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Google 2nd QTR 2008 Results Announced
Marcia

WebmasterWorld Senior Member marcia us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3701157 posted 9:06 pm on Jul 17, 2008 (gmt 0)

The press release:

Google Announces Second Quarter 2008 Results [tradingmarkets.com]
MOUNTAIN VIEW, Calif., Jul 17, 2008 (BUSINESS WIRE) -- GOOG Quote Chart News PowerRating -- Google Inc. (NASDAQ:GOOG) today announced financial results for the quarter ended June 30, 2008.

And from the San Jose Mercury News:

Google earnings rise 35% but miss analysts' expectations [mercurynews.com]
With online and international traffic increasing, Google today reported a nearly 35 percent jump in profit for its second quarter, compared with the same period last year.

But the Mountain View search giant's profit numbers fell short of analysts' expectations, despite a 39 percent increase in revenue over the second quarter in 2007.

"Another strong quarter, despite a more challenging economic environment," is how Google chief executive Eric Schmidt phrased it, in a company statement announcing earnings for the three-month period ending June 30.

Here's the link for the archived webcast:

[investor.google.com...]

[edited by: Marcia at 9:17 pm (utc) on July 17, 2008]

 

Visi

10+ Year Member



 
Msg#: 3701157 posted 9:11 pm on Jul 17, 2008 (gmt 0)

find it simply amazing that a company drives up sales and profits in the quarter and because someone on wall street says not good enough the shares hit the skids...and we wonder why the financial community is in trouble.

LifeinAsia

WebmasterWorld Administrator lifeinasia us a WebmasterWorld Top Contributor of All Time 5+ Year Member



 
Msg#: 3701157 posted 9:20 pm on Jul 17, 2008 (gmt 0)

Oh good- I guess it's time for another thread similar to:
- "This proves Google pays AdSense users xy.za% of revenue."
- "No it doesn't because MY revenue went down this quarter!"
- "Yes it does, because MY revenue went UP this quarter."
- "Once again, these numbers just show the aggregate numbers and do NOT mean that every AdSense participant gets the same percentage."
- "EFV, you are just a snarly Google-lover who refuses to accept any information negative to Google."
- "Google is just stealing money from us! The cut should be closer to, if not, 100% becasue we do all the work!"
- "I gave up on AdSense long ago because it wasn't paying enough money."
- "When is Google going to have more tansparency and show exactly what percentage every site is getting?"

Did I forget anything? :)

goodroi

WebmasterWorld Administrator goodroi us a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



 
Msg#: 3701157 posted 10:47 pm on Jul 17, 2008 (gmt 0)

oh no! revenue went up more than profit, so i guess that means google's costs need to be controlled. sure hope they dont slash the budget for the google dance to make up for it.

np2003

10+ Year Member



 
Msg#: 3701157 posted 10:56 pm on Jul 17, 2008 (gmt 0)

because someone on wall street says not good enough the shares hit the skids...

Shares like Google are traded based on future performance basis, thus when results come in that growth slows, investors sell.

aleksl



 
Msg#: 3701157 posted 12:22 am on Jul 18, 2008 (gmt 0)

"Google said paid advertising clicks - the number of times that Internet users clicked on paid advertisements - increased 19 percent over the second quarter of 2007. Still, that was a 1 percent decline from the first quarter of 2008."

Google-owned sites generated revenues of $3.53 billion, or 66% of total revenues. This represents a 42% increase over second quarter 2007 revenues of $2.49 billion and a 4% increase over first quarter 2008 revenues of $3.40 billion.

Google Network Revenues - Google's partner sites generated revenues, through AdSense programs, of $1.66 billion, or 31% of total revenues, in the second quarter of 2008. This represents a 22% increase over network revenues of $1.35 billion generated in the second quarter of 2007 and a 2% decrease over first quarter 2008 revenues of $1.69 billion.

