Feeds

Google tops $1.5bn in Q3

It's considerably richer than Yahoo!

The next step in data security

The Google money making machine stormed through Q3 2005, grossing $1.578bn in revenues and clearing a profit of $381m. That's up from $1.384bn and $342m in Q2, and $1.256bn and $369m in Q1 respectively. Earning per share was $1.32 (diluted), up from $1.19 per share in Q2.

Google's own sites provided most of the growth, accounting for 56 per cent of total revenue, 20 per cent higher than Q2. Google partner sites generated 43 per cent of revenue, a 7 per cent increase sequentially. This is where Google is most vulnerable: the cost of sales on partner properties is higher and they're vulnerable to competition. See How Microsoft can 'kill' Google (Simple - just buy its customers).

Cost of revenue - largely traffic acquisitions costs (TAC) - was $653.8m, up from $597m sequentially. As the results suggest, while revenue growth remains strong, the company continues to invest in payroll. Google added 700 staff in Q3 alone, bringing the head count to 4,989.

How does Google compare with neighbor and rival Yahoo!, which also reported this week?

Yahoo! reported a gross income of $1.329m and net income of $253m for the quarter. Yahoo!s R&D expenses at $141m, which is roughly in line with Google's $151m and it boasted lower Traffic Acquisition Costs of $597m versus Google's $653m.Yahoo!'s sales and marketing expenses were much higher at $265.7m than Google's at $104.9m.

Yahoo! has $2.94bn immediately to hand for potential acquisitions. However thanks to its recent share issue, Google now has a war chest of $7.62bn in cash and ready stock.

But Yahoo! can respond that with its more diversified business, it hasn't put all its colored balls in one basket.®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.