Feeds

Google shares clobbered after earnings miss

Profits slide

Top three mobile application threats

Google's stock fell 15 per cent in after-hours trading after it posted earnings that slumped below analyst expectations.

At least it's in good company - Yahoo! and eBay have also been punished recently for posting what by any standards are healthy results. But Google's profits declined from the previous quarter, and that was enough to send its shares into a nose dive.

By some estimates Google could see $18bn wiped off the value of the stock tomorrow morning.

Sales at the advertising giant in Q4 rose 86 per cent year-on-year, with Google grossing $1.92bn. Net income was $372m, down from $381m in Q3. "Traffic acquisition costs" (TAC), which Google defines as money it shares with its Adsense partners, cost the company $629m, or exactly one third of its advertising revenues, leaving usable revenue at $1.29bn. Google blamed a higher tax rate, and higher than expected operating costs for the reduced profit. However, unlike most companies, Google fails to provide earnings guidance, which can help smooth out the bumps.

Revenue from Google's own properties generated just over a billion, or 57 per cent of all gross income, with its Adsense program snaring 42 per cent.

The former, which provides Google with much higher margins than the latter, rose 112.5 per cent year-on-year, compared to a 72.9 per cent increase in AdSense.

For FY 2005, Google grossed $6.14bn and reported a net income of $1.47bn.

"We invest with a long-term view of the business. We are going to make some really big bets," Google CEO Eric Schmidt said. And the company can afford to: Google finished the fiscal year with $8bn in the bank. Google has become the internet company onto which the popular media's futurist fantasies are projected, a service performed by Microsoft a decade ago. But even we were perplexed by this one. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.