Traffic Acquisition Costs, the portion of revenues shared with Google's partners, decreased to $1.47 billion in the second quarter of 2008.

"Google is also benefiting from its reach overseas. In the first quarter of this year, the company said its revenues from other countries had surpassed its U.S. sales for the first time. In the second quarter, Google said overseas sales amounted to [$2.80 billion or] 52% of total revenue."

Last one is excellent trend. U.S. is in a big recession

bakedjake

WebmasterWorld Administrator bakedjake us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3701157 posted 12:40 am on Jul 18, 2008 (gmt 0)

find it simply amazing that a company drives up sales and profits in the quarter and because someone on wall street says not good enough the shares hit the skids...and we wonder why the financial community is in trouble.

People are speculating that Google will continue to grow at a good rate; that's why they're paying 37 units for every 1 unit of income with GOOG.

If Google shows signs that it is no longer growing at that rate, it's attractiveness will fade and the price that people are willing to pay for one unit of income will go down.

The markets are working.

shorebreak

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3701157 posted 2:05 am on Jul 18, 2008 (gmt 0)

The most interesting thing was on the earnings call when Jonathan Rosenberg said that Larry or Sergey (not sure who) would ideally want one ad per query.

AdGooroo data shows ads per query down 40-50% YoY, and we should all expect that Quality Score barriers will get tougher and tougher, to the point where most advertisers ads simply won't qualify.

--> if you haven't gotten serious about multivariate ad copy and LP testing, now's a good time to do so

zett

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 3701157 posted 9:35 am on Jul 18, 2008 (gmt 0)

- "This proves Google pays AdSense users xy.za% of revenue."
- "No it doesn't because MY revenue went down this quarter!"
- "Yes it does, because MY revenue went UP this quarter."
- "Once again, these numbers just show the aggregate numbers and do NOT mean that every AdSense participant gets the same percentage."
- "EFV, you are just a snarly Google-lover who refuses to accept any information negative to Google."
- "Google is just stealing money from us! The cut should be closer to, if not, 100% becasue we do all the work!"
- "I gave up on AdSense long ago because it wasn't paying enough money."
- "When is Google going to have more tansparency and show exactly what percentage every site is getting?"

Let's see...

"This proves Google pays AdSense users xy.za% of revenue."
Nah. The overall TAC has never reflected individual publisher payout.

"No it doesn't because MY revenue went down this quarter!"
Er, well, yes.

"Yes it does, because MY revenue went UP this quarter."
Nah.

"Once again, these numbers just show the aggregate numbers and do NOT mean that every AdSense participant gets the same percentage."
Yep. Where's that thread?

"EFV, you are just a snarly Google-lover who refuses to accept any information negative to Google."
Sadly, EFV is not around here any longer. Where is a Google fanboy when you need one? ;-)

"Google is just stealing money from us! The cut should be closer to, if not, 100% becasue we do all the work!"
I agree, we *should* get (and deserve) 100%. Sergey and Larry and Schmidt have more than enough already.

"I gave up on AdSense long ago because it wasn't paying enough money."
Nah. It's still a low-maintenance money machine. For me. Although the money that comes out keeps getting smaller.

"When is Google going to have more tansparency and show exactly what percentage every site is getting?"
Yeah, when?

pexcornel

10+ Year Member



 
Msg#: 3701157 posted 10:33 am on Jul 18, 2008 (gmt 0)

"Growth in Google's advertising clicks has slowed from higher rates reported last year. Google co-founder Sergey Brin, however, told the Mercury News today that's partly the result of "how we tune our systems."

Analysts say the company has taken steps to cut down on unintentional clicks and to reduce sales of lower-priced keywords in favor of more lucrative arrangements.

