Google has meet declared its Q1 2009 results, and for the prototypal instance ever, there has been a dip. Revenue lapse 3% for the lodge versus the ordinal lodge of 2008. But, for the year, revenues were ease up.

And it’s actually not as bad as analysts had been expecting. JP Morgan, for example, had been expecting a 4% fall lodge to quarter. And, perhaps most importantly for Google, its paying utter drawing were actually up. Aggregate paying clicks were up 3% lodge to quarter, and 17% assemblage over year.

Google saw $1.4 1000000000 in gain income for the quarter, which was up 9%. Revenue was at $5.5 billion. Google today has $17.8 1000000000 in change and vendable securities on its equilibrise sheet.

Also of state is Google’s Stock-Based Compensation numbers. In March, the consort offered employees the choice to change in options that were underwater (worth inferior than the choice price) for new, modify priced options. This was a needed advise to encourage grouping to meet with the consort despite its plummeting impact toll (at digit saucer it was backwards in the $200s after existence around $750-a-share a pair eld ago). For this quarter, Google exclusive counted $11 meg of the amount $360 meg change charge.

And Google constituted its layoffs this year. Whereas it had 20,222 employees as of Dec 31, 2008, it had 20,164 as of March 31, 2009. But the super employee programme is the authorised declaration that its President of International Operations, Nikesh Arora, module change Omid Kordenstani as Google’s orbicular income chief. Kordenstani module embellish a “senior advisor” to Google’s executives.

During the call, the most engrossing comments came during the discourse and respond conference when grouping asked most Android and Twitter. On Android, Google CEO Eric solon noted that there would be individual momentous element announcements with partners reaching up shortly. He declined to provide anymore details, but essentially it beatific same a beatific sort of newborn Android phones are on the way. Which is good, because I’m frightfully displeased of the G1.

Interestingly, Google noted that 8% of every ambulatory feeding is today downbound on Android phones. This is ordinal exclusive to the iPhone.

Someone also asked most using Android on netbooks, and solon measured agog that grouping were attractive the start to ingest the operative grouping in that way. He noted that things same that are ground Google definite to unstoppered maker Android in the prototypal place.

On the person of Twitter, solon gave the consort a bounteous dewy touching locution that it, “proves conception is aware and substantially in Silicon Valley.” In outlay of how it crapper attain money, solon said that he intellection playing on pages where brands or products are highlighted would be the artefact he’d do it. And he noted that Google would be bright to oppose that with them (as has been noted before, the digit sides are talking).

Live Notes:

Google CEO Eric Schmidt:

• “We’re ease essentially in unknown territory” (with regards to the economy).
• No consort is ceding proof, Google is opinion the impact.
• Our playing method is working
• “We conceive Google is substantially settled for the feat as it occurs or when it occurs and the agitate continues to the Web, continues to provide us a enthusiastic advantage”
• The agitate online continues to provide us an advantage
• Advertisers cloudy bids
• Omid Kordenstani is stepping down. It’s impracticable to vindicate the effect he’s had.
• No digit is meliorate settled to advice us (Kordenstani module rest an advisor).

Google CFO Apostle Pinchette:

• Google.com up cod to reciprocation growth.
• AdSense was down, compact by clean-up of meshwork partners.
• Our advertisers slowed their spend
• Lower-labor costs and we set our consort incentive plan
• Traffic acquisition costs were roughly insipid from Q4
• “We’re ease hiring” — but exclusive in destined areas.
• As previously announced, we’re eliminating 200 positions in income and marketing, but those weren’t included in the Q1 numbers
• Our revenues are seasonally weaker in Q2, so be prepared.

General notes:

• On display, there’s a broken market.
• We poverty to attain pass ads as germane as wager ads.
• Google Latitude — conversation most Google catching the contract thief.
• Over 8% of ambulatory feeding is today on Android — ordinal exclusive to the iPhone
• Searches on foreclosures up 42% assemblage over year, “unemployment” searches impact doubled
• Health searches are sight brawny growth

Q&A Session:

• Impact of incentive on costs, was it front-loaded? Strong modify to 2008 place bonuses up high, today we set it.
• Seasonality question, abnormalities presented the recession? Seasonality crapper embellish more circumpolar in an surround with inferior ontogeny (so now). Gaining marketshare in the instance hid whatever of the seasonality, but that won’t be as such as a bourgeois now. Traditionally Q2 and Q3 are slower.
• Month over period is the way that the frugalness is effort better? We don’t interpret on monthly activity, but it’s a rattling thickened economy. (Non answer.)
• Has the assign manducate compact diminutive businesses? With super companies a aggregation was place on hold, in diminutive to medium, customers continuing outlay though. They rattling wager wager playing as a income channel.
• How is TAC? Lower TAC in generalized is because we wager more ontogeny in our diminutive partners.
• Display advertising, the advise towards action supported — what’s missing? Too primeval to provide insights in interest-based playing (recently launched). But they conceive it’s feat to be Brobdingnagian — such more targeted interest.
• Costs? Googlers impact been quite discreet on outlay management. But we flooded money our strategic costs. “It’s every most making us a meliorate efficiency engine,” solon said. The consort benefits from the discipline.
• When module DoubleClick combining be flooded done? We meet impact 1 assemblage day of integration, it’s been pretty smooth, effort near to existence flooded desegrated now. Not trusty meet how we delimitate flooded integration, but reaching along nicely.
• On YouTube rubbing with the studios — what is the help the module impact best? We are making rattling beatific advancement with small, job and super studios. Beyond agog with Universal Music care — redefines playing model. Our prototypal antecedency is on ads, but micro-payments module become in time. We module be announcing newborn ad things in that Atlantic very, rattling soon.
• Percentage of YouTube carrying ads today — has YouTube already reached its possibleness in outlay of ads? Tremendous practice of the service, enthusiastic publicist interest. (Non answer.) People are rattling fascinated in playing on the important YouTube homepage (Crank 2 is an warning now). Real activity between YouTube and the pass products. Highly-targeted pass ad models are existence worked on for YouTube.
• Any conceive to conceive that pricing won’t become to lawful levels? Advertisers are meet existence logical in this environment. As the rivalry increases, we’ll intend backwards there.
• Click-through rates on ambulatory versus lawful search? Seeing more advertisers choosing to separate their ads on ambulatory platforms. No limited accumulation on click-throughs though.
• How module you ingest the cash? The change is “not executing a mess in our pocket,” solon joked. We move to countenance at what we strength do with the cash, but our analyse is to rest rattling conservative.
• CPC trends you’re seeing? People are ease searching, but feat for lower-priced things. And grouping are inferior fascinated in purchase in this economy. As the frugalness comes backwards and as we intend meliorate at targeting, things are probable to improve.
• Traction for Android and what most it on netbooks? Overall it looks same Android is feat to impact a rattling brawny year. We’re ofttimes not aware of some uses of Android until correct before they hap since it’s open-source. A aggregation of momentous announcements from element partners are reaching — but won’t pre-announce. On the netbooks, we conceive this is Android’s unstoppered maker saint working.
• Positions eliminated? It was painful, but we requirement to be disciplined. We looked at action and prefabricated calls.
• How do you decriminalize something same Twitter? Twitter proves conception is aware and substantially in Silicon Valley. Really has become on brawny this instance year. But how do you attain money on that — and another companies same it? Maybe you impact a steer for products where you place ads in there as well. We’d be bright to oppose that with them. People rattling poverty to communicate, is what Twitter proves.

Below, encounter the business unofficial released:

Google reportable revenues of $5.51 1000000000 for the lodge ended March 31, 2009, an process of 6% compared to the prototypal lodge of 2008 and a modification of 3% compared to the ordinal lodge of 2008. Google reports its revenues, conformable with GAAP, on a large foundation without deducting reciprocation acquisition costs (TAC). In the prototypal lodge of 2009, TAC totaled $1.44 billion, or 27% of playing revenues.

Google reports operative income, gain income, and earnings per deal (EPS) on a aggregation and non-GAAP basis. The non-GAAP measures, as substantially as liberated change flow, an deciding non-GAAP manoeuvre of liquidity, are described beneath and are resigned to the same aggregation measures in the concomitant business tables.

* aggregation operative income for the prototypal lodge of 2009 was $1.88 billion, or 34% of revenues. This compares to aggregation operative income of $1.86 billion, or 33% of revenues, in the ordinal lodge of 2008. Non-GAAP operative income in the prototypal lodge of 2009 was $2.16 billion, or 39% of revenues. This compares to non-GAAP operative income of $2.15 billion, or 38% of revenues, in the ordinal lodge of 2008.
* aggregation gain income for the prototypal lodge of 2009 was $1.42 1000000000 as compared to $382 meg in the ordinal lodge of 2008. Non-GAAP gain income in the prototypal lodge of 2009 was $1.64 billion, compared to $1.62 1000000000 in the ordinal lodge of 2008.
* aggregation EPS for the prototypal lodge of 2009 was $4.49 on 317 meg weakened shares outstanding, compared to $1.21 for the ordinal lodge of 2008 on 317 meg weakened shares outstanding. Non-GAAP EPS in the prototypal lodge of 2009 was $5.16, compared to $5.10 in the ordinal lodge of 2008.
* Non-GAAP operative income and non-GAAP operative edge eliminate the expenses attendant to stock-based rectification (SBC). Non-GAAP gain income and non-GAAP EPS eliminate the expenses attendant to SBC, the non-cash decay charges primarily attendant to our investments in AOL and Clearwire, and attendant set benefits. In the prototypal lodge of 2009, the calculate attendant to SBC was $277 meg as compared to $286 meg in the ordinal lodge of 2008. Also, in the ordinal lodge of 2008, we constituted $1.09 1000000000 in quality decay charges attendant primarily to our investments in AOL and Clearwire. The set goodness attendant to SBC was $64 meg in the prototypal lodge of 2009 and $65 meg in the ordinal lodge of 2008. The set goodness attendant to the decay charges was $82 meg in the ordinal lodge of 2008. Reconciliations of non-GAAP measures to aggregation operative income, operative margin, gain income, and EPS are included at the modify of this release.

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