Feeds

Google earnings soar despite paid click dip

Take that, Doubting Thomases

High performance access to file storage

Google has stuck it to the naysayers by reporting higher-than-expected earnings - even as the weakening US economy and research showing a slowdown in ad clicks raised doubts about the search king's continued prospects. Shares, which have declined about 35 per cent this year, rose 17 per cent following the report.

The Mountain View, California-based company said it earned $1.31bn, or $4.12 per share, during the first three months of the year. That's a 31 per cent increase from net income of $1bn, or $3.18 per share, in the same period last year. Excluding expenses for employee stock options, Google would have earned $4.84 a share, 32 cents higher than analysts had expected.

Revenue rose 42 per cent, from $3.66bn to $5.19bn.

To be sure, some of Google's performance was the result of the rise of overseas currencies, which added $202m to sales. But the company's Q1 numbers also show that a recent drop in "paid clicks" did not hurt business like so many expected it would..

In recent months, market researcher comScore issued multiple reports showing the number of people clicking on Google ads didn't grow as quickly as it has in the past. That, combined with a slackening US economy, caused some people to think that Google's streak was over. Google's recent stock slide wiped out more than $75bn in market value.

But it would appear Google's phenomenal growth machine hasn't run out of gas quite yet. The company claims that the dip in paid clicks was part of an effort to improve ad relevance and increase revenue for advertisers. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
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
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.