"We're not trying to maximize clicks. We care more about having high-quality ad clicks," Brin said in a phone interview."
______________________________________________________________________
It's gonna end to a point that It will be to expensive to do PPC. Or are we pass that point yet?

pexcornel

10+ Year Member



 
Msg#: 3701157 posted 10:35 am on Jul 18, 2008 (gmt 0)

"high-quality ad clicks" translate to "more lucrative arrangements" in Sergey Brin's vision
:)

TinkyWinky

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3701157 posted 11:16 am on Jul 18, 2008 (gmt 0)

Given that my understanding is that investors will never get a divi off these shares, buying and selling individual shares is the only way people will make money off these shares.

With the global economy continuing to move towards recession, I would expect the share price to fall still further over short term as strictly short term city investors (remember they have to get their fat cat bonuses somehow!) cash in. Not only for bonuses, but to hoard money for the bottom of the market...so they can buy cheap and ride the bull....whenever that may be.

Okay a mass simplification of all the facts!

signor_john



 
Msg#: 3701157 posted 2:01 pm on Jul 18, 2008 (gmt 0)

"We're not trying to maximize clicks. We care more about having high-quality ad clicks," Brin said in a phone interview."

Sounds about right, in light of what I've seen at the mom-and-pop publisher level (a 35% increase in AdSense earnings per click in June, 2008 compared to the same month last year).

Google did announce a tightening up of its "valid click" definition a while back, as I recall.

Visi

10+ Year Member



 
Msg#: 3701157 posted 2:09 pm on Jul 18, 2008 (gmt 0)

Understand the wall street mentality....just disagree with it is all. Wish we had a few more companies that "earned $1.25 billion, or $3.92 per share, during the three months ended in June. That represented a 35 percent increase from net income of $925 million, or $2.93 per share, at the same time last year". Instead we have a financial community that rewards companies that don't lose as much money as they thought they should. The move from evaluating companies and investments based on profitability versus comparing to an ivory tower expectation of analyst in my opinion is asinine....however it's the world we live in.

maximillianos

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3701157 posted 4:18 pm on Jul 18, 2008 (gmt 0)

Well this confirms they are still payout out to Adsense partners very well... (about 80%).

signor_john



 
Msg#: 3701157 posted 5:29 pm on Jul 18, 2008 (gmt 0)

Well this confirms they are still payout out to Adsense partners very well... (about 80%).

Yeah, but who knows what they're making on the currency exchange. :-)

aleksl



 
Msg#: 3701157 posted 6:35 pm on Jul 18, 2008 (gmt 0)

maximillianos: Well this confirms they are still payout out to Adsense partners very well... (about 80%).

no it doesn't. the majority of the amount goes to a select few BIG partners.

but here goes one of the LifeInAsia-announced threads :)

signor_john



 
Msg#: 3701157 posted 7:45 pm on Jul 18, 2008 (gmt 0)

no it doesn't. the majority of the amount goes to a select few BIG partners.

Maybe you could point us to your source of that inside information?

frontpage

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3701157 posted 12:20 pm on Jul 19, 2008 (gmt 0)

Google shares plummet after disappointing earnings

Google Inc. shares plunged nearly 10 percent Friday after the Internet search leader's second-quarter earnings missed analysts' expectations. ...

The red flags raised after the bell Thursday included a dramatic slowdown in the company's hiring pace and Google Chairman Eric Schmidt's description of the economy as "challenging." Google's chief economist, Hal Varian, even participated in the company's conference call for the first time to discuss business conditions. ...

The number of paid clicks on the Web sites operated by Google and its partners during the second quarter fell 1 percent from the first quarter, the first sequential downturn that the company has ever reported in the category.

"Consumers are being cautious in their online spending patterns, just as they are in their off-line spending patterns," Varian told analysts during Thursday's conference call.

signor_john



 
Msg#: 3701157 posted 3:35 pm on Jul 19, 2008 (gmt 0)

I think it's pretty obvious that Google's big dogs are more interested in building for the future than in helping speculators make a quick buck. Good for them! Better to build a blue-chip company than a bubble that's destined to burst.

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