GOOG. Q2 06 FCF $142M.
Henry Da Blodge', The Internet Outsider, has the always interesting word on google's decreasing growth in FCF : "Last year at this time, Google was on track to generate about $2 billion in annualized free cash flow.. half the free cash flow generated by the largest media company in the world, Time Warner--combined with the free cash flow growth rate (100%-plus), made the stock's valuation tolerable.. But then the company began to ramp CAPEX.. it started buying buildings, data centers, etc. And then free cash flow stopped growing...and then started declining. Precipitously.
The net result of all this is that the company generated a paltry $142 million in free cash flow in Q2 and, so far this year, has generated about $600 million.
Back out the $319 million the company just spent on its Googleplex, and you get about $900 million in "normalized" free cash flow for the year. Double that for Q3 and Q4, and you're about where you were at this point last year--on track to do about $2 billion in FCF, a far cry from the $3 billion-plus the Street expected earlier this year and zero year-over-year growth despite a near doubling of revenue."
The net result of all this is that the company generated a paltry $142 million in free cash flow in Q2 and, so far this year, has generated about $600 million.
Back out the $319 million the company just spent on its Googleplex, and you get about $900 million in "normalized" free cash flow for the year. Double that for Q3 and Q4, and you're about where you were at this point last year--on track to do about $2 billion in FCF, a far cry from the $3 billion-plus the Street expected earlier this year and zero year-over-year growth despite a near doubling of revenue."
posted by redbarren at 2:26 PM
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