Feeds

Google fails to excite on revenue surge

Tired of over-achievement

Beginner's guide to SSL certificates

Google's income nearly tripled over the Christmas holiday period, boosted by growing online advertising, but failed to excite investors.

The advertising giant reported a 176 per cent increase in net income for the three months to December 31 to $1.03bn on revenue that jumped 67 per cent to $3.2bn. Earnings per diluted share increased $2.07 to hit $3.29.

Annual net revenue doubled to 110 per cent to $3.07bn on revenue of $10.6bn, an increase of 72 per cent, and EPS that nearly doubled to $7.05.

Money from Google sites increased 80 per cent to $1.98bn in the quarter, accounting for 62 per cent of the pie. Revenue from partners' sites, affiliated through the AdSense engine, grew 50 per cent and accounted for 37 per cent of Google's business.

Traffic acquisition costs (TAC) increased 40 per cent to $976m, but continued its downward march as a proportion of Google's ads business thanks to the health of the overall business. TAC was down almost three percentage points to 30.7 per cent.

So it was a little puzzling that Google was down in after hours trading. Shares in the giant fell by as much as $15, or three per cent, despite Google pretty much hitting expectations.

Either Wall Street is tiring of Google's good fortune and its wanton commitment to keep ploughing juicy revenue back into the business or is getting a little frustrated at a lack of answers over how the $1.65bn YouTube acquisition will translate into search-driven ad revenue and growth.

Chief financial officer George Reyes told investors to expect "significant" investment in Google's technology infrastructure, advertising partnership and internet services, and continued expansion in staffing. Investment will ramp up as Google pushes into video, radio and brand advertising, co-founder and president Sergey Brin said.

On YouTube, executives promised integration with Google search "overtime" but would not be drawn on specifics or break out revenue. The company, meanwhile, said mobile search traffic would increase substantially during 2007. ®

The next step in data security

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
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
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
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.