Google sees fourth-quarter revenue, earnings rise

Google logoWith the economy beginning to show signs of a recovery, Google's growth continued in the fourth quarter as the company beat analyst estimates and saw revenue rise 17 percent from a year ago on strong ad sales.

Last quarter was an "extraordinary end to a roller-coaster year by any means," Chief Executive Eric Schmidt said in a conference call with analysts. "The digital economy continues to grow very rapidly, and specifically we're moving literally eyeballs and advertising online. And we continue to benefit from that...We're back in business full blast."

Revenue for the quarter ended December 31, excluding traffic acquisition costs, was $4.95 billion, slightly higher than the $4.92 billion analysts were expecting. Including those costs, Google posted total revenue of $6.67 billion.

Earnings were $2.19 billion, or $6.79 a share, excluding stock-based compensation and other costs. That was higher than the analyst expectations of earnings per share of $6.50, and up from year-ago earnings of $1.62 billion, or $5.10 per share.

Including all costs, earnings were $1.97 billion, or $6.13 a share, compared with $381 million, or $1.21 a share, a year ago. Traffic acquisition costs, the portion of revenue shared with Google's partners, totaled $1.72 billion and represented 27 percent of ad revenue.

Despite the strong numbers, Google shares fell in after-hours trading, possibly because it wasn't a blow-out quarter. They dropped 4.6 percent from a close of $582.98 per share to $556.

Paid clicks rose 13 percent from a year ago and the average cost per click increased 5 percent.

Google-owned sites generated revenue of $4.42 billion, or 66 percent of total revenue, up 16 percent from a year ago. Meanwhile, revenue from partner sites through the AdSense programs was $2.04 billion, or 31 percent of total revenue, up 21 percent from a year ago. International revenue totaled $3.52 billion, representing 53 percent of total revenue.

The company did not give guidance in its earnings release but said it expects to continue to make significant capital expenditures. Google also will continue spending on hiring, particularly in engineering and sales, and on technology innovation, specifically search, as well as acquisitions, executives said. "The pace of deals in Q4 shows were at least on the path of one per month," Schmidt said. "We expect that to continue."

Google said it has $24.5 billion in cash and 19,835 full-time employees, up from 19,665 at the end of September.

Executives said advertising was strong during the fourth quarter. "YouTube is monetizing well," Jonathan Rosenberg, senior vice president of product management, said on the conference call. He declined to provide more details.

The company also saw more spending from the bigger advertisers, and advertisers in general are spending more of their ad budgets on the Internet, said Nitesh Arora, head of global sales. "There was an uptick in retail advertisers' online spending," he added.

Meanwhile, the company launched 550 quality enhancements to its search service, expanded the capabilities of its universal search, launched music and real-time search, and the index got bigger and faster, Rosenberg said.

The company is going to "look at making all of our products more social," he said, suggesting that there could eventually be links between a search result and where the searcher is located or what friends of the searcher think of the result.

Schmidt was asked about the situation with China since the company revealed last week attacks on its network from China and monitoring of Gmail users who are human rights activists. As a result, the company says it will stop censoring its Web results there and has threatened to withdraw from the market if necessary.

"We like the Chinese people. We like our Chinese employees," Schmidt said. "We remain committed to being there."

Executives were also asked about their strategy with the Nexus One Android-based smartphone, which would seem to be putting them in competition with their mobile phone partners in distribution.

"There's been a lot of confusion about that," Schmidt said. "What the Nexus One is really about is a new way of buying a phone. The Nexus One is simply the first of a series of examples where you can purchase a phone online from one or a multiple of manufacturers, provision it online and have it work... So far, our partners have understood that message and they are OK with it."

Source: CNET

Tags: Apple, Google

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
You can use a security key instead of having a code sent to your phone
 
Adobe says that the AI can now achieve the intended result in seconds
 
A new security protocol replacing the aging WPA2
 
Download and install at your own risk, of course
 
More iPhone parts likely to be produced by Samsung
 
Starting on Friday, video views on YouTube will start to be counted by the Official Charts Company
 
LG has already announced two new V-series members in 2018
 
The method is blocked and the hack doesn’t work, it adds
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
 123456
78910111213
14151617181920
21222324252627
28293031   




Poll

Do you use microSD card with your phone?
or leave your own version in comments (11)