Google C/Call is Weak So Far

Relatively poor conference call so far for Google. They over-hired, messed up bonus accrual, and are being forced to account for weak paid click data.

2:37 PM Oh-oh, Mary Meeker’s up next.

2:39 PM And it’s a prize-winner 212-word question:

Dave and I just wanted a couple clarifications. Eric, you’ve talked
about the heads and basically the headcount and the operating expense
changes and said you are going to watch it and you feel great about the
people you’ve hired. But you indicated a portion of those were sales
heads and a portion were international heads. I guess our translation
would be that you feel comfortable that there will be related revenue
commensurate to the hires in the next two to three quarters. So that is
question one. Question two, if we could drill down on the bonus accrual
a little bit, should we expect to see it to be … will play out on a
more normalized basis on a go-forward basis? And is it fair to say that
half of the difference between what you might have been expecting in
OpEx and half of what you got for the quarter was related to the
accrual? And third question, if we may, just for a little clarification
… any thoughts on how we should think about cost of goods sold as a
percent of revenue on a go-forward basis? And if you could answer any
of those three, we will be happy. We know we went over our quota.Thank you.

You go, Mary.


  1. Google’s down $40 in the after-market (7.4%)

  2. “You go, Mary.” huh? go make a fool of yourself? or what?

  3. Lancey:
    Not to be confused with Lance.
    The former.
    And companys don’t overhire, they underacheive revenue targets. MM was essentially trying to pin GOOG on that but went to some school or company where they teach you to speak Hardly English.