Yes, Google does give guidance (2Q05 GOOG conf call)

Google's (ticker: GOOG) conference calls are typically frustrating. Analysts ask sycophantic questions and the management team answers with platitudes and generalities totally devoid of useful information. But Google's Q2 call last night was the exception. There was a clear message about guidance, even though the company officially doesn't give guidance. Here it is, in the words of Google CFO George Reyes:

…Q4 and Q1 are the strongest quarters for the advertising industry and for Internet usage, while Q2 and Q3 are traditionally weaker with Q3 generally the weakest of all quarters. For a number of reasons, not the least of which was the introduction of an important improvement in our advertising product and the publicity surrounding our IPO, last year's third-quarter results were unusually strong. In 2005 we are tracking to traditional advertising and Internet traffic seasonality and we expect that to continue. Therefore, as you contemplate your third-quarter estimates, I encourage you to factor in what you know about both domestic and European summertime seasonality, as well as the increasingly significant contribution from Europe, by far the largest of our international markets, to our top line.

… you should not expect us to link our spending to revenue growth patterns. Revenue growth is seasonal; expense growth with many new hires coming on board in the summer along with other timely expenditures, is not seasonal. We reinforce that comment today and reiterate our previously issued caution that over time, and for a variety of reasons, operating margins may decline.

(Quotes are from the CCBN StreetEvents transcript.)

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