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Google's reports 4Q results

Revenues cross $1.9bn

     
9:25 pm on Jan 31, 2006 (gmt 0)

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According to Google's 4Q results:

"Google reported revenues of $1.919 billion for the quarter ended December 31, 2005, an increase of 86% compared to the fourth quarter of 2004 and an increase of 22% compared to the third quarter of 2005.
Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the fourth quarter, TAC totaled $629 million, or 33% percent of advertising revenues."

86% increase is a quite significant one. How is it that their TAC is only 33%? Is it going up or down?

Frank

9:30 pm on Jan 31, 2006 (gmt 0)

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I see the stock price is down $26.16 to $406.50
9:33 pm on Jan 31, 2006 (gmt 0)

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Stock is down in after hours market. Last time I saw it was about $62 down ($369). But I think it was not the minimum.
9:40 pm on Jan 31, 2006 (gmt 0)

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I suspect the market is reacting more to coming players entering into the market than those figures which are exceptional , but possibly G have something big up thier sleeve for Microsoft and YPN when they hit the market fully , I am sure there are ways they can continue to leverage the dominent position and massive amount of data they currently have .

I do believe they will be dominent for some time but the problem with being top of the heap is those playing catch up wait for a mistake and pounce ,

And with Microsoft one of those who are in the race as they say anything can happen

steve

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4:02 am on Feb 1, 2006 (gmt 0)

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TAC is mostly what they pay AdSense publishers. Since those numbers don't break out what they earned from the search network versus what they earned from content--or AdSense--we don't really know what it means or how it's moving.
7:01 am on Feb 1, 2006 (gmt 0)

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>> How is it that their TAC is only 33%?

the % is diluted by the money made from clicks on Google.com I believe; they don't have to pay anyone for that.