In its earnings call last night, Google says things are looking up. After a slightly disappointing Q1, Google beat expectations, although its revenue is still growing slowly.
Estimates put net revenue at $4.06B, but Google posted $4.07B, up from $3.89B in Q208 (4.6% growth YOY). Net income for the second quarter was $1.48B, up from $1.25B in Q208 (18.4% growth YOY). Naturally some analysts are disappointed with Google only adding 3% growth over the previous quarter, but considering that Q1 constituted a 3% decline over Q408, it sounds like good news to me.
But even better news: CEO Eric Schmidt says that not only are things turning around (or at least “largely stabilized”), but YouTube will soon enter the realm of profitability. (Or, as one company I worked for optimistically called this, “making the push to cash positive.”)
Senior vice president Jonathan Rosenberg said monetized views on YouTube have more than tripled in the last year. The most popular video website on the Internet will be “a very profitable business for us” in the “not too distant future.”
Also, CFO Patrick Pinchette emphasized that YouTube does have a business model, unlike other Internet startups: “There’s been so much press with all these documentations of massive costs and no business model.”
Another way that Google has been looking to keep the bottom line down? They’ve lost nearly 400 employees in the last three months.
What do you think? Will YouTube soon be profitable, or is Google just trying to make itself look good? Are you disappointed with Google’s slowing growth rate?