The big question is whether Google will have brought its expenses under control. Last quarter, operating expenses were up almost $1 billion from the prior year, largely because of Google’s hiring spree.
On the company’s Q2 earnings call, CEO Larry Page said that Google was “probably ahead” of where it needed to be in terms of headcount growth, so that paves the way for a decrease in opex this quarter — and higher earnings.
It will be interesting to see if Larry Page drives the call like he did last quarter — he even posted a transcript of his opening remarks to Google+ right after he delivered them — or if he takes a lower profile as he did during his first quarter as CEO.
We’ll also be listening closely for any mention of progress on the Motorola acquisition, or other possible wild card buys like Akamai (which Google seems to be dismissing after a wave of rumours came out in the ad-tech industry) or possibly Nuance (a voice recognition technology company which recently bought Swype, an input system widely used on Android phones).
Here’s what analysts are expecting, via Yahoo Finance and Mark Maheny at Citi:
- Gross revenue: $9.60 billion, up 32% from last year (Citi)
- Net revenue: $7.21 billion (consensus), up 31%.
- Non-GAAP operating income: $3.40 billion (consensus).
- EBITDA earnings: $3.92 billion (consensus).
- Non-GAAP EPS: $8.74 (consensus).
- Google Sites gross revenue: $6.67 billion, up 38% (Citi).
- Google Network gross revenue: $2.61, up 19%.
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