|Google Q4 Revenue Up To $5.70 Billion|
Google Q4 and Year End Results, 2008 [google.com]
|Google reported revenues of $5.70 billion for the quarter ended December 31, 2008, an increase of 18% compared to the fourth quarter of 2007 and an increase of 3% compared to the third quarter of 2008. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the fourth quarter of 2008, TAC totaled $1.48 billion, or 27% of advertising revenues. |
|“Google performed well in the fourth quarter, despite an increasingly difficult economic environment. Search query growth was strong, revenues were up in most verticals, and we successfully contained costs,” said Eric Schmidt, CEO of Google. “It's unclear how long the global downturn will last, but our focus remains on the long term, and we'll continue to invest in Google's core search and ads business as well as in strategic growth areas such as display, mobile, and enterprise.” |
Q1 - Q3 of 09 will probably not be so rosey. Will be interesting to see if twitter, facebook, craigslist and the plethora of other sites out there start to pull people away from search and bring down paid clicks and revenue from them.
I don't know, skibum. The more people do anything on the web, the more they use Google, it seems. You read something on Craigslist, you check it out with Google. Someone Twitters you about widgets, you Google it find out what they are talking about. Likewise, Facebook.
Generic search is useful in a chaotic, crowded web that is constantly in flux. But if people only use a handful of sites (e.g., facebook, youtube, wikipedia, and a news site), they don't need that kind of search tool.
Right now, Google Search is at the heart of the online universe, but that central role isn't guaranteed to last forever.
|But if people only use a handful of sites (e.g., facebook, youtube, wikipedia, and a news site), they don't need that kind of search tool. |
But people don't use only a handful of sites. They may use a handful of sites for networking, watching videos, or reading the day's news, but when they're researching a purchase, trying to figure out why their dog is throwing up, or investigating the life of Benjamin Harrison for a term paper, they go to Google.
Apparently there's simply no stopping G. They provide something that will always be in demand; organization in a crowded,chaotic and sometemes even dangerous web.
|But people don't use only a handful of sites. |
I know... that's why it's such a great technology. I guess I was trying some crystal-ball-gazing and imagining a future internet that had less need for generic search engines. But maybe there will be no such thing! It's possible they will occupy the middle ground for a long time to come.
Google Inc. posted a 68% drop in fourth-quarter profit.
The Mountain View, Calif., company posted net income of $382 million, or $1.21 a share, down from $1.21 billion, a year earlier.
|Schmidt explained that 85% of current employees had stock options that were underwater, meaning those options cost more to exercise than the stock is currently worth. |
Yikes, that usually mean there will be some people using the exit door - however in this hiring climate, it probably means people will hunker down and ride out the storm.
|Google Inc. posted a 68% drop in fourth-quarter profit. |
that was due to their billion dollar investment in aol [google.com] last month.
|Revenue rose at an 18% annual rate |
|it probably means people will hunker down and ride out the storm. |
i know they're telling themselves why didn't i sell @ $700? if you see larry and sergey selling, it's time to dump yo' load. i know that's what made me sell my few g shares; although i didn't make much, for i missed the boat. i know those that bought at 85 are laughing hard.
Even though AdSense revenues were up, what publishers actually saw was less than the previous quarter.
AdSense revenue has been flat since around 2007 but Google's ad revenue for it's own sites has been growing, but not as fast as it was previously.
[edited by: eelixduppy at 8:58 pm (utc) on Jan. 24, 2009]
|Even though AdSense revenues were up, what publishers actually saw was less than the previous quarter |
I thought it was my "quality score" that went down...
|I thought it was my "quality score" that went down... |
Isn't "quality score" something used with AdWords, not AdSense?
So AdSense revenue shouldn't be affected by "quality score", unless you're doing AdWords/AdSense arbitrage.
Not sure how smart pricing plays in with arbitrage but there was a definite drop in payouts across the whole network, even though revenue was up.