| Revenue: sales recorded. This might or might not represent cash coming through the door in this quarter, but it represents that there is an agreement for cash and goods/services to change hands. Operating income: Money left over after you subtract the costs of operating the business and making the sale. In a manufacturing firm, for example, you would subtract the cost of the materials in the goods sold. For Google they are deducting things like the running costs of data centres and wages for staff. Operating margin: You can think of this as raw profitability. Given the things management has direct, somewhat immediate control over, how good is the company at taking in more money than they spend? Net income: Take the Operating Income and then subtract taxes, interest payments, depreciation of assets and the like. These are all expenses, but not expenses directly connected to current activities. In the rest of the figures they give metrics that are intended to help analysts understand the dynamics of the business that lead to the financials. So for example they showed how different categories contribute to the bottom line. They also show headcount, which can be seen as a leading signal of intention and ability to grow the business. That operating income has grown even with a very large headcount growth is impressive. ---- I am not a lawyer, accountant or financial advisor, don't rely on this as professional or investment advice. |
Small clarification, this is sales recognized. For example, if your customer signs a 2 year service agreement at the start of a quarter, the revenue reported that quarter should be 1/8th of the total contract amount (assuming you are recognizing revenue at a flat rate).