Google earnings report comes with big surprises

Thursday, January 20th, 2011 By

Eric Schmidt

Google CEO Eric Schmidt is stepping aside but not stepping down. Image: Flickr / worldeconomicforum / CC-BY-SA

Google released its quarterly earnings report today, and it contained many surprises. The Google earnings report showed
stronger earnings-per-share than expected. The report also included the news that co-founder Larry Page will become the CEO.

Q4 Google earnings report

In accordance with financial regulations, Google has released its fourth quarter earnings report for 2010. The 2010 Google earnings were very strong, turning a profit of $8.75 per share. During the same period of 2009, Google stocks earned $6.79 per share. Total revenue for the company during the three-month period was $6.4 billion. Estimates had put Google earnings for Q4 at $8 per share, with $6 billion in earnings.

The Google CEO announcement

Bigger news than stronger-than-expected earnings, though, is the shakeup in Google management. CEO Eric Schmidt has been serving in that position since 2001. As of April 4, however, co-founder Larry Page will be taking over as Google CEO. Schmidt will be staying with Google, and working on “special projects” within Google, such as governmental outreach. Page will be handling day-to-day operations of Google, and co-founder Sergey Brin will be working on “several new products,” which are so far undefined.

History of Google operations

Though there is a shakeup in the top echelons of Google, it is not as big a shakeup as it may seem. It has been widely recognized that Google runs as a triumvirate, a three-leader system, with Eric Schmidt as the legal head of the company only. By moving around the management position but maintaining the same three heads of the company, Google will likely not be seeing any major changes in company philosophy or projects. This announcement comes at the same time as Apple’s Steve Jobs announcing that he is taking a six-month medical leave of absence, reigniting the debate of Apple’s dictatorial management structure versus Google’s combined, collaborative management style.

Sources

CNBC
Tech Crunch

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