in the road that Netflix
Google's temporary nemesis is a weak economy rather than rivals like Yahoo!
And we happy shareholders will laugh all the way to the bank.
Further Foolishness:
