January 19, 2012 – Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter and the fiscal year ended December 31, 2011.
Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the $10 billion mark for the first time,” said Larry Page, CEO of Google. “I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago. By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services. I’m very excited about what we can do in 2012 – there are tremendous opportunities to help users and grow our business.”
Google reported revenues of $10.58 billion for the quarter ended December 31, 2011, an increase of 25% compared to the fourth quarter of 2010. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the fourth quarter of 2011, TAC totaled $2.45 billion, or 24% of advertising revenues.
12:47 am on Jan 20, 2012 (gmt 0)
In related news...
Usability dropped a whopping 22% in the Fourth Quarter results. :)
5:32 am on Jan 20, 2012 (gmt 0)
Everyone here will be happy about their stock drop today.
6:30 am on Jan 20, 2012 (gmt 0)
CTR on ads was up over 33% yet earnings from those clicks was much lower, interesting.
That provides one answer, yes indeed Google is funneling more clicks towards their own interests, be it to their products or simply moving a search engine user onto a paid result instead of a natural result.
The value of Google is sinking, wall st is catching up to what webmasters have been saying all year imo. I don't think Mr Schmidt knows how not to continue breaking a good thing, he keeps doing what not many ever asked for or wanted from Google.
2:02 pm on Jan 20, 2012 (gmt 0)
Changes Google has been making to increase Adsense revenue over the last couple of years have obviously run their course. They have squeezed all the juice out of the lemon.
Also, it was said in the conference call that the effects of Panda would be seen in the next quarterly results. Don't know whether those effects will have a positive or negative effect. What are your thoughts on this?
2:34 pm on Jan 20, 2012 (gmt 0)
I can't see how Google's new "above the fold" algo will be positive for earnings either. It tells webmasters to use smaller ads and put them lower on the page - which is the opposite of what Adsense has been saying when Adsense was blitzing webmasters trying to increase revenue.
There obviously is no real strategy...
3:25 pm on Jan 20, 2012 (gmt 0)
Google has performed pretty good over the years and things have improved.
But, i feel that they don't have anything amazing for the future.
Like other members have said that they have squeezed the juice out of lemon. Lets see, if they have more fruits in their bag.
5:08 pm on Jan 20, 2012 (gmt 0)
lets leave the flames for the fireplace and not here. I deleted about a dozen off topic msgs. Enough with every thread being a opportunity to bash the g.
5:18 pm on Jan 20, 2012 (gmt 0)
Quarterly revenues broke the $10bn mark for the first time – at $10.58bn they were up 25 per cent on the last quarter of 2011 – but this was still below analyst’s estimates. Earnings-per-share was $9.50, about a dollar short of where Google had been hoped to be.
What’s particularly worrying Wall Street is Google’s continuing reliance on advertising for the vast bulk of its revenue, coupled with a steady drop in the cost-per-click price – the amount Google charges advertisers. This fell 8 per cent in the last quarter, on top of an 8 per cent drop the previous quarter. Annual costs were also a couple of percentage points higher.