Google spent the majority of $597 million in first quarter capital expenditures on IT infrastructure, including data centers, servers and networking equipment.
Google delivered pro forma earnings of $3.68 a share handily beating Wall Street estimates of $3.30 in the first quarter. Revenue minus traffic acquisition costs was $2.53 billion also topping estimates.
On the company's earnings conference call, Google CEO Eric Schmidt noted that management was "ecstatic" about the quarter, but cautioned that the company is "entering a seasonally slow period." As expected, Schmidt talked up Google's offline efforts with Echostar and Clear Channel. Schmidt did note that Google's print advertising test is "doing extremely well as learn what works and what does not."
Among the key figures in the earnings statement (Techmeme discussion):
Schmidt and Larry Page, president of products, seemed to go out of the way to emphasize that Google was focused on its core ad business since it funds new ventures. Page said 70 percent of Google's resources are focused on the core business. The remainder goes to new products. Schmidt added that there was a lot of growth in Google's primary business.
In the company's conference call slides, Google noted that its priorities are to expand its partner network, invest in infrastructure and employees and "improve the quality of the user experience."
Here are some notable conference call tidbits:
Google also said it will launch its employee transferable stock options program, which frankly is rocket science, in the second quarter. Google also said Schmidt has been elected chairman of the board of directors. John L. Hennessy, president of Stanford University, has been elected lead independent director.